13. pants

A budget containing the

forecast of the level of the Costs for the first 3 year period,

is attached hereto as Annex 3. The Parties acknowledge that such

forecast has no binding value, and as a mere forecast made on the

basis of the information available on the date hereof is subject

to change should not be relied upon by the Parties or by any

other third parties for the calculation of the Costs for the

period considered.

Annex 1 to Costs

Appendix

Estimated EIF

Standard Cost rate for the year 2008

In accordance with the Funding

Agreement, specifically allocated EIF personnel (defined in this

Costs Appendix as "EIF JEREMIE Employees") will carry out the

activities contemplated in the Funding Agreement in connection

with the establishment and operation of the JEREMIE Holding Fund

in Latvia. EIF expects assigned resources to equal 3.5 personnel

for the first three years, as shown below.

In addition to these assigned

resources, the EIF will assign from time to time different

personnel to the required tasks capitalising on the experience of

approximately 100 professionals from EIF's Head Office in

Luxembourg. The contribution of these additional resources is

included in the calculation of the EIF Standard Costs Rate

applicable from year to year, and will therefore entail no

additional cost to the Government of Latvia. These additional

resources will assist the allocated EIF JEREMIE Employees in any

activities relevant for the JEREMIE Holding Fund, including

investment-related activities such as product structuring,

negotiation with financial intermediaries, due diligence reviews,

and legal structuring of any transactions, and back office

activities such as reporting and monitoring of investments, fund

accounting and systems maintenance.

The combination of dedicated

resources working on the mandate and the additional expertise

provided by EIF professionals will be continually managed by the

relationship manager for the Government of Latvia to ensure all

aspects of the Funding Agreement are successfully

implemented.

The table below provides an

estimate of the EIF Standard Cost Rate applicable for the year