DOCUMENTS Supplemental Letter No. 2 KINGDOM OF MOROCCO July 27, 2012 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 8182-MA (Micrd, Small and Medium Enterprise Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of Section II.A of Schedule 2 to the Loan Agreement between the Kingdom of Morocco (Borrower) and the International Bank for Reconstruction and Development (Bank) for the above-captioned Project, the Borrower hereby confirms to the Bank that the indicators set out in the attachment to this letter shall serve as a basis for the Borrower to mcnitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, KINGDOM 0 MOROCCO By: - Auihorized R resentative Attachment Attachment to Supplemental Letter No. 2 Micro, Small and Medium Enterprise Project Performance Monitoring Indicators Diect Development Objective (PDO): To improve access to finance for micro, small and medium enterprises in the MENA region. 10 Level Results Unit of Cumulative Target Values** Data Source/ Responsibility Other lt Baseline Frequency for Data information licators* Measure YR I YR 2 YR3 YR 4 YR5 Methodology Collection licator 1: Increase in total no % 0* 0% 2% 7% 12% 20% Annual BAM CCG .ISME loans of PFIs licator 2: Increase in the % 0* 0% 1% 3% 6% 10% il volume of outstanding ;ME portfolio of PFIs. (MAD lion) TERMEDIATE RESULTS hanced Outreach to SMEs: For Financing through Risk Sharing Facilities for MSMEs ermediate Result indicator % 0* 0% 2% 7% 12% 20% Semi- CCG CCG Increase in nr of MSME Annual ns covered by guarantees ermediate Result indicator % 0* 0% 1% 3% 6% 10% Increase in volume ofMSME tfolio covered by guarantees 4D million) ermediate Result indicator % 0* 0% 2% 7% 12% 20% Semi- CCG CCG Loans above 1 Increase in nr of loans for Annual million MAD E start-ups covered by irantees ermediate Result indicator % 0* 0% 1% 3% 6% 10% Semi- CCG CCG Loans above 1 'ncrease in volume of loans Annual million MAD SME start-ups covered by trantees(MAD million) ermediate Result indicator % 0* 0% 2% 7% 12% 20% Semi- CCG CCG Loans above I 'ncrease in nr of investment Annual million MAD nsfor existing SMEs covered guarantees ermediate Result indicator % 0* 0% 1% 3% 6% 10% Semi- CCG CCG Loans above 1 ncrease in volume of Annual million MAD ?stment loans for existing Es covered by rrantees(MAD million) ermediate Result indicator % 0* 10% 2% 7% 12% 20% Semi- CCG CCG Loans below I ncrease in nr of loans for Annual million MAD v, UiI VI,IIPT rie . V,e t aovVII 7uarantees ermediateResultindicator % 0* 0% 1% 3%6%10%Semi- CCG CCG Loansbelowl 'ncrease in volume of loans Annual million MAD very small enterprises ered by guarantees(MAD ion) ie baselinefiguresfor all indicators will be as of 31 December 2011.