<PAGE>
<TABLE>
<S> <C> <C>
THE WORLD BANK 1818 H Street N.W. (202) 477-1234
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS
</TABLE>
File No. 1-3431
REGULATION BW
RULE 2
February 10, 1999
Via Edgar
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
Please find enclosed herewith for filing in compliance with Rule 2 of
Regulation BW:
(a) the Managements Discussion & Analysis and Condensed Quarterly
Financial Statements (Unaudited) of the International Bank for
Reconstruction and Development for the quarter ending December
31, 1998; and
(b) the list of transactions with regard to the Bank's securities
and borrowings during the quarter ending December 31, 1998.
Sincerely yours,
Scott B. White
Chief Counsel, Finance
Attachments
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
[LOGO]
MANAGEMENT'S DISCUSSION & ANALYSIS
AND
CONDENSED QUARTERLY FINANCIAL STATEMENTS
DECEMBER 31, 1998
(UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Table of Contents
December 31, 1998
<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 the International Bank for
Reconstruction and Development's (IBRD) 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. In addition to significant financial highlights, any material
changes which occurred during the second quarter of FY1999 and which may affect
IBRD's financial condition and results of operations are discussed in this
document.
Results of Operations and Financial
Highlights
For the three and six months ended December 31, 1998, reported net income was
$257 million and $813 million, respectively, compared with $133 million and $449
million, for the respective fiscal year 1998 periods. The second quarter
increase of $124 million (93%) over the same period of the prior fiscal year is
due primarily to the $75 million increase in net interest income attributable to
an increased volume in lending operations. In addition to the increases of this
quarter, the primary factor contributing to the year-to-date increase of $364
million (81%) was a gain of $237 million realized upon liquidation of the
held-to-maturity investment portfolio during the first quarter (see Notes to
Financial Statements-Note B).
Reported net income for the three and six months ended December 31, 1998 also
includes the effect of $65 million and $133 million, respectively, of pension
income from the Staff Retirement Plan and other postretirement benefits plans,
compared to $49 million and $95 million, for the respective fiscal year 1998
periods.
At the end of the second quarter of FY1999, IBRD lending commitments reached
$12,678 million. Of this amount, $8,971 million related to adjustment lending in
East Asia, Eastern Europe, and Latin America. At December 31, 1998, 41% of the
total amount committed for adjustment lending during the fiscal year 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 December 31, 1998.
The net return on average interest-earning assets for the second quarter of
FY1999 was 0.71%, compared to 0.42% for the second quarter of FY1998. The fiscal
year-to-date net return on average interest-earning assets for FY1999 and FY1998
was 1.17% and 0.72%, respectively, compared to 0.98% for the fiscal year ended
June 30, 1998.
The following are highlights of IBRD's financial performance:
<TABLE>
<CAPTION>
IN MILLIONS FY99 FY98 FY99 FY98 FY98
2nd Qtr 2nd Qtr Year to Date Year to Date Full Year
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net interest income ............................... $ 558 $ 483 $ 1,337 $ 992 $ 1,970
Average interest-earning assets ................... $ 143,169 $ 124,442 $ 137,928 $ 123,553 $ 127,138
Return on loans ................................... 6.72% 6.44% 6.71% 6.47% 6.54%
Return on investments ............................. 5.03% 5.67% 7.08% 5.71% 5.62%
Cost of borrowings ................................ 6.13% 6.09% 6.12% 6.07% 6.10%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
FUNDING RESOURCES
Equity
IBRD's subscribed capital at the end of the second quarter of FY1999 was
$186,436 million, of which $11,288 million has been paid in. IBRD's equity also
included $17,004 million of retained earnings.
Borrowings
At December 31, 1998, total borrowings, after swaps, stood at $115,695 million,
of which $56,552 million was at variable rates. The currency composition of
borrowings outstanding has become more U.S. dollar- based as IBRD's borrowers
have increasingly selected U.S. dollar-denominated loans and also reflects
significant swap activity undertaken during the second quarter to complete the
conversion of currencies funding loans which were converted from multicurrency
pool loans into single currency pool terms.
NEW LENDING INSTRUMENT
During the second quarter of FY1999, IBRD established a new lending instrument,
the Special Structural Adjustment Loan (SSAL), in order to respond to the needs
of borrowers experiencing significant economic difficulties from recent
financial market crises throughout the world. At December 31, 1998 $3,030
million of SSALs had been committed (see Notes to Financial Statements-Note D
for a discussion of the financial terms of these loans).
ECONOMIC AND MONETARY UNION IN EUROPE (EMU)
To address the changes required by EMU, which became effective January 1, 1999,
IBRD has adopted a phased approach to converting its operations from legacy
currencies to the euro, rather than converting all of its operations to euro at
once. Since there is no financial incentive to either IBRD or its borrowers to
convert to euro immediately, IBRD will undertake a gradual conversion that
provides flexibility for each business area to modify its business processes,
databases, and systems in response to its specific needs.
