<PAGE>
International Bank for Reconstruction and
Development
[LOGO]
Management's Discussion & Analysis
and
Condensed Quarterly Financial Statements
September 30, 1998
(Unaudited)
<PAGE>
Table of Contents
September 30, 1998
<TABLE>
<S> <C>
Management's Discussion and Analysis....................................... 4
Balance Sheet.............................................................. 6
Statement of Income........................................................ 7
Statement of Comprehensive Income ......................................... 8
Statement of Changes in Retained Earnings.................................. 8
Statement of Cash Flows.................................................... 9
Notes to Financial Statements.............................................. 10
Review Report of Independent Accountants................................... 14
</TABLE>
<PAGE>
Management's Discussion and Analysis
This document should be read in conjunction with IBRD's financial statements and
management's discussion and analysis issued for the fiscal year ended June 30,
1998 (FY1998). IBRD undertakes no obligation to update any forward-looking
statements made in such document. Only material changes which occurred during
the first quarter of FY1999 and which may affect IBRD's financial condition and
results of operations are discussed in this document, including policy changes
or other significant matters.
Results of Operations and Financial
Highlights
For the three months ended September 30, 1998 (first quarter of FY1999),
reported net income was $556 million compared with $316 million in the first
quarter of FY1998, an increase of 76%. The main contributing factor to this
increase was a gain of $237 million realized upon liquidation of the
held-to-maturity investment portfolio during the month of September (see Notes
to Financial Statements--Note B). Following the liquidation, the proceeds were
re-invested in floating rate securities yielding at-market rates. The underlying
fixed rate debt which had previously funded this held-to-maturity portfolio (the
held-to-maturity debt) was also swapped into floating rates. The future interest
expense on the held-to-maturity debt is greater than IBRD's current funding cost
in an amount approximately equivalent to the up-front gain of $237 million.
However, the combined effect of selling the held-to-maturity portfolio,
reinvesting the proceeds into bank obligations and swapping the held-to-maturity
debt from fixed to floating rates allowed IBRD to improve the net spread between
the affected assets and liabilities. This gain is approximately $65 million to
be applied over the remaining life of the debt of nine years.
Reported net income for the first quarter of FY1999 also includes the effect of
$68 million of pension income from the Staff Retirement Plan and other
postretirement benefits plans compared to $46 million in the first quarter of
FY1998.
During the first quarter of FY1999 IBRD lending commitments reached $5,152
million. Of this amount, $3,500 million related to adjustment lending prompted
by the financial crises in East Asia and Eastern Europe. At September 30, 1998,
40% of the total amount committed for adjustment lending during the first
quarter was disbursed.
IBRD has reviewed the adequacy of its Accumulated Provision for Loan Losses in
light of changes in economic conditions affecting its borrowers and has
determined it to be adequate at September 30, 1998.
The net return on average interest-earning assets for the first quarter of
FY1999 was 1.67% compared to 1.02% for the first quarter of FY1998 and 0.98% for
the entire fiscal year 1998.
The following are highlights of IBRD's financial performance:
<TABLE>
<CAPTION>
FY99 FY98 FY98
USD Millions 1st Qtr 1st Qtr Full Year
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Net interest in$ome ........... 779 $ 508 $ 1,970
Average interest-earning assets $132,683 $122,659 $127,138
Return on loans ............... 6.70% 6.49% 6.54%
Return on Investments ......... 9.51% 5.76% 5.62%
Cost of borrowings ............ 6.11% 6.04% 6.10%
- --------------------------------------------------------------------------------
</TABLE>
Funding Resources
Equity
IBRD's subscribed capital at the end of the first quarter of FY1999 was $186,436
million, of which $11,288 million has been paid in. IBRD's equity also included
$17,199 million of retained earnings. On July 31, 1998, the Executive Directors
allocated $750 million to the General Reserve and $182 million to the Pension
Reserve out of the net income earned during FY1998.
Pursuant to the Board of Governors' resolution on allocation of FY1998 net
income and transfer from surplus approved on October 8, 1998, an amount of $352
million (in SDRs valued at June 30, 1998) will be transferred, as a grant, to
the International Development Association (IDA) and $100 million, as a grant, to
the Heavily Indebted Poor Countries Debt Initiative Trust Fund. The $352 million
grant to IDA will be drawn upon only after the contributions of other donors to
IDA's Eleventh Replenishment have been received. Management currently
anticipates this transfer to be paid in FY2003.
Borrowings
At September 30, 1998, the borrowings portfolio stood at $109 billion, of which
$49 billion was at variable rates. The currency composition of borrowings
outstanding has not changed significantly during the first quarter of FY1999.
<PAGE>
Management's Discussion and Analysis
New Loan Pricing
IBRD's principal assets are its loans to member countries, which totaled $110
billion outstanding at the end of the first quarter of FY1999. On July 31, 1998,
the Executive Directors approved new loan charges for IBRD loans for which
negotiations began on or after July 31, 1998. The new pricing has the following
features:
- The contractual loan spread above IBRD's funding costs is increased to
75 basis points.
- Introduction of a front-end fee of 100 basis points payable on
effectiveness of the loan.
Interest Waivers
An interest waiver of 25 basis points is in effect for all loans covered by the
new pricing for payment periods commencing in FY1999. For all other loans
eligible for an interest waiver, the waiver is five basis points for payment
periods commencing in FY1999.
