1. pants

Article 1 of the Agreement shall be amended to read as

follows:

"In contributing to economic

progress and reconstruction, the purpose of the Bank shall be to

foster the transition towards open market-oriented economies and

to promote private and entrepreneurial initiative in the Central

and Eastern European countries committed to and applying the

principles of multiparty democracy, pluralism and market

economics. Subject to the same conditions, the purpose of the

Bank may also be carried out in (i) Mongolia; member countries of

the Southern and Eastern Mediterranean; and (iii) a limited

number of member countries of sub-Saharan Africa; in each case

under (ii) and (iii) as determined by the Bank upon the

affirmative vote of not less than two-thirds of the Governors,

representing not less than three-fourths of the total voting

power of the members. Accordingly, any reference in this

Agreement and its annexes to "Central and Eastern European

countries", "countries from Central and Eastern

Europe", "recipient country (or countries)" or

"recipient member country (or countries)" shall refer

to Mongolia and each of such countries of the Southern and

Eastern Mediterranean and sub-Saharan Africa as well."

a. The term "sub-Saharan Africa" as set out under

Article 1 of the Agreement shall be understood to mean the

sub-Saharan Africa region as defined by the World Bank Group.

b. The limitation on the number of member countries of

sub-Saharan Africa in which the Bank may carry out its purpose as

set out under Article 1 of the Agreement shall be understood so

as to enable a limited and incremental expansion of the

geographic scope of the Bank's operations, in accordance with the

measures and mechanisms set out in the report of Board of

Directors "Amendment of the Agreement Establishing the

European Bank for Reconstruction and Development in order to

enable the limited and incremental expansion of the geographic

scope of the Bank's operations to sub- Saharan Africa and

Iraq". In this context, an affirmative vote of not less

than three- fourths of the Governors, representing not less than

four-fifths of the total voting power of the members shall be

required to approve any further increment to the expansion.

c. Iraq shall be incorporated into the Southern and Eastern

Mediterranean region for the purposes of the Agreement, and

consequently the term "Southern and Eastern

Mediterranean" as set out under Article 1 of the Agreement

shall be understood to mean the region consisting of the

countries that have a shoreline on the Mediterranean as well as

Jordan and Iraq, which are closely integrated into this

region.