REPUBLIC OF KIRIBATI
.          JI -  (   ,2015
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re:    IDA Grant Number D006-KI
St cond Economic Reform Development Policy Financing
St ction 5.01 of the General Conditions
F, nancial and Economic Data
Dear Sirs and Mesdames:
In connection with the Financing Agreement (Financing Agreement) of this date between the
Republic of Kiribati (Member Country) and International Development Association (Association)
providing financing (Financing) or the above-captioned Project, and the General Conditions
(General Conditions) made applicaible to the Financing Agreement, I am writing on behalf of the
Member Country to set forth the ft Ilowing:
1.     We understand and agree that, for purposes of Section 5.01 of the General Conditions,
the Member Country is required by the Association:
(a)    to report "long-tc rm external debt" (as defined in the World Bank's Debtor
Reporting System Manual, dated January 2000 (DRSM)), in accordance with the DRSM, and in
particular, to notify the Associati(n of new "loan commitments" (as defined in the DRSM) not
later than 30 days after the end of the quarter during which the debt is incurred, and to notify the
Association of transactions under loans (as defined in the DRSM) once a year, not later than
March 31 of the year following the year covered by the report; and
(b)   to: (i) notify the Association at least three months prior to incurring any non-
concessional long-term external debt, of its intention to incur such debt, together with the
proposed terms of such debt; and (ii) afford the Association a reasonable opportunity to exchange
views with the Member Countty on the matter. For purposes of this paragraph, "non-
concessional long-term external lebt" means any long-term external debt (as defined in the
DRSM), but excluding private clebt (as so defined), with an estimated grant element (GE)
calculated in the manner pu lished from time to time by the Association (see,
www.worldbank.org/ida under "r,ports") of less than (i) 35% or (ii) the GE for determining
concessionality established by the International Monetary Fund in any Extended Credit Facility
arrangement, Standby Credit Facility or Policy Support Instrument with the Member Country in
effect at the time of such notice, w 1iichever is higher.


2.     We represent that no defaults exist in respect of any external debt (as defined in the
DRSM). It is our understanding t hat, in making the Financing, the Association may rely on the
representations set forth or referred to in this letter.
3.     Please confirm  your agreement to the foregoing by having a duly authorized
representative of the Association s gn in the space provided below.
Very truly yours,
R      LI   F KIRIBATI
Authorize  epresentative
AGREED:
International Develo ment A soci, ition
ByA        d
AuthorA6d R eprese