<PAGE>
- --------------------------------------------------------------------------------
Balance Sheet
Expressed in millions of U.S. dollars
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1998 June 30, 1998
(Unaudited)
------------------ -------------
<S> <C> <C>
Assets
Due from banks ............................................................................... $ 664 $ 767
Investments--Note B
Trading ................................................................................. 26,633 23,284
Held-to-maturity ........................................................................ -- 2,673
Assets designated for other postretirement benefits--Note C ................................ -- 1,456
Securities purchased under resale agreements--Trading ...................................... 560 466
Nonnegotiable, noninterest-bearing demand obligations on account of subscribed capital ..... 1,752 1,890
Receivable from currency swaps
Investments--Trading .................................................................... 9,235 10,510
Borrowings .............................................................................. 60,854 55,767
Other receivables .......................................................................... 2,771 2,806
Loans outstanding--Note D
Total loans ............................................................................. 162,049 157,641
Less undisbursed balance ................................................................ 51,846 51,065
--------- ---------
Loans outstanding .................................................................... 110,203 106,576
Less accumulated provision for loan losses .............................................. 3,350 3,240
--------- ---------
Loans outstanding net of accumulated provision ....................................... 106,853 103,336
--------- ---------
Other assets--Note C ....................................................................... 2,259 2,016
--------- ---------
Total assets ............................................................................... $ 211,581 $ 204,971
--------- ---------
--------- ---------
Liabilities
Borrowings
Short-term .............................................................................. $ 5,396 $ 6,729
Medium- and long-term ................................................................... 102,398 96,860
--------- ---------
107,794 103,589
Securities sold under repurchase agreements and payable for cash collateral received--Note B
Trading ................................................................................. 662 860
Held-to-maturity ........................................................................ -- 1,374
Payable for currency swaps
Investments--Trading .................................................................... 9,451 10,113
Borrowings .............................................................................. 61,778 57,755
Payable for Board of Governors-approved transfers--Note E .................................. 205 122
Liabilities for other postretirement benefits--Note C ...................................... 91 717
Other liabilities--Note C .................................................................. 4,287 3,927
--------- ---------
Total liabilities .................................................................... 184,268 178,457
--------- ---------
Equity
Capital stock
Authorized (1,581,724 shares--September 30, 1998 and June 30, 1998)
Subscribed (1,545,457 shares--September 30, 1998 and June 30, 1998) ..................... 186,436 186,436
Less uncalled portion of subscriptions .................................................. 175,148 175,148
--------- ---------
11,288 11,288
Amounts to maintain value of currency holdings of paid-in capital stock .................... (596) (554)
Payments on account of pending subscriptions ............................................... 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note E) .................. 17,199 16,733
Accumulated other comprehensive income--Note F ............................................. (585) (960)
--------- ---------
Total equity ......................................................................... 27,313 26,514
--------- ---------
Total liabilities and equity ............................................................... $ 211,581 $ 204,971
--------- ---------
--------- ---------
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Income
Expressed in millions of U.S. dollars
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
September 30
(Unaudited)
-----------------------
1998 1997
---------- --------
<S> <C> <C>
Income
Loans--Note D ...................................................................... $1,835 $1,694
Investments--Note B
Trading ......................................................................... 312 255
Held-to-maturity ................................................................ 284 40
Securities purchased under resale agreements ....................................... 6 6
Income from Staff Retirement Plan and other postretirement benefits plans .......... 68 46
Other .............................................................................. 3 2
------ ------
Total income .................................................................. 2,508 2,043
------ ------
Expenses
Borrowings ......................................................................... 1,631 1,464
Securities sold under repurchase agreements and payable for cash collateral received 27 22
Administrative ..................................................................... 229 195
Provision for loan losses--Note D .................................................. 35 12
Other .............................................................................. -- 4
------ ------
Total expenses ................................................................ 1,922 1,697
------ ------
Operating Income ...................................................................... 586 346
Less contributions to special programs ................................................ 30 30
------ ------
Net Income ............................................................................ $ 556 $ 316
------ ------
------ ------
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Comprehensive Income
Expressed in millions of U.S. dollars
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
September 30
(Unaudited)
1998 1997
------- -------
<S> <C> <C>
Net income ........................ $ 556 $ 316
Other comprehensive income--Note F
Currency translation adjustments 375 (366)
----- -----
Total other comprehensive income .. 375 (366)
----- -----
Comprehensive income (loss) ....... $ 931 $ (50)
----- -----
----- -----
</TABLE>
- --------------------------------------------------------------------------------
Statement of Changes in Retained Earnings
Expressed in millions of U.S. dollars
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
September 30
(Unaudited)
-------------------------
1998 1997
-------- --------
<S> <C> <C>
Retained earnings at beginning of the fiscal year $ 16,733 $ 16,194
Board of Governors-approved transfers--Note E (90) (554)
Net income for the period .................... 556 316
-------- --------
Retained earnings at end of the period .......... $ 17,199 $ 15,956
-------- --------
-------- --------
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Cash Flows
Expressed in millions of U.S. dollars
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended September 30
(Unaudited)
---------------------------
1998 1997
----------- ----------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements ............................................................... $ (3,745) $ (3,289)
