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MEMORANDUM OF UNDERSTANDING

This MEMORANDUM OF UNDERSTANDING (Memorandum) is entered into by and between the Hungarian Export-Import Bank Ltd., an agency of the Republic of Hungary, and the Export-Import Bank of the United States, an agency of the United States of America (collect

FOR IMMEDIATE RELEASE May 2, 2000

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WHEREAS, the Hungarian Export-Import Bank Ltd. is the export credit agency of the Republic of Hungary in charge of promoting the export of Hungarian goods and services through its credit and guarantee programs;

WHEREAS, the Export-Import Bank of the United States supports the export of U.S. goods and services through its insurance, guarantee and direct lending programs, and in particular, seeks to promote the export of environmentally-beneficial goods and services under its Environmental Export Enhancement Program; and

WHEREAS, in order to further cooperation between the Parties both in the area of South-East European economic reconstruction generally and environmentally-beneficial projects particularly, the Parties hereto desire to implement this South-East Europe Reconstruction Credit Initiative (the Initiative) to increase low-cost financial support for projects in the region.

NOW THEREFORE, the Parties hereby intend to work together to:

    1. Identify projects for joint support in South-East Europe.

    2. Select environmentally-beneficial projects that utilize U.S. technologies or services to be financed under the Initiative, which projects may receive the following enhancements:

      a) the maximum allowable OECD repayment terms;

      b) the capitalization of interest during construction; and

      c) local cost coverage equal to 15% of the U.S. contract price.

    3. Establish financial terms and conditions for projects on an individual basis in accordance with each Party's respective programs and policies.

    4. Invite, as appropriate and when possible, each other's representatives to participate in each other's seminars and other business activities.

    5. Exchange technical, commercial and financial information (provided such information does not constitute the disclosure of a banking or business secret to which disclosure the related entity has agreed) to assist each other in making decisions regarding the selection of projects that may be supported under each Party's respective policies and programs.

This Memorandum will be effective as of the date set forth below and may be terminated for any reason by either Party upon thirty (30) days' prior notice to the other Party hereto.

Each Party acknowledges that this Memorandum only establishes an intention to work together and is not intended to be legally binding on either of them and that nothing herein constitutes an obligation, financial or otherwise. All activities contemplated under this Memorandum are subject to the availability of funds and personnel, to each Party's respective programs and policies, as well as to the laws and regulations applicable in each Party's respective country.

EXECUTED AND AGREED to this 3rd day of May, 2000.


HUNGARIAN EXPORT-IMPORT BANK LTD.


EXPORT-IMPORT BANK OF THE UNITED STATES