Regional Office (Senegal, Cabo Verde, The Gambia, Guinea-Bissau, Mauritania)



                                                                                             23-Jun-2020
                                                                                Dated:_______________________


His Excellency Olavo Correia
Vice Prime-Minister and Minister of Finance
Praia, Cabo Verde



Excellency:

                                     Re: Republic of Cabo Verde
                 Access to Finance for Micro, Small and Medium Enterprises Project
                  Amendment to the Financing Agreement (Credit No. 6182-CV)


        We refer to the Financing Agreement (“Agreement”) for the above-mentioned Project, dated
March 22, 2018, between the Republic of Cabo Verde (“Recipient”) and the International Development
Association (“Association”). We also refer to your letter No. 416/GMF/2020 dated June 5, 2020,
requesting specific amendments to the Agreement.

       We are pleased to notify you that the Association concurs with your request and proposes to
amend the Agreement in respect of the provisions below:

1.     Section I.D.1 of Schedule 2 is amended to read as follows:

       “D.       PCG Fund Operational Guidelines.

        1.      The Recipient shall cause the PCG Fund to carry out Part A(iv) of the Project in accordance
        with the provisions and requirements of a set of guidelines satisfactory to the Association
        (“Operational Guidelines”), which shall include, inter alia: (a) eligibility criteria for the selection
        of MSMEs and their PFIs that can benefit from the partial credit guarantee; (b) eligibility criteria
        for existing MSMEs affected by the COVID-19 crisis, including inter alia: assessment of number
        of jobs to be sustained, measure of revenue loss due to COVID-19, compliance with tax and social
        security, existing or lack of collateral; (c) criteria for guaranteeing eligible credits; (d) template of
        the framework agreement with PFIs; (e) investment policy of the PCG Fund; (f) environmental
        and social screening, evaluation and supervision procedures and guidelines, including excluded
        activities set out in the Negative List; and (g) monitoring and evaluation arrangements.”




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               E-mail : worldbank-senegal@worldbank.org - Site web : www.banquemondiale.org/senegal
H.E. Olavo Avelino Garcia Correia                    2                                     _______, 2020


2.        A new Paragraph 5 is added in the Appendix to read as follows; Current Paragraph 5 and subsequent
          paragraphs in said Appendix are renumbered accordingly:

          “5.      “COVID-19” means the coronavirus disease caused by the 2019 novel coronavirus (SARS-
                   CoV-2).”

3.        Paragraph 18 of the Appendix is amended to read as follows:

          “18.     “MSMEs” means Micro, Small and Medium-Sized Enterprises that have annual sales of
                   up to CVE 200 million in line with the Recipient’s intervention scope and have met the
                   eligibility criteria set out in the Operational Guidelines.”

          All other provisions of the Agreement, except as herein amended, shall remain in full force and
effect.

        Please indicate agreement to the foregoing, on behalf of the Recipient, by countersigning and dating
the form of confirmation on the two original copies of this letter provided and returning one original, as
countersigned, to us. Upon receipt by the Association of the copy of this letter countersigned by the
Recipient, this amendment shall become effective as of the date of its countersignature, subject to amending
the Subsidiary Agreement between the Recipient and the Partial Credit Guarantee Fund dated May 28,
2019, in form and substance satisfactory to the Association.

                                          Sincerely,
                           INTERNATIONAL DEVELOPMENT ASSOCIATION



                                _____________________________________
                                            Nathan M. Belete
                                     Country Director for Cabo Verde
                                             Africa Region

CONFIRMED:

REPUBLIC OF CABO VERDE




By: ________________________
      Authorized Representative
                H.E. Dr. Olavo Avelina Garcia Correia
Name: ______________________
                Minister of finance
Title: _______________________
                30-Jun-2020
Date: _______________________