Principal repayments and prepayments ........................................ 2,658 3,143
Investments: Held-to-maturity
Purchases of securities and repayments of securities sold under repurchase
agreements ................................................................ (13,266) (6,161)
Maturities of securities and proceeds from securities sold under repurchase
agreements ................................................................ 13,426 6,181
Proceeds from sale of held-to-maturity portfolio ............................ 1,389 --
-------- --------
Net cash provided by (used in) lending and investing activities ........ 462 (126)
-------- --------
Cash flows used for payments for Board of Governors-approved transfers ............ (9) (608)
Cash flows from financing activities
Medium- and long-term borrowings
New issues .................................................................. 3,987 4,597
Retirements ................................................................. (1,597) (4,337)
Net short-term borrowings ...................................................... (1,376) 1,089
Net currency swaps ............................................................. (196) 112
Net capital stock transactions ................................................. 120 31
-------- --------
Net cash provided by financing activities .............................. 938 1,492
-------- --------
Cash flows from operating activities
Net income ..................................................................... 556 316
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization ............................................... 164 185
Provision for loan losses ................................................... 35 12
Net changes in other assets and liabilities ................................. (9) (89)
Gain on sale of held-to-maturity portfolio .................................. (237) --
-------- --------
Net cash provided by operating activities .............................. 509 424
-------- --------
Effect on liquid investments due to decrease in net assets associated with other
postretirement benefits ........................................................ 650 --
Effect of exchange rate changes on unrestricted cash and liquid investments ....... 203 (87)
-------- --------
Net increase in unrestricted cash and liquid investments .......................... 2,753 1,095
Unrestricted cash and liquid investments at beginning of the fiscal year .......... 23,349 16,829
-------- --------
Unrestricted cash and liquid investments at end of the period ..................... $ 26,102 $ 17,924
-------- --------
-------- --------
Composed of
Investments held in trading portfolio .......................................... $ 26,633 $ 18,846
Unrestricted currencies (included in Due from banks) ........................... 51 24
Net payable for investment securities traded/purchased ......................... (264) (514)
Net (payable) receivable from currency swaps--Investments ...................... (216) 30
Net payable for securities purchased/sold under resale/repurchase agreements and
payable for cash collateral received ........................................ (102) (462)
-------- --------
$ 26,102 $ 17,924
-------- --------
-------- --------
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate fluctuations
Loans outstanding ........................................................... $ 2,540 $ (2,399)
Investments: Held-to-maturity ............................................... 13 (44)
Borrowings .................................................................. 2,984 (2,285)
Currency swaps--Borrowings .................................................. (868) 307
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note A--Financial Information
The unaudited condensed financial statements should be read in conjunction with
the June 30, 1998 financial statements and the notes included therein. A review
of the interim financial information for the three months ended September 30,
1998 and 1997, was performed by the International Bank for Reconstruction and
Development's (IBRD) independent public accountants in accordance with standards
established by the American Institute of Certified Public Accountants and by the
International Auditing Practices Committee of the International Federation of
Accountants. In the opinion of management, the condensed financial statements
reflect all adjustments necessary for a fair presentation of IBRD's financial
position and results of operations. The results of operations for the first
three months of the current fiscal year are not necessarily indicative of
results that may be expected for the full year. Certain reclassifications of the
prior period's information have been made to conform to the current period's
presentation.
Note B--Investments
In 1994 IBRD purchased long-term sterling-denominated UK government securities
for the purpose of matching the duration of several sterling-denominated
long-term liabilities. IBRD intended to hold these securities until maturity and
use their proceeds to liquidate the sterling liabilities as they became due.
In September 1998 IBRD decided to take advantage of unusually favorable market
conditions by executing swap agreements that effectively transformed the
sterling liabilities into floating rate obligations. At the same time, the
sterling UK government securities in the held-to-maturity portfolio were
liquidated and the proceeds reinvested in floating rate securities.
At the time of their liquidation, the sterling UK government securities in the
held-to-maturity portfolio had fair and carrying values of $1,389 million and
$1,152 million respectively. This resulted in a realized gain of $237 million
upon liquidation.
Note C--Other Postretirement Benefits Plans
At June 30, 1998, the balance sheet included $1,456 million in assets and $717
million in liabilities related to the Retired Staff Benefits Plan (RSBP). The
benefits of this plan were grouped in accounts of two major types: health and
life insurance benefits, and pension benefits administered outside the Staff
Retirement Plan (SRP), and cover substantially all the staff of IBRD, the
International Finance Corporation (IFC), and the Multilateral Investment
Guarantee Agency (MIGA). During the first quarter of fiscal year 1999 the assets
and liabilities designated for the health and life insurance accounts were
removed from the balance sheet and treated in accordance with Statement of
Financial Accounting Standards (SFAS) 106, "Employer's Accounting for
Postretirement Benefits Other than Pensions". As a result, the assets and
liabilities designated on the balance sheet for other postretirement benefits
were reduced by $806 million and $620 million respectively. The $650 million of
assets that remained on the balance sheet has been incorporated in Trading
investments. The $91 million of liabilities for other postretirement benefits
shown on the balance sheet represents other pension benefits administered
outside the SRP.
The difference between the value of the off-balance sheet assets and liabilities
remaining in the RSBP represents a prepaid postretirement benefits cost. The
portion of this prepaid asset that is attributable to IBRD has been included in
Other Assets on the balance sheet. At September 30, 1998, amounts payable to the
International Development Association (IDA), IFC, and MIGA representing their
shares of the remaining net assets previously designated to satisfy
postretirement benefits totaled $132 million. These amounts are included in
Other Liabilities on the balance sheet.