For new loans and guarantees after January 1, 1999, the euro is one of the
currencies offered by IBRD.
<PAGE>
BALANCE SHEET
EXPRESSED IN MILLIONS OF U.S. DOLLARS
<TABLE>
<CAPTION>
December 31, 1998 June 30, 1998
(Unaudited)
---------- ------------
ASSETS
<S> <C> <C>
Due from banks ......................................................................................... $ 671 $ 767
Investments Note-B
Trading ............................................................................................. 28,768 23,284
Held-to-maturity .................................................................................... 2,673
Assets designated for other postretirement benefits-Note C ............................................. 1,456
Securities purchased under resale agreementsTrading .................................................... 7 466
Nonnegotiable, noninterest-bearing demand obligations on account of subscribed capital ................. 1,720 1,890
Receivable from currency swaps
InvestmentsTrading .................................................................................. 12,574 10,510
Borrowings .......................................................................................... 73,891 55,767
Loans outstanding Note-D
Total loans ......................................................................................... 169,831 157,641
Less undisbursed balance ............................................................................ 52,961 51,065
--------- ---------
Loans outstanding ................................................................................ 116,870 106,576
Less accumulated provision for loan losses .......................................................... 3,560 3,240
--------- ---------
Loans outstanding net of accumulated provision ................................................... 113,310 103,336
--------- ---------
Other assets Note-C .................................................................................... 5,166 4,822
--------- ---------
Total assets ........................................................................................... $ 236,107 $ 204,971
--------- ---------
--------- ---------
Liabilities
Borrowings
Short-term .......................................................................................... $ 5,626 $ 6,729
Medium- and long-term ............................................................................... 109,652 96,860
Securities sold under repurchase agreements and payable for cash collateral received Note-B
Trading ............................................................................................. 320 860
Held-to-maturity .................................................................................... -- 1,374
Payable for currency swaps
InvestmentsTrading .................................................................................. 13,581 10,113
Borrowings .......................................................................................... 74,308 57,755
Payable for Board of Governors-approved transfers Note-E ............................................... 677 122
Liabilities for other postretirement benefits Note-C ................................................... 91 717
Other liabilities ...................................................................................... 4,107 3,927
--------- ---------
Total liabilities ................................................................................ 208,362 178,457
--------- ---------
Equity
Capital stockAuthorized (1,581,724 sharesDecember 31, 1998 and June 30, 1998)
Subscribed (1,545,457 sharesDecember 31, 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 ................................ (406) (554)
Payments on account of pending subscriptions ........................................................... 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note E) .............................. 17,004 16,733
Accumulated other comprehensive incomeNote F ........................................................... (148) (960)
--------- ---------
Total equity ..................................................................................... 27,745 26,514
--------- ---------
Total liabilities and equity ........................................................................... $ 236,107 $ 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 Six Months Ended
December 31 December 31
(Unaudited) (Unaudited)
--------------- ---------------
1998 1997 1998 1997
------ ------ ------ ------
<S> <C> <C> <C> <C>
Income
Loans-Note D ............................................................ $1,947 $1,680 $3,782 $3,374
Investments-Note B
Trading .............................................................. 360 263 672 518
Held-to-maturity ..................................................... -- 43 284 83
Securities purchased under resale agreements ............................ 3 15 9 21
Income from Staff Retirement Plan and other postretirement benefits plans 65 49 133 95
Other ................................................................... 12 2 15 4
------ ------ ------ ------
Total Income ....................................................... 2,387 2,052 4,895 4,095
------ ------ ------ ------
Expenses
Borrowings .............................................................. 1,747 1,494 3,378 2,958
Securities sold under repurchase agreements and payable for cash ........ 5 24 32 46
collateral received
Administrative .......................................................... 225 201 454 396
Provision for loan losses Note-D ........................................ 115 168 150 180
Other ................................................................... 5 1 5 5
------ ------ ------ ------
Total expenses ..................................................... 2,097 1,888 4,019 3,585
------ ------ ------ ------
Operating Income ........................................................... 290 164 876 510
Less contributions to special programs ..................................... 33 31 63 61
------ ------ ------ ------
Net Income ................................................................. $ 257 $ 131 $ 813 $ 449
------ ------ ------ ------
------ ------ ------ ------
</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 Six Months Ended
December 31 December 31
(Unaudited) (Unaudited)
---------------- ---------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income ................................. $ 257 $ 133 $ 813 $ 449
Other comprehensive income Note-F
Currency translation adjustments ........ 437 (335) 812 (701)
------ ------ ------ ------
Total other comprehensive income (loss)..... 437 (335) 812 (701)
------ ------ ------ ------
Comprehensive income (loss) ................ $ 694 $ (202) $1,625 $ (252)
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
