Conformed Copy - L2947 - Housing Finance Project - Guarantee Agreement

Page 1 CONFORMED COPY LOAN NUMBER 2947 ME (Housing Finance Project) between UNITED MEXICAN STATES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated September 28, 1988 LOAN NUMBER 2947 ME GUARANTEE AGREEMENT AGREEMENT, dated September 28, 1988, between UNITED MEXICAN STATES (the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Bank has received a letter dated May 10, 1988 from the Guarantor describing a program of actions, objectives and policies designed to improve the efficient provision of shelter in the Guarantor's housing sector (hereinafter called the Program), declaring the Guarantor's commitment to the execution of the Program, and the Guarantor and BANCO NACIONAL DE OBRAS Y SERVICIOS PUBLICOS, S.N.C. (the Borrower) having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement, have requested the Bank's assistance in financing the Project as part of such Program; (B) by the Loan Agreement of even date herewith between the Bank and the Borrower, the Bank has agreed to extend to the Borrower a loan in various currencies equivalent to three hundred Page 2 million dollars ($300,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agree to guarantee the obligations of the Borrower in respect of such loan as provided in this Agreement; (C) by an agreement (the Project Agreement) of even date herewith between the Bank and Banco de Mexico (Banxico), Banxico has agreed, as trustee for Fondo de Operaci