Note D--Loans and Guarantees
Financial Terms of Loans
For loans negotiated on or after July 31, 1998, the lending spread charged by
IBRD to its borrowers was increased by 25 basis points to 75 basis points. In
addition, a front-end fee of 100 basis points, payable for each such loan at the
time it becomes effective, was introduced.
Waivers of Loan Interest and Charges
For payment periods beginning during the fiscal year ending June 30, 1999, the
Executive Directors have approved an interest waiver of five basis points on
disbursed and outstanding loans, except that for new loans negotiated on or
after July 31, 1998, which carry a 75 basis point lending spread, the interest
waiver is 25 basis points. A waiver of 25 basis points was in effect for the
fiscal year ended June 30, 1998.
<PAGE>
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Notes to Financial Statements
- --------------------------------------------------------------------------------
For the three months ended September 30, 1998 and 1997, the effect of this
waiver was to reduce Net Income by $54 million and $61 million, respectively.
Further, on July 31, 1998, the Executive Directors approved a one-year
commitment charge waiver of 50 basis points on undisbursed loans to all
borrowers for all payment periods commencing in the fiscal year ending June 30,
1999. A similar waiver of 50 basis points was in effect for the fiscal year
ended June 30, 1998. For the three months ended September 30, 1998 and 1997, the
effect of the commitment charge waiver was to reduce Net Income by $52 million
and $54 million, respectively.
Overdue Amounts
At September 30, 1998, no loans payable to IBRD, other than those referred to in
the following paragraphs, were overdue by more than three months.
At September 30, 1998, loans made to or guaranteed by certain member countries
and the Federal Republic of Yugoslavia (Serbia and Montenegro) with an aggregate
principal balance outstanding of $2,089 million ($2,044 million--June 30, 1998),
of which $1,208 million ($1,142 million--June 30, 1998) was overdue, were in
nonaccrual status. At such date, overdue interest and other charges in respect
of these loans totaled $979 million ($948 million--June 30, 1998). If these
loans had not been in nonaccrual status, income from loans for the three months
ended September 30, 1998 would have been higher by $14 million ($31
million--September 30, 1997). A summary of countries with loans in nonaccrual
status follows:
In millions
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
September 30, 1998
-------------------------------------------------------------
Principal Principal, interest and Nonaccrual
Borrower outstanding charges overdue since
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
With overdues
Congo, Democratic Republic of ...................... $ 83 $ 88 November 1993
Congo, Republic of ................................. 69 26 November 1997
Iraq ............................................... 46 74 December 1990
Liberia ............................................ 138 269 June 1987
Sudan .............................................. 6 5 January 1994
Syrian Arab Republic ............................... 64 218(a) February 1987
Yugoslavia, Federal Republic of (Serbia/Montenegro) 1,116 1,507 September 1992
------ ------
Total .............................................. 1,522 2,187
Without overdues
Bosnia and Herzegovina ............................. 567 -- September 1992
------ ------
Total ................................................. $2,089 $2,187
------ ------
------ ------
</TABLE>
- ----------
(a) Represents interest and charges overdue.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
The average recorded investment in nonaccruing loans during the three months
ended September 30, 1998 was $2,054 million ($2,257 million--September 30,
1997).
During the three months ended September 30, 1998 and September 30, 1997, no
loans came out of nonaccrual status.
Accumulated Provision for Loan Losses
An analysis of the changes to the Accumulated Provision for Loan Losses for the
three months ended September 30, 1998 and for the fiscal year ended June 30,
1998 appears below:
In millions
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30 June 30
------------ ----------
<S> <C> <C>
Balance, beginning of the fiscal
year ....................... $ 3,240 $ 3,210
Provision for loan losses ...... 35 251
Translation adjustment ......... 75 (221)
------- -------
Balance, end of the period ..... $ 3,350 $ 3,240
------- -------
------- -------
- -------------------------------------------------------------------------------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,350 million ($3,240
million--June 30, 1998), $1,000 million is attributable to the nonaccruing loan
portfolio at September 30, 1998 ($1,000 million--June 30, 1998).
Guarantees
Guarantees of $2,054 million at September 30, 1998 ($2,047 million--June 30,
1998) were not included in reported loan balances. At September 30, 1998, $363
million of these guarantees were subject to call ($371 million--June 30, 1998).
Fifth Dimension Program
Under the Fifth Dimension program established by IDA in September 1988, a
portion of principal repayments to IDA are allocated on an annual basis to
provide supplementary IDA credits to IDA-eligible countries that are no longer
able to borrow on IBRD terms, but have outstanding IBRD loans approved prior to
September 1988 and have in place an IDA-supported structural adjustment program.
At September 30, 1998, IDA had approved credits of $1,575 million ($1,590
million--June 30, 1998) under this program from inception, of which $1,532
million ($1,531 million--June 30, 1998) had been disbursed to the eligible
countries.