STATEMENT OF CHANGES IN RETAINED EARNINGS
EXPRESSED IN MILLIONS OF U.S. DOLLARS
<TABLE>
<CAPTION>
Six Months Ended
December 31
(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 ...................... (542) (554)
Net income for the period ......................................... 813 449
Retained earnings at end of the period ............................... $17,004 $16,089
------- -------
------- -------
</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>
Six Months Ended December 31
(Unaudited)
-------------------------------
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements ............................................................... $ (9,547) $(11,245)
Principal repayments and prepayments ........................................ 4,983 5,584
Investments: Held-to-maturity
Purchases of securities and repayments of securities sold under repurchase .. (13,266) (8,938)
agreements
Maturities of securities and proceeds from securities sold under repurchase . 13,426 8,956
agreements
Proceeds from sale of held-to-maturity portfolio ............................ 1,389 --
-------- --------
Net cash provided by (used in) lending and investing activities ........ (3,015) (5,643)
-------- --------
Cash flows used for payments for Board of Governors-approved transfers ............ (9) (597)
Cash flows from financing activities
Medium- and long-term borrowings
New issues .................................................................. 12,606 8,542
Retirements ................................................................. (6,400) (8,968)
Net short-term borrowings ...................................................... (1,188) 5,982
Net currency swaps ............................................................. (7) 41
Net capital stock transactions ................................................. 133 77
-------- --------
Net cash provided by financing activities .............................. 5,144 5,674
-------- --------
Cash flows from operating activities
Net income ..................................................................... 813 449
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization ............................................... 291 398
Provision for loan losses ................................................... 150 180
Net changes in other assets and liabilities ................................. 32 54
Gain on sale of held-to-maturity portfolio .................................. (237) --
-------- --------
Net cash provided by operating activities .............................. 1,049 1,081
-------- --------
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 ....... 324 (98)
-------- --------
Net increase in unrestricted cash and liquid investments .......................... 4,143 417
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 ..................... $ 27,492 $ 17,246
-------- --------
-------- --------
Composed of
Investments held in trading portfolio .......................................... $ 28,768 $ 17,479
Unrestricted currencies (included in Due from banks) ........................... 53 49
Net payable for investment securities traded/purchased ......................... (9) (96)
Net (payable) receivable from currency swapsInvestments ........................ (1,007) 242
Net payable for securities purchased/sold under resale/repurchase agreements and (313) (428)
payable for cash collateral received
-------- --------
$ 27,492 $ 17,246
-------- --------
-------- --------
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate fluctuations
Loans outstanding ........................................................... $ 5,730 $ (4,611)
Investments: Held-to-maturity ............................................... 13 6
Borrowings .................................................................. 6,243 (4,356)
Currency swaps-Borrowings ................................................... (1,564) 699
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENT
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 and six months ended December
31, 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 six 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.
During the first quarter of fiscal year 1999, 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 covered 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 were incorporated into Trading
investments. Liabilities of $91 million for other postretirement benefits shown
on the balance sheet represent 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 asset that is attributable to IBRD has been included in Other
Assets on the balance sheet. In November 1998 IBRD paid a combined total of $132
million to the International Development Association (IDA), IFC, and MIGA which
represented their shares of the remaining net assets previously designated to
satisfy postretirement benefits.
NOTE D-LOANS AND GUARANTEES
Financial Terms of Loans
During the first quarter of fiscal year 1999, the lending spread charged by IBRD
to its borrowers was increased by 25 basis points to 75 basis points for loans
negotiated on or after July 31, 1998. In addition, a front-end fee of 100 basis
points, payable for each such loan at the time it becomes effective, was
introduced.
On October 22, 1998, IBRD established a new lending instrument, the Special
Structural Adjustment Loan (SSAL), in order to respond to the needs of borrowers
experiencing significant economic difficulties from recent financial market
crises throughout the world. SSAL terms include a six-month USD LIBOR equivalent
interest rate plus a minimum fixed spread which is currently set at 400 basis
points, but may vary over time depending on IBRD's overall risk-bearing
<PAGE>
NOTES TO FINANCIAL STATEMENT
capacity and market conditions. These loans have a maturity of five years with a
three-year grace period, a front-end fee of one percent of the principal amount
payable on effectiveness, and are not eligible for waivers of interest or
commitment charges.
Waivers of Loan Interest and Charges
For payment periods beginning during the fiscal year ending June 30, 1999, an
interest waiver of five basis points on disbursed and outstanding loans to
eligible borrowers is in effect, 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. For the three and six months ended December 31,
1998, the effect of this waiver was to reduce Net Income by $18 million and $72
million, respectively, compared to $61 million and $122 million, for the
respective fiscal year 1998 periods.
A one-year commitment charge waiver of 50 basis points is in effect on
undisbursed eligible 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 and six months
ended December 31, 1998, the effect of the commitment charge waiver was to
reduce Net Income by $55 million and $107 million, respectively, compared to $55
million and $109 million for the respective fiscal year 1998 periods.
