Conformed Copy - L4657 - Second Programmatic Financial and Public Sector Adjustment Loan - Supplemental Letter

Page 1 REPUBLIC OF TURKEY April 24, 2002 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4656 TU (Second Programmatic Financial and Public Sector Adjustment Loan) Loan No. 4657 TU (Second Programmatic Financial and Public Sector Special Adjustment Loan) Financial Management Dear Sirs and Mesdames: We refer to the Loan Agreements of even date herewith between the Republic of Turkey (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the Programmatic Financial and Public Sector Adjustment Loan and the Programmatic Financial and Public Sector Special Adjustment Loan (the Loan Agreements). Terms defined in the Loan Agreements shall have the same meaning when used in this letter. 1. The Borrower and the Bank hereby agree that the Borrower will perform the obligations set forth in Section 3.02 of the Loan Agreements with respect to the Deposit Accounts and related accounts and records and, for the purposes of Section 3.02 of the Loan Agreements, the Bank’s requests shall be deemed to have been made on the date of effectiveness of the Loans as well as the Closing Dates of the Loans. The audits pursuant to Section 3.02 of the Loan Agreements shall be carried out in accordance with terms of reference agreed between the Bank and the Borrower. 2. In addition the Borrower also agrees to submit to the Bank, on a monthly basis, reports on receipts and payments showing the transactions on the Deposit Accounts and related accounts, starting with the receipt of Loan funds from the Bank and ending when the balance on the Deposit Accounts has been reduced to zero. 3. Finally, the Borrower agrees that the Bank may request that its own staff carry out special reviews of the Deposit Accounts and related accounts and records. It is our understanding that in making the Loans the Bank may rely on the statements set forth or referred to in this letter. Very truly yours, REPUBLIC OF TURKEY Page 2 By /s/ Kemal Dervis Authorized Representative