Malawi - Entrepreneurship Development And Drought Recovery Program : Credit 2396 - Credit Agreement - 2 - Conformed

CREDIT NUMBER 2396 MAI (Amendment) Agreement Amending Development Credit Agreement (Entrepreneurship Development and Drought Recovery Program) between REPUBLIC OF MALAWI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated T , 1993 CREDIT NUMBER 2396 MAI (Amendment) AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 9 , 1993, between REPUBLIC OF HLAWI (the Borrower) and INTERTIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS: (A) the Burrower and the Association have entered into a Development Credit Agreement (Entrepreneurship Development and Drought Recovery Program), dated July 2, 1992 (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 has requested the Association to provide additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such 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 Agree- ment is amended by the deletion of the word "and" at the end of Subsection (b), substituting "; and" for "." at the end of Subsec- tion (c) and adding a new Subsection (d) as follows: "(d) "Amending Agreement" means the Agreement Amending the Development Credit Agreement (Entrepreneurship Development and Drought Recovery Program) between the Borrower and the Association, dated J P 9 1993;". 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 -2- in the Development Credit Agreement, an amount in various currencies equivalent to eighty-nine million six hundred ninety thousand Special Drawing Rights (SDR 89,690,000) (the Credit), which includes an additional amount in various currencies equivalent to four million two hundred ninety thousand Special Drawing Rights (SDR 4,290,000) (the Additional Financing)." Section 1.03. A proviso is added at the end of Section 2.04 (b) of the Development Credit Agreement reading as follows: "; provided, however, that any commitment charge on the Additional Financing shall accrue from a day sixty (60) days after the date of the Amending Agreement." Section 1.04. (a) The amount of the Credit allocated to Category (1) (b) in the table set forth in paragraph 1 of Schedule I to the Development Credit Agreement is increased from SDR 35,000,000 to SDR 39,290,000 and the total amount of the Credit referred to at the end of the said table is increased from SDR 85,400,000 to SDR 89,690,000. (b) Paragraph 6 of Schedule 1 to the Development Credit Agreement is amended by the deletion therefrom of the amount SDR 57,000,000 and the substitution thereof of the amount SDR 61,290,000. Section 1.05. The following paragraph is added at the end of Schedule 1 to the Development Credit Agreement: "8. After a date twelve (12) months from the date of this Amending Agreement, no withdrawals shall be made and no comitment 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 Additional Financing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the Additional Financing from the Credit Account or any part thereof." ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Association shall have -3. been furnished to the Association that the execution and delivery of this Amending 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 Amending 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 Amending 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 Amending Agreement. Section 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending Agreement and all obligations of the parties hereunder shall terminate, unless the Association es- tablishes a later date for the purposes of this Section. If this Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement, as amended to the date of this Amending Agreement, shall continue in full force and effect, as if this Amending Agreement had not been executed. 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 MALAWI Auth6rized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /J/ Edt.c/ dy7zw Regibnal Vice President Africa 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