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July 16, 1992
His Excellency
The Minister of Finance and Economy
Ministry of Finance and Economy
Bulevardi "Deshmoret e Kombit"
Tirana
Albania
Re:
Credit No. 2404 ALB
(Critical Imports Project)
Amendment to the Development Credit Agreement
Excellency:
We refer to the Development Credit Agreement for the above-referenced Project, 
between us, dated June 29, 1992, and to our previous discussions on the subject of 
amending said Agreement to allow for the establishment and operation thereunder of a 
Special Account.
We are pleased to infoorm you that we hereby agree to amend said Agreement as 
follows:
1.
The following new paragraph (g) is added in Section 1.01:
"(g)
'Special Account' means the account referred to in Section 2.02 
(c) of this Agreement."
2.
The following new paragraph (c) is added in Section 2.02
"(c)
The Borrower shall, for the purposes of the Project, open and 
maintain in dollars a special deposit account in a commercial bank, acceptable 
to the Association, on terms and conditions satisfactory to the Association, 
including appropriate protection against set­off, seizure or attachment.  
Deposits into, and payments out of, the Special Account shall be made in 
accordance with the provisions of Schedule 5 to this Agreement."
3.
A new Schedule 5 is added as set for in the Attachment hereto.
Please confirm your agreement to the foregoing by signing, dating and returning 
to us the form of confirmation on the enclosed copy of this letter.
Very truly yours,
By /s/ Jane Loos
Acting Director
Central Europe Department
CONFIRMED
ALBANIA
By /s/ Genc Ruli
Authorized Representative
Minister of Finance and Economy
Date:  July 5, 1992
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Attachment
SCHEDULE 5
Special Account
1.     For the purposes of this Schedule:
(a)
the term "eligible Categories" means Categories (1), (2), (3) and (5) set 
forth in the table in paragraph 1 of Schedule 1 to this Agreement;
(b)
the term "eligible expenditures" means expenditures in respect of the 
reasonable cost of goods and services required for the Project and to be financed out 
of the proceeds of the Credit allocated from time to time to the eligible Categories 
in accordance with the provisions of Schedule 1 to this Agreement; and
(c)
the term "Authorized Allocation" means an amount equivalent to 
US$1,000,000 to be withdrawn from the Credit Account and deposited into the Special 
Account pursuant to paragraph 3 (a) of this Schedule.
2.
Payments out of the Special Account shall be made exclusively for eligible 
expenditures in accordance with the provisions of this Schedule.
3.
After the Association has received evidence satisfactory to it that the Special 
Account has been duly opened, withdrawals of the authorized Allocation and subsequent 
withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Borrower shall furnish 
to the Association a request for a deposit or deposits which do not exceed the 
aggregate amount of the Authorized Allocation.  On the basis of such request or 
requests, the Association shall, an behalf of the Borrower, withdraw from the Credit 
Account and deposit in the Special Account such amount or amounts as the Borrower 
shall have requested.
(b)
(i)
For replenishment of the Special Account, the Borrower shall 
furnish to the Association requests for deposits 
into the 
Special Account at such intervals as the Association shall 
specify.
(ii)
Prior to or at the time of each such request, the Borrower shall 
furnish to the Association the documents and other evidence 
required pursuant to paragraph 4 of this Schedule for the payment 
or payments in respect of which replenishment is requested.  On 
the basis of each such request, the Association shall, on behalf 
of the Borrower, withdraw from the Credit Account and deposit into 
the Special Account such amount as the Borrower shall have 
requested and as shall have been shown by said documents and other 
evidence to have been paid out of the Special Account for eligible 
expenditures.
All such deposits shall be withdrawn by the Association from the Credit Account under 
the respective eligible Categories, and in the respective equivalent amounts, as shall 
have been justified by said documents and other evidence.
4.
For each payment made by the Borrower out of the Special Account, the Borrower 
shall, at such time as the Association shall reasonably request, furnish to the 
Association such documents and other evidence showing that such payment was made 
exclusively for eligible expenditures.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the Association 
shall not be required to make further deposits into the Special
Account:
(a)
if, at any time, the Association shall have determined that all further 
withdrawals should be made by the Borrower directly from the Credit Account in 
accordance with the provisions of Article V of the General Conditions and paragraph 
(a) of Section 2.02 of this Agreement; or
(b)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, less the amount of any outstanding special commitment entered into by the 
Association pursuant to Section 5.02 of the General Conditions with respect to the 
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Project, shall equal the equivalent of twice the the Authorized Allocation.
Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of 
the Credit allocated to the eligible Categories shall follow such procedures as the 
Association shall specify by notice to the Borrower. Such further withdrawals shall be 
made only after and to the extent that the Association shall have been satisfied that 
all such amounts remaining on deposit in the Special Account as of the date  of such 
notice will be utilized in making payments for eligible expenditures.
6.
(a)
If the Association shall have determined at any time that any payment out 
of the Special Account: (i) was made for an expenditure or        in an amount not 
eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the 
evidence furnished to the Association, the Borrower shall, promptly upon notice from 
the Association: (A) provide such additional evidence all the Association may request; 
or (B) deposit into the Special Account (or, if the Association shall so request, 
refund to the Association) an amount equal to the amount of such payment or the 
portion thereof not so eligible or justified.  Unless the Association shall otherwise 
agree, no further deposit by the Association into the Special Account shall be made 
until the Borrower has provided such evidence or made such deposit or refund, as the 
case may be.
(b)
If the Association shall have determined at any time that any amount 
outstanding in the Special Account will not be required to cover further payments for 
eligible expenditures, the Borrower shall, promptly upon notice from the Association, 
refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) 
of this Schedule shall be credited to the Credit Account for subsequent withdrawal or 
for cancellation in accordance with the relevant provisions of this Agreement, 
including the General Conditions.