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REPUBLIC OF BULGARIA
March 17, 2000
International Bank for
   Reconstruction and Development 
1818 H Street, N.W. 
Washington, D.C.  20433 
United States of America
Re:
Loan No. 4538 BUL
(Environment and Privatization Support Adjustment Loan)
Financial Management
Dear Sirs:
We refer to the Loan Agreement of even date herewith between the Republic of 
Bulgaria (the Borrower) and the International Bank for Reconstruction and Development 
(the Bank) for the Environmental and Privatization Support Adjustment Loan (the Loan 
Agreement). Terms defined in the Loan Agreement shall have the same meaning when used 
in this letter.
1.
The Borrower and the Bank hereby agree that the Borrower will perform the 
obligations set forth in Section 3.02 of the Loan Agreement with respect to the 
Deposit Account on an annual basis until six months after the date on which the Loan 
shall have been disbursed in full and, for the purposes of Section 3.02 of the Loan 
Agreement, the Bank’s request shall be deemed to have been made at the end of each of 
the Borrower’s financial years.
2.
In addition the Borrower also agrees that the following provisions shall apply 
to the account or accounts to be opened by the Ministry of Finance and into which 
amounts will be paid from the central budget for the execution of the Framework 
Remediation Plans, referred to in this letter as the Remediation Account[s]: 
The Borrower shall, for each fiscal year commencing with fiscal year 2000 until 
and including the fiscal year in which expenditures from the Remediation Account[s] 
are equal to or exceed the amount of the Loan:
(i)
have the records and accounts for the Remediation Account[s] for 
each fiscal 
year audited, in accordance with auditing standards 
acceptable to the Bank, 
consistently applied, by independent auditors 
acceptable to the Bank; 
 (ii)
furnish to the Bank as soon as available, but in any case not 
later than six 
months after the end of each such year, an opinion on 
such records and 
accounts and report of such audit, by said 
auditors, of such scope and in such 
detail as the Bank shall have 
reasonably requested; and 
(iii)
furnish to the Bank such other information concerning such records 
and 
accounts, and the audit thereof, and concerning said 
auditors, as the Bank may 
from time to time reasonably request.
It is our understanding that, in making the Loan, the Bank may rely on the 
statements set forth or referred to in this letter.
Very truly yours,
REPUBLIC OF BULGARIA
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By /s/ Muravei Radev
Authorized Representative