Overdue Amounts
At December 31, 1998, no loans payable to IBRD, other than those referred to in
the following paragraph, were overdue by more than three months.
At December 31, 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 $2,146 million ($2,044 million-June 30, 1998),
of which $1,260 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 $1,015 million ($948 million-June 30, 1998). If these
loans had not been in nonaccrual status, income from loans for the three and six
months ended December 31, 1998 would have been higher by $17 million and $31
million, respectively, compared to $25 million and $56 million for the
respective fiscal year 1998 periods. A summary of countries with loans in
nonaccrual status follows:
<TABLE>
<CAPTION>
IN MILLIONS
--------------------------------------------------------------------------------------------------------------------------
December 31, 1998
--------------------------------------------------------------------------------------------------------------------------
Borrower Principal Principal, Nonaccrual since
outstanding interest and
charges overdue
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
With overdues
Congo, Democratic Republic of ..................... 84 95 November 1993
Congo, Republic of ................................ 71 32 November 1997
Iraq .............................................. 46 76 December 1990
Liberia ........................................... 143 286 June 1987
Sudan ............................................. 6 5 January 1994
Syrian Arab Republic .............................. 67 206(1) February 1987
Yugoslavia, Federal Republic of (Serbia and
Montenegro) .................................... 1,148 1,575 September 1992
-------- --------
Total ............................................. 1,565 2,275
Without overdues
Bosnia and Herzegovina ............................ 581 -- September 1992
-------- --------
Total ................................................ $ 2,146 $ 2,275
-------- --------
-------- --------
</TABLE>
- --------------------------------------------------------------------------------
1 Represents interest and charges overdue.
<PAGE>
NOTES TO FINANCIAL STATEMENT (Continued)
The average recorded investment in nonaccruing loans during the three and six
months ended December 31, 1998 was $2,125 million and $2,090 million,
respectively, compared to $2,086 million and $2,188 million for the respective
fiscal year 1998 periods.
During the six months ended December 31, 1998 and December 31, 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
six months ended December 31, 1998 and for the fiscal year ended June 30, 1998
appears below:
<TABLE>
<CAPTION>
In millions
December 31 June 30
------- -------
<S> <C> <C>
Balance, beginning of the fiscal
year ....................................... $ 3,240 $ 3,210
Provision for loan losses ..................... 150 251
Translation adjustment ........................ 170 (221)
------- -------
Balance, end of the period .................... $ 3,560 $ 3,240
------- -------
------- -------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,560 million ($3,240
million-June 30, 1998), $1,000 million is attributable to the nonaccruing loan
portfolio at December 31, 1998 ($1,000 million-June 30, 1998).
Guarantees
Guarantees of $2,239 million at December 31, 1998 ($2,047 million-June 30, 1998)
were not included in reported loan balances. At December 31, 1998, $362 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 December 31, 1998, IDA had approved credits of $1,604 million ($1,590
million-June 30, 1998) under this program from its inception, of which $1,551
million ($1,531 million-June 30, 1998) had been disbursed to the eligible
countries.
NOTE E-RETAINED EARNINGS, ALLOCATIONS AND TRANSFERS
Retained Earnings was comprised of the following elements at December 31, 1998
and June 30, 1998:
<TABLE>
<CAPTION>
In millions
- -------------------------------------------------------------
December 31 June 30
------------- ----------
<S> <C> <C>
Special Reserve ...... $ 293 $ 293
General Reserve ...... 15,409 14,659
Pension Reserve ...... 294 112
Surplus .............. 195 426
Unallocated Net Income 813 1,243
------------ ---------
Total ................ $ 17,004 $ 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 SRP and its 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 SRP.
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 approved the transfer of $142 million in SDRs (valued at
June 30, 1998) to IDA from Surplus by way of grant. The total amount of these
transfers by IBRD to IDA ($352 million) will be drawn down by IDA after all
other resources available to IDA for purposes of IDA's Eleventh Replenishment
have been drawn down.
At December 31, 1998, all of the above-mentioned Board-approved transfers are
included in Payable for Board of Governors-approved Transfers on the balance
sheet.
<PAGE>
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 comprises currency
translation adjustments and 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 six months ended
December 31, 1998 and 1997:
<TABLE>
<CAPTION>
In millions
Accumulated Other Comprehensive Income(2)
1998 1997
----- -----
<S> <C> <C>
Balance, beginning of the fiscal year ..................... $(960) $ 85
Changes from period activity .............................. 812 (701)
----- -----
Balance, end of the period ................................ $(148) $(616)
----- -----
----- -----
</TABLE>
- --------
2 The total accumulated other comprehensive income represents the cumulative
translation adjustment.
<PAGE>
14 IBRD Condensed Financial Statements
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS
DELOITTE TOUCHE
TOHMATSU
(INTERNATIONAL FIRM)
- -------------------- ----------------------------------------
[LOGO] 1900 M Street NW
Washington, D.C.
