Caribbean Region - Sixth Caribbean Development Bank Project : Credit 2640 - Loan Agreement - Conformed

LOAN NUMBER 3772 CRG Loan Agreement (Sixth Caribbean Development Back Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and CARIBBEAN DEVELOPMENT BANK Dated , 1994 LOAN NUMBER 3772 CRG LOAN AGREEMENT Agreement, dated t A" , 1994, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and CARIBBEAN DEVELOPMENT BANK (the Borrower), a regional development bank established by and operating under an Agreement entered into at Kingston, Jamaica, on October 18, 1969 by the Governments of the several states and territories which were signatories thereto. WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to the Development Credit Agreement between the Borrower and the International Development Association (the Association) of even date herewith (the Development Credit Agreement), has requested the Bank to assist in the financing of the Project; (B) the Borrower has also requested the Association to provide additional assistance towards the financing of the Project, and by the Development Credit Agreement tha Association is agreeing to provide such assistance in the form of a Credit in an aggregate principal amount equivalent to seven million eight hundred thousand Special Drawing Rights (SDR 7,800,G0) (the Credit) out of which, subject to change from time to time under the provisions of the Development Credit Agreement, five million Special Drawing Rights (SDR 5,000,000) have been estimated sufficient, as of the date herewith, and thus allocated, for purposes of Part B of the Project (the CDB VI Project Credit); (C) the Bank and the Borrower intend, to the extent practicable, that the proceeds of the CDB VI Project Loan (as defined in the Preamble to the Development Credit Agreement) provided for in this Agreement be disbursed on account of expenditures in respect of Part B of the Project ga ei-ass, with disbursements on the proceeds of the CDB VI Project Credit; iand WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: -2- ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements" of the Bank, dated January 1, 1985, with the modifications set forth in Schedule 7 to this Loan Agreement (the General Conditions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the Preamble to this Agreement, the General Conditions and in the Development Credit Agreement except, in the latter case, for those terms that are defined in paragraphs (b), (d) and (f) below, have the respective mee-Aings therein set forth and the following terms have the ,ollowing meanings: (a) "Development Credit Agreement" means the agreement of even date herewith between the Borrower and the Association for the Project, as such agreement may be amended from time to time, and such term includes the "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, as applied to such agreement, and all schedules and agreements supplemental to the Development Credit Agreement; (b) "Eligible Country" means any state or territory that, on the date on which disbursements from the Loan Account have been authorized by the Bank in respect of an IBRD Sub-loan for an Investment Project partially or totally located in such state or territory, was listed in Schedule 5 to this Loan Agreement, as such Schedule may be amended from time to time by the Bank by notice to the Borrower; the term "OECS Eligible Country" means an Eligible Country, as defined herein above, that at the same date referred to above was a member of the Organization; and the term "Government" means the government of an Eligible Country and, if the context so requires for purposes of this Agreement (including the General Conditions), other than authorizations of disbursements from the Loan Account, of any country that at one point in time was either an Eligible Country and later ceased to be so or was not an Eligible Country and later became so; (c) "IBRD Sub-loan" means a loan made or proposed to be made out of the proceeds of the Loan by the Borrower: (i) to a Government for the carrying out of an Investment Project directly or indirectly by means of an Investment into or a Secondary Loan to, an Investment Enterprise or a financial intermediary that shall use the proceeds -3- of the Sub-loan as described in (iii) below; (ii) to an Investment Enterprise, with the guarantee of a Government, for the carrying out by such Investment Enterprise of an Investment Project; or (iii) also with the guarantee of a Government, to a financial intermediary that shall be using the proceeds of the Sub-loan exclusively for the financing of one or more Investment Projects by means of Investments into, or Secondary Loans to, one or more Investment Enterprises which will carry out said Investment Project; and the terms "IDA Sub-loan" and "Sub-loans" have the respective meaning stipulated in Section 1.02 (f) of the Development Credit Agreement; (d) "Secondary Loan" means a loan made or proposed to be made to an Investment