Conformed Copy - C2128 - Economic Restructuring Credit - Second Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2128 CE (Second Amendment) (Economic Restructuring Credit) between DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated November 30, 1990 CREDIT NUMBER 2128 CE (Second Amendment) SECOND AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated November 30, 1990, between DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Associa- tion). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Economic Restructuring Credit), dated May 2, 1990 (Development Credit Agreement), for the purpose of assisting in the financing of the Program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower and the Association have entered into an Agreement Amending Development Credit Agreement (Economic Restructuring Credit) dated July 13, 1990 (Amending Agreement), for the purpose of providing additional assistance in the financing of the Program; Page 2 (C) the Borrower has requested the Association to provide additional assistance towards the financing of the Program by further increasing the amount made available under the Development Credit Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such additional assistance to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended by deleting the "and" at the end of Subsection (b); substituting "; and" for "." at the end of Subsection (c); and adding a new Subsection (e) as follows: "(e) 'Second Amending Agreement' means the Second Agreement Amending this Agreement." Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equiva- lent to seventy six million eight hundred thousand Special Drawing Rights (SDR 76,800,000) (the Cred- it), which includes an original amount in various currencies equivalent to sixty eight million three hundred thousand Special Drawing Rights (SDR 68,30- 0,000), an additional amount in various currencies equivalent to three million five hundred thousand Special Drawing Rights (SDR 3,500,000) (the Additional Financing), and a further additional amount in various currencies equivalent to five million Special Drawing Rights (SDR 5,000,000) (the Second Additional Financing)." Section 1.03. A further proviso is added at the end of Section 2.04 (b) of the Development Credit Agreement reading as follows: ", and that any commitment charge on the Second Additional Financing shall accrue from a date sixty days after the date of the Second Amend- ing Agreement." Section 1.04. The following paragraph is added at the end of Schedule 1 to the Development Credit Agree- ment: "9. After a date twelve months from the date of this Second Amending Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts to or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the Second Additional Fi- nancing. At any time after such date, the Associa- tion may, by notice to the Borrower, cancel the unwithdrawn amount of the Second Additional Financ- ing from the Credit Account or any part thereof." Page 3 ARTICLE II Effective Date; Termination Section 2.01. This Second Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Second Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be fur- nished pursuant to Section 2.01 of this Second Amending Agreement, there shall be furnished to the Association an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing, on behalf of the Borrower, that this Second Amending Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding upon the Borrower in accordance with its terms. Section 2.03. This Second Amending Agreement shall come into force and effect on the date upon which the Association dispatches to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Second Amending Agreement. Section 2.04. If this Second Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Second Amending Agreement, this Second Amending Agreement and all obliga- tions of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Second Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Second Amending Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Second Amending Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA By /s/ Susantha de Alwis Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Attila Karaosmanoglu Regional Vice President Asia Page 4