Note E--Retained Earnings, Allocations and Transfers
Retained Earnings is comprised of the following elements at September 30, 1998
and June 30, 1998:
In millions
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30 September 30
--------- ------------
<S> <C> <C>
Special Reserve ...... $ 293 $ 293
General Reserve ...... 15,409 14,659
Pension Reserve ...... 294 112
Surplus .............. 336 426
Unallocated Net Income 867 1,243
------- -------
------- -------
Total ................ $17,199 $16,733
------- -------
------- -------
- -------------------------------------------------------------------------------
</TABLE>
On July 13, 1998, the Board of Governors approved a transfer from Surplus, by
way of grant, in the amount of $90 million to the Trust Fund for Gaza and West
Bank.
On July 31, 1998, the Executive Directors allocated $750 million of the net
income earned in the fiscal year ended June 30, 1998 to the General Reserve and
$182 million to the Pension Reserve, representing the difference between actual
funding of the Staff Retirement Plan (the Plan) and the Plan's accounting
expenses for the fiscal year 1998. This Pension Reserve would be reduced if in
any future fiscal year, pension accounting expenses were to exceed the actual
funding of the Plan. On October 8, 1998, the Board of Governors approved the
following transfers out of unallocated Net Income: an amount equivalent to $210
million in SDRs (valued at June 30, 1998) to IDA by way of grant and a grant of
$100 million to the Heavily Indebted Poor Countries (HIPC) Debt Initiative Trust
Fund. In addition, the Board of Governors also approved that $142 million in
SDRs (valued at June 30, 1998) be transferred to IDA from Surplus by way of
grant. The total amount of these transfers by IBRD to IDA ($352 million) is to
be drawn upon only after all contributions of other IDA donors to IDA's Eleventh
Replenishment have been received.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note F--Comprehensive Income
During the first quarter of fiscal year 1999, IBRD adopted the Statement of
Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income".
SFAS No. 130 defines and establishes the standards for reporting comprehensive
income. Under SFAS No. 130 certain items which historically were not recognized
in the calculation of net income are now included in the broader definition of
comprehensive income. For IBRD comprehensive income includes currency
translation adjustments in addition to net income. These items are presented in
the Statement of Comprehensive Income. The following table presents the changes
in Accumulated Other Comprehensive Income balances for the three months ended
September 30, 1998 and 1997:
<TABLE>
<CAPTION>
In millions
- ------------------------------------------------------------------------------------------------------------------
1998 1997
---------------------------------- -------------------------------
Cumulative Accumulated Other Cumulative Accumulated Other
Translation Comprehensive Translation Comprehensive
Adjustment Income Adjustment Income
---------- ------ ---------- ------
<S> <C> <C> <C> <C>
Balance, beginning of the fiscal year $(960) $(960) $ 85 $ 85
Changes from period activity ........ 375 375 (366) (366)
----- ----- ----- -----
Balance, end of the period .......... $(585) $(585) $(281) $(281)
----- ----- ----- -----
----- ----- ----- -----
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Review Report of Independent Accountants
- --------------------------------------------------------------------------------
Deloitte Touche
Tohmatsu
(International Firm)
1900 M Street NW
Washington, DC
President and Board of Governors
International Bank for Reconstruction and Development
We have reviewed the accompanying condensed balance sheet of the International
Bank for Reconstruction and Development (IBRD) as of September 30,1998, and the
related condensed statements of income, changes in retained earnings, and cash
flows for the three-month periods ended September 30, 1998 and 1997. These
financial statements are the responsibility of IBRD's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants and the International
Auditing Practices Committee of the International Federation of Accountants.
A review of interim financial information consists principally of applying
analytical procedures to financial data and of making inquiries of persons
responsible for financial and accounting matters. It is substantially less in
scope than an audit conducted in accordance with auditing standards generally
accepted in the United States of America or with the International Standards
on Auditing, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to such condensed financial statements for them to be in conformity with
accounting principles generally accepted in the United States of America and
with International Accounting Standards.
We have previously audited, in accordance with auditing standards generally
accepted in the United States of America and with International Standards on
Auditing, the balance sheet, including the summary statement of loans and the
statement of subscriptions to capital stock and voting power, of IBRD as of June
30, 1998, and the related statements of income, changes in retained earnings,
changes in cumulative translation adjustment, and cash flows for the year then
ended (not presented herein); and in our report dated July 29, 1998, we
expressed an unqualified opinion on those financial statements. In our opinion,
the information set forth in the accompanying condensed balance sheet as of June
30, 1998 is fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.