Enterprise out of the proceeds of one or more IBRD Sub-loans by: (i) a Government; or (ii) a financial intermediary that has either borrowed from the Borrower under an IBRD Sub-loan or has received proceeds of an IBRD Sub-loan from a Government by means either of an equity contribution or a loan, in both cases for the purposes of making, Itr alia, one or more loans such as the loan in question to one or more Investment Enterprises; provided, however, that, in case of a loan made with the intermediation of financial institutions and exclusively for the purposes of this Agreement, the loan in question shall be deemed made to the Investment Enterprise regardless of the form of such intermediation and the nature of the risk attached thereto; (e) "Prior Loan Agreement" means any of the following agreements: (i) the Loan Agreement between the Bank and the Borrower dated April 20, 1976 (Caribbean Development Bank Project) Loan 1233 CRG; (ii) the Loan Agreeant between the Bank and the Borrower dated April 20, 1976 (Caribbean "Development Bank Project) Loan 1234 T-CRG; (iii) the Loan Agreement between the Bank and the Borrower dated January 9, 1980 (Second Caribbean Development Bank Project) Loan 1775 CRG; and (iv) the Loan Agreement between the Bank and the Borrower dated June 18, 1990 (Fifth Caribbean Development Bank Project) Loan 3200 CRG; and the term "Prior Loan" means a loan provided for under any Prior Loan Agreement; and (f) "Investment" means an equity contribution made or proposed to be made, out of the proceeds of one or more IBRD Sub- loans: (i) into an Investment Enterprise, in case the equity contribution in question is made or proposed to be made, by eithet' a Government or a financial intermediary which has borrowed under %An IBRD Sub-loan for the purposes of making, inter alia, equity contributions into one or more Investment Enterprises; or (ii) into a financial intermediary, when the equity contribution in question -4- is made or proposed to be made by a Government and the financial intermediary in question shall, on its turn, use the proceeds of such equity contribution exclusively to make one or more equity contributions into, or Secondary Loans to, one or more Investment Enterprises. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditicns set forth or referred to in the Loan Agreement, various currencies that shall have an aggregate value equivalent to the amount of twenty million dollars ($20,000,000), being the sum of withdrawals of the proceeds of the Loan, with each withdrawal valued by the Bank as of the date of such withdrawal. Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Section 2.02 of and Schedule 1 to the Development Credit Agreement, for expen- ditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to the Development Credit Agreement and to be financed out of the proceeds of the Loan. (b) Notwithstanding the provisions of Section 5.04 of the General Conditions and except otherwise agreed between the Bank and the Borrower, no reallocation of the proceeds of the Loan shall be made from Category 1 of the table set forth in paragraph I of Schedule 1 to the Development Credit Agreement before the third anniversary of the Effective Date. Any such agreement shall, on the side of the Borrower, be deemed made by the Borrower after consultation with the OECS Eligible Countries. Section 2.03. The Closing Date shall be December 31, 2002 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.04. The Borrower shall pay to the Bank a commitment charge at a rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time, all in accordance with the provision of Section 3.02 of the General Conditions. -5- Section 2.05. (a) The Borrower shall pay interest on the principal amount of the Loan withdrawn and outstanding from time to time, at a rate for each Interest Period equal to the Cost of Qualified Borrowings determined in respect of the preceding Semester, plus one-half of one percent (1/2 of 1%). On each of the dates specified in Section 2.06 of this Agreement, the Borrower shall pay interest accrued on the principal amount outstanding during the preceding Interest Period, calculated at the rate applicable during such Interest Period. (b) As soon as practicable after the ond of each Semester, the Bank shall notify the Borrower and the Guarantor of the Cost of Qualified Borrowings determined in respect of such Semester. (c) For the purposes of this Section: (i) "Interest Pe.iod" means a six-month period ending on the date inediately preceding each date specified in Section 2.06 of this Agreement, beginning with the Interest Period in which this Agreement is signed. (ii) "Cost of Qualified Borrowings" means the cost, as reasonably determined by the Bank and expressed as a percentage per annum, of the outstanding borrowings of thz Bank drawn down after June 30, 1982, excluding slch borrowings or portions thereof as the Bank has allocated to fund: (A) the Bank's investments; and (B) loans which may