OFFICIAL DOCUMENTS THE WORLD BANK World Bank Office Croatia IBRD* IDA I WORLD BANKGROUP Radnidka cesta 80/IX, 10000 Zagreb, Croatia Tel: (+3851) 2357 222, Fax: (+3851) 2357 200 diec 2- . 22 , 2017 His Excellency Zdravko Maric Minister of Finance Republic of Croatia Re: Republic of Croatia: Loan No. 8518-HR Innovation and Entrepreneurship Venture Capital Project Amendment Letter Dear Mr. Minister: We refer to the Loan Agreement for the Innovation and Entrepreneurship Venture Capital Project, Loan No. 8518-HR entered into between the International Bank for Reconstruction and Development (the Bank) and the Republic of Croatia (the Borrower) dated July 8, 2015 for the above-referenced Loan ("Loan Agreement"). We also refer to the Borrower's letters dated August 28, 2017 and December 1, 2017, received by the Bank on September 1, 2017 and December 6, 2017, respectively, requesting certain amendments to the Loan Agreement. I am pleased to inform you that, after careful consideration, the Bank bas agreed to the aforementioned requests. Therefore, the Loan Agreement shall be amended as follows: 1. The table in the Section IV.A.2 of Schedule 2 of the Loan Agreement is hereby amended to read as follows: Amount of the Loan Percentage of Allocated Expenditures to be Category financed (inclusive of Taxes) (1) PVC Investments 0 100% (2) PVC Management Operating Costs 0 100% (3) SCI Subprojects 361,891.60 100% (4) Consultants' Services, Training and 21588205 100% Operating Costs (5) Unallocated 0 Cancelled amount as of October 6, 2017, in accordance with the provisions of Schedule 12,000,000 2, Section V.2. of the Loan Agreement Cancelled amount as of December 6, 2017, in accordance with the Section 7.01. of the 7,422,226.35 General Conditions TOTAL AMOUNT 20,000,000 2. The Closing Date in the Section IV.B.2 of Schedule 2 of the Loan Agreement is modified to read December 31, 2017. A revised amortization schedule will be sent to you separately. -2- December22, 2017 Please confirm your agreement to the foregoing amendment by signing and dating the confirmation on the enclosed copy of this Amendment Letter and returning it to us. This amendment will come into force and effect as of the date of your countersignature, upon receipt by the World bank of one countersigned original of this amendment letter. Sincerely, INTERNATIONAL BANK FOR RECTION AND DEVELOPMENT , CouLryMpdger for the Republic of Croatia CONFIRMED AND AGREED: REPUBLIC OF CROATIA By: p~ iQP1)K 11 KIC Title: t1t')fElK C) rwK Date: )E( FmtH , M 1011 Cc: H.E. Martina Dalic, Deputy Prime Minister and Minister of Economy, Entrepreneurship and Crafts Zagreb, Croatia Ms. Natasa Mikus Zigman, State Secreatry, Ministry of Economy, Entrepreneurship and Crafts Ms. Silvija Belajec, Head of Sector, Ministry of Finance Ms. Tatjana Kovac Klemar, Head of Sector, Ministry of Entrepreneurship and Crafts Mr. Vjeran Vrbanec, President of the Management Board, Hamag-Bicro Mr. Frank Heemskerk, Executive Director, the World Bank -3- December 22. 2017 Distribution: Bcc: Messrs/Mmes. Correa, Khan, de Nicola, Kilroy. Milchevski, Lapres (GTCDR); Marijanovic; Viyachka; Weber; Chikushi; Motta; Region: Croatia DL; ECA Safeguards; T&C GP ECA staff HQ; WFALN Zagreb;