/s/Deloitte Touche Tohmatsu (International Firm)
November 12, 1998
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 1
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Czech Koruna
- ------------
CZK 1 BILLION 12.375% GLOBAL NOTES DUE JULY 20, 2001 717 CZK 1 1,000,000,000 31,214,883 20-JUL-1998
Pounds sterling
- ---------------
GBP 150 MILLION REOPENING GBP 300 MILLION 7.125% DUE 7/30/07 607 GBP 2 150,000,000 251,970,000 22-SEP-1998
GBP 50 mil reopening of the GBP450mil 7.125% due 7/30/07 607 GBP 3 50,000,000 83,990,000 22-SEP-1998
GBP 53 million Euronote due July 13, 2000 716 GBP 1 53,000,000 86,469,500 13-JUL-1998
GBP 23.5 MILLION EURONOTE DUE SEPTEMBER 16, 2000 729 GBP 1 23,500,000 39,374,250 16-SEP-1998
-------------
** Total By Currency 461,803,750
-------------
Greek drachmas
- --------------
GRD 10 BILLION 3 YEAR EUROBONDS DUE JULY 17, 2001 715 GRD 1 10,000,000,000 33,476,165 17-JUL-1998
GRD 10 BILLION 8.50% 3-YEAR NOTES DUE 8/14/01 723 GRD 1 10,000,000,000 33,898,305 14-AUG-1998
GRD 20 billion 8.5% EuroNotes due August 14, 2001 723 GRD 2 20,000,000,000 67,796,610 14-AUG-1998
--------------
** Total By Currency 135,171,080
--------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 2
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Hong Kong dollars
- -----------------
HKD 1 B FRNS DUE 08/2000 718 HKD 1 1,000,000,000 129,044,746 13-AUG-1998
HKD 300 MILLION 9.86% NOTES DUE FEB. 10, 2000 719 HKD 1 300,000,000 38,713,424 10-AUG-1998
HKD 1.0 BILLION 10.75% NOTES DUE AUGUST 25, 2000 724 HKD 1 1,000,000,000 129,043,914 25-AUG-1998
--------------
** Total By Currency 296,802,084
--------------
Italian lire
- ------------
ITL 150 BIL. CALL.STEP-DOWN FIX/REVERSE FLOATER DUE 7/9/13 66 ITL 1 150,000,000,000 83,928,292 09-JUL-1998
ITL 50 BIL. STEP DOWN FIXED/REVERSE BONDS DUE JULY 9, 2013 66 ITL 2 50,000,000,000 27,976,097 09-JUL-1998
ITL 50 BIL STEP DOWN FIXED/REVERSED BONDS DUE JULY 9, 2013 66 ITL 3 50,000,000,000 27,976,097 09-JUL-1998
ITL 50 Bil Increase of 15-year Callable Stepdown bonds 66 ITL 4 50,000,000,000 27,976,097 09-JUL-1998
ITL 150 BILL CALL STEP DOWN FIX/REVERSE FLOATER DUE 7/29/13 68 ITL 1 150,000,000,000 85,418,980 29-JUL-1998
ITL 75 BIL. FIXED REVERSE FLOATER BONDS DUE JULY 29, 2013 68 ITL 2 75,000,000,000 42,709,490 29-JUL-1998
ITL 50 BIL. FIXED REVERSE FLOATER BONDS DUE JULY 29, 2013 68 ITL 3 50,000,000,000 28,472,993 29-JUL-1998
ITL 300 BILL MULTICALLABLE FIXED/REVERSE FLOATER DUE 7/31/13 69 ITL 1 300,000,000,000 171,553,070 31-JUL-1998
ITL 100BN REOPENING FIXED REVERSE FRN DUE 7/31/2013 69 ITL 2 100,000,000,000 57,184,357 31-JUL-1998
ITL 100 BIL. MUTIL CALL REVERSE FLOATER DUE AUGUST 19, 2013 70 ITL 1 100,000,000,000 56,505,156 19-AUG-1998
ITL 50 BIL. MULTI-CALL REVERSE FLOATER DUE AUGUST 19, 2013 70 ITL 2 50,000,000,000 28,252,578 19-AUG-1998
ITL 50 BIL. MULTI CALL REVERSE FLOATER DUE AUGUST 19, 2013 70 ITL 3 50,000,000,000 28,252,578 19-AUG-1998
ITL 40 BIL. 15 YEAR MULTI CALL. REV.FLOATER DUE AUG. 9, 2013 70 ITL 4 40,000,000,000 22,602,062 19-AUG-1998
ITL 300 BILLION MULTI CALL REVERSE FLOATER DUE AUG. 28, 2014 71 ITL 1 300,000,000,000 168,335,999 28-AUG-1998
ITL 100 BILLION 10 YEAR RANGE FLOATER DUE AUGUST 20, 2008 72 ITL 1 100,000,000,000 56,372,646 20-AUG-1998
ITL 150 Bill multicall stepdown fix/reverse float due 9/9/15 73 ITL 1 150,000,000,000 88,430,361 09-SEP-1998
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 3
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ITL 125 BILL MULTICALL STEPDOWN FIX/REVERSE FLOAT DUE9/18/15 74 ITL 1 125,000,000,000 74,570,771 18-SEP-1998
ITL 150Bill multicall stepdown fix/reverse float due 9/29/16 77 ITL 1 150,000,000,000 91,139,979 29-SEP-1998
ITL 100 BILL MULTICALL STEPDOWN FIX/REVERSE FLOAT DUE 9/2018 79 ITL 1 100,000,000,000 60,759,986 29-SEP-1998
--------------
** Total By Currency 1,228,417,589
--------------
New Zealand dollars
- -------------------
NZD 100 MILLION REOPENING 7.25% GLOBAL NOTES DUE 4/9/2001 687 NZD 2 100,000,000 50,850,000 01-JUL-1998
United States dollars
- ---------------------
USD 300M REOPEN OF USD 2BILL 5.75% EURONOTES DUE FEB 6,2008 665 USD 2 300,000,000 300,000,000 18-SEP-1998
USD 200M REOPEN OF USD 2.3BILL 5.75% EURONOTES DUE FEB 6,08 665 USD 3 200,000,000 200,000,000 18-SEP-1998