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 December 31,
1998, and the related condensed statements of income, comprehensive income,
changes in retained earnings, and cash flows for the three-month and six-month
periods ended December 31, 1998 and 1997. These financial statements are the
responsibility of IBRD's management.
We have 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 each 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 Stated of
America and with International Accounting Standards.
We have previously audited, in accordance with auditing standards generally
accepted in the United State of America and with International Standards on
Auditing, the balance sheet, including the summary statements 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 TOUCH TOHMATSU (INTERNATIONAL FIRM)
January 28, 1999
-----------------------------------------------------
Beijing London Mexico City Moscow New York
Paris Tokyo Toronto
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
<CAPTION>
Description Bond US$ Settlement
Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EURO
- ----
EURO 80M 4.04% EUROBONDS DUE OCTOBER 2008 733 EUR 1 80,000,000 95,840,522 14-OCT-1998
Pounds sterling
- ---------------
GBP 75 MILLION 7% NOTES OF 1998, DUE JUNE 7, 2002 590 GBP 2 75,000,000 128,062,500 05-OCT-1998
GBP 125 MILLION REOPENING OF 7% EUROBOND DUE JUNE 7, 2002 590 GBP 3 125,000,000 211,725,000 27-OCT-1998
GBP 75 MILLION REOPENING OF 7.125% GBP EUROBONDS DUE 2007 607 GBP 4 75,000,000 127,927,500 22-OCT-1998
IBRD 75 Million 6.5% Euronotes of 1998, due January 7, 2003 643 GBP 2 75,000,000 128,197,500 01-OCT-1998
GBP 125 MILLION REOPENING OF GBP 375 MILLION 6.5% 643 GBP 3 125,000,000 212,575,000 16-OCT-1998
GBP 200 MILL REOPEN OF GBP 500M 6.5% EURONOTES DUE 1/7/2003 643 GBP 4 200,000,000 333,580,000 17-NOV-1998
GBP 75 MILL REOPEN OF GBP 700M 6.5% EURONOTES DUE 1/7/2003 643 GBP 5 75,000,000 125,092,500 17-NOV-1998
GBP 100 MILLION REOPENING OF 6.5% EUROBONDS DUE 1/7/2003 643 GBP 6 100,000,000 166,650,002 08-DEC-1998
GBP 50 MILLION REOPENING OF 6.25% EUROBONDS DUE 11/4/1998 659 GBP 2 50,000,000 83,380,000 04-NOV-1998
GBP 50 Mil Reopening of O/S 250 Mil 6.25% bonds due 11/2004 659 GBP 3 50,000,000 82,705,000 26-NOV-1998
GBP 50 MILLION REOPENING OF OUTSTANDING 6.25% 659 GBP 4 50,000,000 82,705,000 26-NOV-1998
GBP 200 Million 5.40% Eurobonds due June 7, 2021 735 GBP 1 200,000,000 338,740,000 07-OCT-1998
GBP 100 mil increase 5.4% Eurobonds due June 7, 2021 735 GBP 2 100,000,000 169,370,000 07-OCT-1998
GBP 50 MILLION REOPENING OF 5.4% EUROBONDS 735 GBP 3 50,000,000 84,115,000 28-OCT-1998
GBP 200 MILLION 5.625% EUROBONDS DUE NOVEMBER 3, 2008 737 GBP 1 200,000,000 335,460,000 03-NOV-1998
GBP 150 MILLION 5.375% EUROBONDS DUE DECEMBER 2001 744 GBP 1 150,000,000 248,143,062 03-DEC-1998
GBP 20 MILLION 5% EUROBOND DUE NOV 6, 2000 748 GBP 1 20,000,000 33,054,000 06-NOV-1998
-------------
** Total By Currency 2,891,482,064
-------------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
<CAPTION>
Description Bond US$ Settlement
Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Greek drachmas
- --------------
GRD 14.5 BILLION 6.45% GLOBAL NOTES DUE 12/02/03 750 GRD 1 14,500,000,000 50,997,077 02-DEC-1998
7-3/8% GRD 20BN EURONOTES OF 1998, DUE 12/11/01 754 GRD 1 20,000,000,000 71,469,403 11-DEC-1998
GRD 10BILL INCREASE OF GRD 20B 7.375% EURONOTES DUE 12/11/01 754 GRD 2 10,000,000,000 35,734,702 11-DEC-1998
-----------
** Total By Currency 158,201,182
-----------
Italian lire
- ------------
ITL 200 BIL. STEP DOWN FIX-REVERSE FLOATER DUE NOV. 5, 2018 31 ITL 1 200,000,000,000 122,434,238 04-NOV-1998
ITL 125 BILL MULTICALL STEPDOWN FIX/REVERSE FLOAT DUE 101918 80 ITL 1 125,000,000,000 77,390,276 19-OCT-1998
