2. pants

Each party shall bear its own

insurance costs.

IV DESIGNATION

OF LIAISON OFFICERS

The designation of liaison

officers on behalf of the Host and on behalf of the Bank will be

made by an exchange of letters at a later date.

V ANNUAL MEETING

LIAISON BUREAU IN RIGA

The Host will provide the Bank

from 1 September 1999 with suitably furnished offices to be used

by the Conference Planning Adviser resident in Riga, his

secretarial staff, and Bank staff on mission to Riga. The cost of

installing equipment in these offices and of using such equipment

will be borne by the Bank.

VI

AMENDMENTS

This Memorandum may be amended at

the request of either party provided that both parties agree to

the proposed amendment. Any such amendment shall be in writing

signed by the authorised representatives of the parties.

VII ANNEXES

Annexes to this Memorandum of

Understanding shall be drawn up and agreed between the Parties on

various logistical matters relating to the commitments of each

party in more specific detail. Upon signature on behalf of the

Parties, each such Annex shall form an integral part of this

Memorandum of Understanding.

This Memorandum is signed in

London on 29 May 1998, in four originals: two in English and two

in Latvian. In the event of any difference, the English language

version shall prevail.

For the Government of Latvia For

the European Bank

for Reconstruction and

Development

……………………… ………………………

Roberts Zile Antonio Maria

Costa

Finance Minister, Secretary

General, EBRD

EBRD Governor for Latvia