OFFICIAL DOCUMENTS CREDIT NUMBER 5368-NI Financing Agreement (Additional Financing for Improving Community and Family Health Care Services Project) between REPUBLIC OF NICARAGUA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated M d , 2014 CREDIT NUMBER 5368-NI FINANCING AGREEMENT Agreement dated MYQ P1-Ch Q A , 2014, entered into between REPUBLIC OF NICARAGUA ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for activities related to the Original Project (as defined in the Appendix to this Agreement). The Recipient and the Association hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to this Agreement) constitute an integral part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II- FINANCING 2.01. The Association agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a credit in the amount of ten million Dollars (USDIO,000,000) (variously, "Credit" and "Financing"), to assist in financing the project described in Schedule I to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section IV of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate payable by the Recipient on the Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of I%) per annum. 2.04. The Service Charge payable by the Recipient on the Withdrawn Credit Balance shall be equal to the greater of: (a) the sum of three-fourths of one percent (3/4 of I %) per annum plus the Basis Adjustment; and (b) three-fourths of one percent (3/4 of 1%) per annum. 2.05. The Payment Dates are February 15 and August 15 in each year. 2.06. The principal amount of the Credit shall be repaid in accordance with the repayment schedule set forth in Schedule 3 to this Agreement. 2.07. The Payment Currency is Dollar. ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient, through MOH, shall: (a) carry out Parts A, B (with the exception of Part B.1(g)) and C (with the exception of Part C.4) of the Project through MOH, with the assistance of MIFAN and MINJUVE in respect of Part B.3; (b) cause CEMED to carry out Part B.1(g) of the Project; and (c) cause INIDE to carry out Part C.4 of the Project, all in accordance with the provisions of Article IV of the General Conditions. 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Recipient and the Association shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Events of Suspension consist of the following: (a) CEMED's Legislation has been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely, in the opinion of the Association, the ability of CEMED to perform any of its obligations under the Project Agreement. (b) CEMED shall have failed to comply with any of its obligations under the CEMED Agreement. (c) The Procurement Law has been amended, suspended, abrogated, repealed or waived so as to render its Article 5(e) ineffective, in the opinion of the Association, and no provision analogous to such Article 5(e) has been adopted to replace said provision. 4.02. The Additional Events of Acceleration consist of any of the following: -2- (a) Any event specified in paragraphs (a) and (c) of Section 4.01 of this Agreement occurs; and (b) The event specified in paragraph (b) of Section 4.01 of this Agreement occurs and is continuing for a period of 60 days after notice of the event has been given by the Association to the Recipient. ARTICLE V -EFFECTIVENESS; TERMINATION 5.01. The Additional Conditions of Effectiveness consist of the following: (a) the CEMED Agreement has been executed on behalf of the Recipient through MOH and CEMED; (b) the Operational Manual has been updated/amended in a manner satisfactory to the Association; and (c) the audited Financial Statements for the period covering May 1, 2011 through December, 31 2012 (both inclusive) referred to in Section II.B.3 of Schedule 2 to the Original Financing Agreement have been furnished to the Association. 5.02. The Additional Legal Matter consists of, namely, that the CEMED Agreement has been duly authorized or ratified by the Recipient through the MOH and CEMED, and is legally binding upon the Recipient and CEMED in accordance with its terms. 5.03. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date ninety (90) days after the date of this Agreement, unless the Association, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section, but in no case later than the eighteen (18) months after the Association's approval of the Financing which expire on August 25, 2015. 5.04. For purposes of Section 8.05 (b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty years after the date of this Agreement. -3- ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is its Minister of Finance and Public Credit. 6.02. The Recipient's Address is: Ministerio de Hacienda y Cr6dito Piblico Avenida Bolivar, Frente a la Asamblea Nacional Managua, Nicaragua Facsimile: (505) 2222-3033 6.03. The Association's Address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INDEVAS 248423 (MCI) 1-202-477-6391 Washington, D.C. -4- AGREED at fW0 90, CO 64