INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (ISSUE OF SECURITIES) ORDER (issueofsecurities)

INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT (ISSUE OF SECURITIES)

SUBSIDIARY LEGISLATION 235.01

INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT (ISSUE OF SECURITIES)

ORDER

31st July, 1996

LEGAL NOTICE 147 of 1996, as amended by Legal Notice 411 of 2007.

The title of this Order is International Bank for

Reconstruction and Development (Issue of Securities) Order.

In this Order, unless the context otherwise requires, words

used shall have the same meanings as in the Membership of

International Financial Organisations Act and "security" shall mean

any instrument acknowledging indebtedness.

The Central Bank of Malta is hereby designated as the

depositary for all the holdings of the Bank in Euros for the

purposes of Article V, Section 11 of the Second Schedule to the

Membership of International Financial Organisations Act. For the

purposes of section 3 of the Central Bank of Malta Act approval is

granted for the opening of accounts by the Bank with the Central

Bank of Malta.

Pursuant to Article VII, Section 9(a) of the Second

Schedule to the Membership of International Financial

Organisations Act, the Bank shall not be obliged to collect or

withold any tax on any payment made by it to any person in

relation to any obligation or security issued by the Bank. The Bank

shall neither be bound by any of the provisions of the Income Tax

Act or the Income Tax Management Act, relating to the payment of

any taxes or the filing of any returns in relation to its activities.

Pursuant to Article VII, Section 9(c)(i) of the Second

Schedule to the Membership of International Financial

Organisations Act, any income deriving from any security issued in

Malta by the Bank shall be treated as "investment income" as

defined in section 41 of the Income Tax Act and sections 33 to 42

of the Income Tax Act shall apply to such income subject to the

additional rules or modifications stated in this Order.

In any issues of securities by the Bank, the terms of the

issue shall specify a person in Malta, being a person licensed to

carry on the business of banking under Banking Act, who shall be

nominated to receive the gross payments of principal and interest

on the securities on behalf of the holders of the securities. Such

person shall be obliged to distribute the payments of principal and

interest received on the securities to the holders of the securities

subject to the provisions of the Income Tax Act and shall be the

"payor" for the purposes of the investment income provisions of the

said Income Tax Act and subject to all the relative obligations.

Pursuant to Article VII, Section 9(c)(i) of the Second

Schedule to the Membership of International Financial

INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT (ISSUE OF SECURITIES)

Organisations Act, in addition to the above, no security issued by

the Bank shall be subjected to any taxation, duty or requirement

connected therewith which is other or more burdensome than the

taxation, duty or requirement to which a security issued by a

Maltese entity or resident in the same circumstances is or may be

subjected. In so far as any law or regulation imposes other or more

burdensome taxation, duty or other requirement, such provisions

shall not apply to the securities issued by the Bank and to such

extent.

The Exchange Control Act shall not apply to the activities

of the Bank in Malta and in Euros and shall not apply in particular

to the issue of any security, the entering into any underwriting

agreements or any other agreements relating to the issue and listing

of any securities in Malta, to the collection of sums raised from the

issue of such securities or to any financial transaction in any

currency entered into for operational, hedging or other purposes.