CONFORMED COPY
LOAN NUMBER 1581 RO
Guartee Agreement
(Post Earthquake Construction Assistance Project)
between
THE SOCIALIST REPUBLIC OF ROMANIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Dated June 12, 1978


LOAN NUMBER 1581 RO
GUARANTEE AGREEMENT
AGREEMENT, dated June 12, 1978, between THE SOCIALIST
REPUBLIC OF ROMANIA (hereinafter called the Guarantor) and INTER-
NATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter
called the Bank).
WHEREAS by the Loan Agreement of even date herewith between
the Bank and Banca de Investitii (hereinafter called the Borrower)
the Bank has agreed to make to the Borrower a loan in various cur-
rencies equivalent to sixty million dollars ($60,000,000), on the
terms and conditions set forth in the Loan Agreement, but only on
condition that the Guarantor agree to guarantee the obligations of
the Borrower in respect of such loan as hereinafter provided;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The parties to this Agreement accept all
the provisions of the General Conditions Applicable to Loan and
Guarantee Agreements of the Bank dated March 15, 1974, with
the same force and effect as if they were fully set forth herein
(said General Conditions Applicable to Loan and Guarantee Agree-
ments being hereinafter called the General Conditions).
Section 1.02. Wherever used in this Agreement, unless the
context otherwise requires, the several terms defined in the
General Conditions and in Section 1.02 of the Loan Agreement
have the respective meanings therein set forth.
ARTICLE II
Guarantee; Provision of Funds
Section 2.01. Without limitation or restriction upon any
of its other obligations under the Guarantee Agreement, the
Guarantor hereby unconditionally guarantees, as primary obligor
and not as surety merely, the due and punctual payment of the
principal of, and interest and other charges on, the Loan, and the
premium, if any, on the prepayment of the Loan and the punctual
performance of all the other obligations of the Borrower, pursuant
to the provisions of the Loan Agreement.


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Section 2.02. Without limitation or restriction upon the
provisions of Section 2.01 of this Agreement, the Guarantor
specifically undertakes to provide, as and when needed, the funds,
facilities, services and other resources required for the Project,
and to cause its departments and agencies responsible for carrying
out the Project or any part thereof to cooperate effectively with
each other.
Section 2.03. The Guarantor and the Bank agree that, in order
to realize the purposes of the Project, it shall be necessary that
the requirements set forth in Section 4.01 of the Loan Agreement
will be met, and, to that end, the Guarantor shall cause its
departments and agencies concerned to comply with such require-
ments and shall provide to its departments and agencies concerned,
as and when needed, the funds required for that purpose.
ARTICLE III
Other Covenants
Section 3.01. It is not the practice of the Guarantor to
create liens on its assets as security for external debt. It is
the policy of the Bank, in making loans to, or with the guarantee
of, its members not to seek, in normal circumstances, special
security from the member concerned but to ensure that no other
external debt shall have priority over its loans in the alloca-
tion, realization or distribution of foreign exchange held under
the control or for the benefit of such member. In the event that
the Guarantor shall create a lien on assets of the Guarantor, as
security for any external debt, which will or might result in a
priority for the benefit of the creditor of such external debt in
the allocation, realization or distribution of foreign exchange,
and unless the Guarantor and the Bank shall otherwise agree, the
Guarantor shall simultaneously, at no cost to the Bank, equally
and ratably secure the principal of, and interest and other
charges on, the Loan by an equivalent lien on gold or other freely
convertible foreign exchange assets of the Guarantor. Upon the
creation of any such lien, the Guarantor shall notify the Bank
thereof.
ARTICLE IV
Representative of the Guarantor; Addresses
Section 4.01. The Minister of Finance of the Guarantor is
designated as representative of the Guarantor for the purposes
of Section 11.03 of the General Conditions.


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Section 4.02. The following addresses are specified for
the purposes of Section 11.01 of the General Conditions:
For the Guarantor:                      Telex:
Ministerul Finantelor                   011239 IGFSMFR
Str. Doamnei No. 8                      Bucharest
Bucharest, Romania
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:                     Telex:
INTBAFRAD                          440098 (ITT)
Washington, D.C.                    248423 (RCA)
64145 (WUI)
IN WITNESS WHEREOF, the parties hereto, acting through
their representatives thereunto duly authorized, have caused this
Agreement to be signed in their respective names in the District
of Columbia, United States of America, as of the day and year
first above written.
THE SOCIALIST REPUBLIC OF ROMANIA
By /s/ Nicolae M. Nocolae
Authorized Representative
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
By /s/ M. P. Bart
Acting Regional Vice President
Europe, Middle East and North Africa