ITL 100 Bil 22-YR Multi-Call Step-Down Fixed/Rev due10/14/20 81 ITL 1 100,000,000,000 61,201,009 14-OCT-1998
ITL 50Bil Inc of 22yr Multi-Call StepDown FxRev due 10/14/20 81 ITL 2 50,000,000,000 30,600,504 14-OCT-1998
ITL 100 BIL MULTI-CALL STEP-DOWN FIX-REV. DUE NOV. 5, 2018 82 ITL 1 100,000,000,000 60,784,361 05-NOV-1998
ITL 100 Bil 15yr MultiCall StepDn FxRev FL bonds due 1120/13 85 ITL 1 100,000,000,000 60,606,795 20-NOV-1998
ITL 100Bil 20Yr Callable StepDwn FxRev Fl Bonds due 11/20/18 86 ITL 1 100,000,000,000 60,606,795 20-NOV-1998
ITL 100 billion 20-YR STEP DOWN FIXED REVERSE FLOATER 87 ITL 1 100,000,000,000 59,988,002 03-DEC-1998
ITL 100Bil 20Yr MultiCall StpDn FxRev Flt bonds due 12/3/18 88 ITL 1 100,000,000,000 59,988,002 03-DEC-1998
-----------
** Total By Currency 593,599,982
-----------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
<CAPTION>
Description Bond US$ Settlement
Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New Zealand dollars
- -------------------
NZD 250 Mill 5.5% Global Bonds due Nov 3, 2008 739 NZD 1 250,000,000 132,125,000 03-NOV-1998
NZD 100MN REOPENING OF 5.5% EUROBONDS DUE NOVEMBER 3, 2008 739 NZD 2 100,000,000 52,174,911 14-DEC-1998
NZD 250 mill 5.375% 5-year Global Notes due Nov 6, 2003 742 NZD 1 250,000,000 133,625,000 06-NOV-1998
NZD 250 MILLION 5.5% GLOBAL NOTES DUE APRIL 15, 2004 753 NZD 1 250,000,000 130,512,183 10-DEC-1998
-------------
** Total By Currency 448,437,094
-------------
United States dollars
- ---------------------
USD 500 MILL 5% EURONOTES DUE NOV 4, 2005 741 USD 1 500,000,000 500,000,000 05-NOV-1998
USD250M REOPENING OF THE 5.00% EUROBONDS DUE 11/05 741 USD 2 250,000,000 250,000,000 20-NOV-1998
USD 150M REOPENING OF USD 750M 5.0 PERCENT DUE NOV. 4, 2005 741 USD 3 150,000,000 150,000,000 17-DEC-1998
USD100 MIL. REOPENING OF 5.0% USD900 MIL. NOTES DUE 11/05 741 USD 4 100,000,000 100,000,000 17-DEC-1998
USD 750 mill 5% Euronotes due Oct 29, 2008 743 USD 1 750,000,000 750,000,000 29-OCT-1998
USD 750 MIL 4.75% EURONOTES DUE NOVEMBER 5, 2003 746 USD 1 750,000,000 750,000,000 05-NOV-1998
USD 250 m.Inc of the USD 750 Mil 4.75% notes due 11/5/2003 746 USD 2 250,000,000 250,000,000 05-NOV-1998
USD 1 BIL 4.875% EURONOTES DUE DEC 3, 2001 751 USD 1 1,000,000,000 1,000,000,000 03-DEC-1998
USD 500MILLION 5.5% EURONOTES DUE NOV. 25, 2013 752 USD 1 500,000,000 500,000,000 25-NOV-1998
-------------
** Total By Currency 4,250,000,000
-------------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
<CAPTION>
Description Bond US$ Settlement
Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
South African Rand
- ------------------
ZAR 100 Million 18.50% Euronotes of 1998, due Oct. 29, 2001 736 ZAR 1 100,000,000 17,462,674 29-OCT-1998
ZAR 100 MILLION 16% EUROBOND DUE NOVEMBER 23, 2001 747 ZAR 1 100,000,000 17,681,903 23-NOV-1998
-------------
** Total By Currency 35,144,577
-------------
-------------
** Total By Source 8,472,705,421
-------------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Private
<TABLE>
Description Bond US$ Settlement
Issue # Currency Tranche Amount Equivalent Date
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Greek drachmas
- --------------
GRD 3 BILL 25 MONTH PRIVATE PLACEMENT EURONOTES DUE 1/10/01 89 GRD 1 3,000,000,000 10,659,086 08-DEC-1998
Japanese yen
- ------------
JPY 12.5 BILLION 5 % DUAL CURRENCY NOTE DUE OCTOBER 12, 2000 83 JPY 1 12,500,000,000 95,822,154 09-OCT-1998
F/X LINKED JPY 2 BILLION 30-YEAR NC5 FOREX NOTES due 2028 91 JPY 1 2,000,000,000 17,140,898 17-DEC-1998
JPY 1 BN FX-LINKED NOTE 20 NC5 DUE 12/17/18 92 JPY 1 1,000,000,000 8,570,449 17-DEC-1998
-----------
** Total By Currency 121,533,501
-----------
-----------