be made by the Bank after July 1, 1989 bearing interest rates determined otherwise than as provided in paragraph (a) of this Section. (iii) "Semester" means the first six months or the second six months of a calendar year. (d) On such date as the Bank may specify by no less than six months' notice to the Borrower, paragraphs (a), (b) and (c) (iii) of this Section shall be amended to read as follows: "(a) The Borrower shall pay interest on the principal amount of the Loan withdrawn and outstanding from time to time at a rate for each Quarter equal to the Cost of- Qualified Borrowings determined in respect of the preceding Quarter, plus one-half of one percent (1/2 of 1%). On each of the dates -6- specified in Section 2.06 of this Agreement, the Borrower shall pay interest accrued on the principal amount outstanding during the preceding Interest Period, calculated at the rates applicable during such Interest Period." "(b) As soon as practicable after the end of each Quarter, the Bank shall notify the Borrower and each Guarar,tor of the Cost of Qualified Borrowings determined in respect of such Quarter." "(c) (iii) 'Quarter' means a three-month period commencing on January 1, April 1, July 1 or October 1 in a calendar year." Section 2.06. Interest and other charges shall be payable semiannually on April 15 and October 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. Any notice from the Borrower in respect of pre-payment of the Loan or any portion thereof, pursuant to the provisions of Section 3.04 (b) of the General Conditions, shall be deemed by the Bank made by the Borrower on its own behalf and on behalf of and with the consent of the applicable Guarantor. Section 2.08. Except as the Bank shall otherwise agree, the Borrower shall not utilize, or permit the utilization of, the proceeds of the Loan to co-finance projects financed by the proceeds of any other loan or credit made by the Bank or the Association. ARTICLE III Execution of the Project and Financial Covenants Section 3.01. (a) Subject to paragraph (b) of this Section, Sections 3.01, 3.02, 3.04, 4.01, 4.02, 4.03, and 4.04 of the Development Credit Agreement and Schedulea 1 [except for paragraph 3 (a) thereof ] 2, 4 (except for Part B thereof), and 6 to the Development Credit Agreement are, with the following modifications in said Sections and Schedules 2, 4 and 6, hereby incorporated into this Loan Agreement unless the context otherwise requires: (i) the term "Association" shall be read as "Bank"; -7- (ii) the term "Credit" and "Credit Account" shall be read as "Loan" and "Loan Account"; and (iii) the term "this Agreement" shall be read as "the Development Credit Agreement". (b) So long as any part of the Credit provided for under the Development Credit Agreement shall remain outstanding and unless the Borrower has been notified otherwise by the Bank: (i) all action taken, including approvals given, by the Association pursuant to any part of the Sections of, and Schedules to, the Development Credit Agreement enumerated in paragraph (a) of this Section, as well as pursuant to Section 2.02 of the Development Credit Agreement, shall be deemed to be taken or given in the name and on behalf of both the Association and the Bank; and (ii) all information or documentation furnished by the Borrower to the Association pursuant to the provisions of any of such Sections of the Development Credit Agreement or Schedules thereto shall be deemed to be furnished to both the Association and the Bank. ARTICLE IV Remedies of the Bank Section 4.01. Pursuant to Section 6.02 (k) of the General Conditions, the following additional events are specified: (a) the events set out in Section 5.01, except for paragraphs (c) (i) and (c) (iv) thereof, of the Development Credit Agreement, and the stipulations in the proviso to paragraph (c) of such Section 5.01 are incorporated in this Loan Agreement; and (b) any part of the principal amount of any loan to the Borrower having an original maturity of one year or more shall, in accordance with its terms, have become due and payable in advance of maturity as provided in the respective contractual instruments, or any security for any such loan shall have become enforceable. -8- Section 4.02. Pursuant to Section 7.01 (h) of the General Conditions, the following additional events are specified: (a) the events set out in Section 5.02 of the Development Credit Agreement are incorporated in this Loan Agreement; and (b) the event specified in paragraph (b) of Section 4.01 above shall occur. ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as additional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that all conditions precedent to the effectiveness of the Development Credit Agreement other than those related to the effectiveness of this Agreement have been fulfilled. Section 5.02. The date of A , 1995 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. If the Development Credit Agreement shall have terminated prior to the termination of this Agreement, the provisions of the Development Credit Agreement referred to in this Agreement shall continue in full force and effect between the Borrower and the Bank. ARTICLE VI Addresses Section 6.01. