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                        ROMANIA
                                October 2, 1996
International Bank for Reconstruction
   and Development
1818 H Street N.W.
Washington, D.C. 20433
United States of America
Dear Sirs and Mesdames:
           Re: Loan No. 4096 RO
              (Reform of Higher Education and Research Project)
              Indicators
    In connection with the Loan Agreement of this date between
International Bank for Reconstruction and Development (the Bank) and
Romania (the Borrower) for the above-captioned Project, I am writing
on behalf of the Borrower to confirm our understanding and agreement
that, for the purposes of paragraph 1 (a) of Schedule 5 to the Loan
Agreement, and unless the Borrower and the Bank shall otherwise agree,
the expression "indicators satisfactory to the Bank" refers to the
indicators set forth in the Annex hereto.
                         Very truly yours,
                         ROMANIA
                         By /s/ Mircea Geoana
                             Authorized Representative
Enclosure