** Total By Source 132,192,587
-----------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Canadian dollars
- ----------------
6.25% 5-YEAR BONDS OF 1993, DUE OCTOBER 15, 1998 37 CAD 1 200,000,000 129,407,959 15-OCT-1998
6.25% 5-YEAR BONDS OF 1993, DUE OCTOBER 15, 1998 38 CAD 1 150,000,000 97,055,969 15-OCT-1998
-----------
** Total By Currency 226,463,928
-----------
Deutsche mark
- -------------
6% DM Bonds of 1988, due 1998 256 DEM 1 500,000,000 305,436,775 19-OCT-1998
200 Million 4% Notes of 1995, due December 14, 1998 516 DEM 1 200,000,000 120,286,281 14-DEC-1998
-----------
** Total By Currency 425,723,056
-----------
Spanish pesetas
- ---------------
10 3/8% ESB BONDS OF 1988, DUE 1998 3 ESP 1 15,000,000,000 107,557,723 27-OCT-1998
Pounds sterling
- ---------------
7 1/4% GBP Bonds of 1992 due 1998 28 GBP 1 200,000,000 334,230,184 15-DEC-1998
GBP 7 1/4% 150 MN Bonds of 1993 due 1998 (Reopening of #28) 29 GBP 1 150,000,000 250,672,638 15-DEC-1998
</TABLE>
* Indicates Partial Maturity
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
7.0% GBP 200 million Notes of 1996 due Dec. 30, 1998 30 GBP 1 200,000,000 334,740,000 30-DEC-1998
-----------
** Total By Currency 919,642,822
-----------
Italian lire
- ------------
ITL 150 BILLION FRNs OF 1993, DUE OCTOBER 21, 1998 23 ITL 1 150,000,000,000 93,547,120 21-OCT-1998
Japanese yen
- ------------
5% JPY Bonds of 1988, due Dec. 28, 1998 (6th Offering A) 167 JPY 1 48,705,000,000 419,653,627 28-DEC-1998
Netherlands guilders
- --------------------
6.25% f.Bonds of 1988, due Nov. 15, 1998 91 NLG 1 300,000,000 157,977,883 15-NOV-1998
New Zealand dollars
- -------------------
8.00% NZD Notes of 1996, due October 7, 1998 550 NZD 1 100,000,000 50,200,000 07-OCT-1998
Portuguese escudos
- ------------------
8.5% PTE 11.6 BILLION OF 1993, DUE NOV. 16, 1998 3 PTE 1 11,600,000,000 67,067,530 16-NOV-1998
</TABLE>
* Indicates Partial Maturity
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States dollars
- ---------------------
9-1/4% US$ Notes of 1988, due November 17, 1998 220 USD 1 291,965,000 291,965,000 17-NOV-1998
6.25% USD NOTES OF 1996, DUE DECEMBER 30, 1998 542 USD 1 200,000,000 200,000,000 30-DEC-1998
-------------
** Total By Currency 491,965,000
-------------
South African Rand
- ------------------
ZAR 100 million 14.5% notes of 1996 due Nov.13, 1998 558 ZAR 1 100,000,000 17,647,578 13-NOV-1998
-------------
** Total By Source 2,977,446,267
-------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Private
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Australian dollars
- ------------------
5% AUD NOTES OF 1995, DUE DECEMBER 21, 1998 515 AUD 1 150,000,000 93,600,240 21-DEC-1998
Italian lire
- ------------
10.50% ITL Notes of 1991 due November 26, 1998 1014 ITL 1 50,000,000,000 29,572,500 26-NOV-1998
Netherlands guilders
- --------------------
7.25% NLG Private Placement of '85, Due 1991-2000 75 NLG 1 20,000,000 10,785,160 15-OCT-1998 *
United States dollars
- ---------------------
9.04% US$ Bonds of 1988, due 1998 219 USD 1 100,000,000 100,000,000 28-OCT-1998
4.00% USD NOTES OF NOV 16, 95, DUE NOV. 16, 98 512 USD 1 200,000,000 200,000,000 16-NOV-1998
-----------
** Total By Currency 300,000,000
-----------
-----------
** Total By Source 433,957,900
-----------
</TABLE>
* Indicates Partial Maturity
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Loans
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Japanese yen
- ------------
5.80% JPY Loan of 1987, due 1995/2000 124 JPY 1 3,600,000,000 31,258,140 22-DEC-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 (Ref. #29) 129 JPY 1 2,700,000,000 23,197,869 21-DEC-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 (REF #29) 129 JPY 2 3,600,000,000 30,930,492 21-DEC-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 130 JPY 1 5,000,000,000 41,186,161 20-NOV-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1995-2000 132 JPY 1 2,700,000,000 22,765,599 19-OCT-1998 *