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Caribbean Development Bank P.O. Box 408 Wildey St. Michael Barbados, W.I. -9- Cable address: Telex: CARIBANK WB 2287 Barbados For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in Madrid, Spain, as of the day and year first above written. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Aofw& Regional Vice President Latin America and the Caribbean CARIBBEAN DEVELOPMENT BANK B y R e p r e ssn t a t i v Authorized Representative - 10 - SCHEDULES 1, 2, 4 AND 6 Schedules 1, 2, 4 and 6 to the Development Credit Agreement shall be deemed incorporated in this Loan Agreement pursuant to, and in accordance with, Section 3.01 (a) of this Loan Agreement. - 11 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each June 15 and December 15 beginning December 15, 1999 through December 15, 2010 835,000 On June 15, 2011 795,000 * The figures in this column represent dollar equivalents determined as of the respective dates of withdrawal. See General Conditions, Sections 3.04 and 4.03. - 12 - Premiums on Prepayment The following premiums are specified for the purposes of Section 3.04 (b) of the General Conditions: Time of Prepayment Premium The interest rate (expressed as a percentage per annum) applicable to the balance outstanding on the Loan on the day of prepayment multiplied by: Not more than three years 0.18 before maturity More than three years but 0.35 not more than six years before maturity More than six years but 0.65 not more than eleven years before maturity More than eleven years but not 0.88 more than fifteen years before maturity More than fifteen years before 1.00 maturity - 13 - SCHEDULE 5 Eligible Countries Anguilla Belize Dominica Grenada Jamaica Montserrat St. Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago Turks and Caicos Islands - 14 - SCHEDULE 7 Modifications of the General Conditions For purposes of this Loan Agreement, the provisions of the General Conditions are modified as follows: 1. Paragraphs 4, 5, 7, 14 and 15 of Section 2.01 are deleted and replaced by the following paragraphs 4, 5, 7, 14 and 15 and the following new paragraphs 21 and 22 are added to said Sectionz "4. 'Loan' means the loan provided for in the Loan Agreement and, if the context so requires, the term may also mean a portion of the Loan equivalent to the amounts of the Loan withdrawn for the financing of IBRD Sub-loans (as defined below) made to a Guarantor or, with the guarantee or approval of a Guarantor, to any agencies or instrumentalities thereof, and, additionally, any and all IBRD Sub-loans made for the Investment Project or Projects and Regional Investment Projects, described or referred to in Schedules 1 and 2 to the corresponding Guarantee Agreement, respectively." "5. 'Guarantee Agreement' means any agreement between a member of the Bank and the Bank providing for a guarantee in favor of the Bank of a portion or portions of the Loan applied to finance IBRD Sub-loans under the Project, as such agreement may be amended from time to time. 'Guarantee Agreement' includes these General Conditions as applied thereto, and all schedules and agreements supplemental to the Guarantee Agreement." "7. 'Guarantor' means any member of the Bank which is a party to a Guarantee Agreement." "14. ljExternal debt' means any debt which is or may become payable other than in the currency of the country corresponding to the applicable Government." "15. 'Effective Date' means the date on which the Loan Agreement shall enter into effect as provided in Section 12.03." "21. 'CDB Sixth Development Credit Agreement' means the Development Credit Agreement between the Association and the Borrower of even date with the Loan Agreement, and the term - 15 - includes the General Conditions referred to in Section 1.01 of the said Development Credit Agreement as applied thereto, and all schedules and agreements supplemertal to the said Development Credit Agreement as incorporated in the Loan Agreement by virtue of paragraph (a) of Section 3.01 of the Loan Agreement." "22. 'Eligible Country' and 'Government' have the meanings defined in the Loan Agreement and 'IBRD Subloan' and 'Subloan Agreement' have the meaning defined in the CDB Sixth Development Credit Agreement." 2. Section 3.02 is deleted and replaced by the following: "3.02. Commitment Charge. The Borrower shall pay a commitment charge on the unwithdrawn amount of the Loan at the rate specified in the Loan Agreement. Such commitment charge shall accrue in respect of each portion of the Loan allocated to a specific IBRD Sub-loan: (i) from the date on which the Bank has notified the Borrower that the Bank has authorized withdrawals from the Loan Account in respect of the IBRD Sub- loan in question pursuant to sub-paragraph (b) of paragraph 3 of Schedule 1 to CDB Sixth Development Credit Agreement; or (ii) a date sixty days after the date of the Loan Agreement, whichever comes later (such later date hereinafter called the Accrual Date), to the respective dates on which amounts of the aforesaid portion of the proceeds of the Loan allocated to the IBRD Sub-loan in question shall be withdrawn by the Borrower from the Loan Account or shall be cancelled." 