Conformed Copy - C3031 - Rural Finance Project - Supplemental Letter 2

Page 1 REPUBLIC OF MOLDOVA January 28, 1998 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3031 MD (Rural Finance Project) Sub-loans by RFC Dear Sirs: This letter is supplemental to the Development Credit Agreement of this date between the Republic of Moldova (the Borrower) and International Development Association (the Association) for the above Project. Terms defined in the Development Credit Agreement shall have the same meaning when used in this supplemental letter. The Borrower hereby confirms that no value-added tax will be payable by the Rural Finance Corporation on Subloans made by it to Savings and Credit Associations under Part D of the Project. Very truly yours, REPUBLIC OF MOLDOVA By: /s/ Valeriu Chitan Authorized Representative