JAPANESE YEN LOAN OF 1987, DUE 1993-1998 134 JPY 1 7,000,000,000 53,660,406 09-OCT-1998
6.43% MARKET BASED LOAN, DUE DECEMBER 20, 1998 (LLCC/AD-HOC) 203 JPY 1 62,500,000,000 536,987,714 21-DEC-1998
-----------
** Total By Currency 739,986,381
-----------
-----------
** Total By Source 739,986,381
-----------
</TABLE>
* Indicates Partial Maturity
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
MATURED BORROWINGS (COLTS) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
Redemption US$ Redemption
Description Issue # Currency Tranche Amount Equivalent Date
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States dollars
- ---------------------
7.6% COLTS DUE 15-NOV-1998 170 USD 1 5,835,000 5,835,000 15-NOV-1998
5.2% COLTS DUE 15-DEC-1998 280 USD 1 7,000,000 7,000,000 15-DEC-1998
8.4% COLTS DUE 01-NOV-1998 587 USD 1 5,000,000 5,000,000 01-NOV-1998
8.95% COLTS DUE 15-DEC-1998 660 USD 1 5,000,000 5,000,000 15-DEC-1998
9.25% COLTS DUE 15-OCT-1998 703 USD 1 25,000 25,000 15-OCT-1998
9.3% COLTS DUE 01-OCT-1998 704 USD 1 250,000 250,000 01-OCT-1998
9.2% COLTS DUE 30-OCT-1998 712 USD 1 150,000 150,000 30-OCT-1998
9.22% COLTS DUE 26-OCT-1998 731 USD 1 100,000 100,000 26-OCT-1998
9.25% COLTS DUE 30-OCT-1998 756 USD 1 110,000 110,000 30-OCT-1998
9.15% COLTS DUE 16-NOV-1998 782 USD 1 600,000 600,000 16-NOV-1998
9.26% COLTS DUE 18-NOV-1998 795 USD 1 250,000 250,000 18-NOV-1998
9.42% COLTS DUE 15-DEC-1998 849 USD 1 4,500,000 4,500,000 15-DEC-1998
9.43% COLTS DUE 15-DEC-1998 855 USD 1 40,000 40,000 15-DEC-1998
0% COLTS DUE 30-DEC-1998 863 USD 1 125,000 125,000 30-DEC-1998
9.15% COLTS DUE 16-NOV-1998 994 USD 1 400,000 400,000 16-NOV-1998
0% COLTS DUE 13-NOV-1998 1068 USD 1 705,000 705,000 13-NOV-1998
8.7% COLTS DUE 30-OCT-1998 1270 USD 1 5,000,000 5,000,000 30-OCT-1998
8.92% COLTS DUE 13-NOV-1998 1476 USD 1 25,000 25,000 13-NOV-1998
----------
** Total By Currency 35,115,000
----------
----------
** Total By Source 35,115,000
----------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
PREPAYMENT ADVICES (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Public
<TABLE>
Prepayment US$ Prepayment
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Swiss francs
- ------------
7.25% CHF Bonds of 1990, due October 9, 2000 227 CHF 1 150,000,000 113,524,559 09-OCT-1998
Deutsche mark
- -------------
DEM 100 MILLION STEP-UP CALLABLE 5 YR NOTES DUE 30 DEC 2002 47 DEM 1 100,000,000 59,495,478 30-DEC-1998
Italian lire
- ------------
ITL 300 BIL CALLABLE FLOATING/FIXED BOND DUE OCT. 16, 2007 40 ITL 1 300,000,000,000 184,873,639 16-OCT-1998
United States dollars
- ---------------------
USD 100 MILLION 10NC1 BOND DUE OCTOBER 15, 2007 41 USD 1 100,000,000 100,000,000 15-OCT-1998
US$ 50 MILLION 7.18%, 1 yr. CALLABLE DUE OCTOBER 15, 2007 41 USD 2 50,000,000 50,000,000 15-OCT-1998
USD 100 million 10nc1 Bond due November 14, 2007 44 USD 1 100,000,000 100,000,000 14-NOV-1998
-----------
** Total By Currency 250,000,000
-----------
-----------
** Total By Source 607,893,676
-----------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
LIABILITIES MANAGEMENT SYSTEM
SEC Report On Changes in Borrowings
PREPAYMENT ADVICES (MLT) 01-OCT-1998 thru 31-DEC-1998
Source : Loans
<TABLE>
Prepayment US$ Prepayment
Description Issue # Currency Tranche Amount Equivalent Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Japanese yen
- ------------
JPY 1 BILLION MULTI-UP CALLABLE LOAN,11/25/98,DUE 11/26/2007 221 JPY 1 1,000,000,000 8,268,905 25-NOV-1998
</TABLE>