3. Paragraph (b) of Section 4.10 is deleted and replaced by the following paragraph: "(b) The principal (including premium, if any) of, and interest and other charges on, the Loan shall be paid without restrictions of any kind imposed by any Government, or in the territory of any Eligible Country, or in the territory where the Borrower is located." 4. Section 5.08 is deleted and replaced by the following Section 5.08: "Section 5.08. Treatment of Taxes. It is the policy of the Bank that no proceeds of the Loan shall be withdrawn on account of payments for any identifiable taxes levied by any - 16 - Government, or in the territory of the corresponding Eligible Country or in the territory where the Borrower is located, on goods or services, or on the importation, manufacture, procurement or supply thereof. To that end, if the amount of any taxes levied on or in respect of any item to be financed out of the proceeds of the Loan decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the percentage for withdrawal set forth or referred to in respect of such item in the Loan Agreement as required to be consistent with such policy of the Bank." 5. Section 5.09. is deleted and replaced by the following Section 5.09: "Section 5.09. Payment by the Bank. The Bank shall pay the amounts withdrawn by the Borrower from the Loan Account only to or on the order of the Borrower or with the prior and specific written request of the Borrower, to or on the order of an agency of a Government~; provided, however, that any request of the Borrower that such amounts be paid to or on the order of an agency of a Government shall be deemed also a representation made by the Borrower to the Bank that: (i) the Borrower has received, and has agreed to, a specific written request from an authorized representative of the Government in question to the effect that such amounts be paid to or on the order of the agency in question; and (ii) that the Borrower is satisfied that the payment in question is made in direct connection with expenditures for the Project eligible for financing under the Loan." 6. Paragraph (a) of Section 6.02 is deleted and replaced by the following paragraph (a): "(a) The Borrower shall have failed to make payment (notwithstanding the fact that such payment may have been made by a third party) of principal, interest, service charges or any other amount due to the Association or the Bank: (i) under any development credit agreement between the Borrower and the Association, including the CDB Sixth Development Credit Agreement, except when the failure to make such payment is related to a corresponding default on the part of an Eligible Country in the payment of debt service or other charges payable pursuant to any agreement, including a Sub-loan Agreement, under which proceeds of the Credit or of a Prior Credit have been relent by the Borrower to such Eligible - 17 - Country, and which has given rise to rights of the Borrower which have been assigned to the Association; or (ii) under any loan agreement between the Borrower and the Bank; or (iii) in consequence of any guarantee or other financial obligation of any kind extended by the Bank to any third party with the agreement of the Borrower, provided, however, that, for purposes of this paragraph a payment made to the Association by a Government (as defined in any agreement referred to in (i) above) upon request from the Association, exercising as assignee of the Borrower the right of the Borrower to receive such payment from such Government, shall not be deemed made by a third party." 7. Paragraph (f) of Section 6.02 is deleted and replaced by the following paragraph: "(f) (i) The Bank shall have dispatched a notice to the Borrower indicating that any country listed in Schedule 5 to the Loan Agreement as an Eligible Country has been deleted therefrom; or (ii) any Eligible Country shall have been suspended from membership in, or not been admitted as or ceased to be a member of, the Bank; or (iii) any Eligible Country shall have ceased to be a member of the International Monetary Fund; provided, however, that any suspension of the right of the Borrower to make withdrawals from the Loan Account based on this paragraph shall be limited to that part of the Loan intended to be used to finance one or more Sub- loans (as defined in the Loan Agreement) to such Eligible Country; and provided further, that the provisions of this paragraph shall not apply, in the case of sub-paragraph (i) above, in respect of any Sub-loan to the Eligible Country in question in respect of which disbursements from the Loan Account have been authorized before the dispatch referred to in such sub-paragraph (i) has taken place." 