USD 500 MILLION 5.75% EURONOTE DUE AUGUST 12, 2005 725 USD 1 500,000,000 500,000,000 12-AUG-1998
USD 17 MILLION 5.22% EURONOTES DUE August 7, 2003 726 USD 1 17,000,000 17,000,000 07-AUG-1998
-------------
** Total By Currency 1,017,000,000
-------------
European currency units
- -----------------------
EURO 500 MILLION EUROBOND 4.25% DUE SEPTEMBER 8, 2005 731 XEU 1 500,000,000 564,970,000 08-SEP-1998
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 4
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
South African Rand
- ------------------
ZAR 1 BILLION ZERO COUPON NOTES DUE 4/4/2017 572 ZAR 7 1,000,000,000 158,692,370 21-JUL-1998
ZAR 2 BILLION RE-OPENING OF ZERO COUPON DUE DEC. 29, 2028 638 ZAR 7 2,000,000,000 326,397,400 15-JUL-1998
ZAR 200 million 15% euro-notes due July 30, 2002 (GDIF 720) 720 ZAR 1 200,000,000 31,992,322 30-JUL-1998
ZAR 200 MILLION 16.0% EURO-NOTES DUE AUGUST 14, 2001 722 ZAR 1 200,000,000 31,688,188 14-AUG-1998
ZAR 200 MILLION 16.00% EURO NOTES DUE AUGUST 14, 2001 722 ZAR 2 200,000,000 31,688,188 14-AUG-1998
---------------
** Total By Currency 580,458,468
---------------
---------------
** Total By Source 4,366,687,854
---------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 5
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Private
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Hong Kong dollars
- -----------------
HKD 300 MILLION 11.20% BONDS DUE JULY 8, 2001 711 HKD 1 300,000,000 38,724,668 08-JUL-1998
Japanese yen
- ------------
JPY 2 BILL 20 YR POWERED REV DUAL CURR DUE 9/25/18 75 JPY 1 2,000,000,000 14,723,745 25-SEP-1998
United States dollars
- ---------------------
USD FX LINKED BOND DUE SEPTEMBER 25, 2001 78 USD 1 20,000,000 20,000,000 24-SEP-1998
------------
** Total By Source 73,448,413
------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 6
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Official
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Deutsche mark
- -------------
6.15% DEM Note of 1993, due 1998 (Rollover DEM 255) 279 DEM 1 250,000,000 141,003,948 1-AUG-1998
</TABLE>
* Indicates Partial Maturity
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 7
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Spanish pesetas
- ---------------
10.625 ESB Bonds of 1988, due 1998 2 ESP 1 10,000,000,000 67,640,693 08-SEP-1998
9.75% Spanish Pesetas Bonds of 1993 due 1998 14 ESP 1 10,000,000,000 66,207,627 04-AUG-1998
---------------
** Total By Currency 133,848,320
---------------
Greek drachmas
- --------------
GRD 20 Billion FRN of 1995, due September 7, 1998 511 GRD 1 20,000,000,000 67,170,445 07-SEP-1998
Japanese yen
- ------------
6.60% JPY/AUD Dual Currency Bonds of 1996, due Jul 17, 1998 15 JPY 1 72,036,949 512,172 17-JUL-1998
5.0% JPY/USD Dual Currency Bonds of 1996, due Jul 30, 1998 16 JPY 1 237,933,063 1,674,406 30-JUL-1998
5.10% JPY/USD Dual Currency Bonds of 96, due August 27, 1998 19 JPY 1 32,340,000 224,818 27-AUG-1998
6.62% JPY/AUD Dual Currency Bonds of 1996, due Aug 13, 1998 20 JPY 1 114,285,600 777,982 13-AUG-1998
5.25% Y Bonds of 1988, due 1998 (5th Offering A) Ref.58/20b) 163 JPY 1 69,649,000,000 476,395,349 19-AUG-1998
---------------
** Total By Currency 479,584,727
---------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 8
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States dollars
- ---------------------
USD Zero Coupon of 1985, due 15 Aug. 1998 189 USD 14 17,766,000 17,766,000 15-AUG-1998
--------------
** Total By Source 698,369,492
--------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 9
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Private
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Japanese yen
- ------------
5.40% JPY Bonds of 1988, due Aug. 3, 1998 (Series G) 162 JPY 1 10,000,000,000 70,200,070 03-AUG-1998
</TABLE>
* Indicates Partial Maturity
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 10
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Loans
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
5.80% JPY Loan of 1987, due Feb. 16, 2001 123 JPY 1 1,800,000,000 12,244,898 17-AUG-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1994/2001 125 JPY 3 1,000,000,000 6,925,208 10-AUG-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1996-2001 127 JPY 1 660,000,000 4,673,228 31-JUL-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 131 JPY 1 2,700,000,000 19,494,585 10-JUL-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1993-1998 135 JPY 1 3,000,000,000 20,790,021 21-AUG-1998
