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July 20, 1990
The President
National Bank of Hungary
H-1850 Budapest
Szabadsag ter 8-9
Republic of Hungary
          Re:  Loan No. 3228 HU
               (Structural Adjustment Loan)
               Amendment to the Loan Agreement
Dear Sir:
1.        Reference is made to the loan agreement for the above-
captioned loan (Loan Agreement) between the National Bank of Hungary
(the Borrower) and International Bank for Reconstruction and
Development (the Bank), dated June 21, 1990, and to the Borrower's
request to amend the Loan Agreement to facilitate the contracting by
the Borrower of a loan from the Export-Import Bank of Japan for the
financing of imports required during the execution of a program to
achieve structural adjustment of Hungary's economy supported by the
Bank pursuant to the Loan Agreement.
2.        We hereby agree to amend the Loan Agreement as follows:
     (1)  The following paragraph (c) is added to Section 1.02 of
the Loan Agreement:
               "(c)  'EXIMBANK Loan' means the loan
          proposed to be made by the Export-Import
          Bank of Japan to the Borrower to assist in
          the co-financing of the Program."
     (2)  Article IV of the Loan Agreement is amended to read as
set forth in the attachment to this letter.
3.        This amendment shall become effective upon the execution
of the agreement providing for the loan, referred to in paragraph 1
of this letter, between the Borrower and the Export-Import Bank of
Japan.
          Please confirm your agreement to the foregoing by
signing, dating and returning to us the enclosed copy of this
letter.
                              Very truly yours,
                           INTERNATIONAL BANK FOR
                       RECONSTRUCTION AND DEVELOPMENT
                          /s/      Eugenio F. Lari
                                  Director
                            Country Department IV
                     Europe, Middle East and North Africa
                               Regional Office
CONFIRMED: by NATIONAL BANK OF HUNGARY on 7/25/90
                                             Attachment
                      ARTICLE IV
                 Remedies of the Bank
     Section 4.01. Pursuant to Section 6.02 (k) of the General
Conditions, the following additional events are specified:
     (a)  A situation has arisen which shall make it improbable
that the Program, or a significant part thereof, will be carried
out.
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     (b)  (i)  Subject to subparagraph (ii) of this paragraph:
               (A)  the right of the Borrower to withdraw the
                    proceeds of the EXIMBANK Loan shall have
                    been suspended, cancelled or terminated in
                    whole or in part, pursuant to the terms of
                    the agreement providing therefor, or
               (B)  the EXIMBANK Loan shall have become due and
                    payable prior to the agreed maturity
                    thereof.
          (ii) Subparagraph (i) of this paragraph shall not
               apply if the Borrower establishes to the
               satisfaction of the Bank that:  (A) such
               suspension, cancellation, termination or
               prematuring is not caused by the failure of the
               Borrower to perform any of its obligations under
               such agreement; and (B) adequate funds for the
               Project are available to the Borrower from other
               sources on terms and conditions consistent with
               the obligations of the Borrower under this
               Agreement.
     Section 4.02. Pursuant to Section 7.01 (h) of the General
Conditions, the following additional event is specified, namely,
that the event specified in paragraph (b) (i) (B) of Section 4.01 of
this Agreement shall occur, subject to the proviso of paragraph (b)
(ii) of that Section.