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ALBANIAN GUARANTEE AGENCY
February 25, 1998
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re:
Credit No. 3038 ALB
(Private Industry Recovery Project)
Representations
Dear Sirs and Mesdames:
In connection with the Project Agreement of even date herewith between the
International Development Association (the Association) and the Albanian Guarantee
Agency (AGA), AGA hereby undertakes and warrants to the Association that:
1.
AGA is not engaged in litigation as plaintiff or defendant, the outcome of which
might materially and adversely affect its financial condition.
2.
AGA has no outstanding agreements or liabilities, contingent or otherwise
(including taxes) which might materially and adversely affect its financial condition.
3.
No debt of AGA is secured by any mortgage, pledge, charge, priority or other
lien, and no contract or arrangement exists for the creation of any such mortgage,
pledge, charge, priority or other lien.
4.
There are no existing defaults in the payment of principal of, or interest or
other charges on, any of AGA’s debts.
5.
AGA is not in violation of, and execution and delivery of the Project Agreement
and the compliance with all its terms do not and will not result in any violation of,
any provisions of any existing agreement, franchise, concession, license or permit, or
of any statute, law, decree-law, executive decree, regulation or any other legal rule
of a similar nature presently in effect and applicable to AGA.
6.
AGA is a duly existing statutory entity under the laws of Albania with full
authority to carry out the Project and to execute and deliver the Project Agreement
and has furnished to the Association a true copy of Law No. 8267 presently in force
and effect and governing the operations of AGA. \0cIt is our mutual understanding that,
in making the Development Credit and entering into the Development Credit Agreement
with Albania, the Association may rely on the representations contained herein.
Very truly yours,
ALBANIAN GUARANTEE AGENCY
By /s/ A. Dabulla
Authorized Representative