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Page 1 May 10, 1999 Hon. Edgardo Espiritu Department of Finance Department of Finance Building Roxas Blvd. Manila Republic of the Philippines RE: Banking System Reform Loan Project (LN 4412-PH) Amendment to Loan Agreement Dear Secretary Espiritu: I refer to the Loan Agreement dated December 11, 1998 between the Republic of the Philippines (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-referenced Project (the Loan Agreement), to the Loan Agreement dated February 17, 1999 between the Borrower and the Export-Import Bank of Japan (the EXIMBANK) for the same Project (the EXIMBANK Loan Agreement), and to the Co-lenders