Nicaragua - Second Economic Recovery Credit : Credit 2631 - Agreement - 2 - Conformed

CREDIT NUMBER 2631-3-NI (Amendment) Third Agreement Amending Development Credit Agreement (Second Economic Recovery Credit) between REPUBLIC OF NICARAGUA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1996 DEVELOPMENT CREDIT NUMBER 2631-3-NI (Amendment) THIRD AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 4 , 1996, between the REPUBLIC OF NICARAGUA (the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Second Economic Recovery Credit), dated June 22, 1994, (the 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 (Second Economic Recovery Credit) dated June 22, 1994 whereby additional assistance was made available to the Borrower for the financing of the Program; (C) the Borrower and the Association have entered into a Second Agreement Amending Development Credit Agreement (Second Economic Recovery Credit) dated March 17, 1995 whereby additional assistance was made available to the Borrower for the financing of the Program; (D) the Borrower has requested the Association to provide further additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to three million nine hundred thousand Special Drawing Rights (SDR3,900,000); and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such further 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: -2- (a) in paragraph (o) the deletion therefrom of the amount "SDR1O,625,000" and the substitution therefor of the amount "SDR14,525,000"; (b) deleting the word "and" after paragraph (p), adding the word "and" after paragraph (q) thereof and replacing the period by a semicolon; (c) adding a new paragraph (r) to read as follows: "(r) "Third Amending Agreement" means the Third Agreement Amending Development Credit Agreement (Secon Economic Recovery Credit) between the Borrower and the Association, dated c 1996.". 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 equivalent to fifty six million one hundred and sixty thousand Special Drawing Rights (SDR56,160,000) (the Credit), which includes an original amount in various currencies equivalent to forty two million five hundred thousand Special Drawing Rights (SDR42,500,000), an additional amount in various currencies equivalent to five million three hundred and sixty thousand Special Drawing Rights (SDR5,360,000) (the Additional Financing), an additional amount in various currencies equivalent to four million four hundred thousand Special Drawing Rights (SDR4,400,000) (the Second Additional Financing) and an additional amount in various currencies equivalent to three million nine hundred thousand Special Drawing Rights (SDR3,900,000) (the Third Additional Financing).". Section 1.03. The proviso at the end of Section 2.04 (b) (i) of the Development Credit Agreement is deleted and replaced by the following: "; provided, however, that any commitment charge on: (A) the Additional Financing shall accrue from a date sixty days after the date of the Amending Agreement; (B) the Second Additional Financing shall accrue from a date sixty days after the date of the Second Amending Agreement; and (C) the Third Additional Financing shall accrue from a date sixty days after the date of the Third Amending Agreement;". Section 1.06. A new paragraph 8 is added at the end of Schedule 1 to the Development Credit Agreement: -3- "8. After a date twelve months from the date of the Third 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 Third Additional Financing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the Third Additional Financing from the Credit Account or any part thereof.". ARTICLE II Effective Date; Termination Section 2.01. This 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 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 furnished pursuant to Section 2.01 of this 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 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 Agreement shall come into force and effect on the date upon which the Association shall dispatch to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Agreement. Section 2.04. If this Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Agreement, this Agreement and all obligations of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Agreement had not been executed. -4- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this 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. REPUBLIC OF NICARAGUA By ~(~ Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Latin America and the Caribbean INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International - Development Association. FOR SECRETARY