Conformed Copy - C2448 - Social Safety Net Sector Adjustment Program - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2448 IN Development Credit Agreement (Social Safety Net Sector Adjustment Program) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated December 17, 1992 CREDIT NUMBER 2448 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 17, 1992, between INDIA, acting by its President (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIA- TION (the Association). WHEREAS (A) the Association has received a letter dated November 30, 1992 from the Borrower describing a program of actions, objectives and policies designed to strengthen the Borrower's social safety net (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Association in the financing of urgently needed imports required during such execution; (B) the Borrower has received from the United States Agency for International Development (USAID) a grant of food aid which will generate in the Borrower's currency the equivalent of thirty five million dollars ($35,000,000) (the USAID Grant) to assist in financing the Program in accordance with the terms and conditions set forth in an agreement dated May 28, 1992 between USAID and the Borrower; Page 2 (C) the Borrower has requested the Minister of Development Cooperation of the Netherlands (the Minister) for a grant in an amount of one hundred million Guilders (Dfl.100,000,000) (the Netherlands Grant) to assist in financing the Program; (D) the Borrower and the Association intend to enter into an agreement (the Netherlands Grant Agreement) making arrangements for the Association to process applications for withdrawal of the proceeds of the Netherlands Grant and regulating certain other matters of common interest in connection with such financing; (E) the Borrower has requested the Federal Republic of Germany for a loan in an amount of fifty million Deutsche Marks (DM 50,000,000) to be provided through the Kreditanstalt fur Wiederaufbau (KfW) (the KfW Loan) to assist in financing the Program; (F) the Borrower has requested the Commission of the European Communities for a grant in an amount of one hundred fifty million European Currency Units (ECU 150,000,000) equivalent (the EC Grant) to assist in financing the Program; (G) the Borrower has requested the Asian Development Bank (ADB) for a loan in an amount of one hundred million dollars ($100 million) (the ADB Loan) to assist in financing the Program; and (H) on the basis, inter alia, of the foregoing, the Asso- ciation has decided to provide such assistance to the Borrower in support of the Program by making the Credit in two tranches as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, with the modifications thereof set forth below (the General Conditions), constitute an integral part of this Agreement: (a) Section 2.01, paragraph 9, shall be modified to read: "