8. Paragraph (k) of Section 6.02 is relettered as paragraph (1) and a new paragraph (k) is added to said Section to read as follows: "(k) An extraordinary situation shall have arisen under which any further withdrawals under the Loan would be inconsistent with the provisions of Article III, Section 3 of the Bank's Articles of Agreement." - 18 - 9. Section 6.03 is deleted and replaced by the following Section 6.03: "Section 6.03. Cancellation by the Bank. If: (a) the right of the Borrower to make withdrawals from the Loan Account shall have been suspended with respect to any amount of the Loan for a continuous period of thirty days; or (b) at any time, the Bank determines, after consultation with the Borrower, that an amount of the Loan will not be required to finance the Project's costs to be financed out of the proceeds of the Loan; or (c) at any time, the Bank determines that the procurement of any item is inconsistent with the procedures set forth or referred to in the Loan Agreement and establishes the amount of the expenditures in respect of such item which would otherwise have been eligible for financing out of the proceeds of the Loan, and further determines that the amount in question cannot or should not be used in connection with other Investment Project or Projects; or (d) after the Closing Date, an amount of the Loan shall remain unwithdravn from the Loan Account; or (e) by the date specified in paragraph 6 (b) of Part A of Schedule 4 to the CDB Sixth Development Credit Agreement, as incorporated in the Loan Agreement or another date determined pursuant to the provisions of such paragraph: (i) no requests permitted under paragraph 6 (a) of such Part A shall have been received; or (ii) having been so received, shall have been denied, the Bank may, by notice to the Borrower, terminate the right of the Borrower to submit such requests or to make withdrawals from the Loan Account, as the case may be, with respect to such amount or portion of the Loan. Upon the giving of such notice, such amount or portion of the Loan shall be cancelled." 10. The phrase "guaranteed by the Guarantor and" are hereby inserted after the first occurrence of the word "Loan" in line seven of Section 6.07, and the reference to the Guarantee Agreement in such Section shall be understood as a reference to the applicable Guarantee Agreement. 11. The words "or guarantee" are deleted from sub-paragraph (i) of paragraph (c) of Section 7.01. 12. Sub-paragraph (iii) of paragraph (c) of Section 7.01 is hereby deleted and replaced by the following: - 19 - "(iii) under any development credit agreement between the Association and the Borrower (including the CDB Sixth Development Credit Agreement) except when the default in question is related to a corresponding default on the part of a Government or an Eligible Country (as defined in the agreement in question) in the payment of debt service or other payable charges pursuant to any agreement, including a Sub- loan Agreement, under which proceeds of a credit granted by the Association have been relent by the Borrower to such Government or Eligible Country, and which has given rise to rights of the Borrower which have been assigned to the Association." 13. Section 8.01 is hereby deleted and replaced by the following Section: "Section 8.01. Taxes. (a) The principal of, and other charges on, the Loan shall be paid without deduction for, and free from, any taxes levied by a Government, or in the territory of the corresponding Eligible Country or in the territory where the Borrower is located. (b) The Loan Agreement, and any other agreement to which these General Conditions shall be made applicable, shall be free from any taxes levied, by a Government or in the territory of, the corresponding Eligible Country or levied in the territory where the Borrower is located, on or in connection with the execution, delivery or registration thereof." 14. Section 9.02 is deleted and replaced by the following: "Section 9.02. Financial and Economic Data. The Borrower and the Guarantor shall furnish to the Bank all such information as the Bank shall reasonably request with respect to financial and economic conditions in the Guarantor's territory including its balance of payments and its external debt as well as that of its political or administrative subdivisions and any entity owned or controlled by, or operating for the account or benefit of such Eligible Country or any such subdivision, and any institutions performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Eligible Country in question." - 20 - 15. All references to the Guarantee Agreement or to the Guarantor in Sections 12.01 through 12.04 are hereby deleted. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I herely certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development. FOR SECRETARY