25-Apr-2024 _______________ Honorable Rose N. Nakanaga Secretary Department of Finance and Administration P.O. Box PS 158 Palikir, Pohnpei Federated States of Micronesia Dear Honorable Secretary, Federated States of Micronesia: Project for Strengthening Public Financial Management, and Additional Financing for the Project to Strengthen Public Financial Management (Grant Number D3240 and D9360) Extension of Closing Date We refer to the Financing Agreements between the Federated States of Micronesia (the “Recipient”) and International Development Association (the “Association”) for the above - referenced Project, dated October 1, 2018 and June 18, 2022, respectively. We also refer to the letter from the Department of Finance and Administration dated February 6, 2024, requesting the Association to extend the Closing Date of the above captioned credits provided for under the Financing Agreement. We are pleased to inform you that the request for the extension of the closing date was approved on April 11, 2024, and the Association has established August 25, 2025 as the Closing Date for purposes of Section III.B.2 of Schedule 2 to the Financing Agreement. We would be grateful if you could acknowledge to us receipt of this letter. Sincerely, Stephen N. Ndegwa Country Director Papua New Guinea & Pacific Islands East Asia and Pacific Region 1818 H Street NW  Washington, DC 20433 USA Honorable Rose N. Nakanaga -2- cc: Mr. Randy Sue, Assistant Secretary, Customs & Tax Administration, DoFA Ms. Christina Elnei, Assistant Secretary, Treasury, DoFA Ms. Senny Philip, Assistant Secretary Investment & International Finance, DoFA Mr. Sohs John, Assistant Secretary Budget, DoFA Mr. Gregg Pavitt, PFM Project Manager, Project Implementation Unit (PIU) Mr. Kwame Shiroya, Program Manager, Central Implementation Unit (CIU)