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 136 JPY 1 1,350,000,000 9,747,292 10-JUL-1998 *
5.5% JPY Loan of 1988, due Mar.25, 98/03(Ref. #64/JPY 45b) 154 JPY 1 5,900,000,000 43,435,047 25-SEP-1998 *
-------------
** Total By Currency 117,310,279
-------------
Netherlands guilders
- --------------------
8.125% NLG LOAN OF 1985, DUE 1993-2000 72 NLG 1 12,500,000 6,096,966 10-JUL-1998 *
-------------
** Total By Source 123,407,245
-------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 11
SEC Report On Changes in Borrowings
MATURED BORROWINGS (COLTS) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States dollars
- ---------------------
7.45% COLTS DUE 15-SEP-1998 284 USD 1 11,700,000 11,700,000 15-SEP-1998
6.5% COLTS DUE 15-SEP-1998 287 USD 1 3,250,000 3,250,000 15-SEP-1998
5.85% COLTS DUE 15-SEP-1998 288 USD 1 1,000,000 1,000,000 15-SEP-1998
7.5% COLTS DUE 01-JUL-1998 297 USD 1 3,627,000 3,627,000 01-JUL-1998
9.45% COLTS DUE 15-SEP-1998 304 USD 1 25,000 25,000 15-SEP-1998
9.375% COLTS DUE 15-SEP-1998 310 USD 1 1,000,000 1,000,000 15-SEP-1998
7.45% COLTS DUE 15-SEP-1998 351 USD 1 5,000,000 5,000,000 15-SEP-1998
5.85% COLTS DUE 15-SEP-1998 408 USD 1 4,700,000 4,700,000 15-SEP-1998
9.35% COLTS DUE 01-JUL-1998 494 USD 1 2,000,000 2,000,000 01-JUL-1998
9.3% COLTS DUE 01-JUL-1998 496 USD 1 50,000 50,000 01-JUL-1998
9.3% COLTS DUE 01-JUL-1998 497 USD 1 100,000 100,000 01-JUL-1998
9.4% COLTS DUE 15-SEP-1998 504 USD 1 1,000,000 1,000,000 15-SEP-1998
9.52% COLTS DUE 20-JUL-1998 527 USD 1 10,000,000 10,000,000 20-JUL-1998
9.55% COLTS DUE 20-JUL-1998 531 USD 1 250,000 250,000 20-JUL-1998
9.55% COLTS DUE 15-JUL-1998 532 USD 1 7,350,000 7,350,000 15-JUL-1998
9.53% COLTS DUE 20-JUL-1998 536 USD 1 4,880,000 4,880,000 20-JUL-1998
9.55% COLTS DUE 01-AUG-1998 539 USD 1 25,000 25,000 01-AUG-1998
9.65% COLTS DUE 10-JUL-1998 556 USD 1 2,000,000 2,000,000 10-JUL-1998
11% COLTS DUE 15-SEP-1998 597 USD 1 1,000,000 1,000,000 15-SEP-1998
10.5% COLTS DUE 15-SEP-1998 598 USD 1 1,000,000 1,000,000 15-SEP-1998
9.62% COLTS DUE 01-SEP-1998 599 USD 1 10,000,000 10,000,000 01-SEP-1998
0% COLTS DUE 10-AUG-1998 612 USD 1 60,000 60,000 10-AUG-1998
9.75% COLTS DUE 01-SEP-1998 639 USD 1 25,000 25,000 01-SEP-1998
9.77% COLTS DUE 01-SEP-1998 642 USD 1 50,000 50,000 01-SEP-1998
9.77% COLTS DUE 01-SEP-1998 643 USD 1 270,000 270,000 01-SEP-1998
9.8% COLTS DUE 01-SEP-1998 649 USD 1 83,000 83,000 01-SEP-1998
9.75% COLTS DUE 15-SEP-1998 652 USD 1 250,000 250,000 15-SEP-1998
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 12
SEC Report On Changes in Borrowings
MATURED BORROWINGS (COLTS) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Redemption Redemption
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
9.32% COLTS DUE 15-SEP-1998 681 USD 1 500,000 500,000 15-SEP-1998
9.45% COLTS DUE 28-SEP-1998 691 USD 1 25,000 25,000 28-SEP-1998
9.5% COLTS DUE 15-SEP-1998 698 USD 1 50,000 50,000 15-SEP-1998
9.3% COLTS DUE 15-SEP-1998 714 USD 1 425,000 425,000 15-SEP-1998
9.5% COLTS DUE 15-SEP-1998 846 USD 1 300,000 300,000 15-SEP-1998
8.5% COLTS DUE 15-SEP-1998 1309 USD 1 385,000 385,000 15-SEP-1998
9.06% COLTS DUE 15-SEP-1998 1439 USD 1 150,000 150,000 15-SEP-1998
9% COLTS DUE 15-SEP-1998 1441 USD 1 50,000 50,000 15-SEP-1998
9.2% COLTS DUE 28-AUG-1998 1456 USD 1 2,500,000 2,500,000 28-AUG-1998
8.125% COLTS DUE 15-SEP-1998 1540 USD 1 30,000 30,000 15-SEP-1998
8.45% COLTS DUE 03-JUL-1998 1556 USD 1 1,000,000 1,000,000 03-JUL-1998
-------------
** Total By Currency 76,110,000
-------------
-------------
** Total By Source 76,110,000
-------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
NOVEMBER 13, 1998 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
05:04:43 LIABILITIES MANAGEMENT SYSTEM Page 13
SEC Report On Changes in Borrowings
PREPAYMENT ADVICES (MLT) 01-JUL-1998 thru 30-SEP-1998
</TABLE>
Source : Public
<TABLE>
<CAPTION>
Prepayment Prepayment
Description Issue # Currency Tranche Amount US$ Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Italian lire
- ------------
ITL 300 BILLION EURO LIRA CALLABLE 7/22/98 DUE JULY 22, 2004 37 ITL 1 300,000,000,000 170,703,812 22-JUL-1998
</TABLE>
