<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
[GRAPHIC]
MANAGEMENT'S DISCUSSION & ANALYSIS
AND
CONDENSED QUARTERLY FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
<PAGE>
3
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
March 31, 1999
- --------------------------------------------------------------------------------
<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 ........................................... 11
Review Report of Independent Accountants ................................ 15
</TABLE>
<PAGE>
4
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANAYLSIS
- --------------------------------------------------------------------------------
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.
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS
For the three and nine months ended March 31, 1999, reported net income was $320
million and $1,133 million, respectively, compared with $209 million and $658
million, for the respective fiscal year 1998 periods. The third quarter net
income increased by $111 million (53%) over the same period of the prior fiscal
year. This is due primarily to the $89 million increase in net interest income
which is mainly attributable to the reduction of the loan interest waiver from
25 to 5 basis points for most existing loans. In addition to the increases for
this quarter, the primary factor contributing to the year-to-date increase of
$475 million (72%) 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 nine months ended March 31, 1999 also
includes the effect of $64 million and $197 million, respectively, of pension
income from the Staff Retirement Plan and other postretirement benefits plans,
compared to $47 million and $142 million, for the respective fiscal year 1998
periods.
At the end of the third quarter of FY1999, IBRD lending commitments reached
$16,658 million. Of this amount, $10,932 million related to adjustment lending
in East and South Asia, Eastern Europe, and Latin America. At March 31, 1999,
57% of the total amount committed for adjustment lending during the fiscal year
was disbursed. Of the total adjustment lending committed during the current
fiscal year, $4,041 million are Special Structural Adjustment Loans (SSALs) to
borrowers in Latin America. At March 31, 1999, 50% of SSALs had been disbursed
(see Notes to Financial Statements-Note D for a discussion of the financial
terms of these loans).
IBRD has reviewed the adequacy of its Accumulated Provision for Loan Losses in
light of changes in conditions affecting its borrowers and has determined it to
be adequate at March 31, 1999.
The net return on average interest-earning assets for the third quarter of
FY1999 was 0.89%, compared to 0.66% for the third quarter of FY1998. The fiscal
year-to-date net return on average interest-earning assets for FY1999 and FY1998
was 1.07% and 0.70%, 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
3RD QTR 3RD QTR YEAR TO DATE YEAR TO DATE FULL YEAR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net interest income .............. $ 565 $ 476 $ 1,902(a) $ 1,468 $ 1,970
Average interest-earning assets... $ 145,729 $ 128,756 $ 140,503 $ 125,264 $127,138
Return on loans .................. 6.67% 6.51% 6.70% 6.48% 6.54%
Return on investments ............ 5.30% 5.74% 6.45%(a) 5.72% 5.62%
Cost of borrowings ............... 5.92% 6.09% 6.03% 6.05% 6.10%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
a. Includes $237 million non-recurring gain realized upon liqidation of the
held-to-maturity investment portfolio.
<PAGE>
5
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANAYLSIS
- --------------------------------------------------------------------------------
FUNDING RESOURCES
EQUITY
IBRD's subscribed capital at the end of the third quarter of FY1999 was $187,442
million, of which $11,348 million has been paid in. IBRD's equity also included
$17,324 million of retained earnings.
BORROWINGS
During the third quarter of FY1999, total borrowings outstanding after swaps
increased by $1,625 million, from $115,695 million at December 31, 1998 to
$117,320 million at March 31 1999. Of the borrowings outstanding after swaps at
the end of the third quarter, 54% was at variable rates. The currency
composition continues to be concentrated in U.S. dollars, with its share at the
end of the third quarter rising to 78% of the borrowing portfolio. This reflects
IBRD's borrowers increasing preference for U.S.
dollar-denominated loans.
NEW LOAN AND HEDGING PRODUCTS
During the third quarter of FY1999, IBRD approved new loan and hedging products
for its borrowers, to respond to the needs of borrowers for more flexible
financial products and better risk management tools for their IBRD loans. These
products are expected to be introduced in September 1999.
The new financial products are:
- - Fixed-spread loan with an interest rate based on LIBOR, plus a spread that
would be fixed for the life of the loan. Borrowers selecting this product
would have the flexibility to tailor loan maturities and manage currency and
interest rate risks over the life of the loan; and
- - Free-standing hedging products that would be linked to borrowers' existing
IBRD loans to assist borrowers in managing their currency, interest rate and,
on a case-by-case basis, commodity price risks.
ECONOMIC AND MONETARY UNION IN EUROPE (EMU)
In response to the introduction of the euro currency and related transitional
arrangements of 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 has undertaken a gradual conversion that provides flexibility
for each business area to modify its business processes, databases, and systems
in response to its specific needs.
Since January 1, 1999, the euro is one of the currencies offered by IBRD for new
loans and guarantees.
<PAGE>
6 IBRD Condensed Financial Statements
- --------------------------------------------------------------------------------
BALANCE SHEET
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31, 1999 JUNE 30, 1998
(UNAUDITED)
-------------- -------------
<S> <C> <C>
ASSETS
Due from banks ............................................................................ $ 662 $ 767
Investments-Note B
Trading ................................................................................ 29,762 23,284
Held-to-maturity ....................................................................... -- 2,673
Assets designated for other postretirement benefits-Note C ................................ -- 1,456
Securities purchased under resale agreements-Trading ...................................... 44 466
Nonnegotiable, noninterest-bearing demand obligations on account of subscribed capital .... 1,701 1,890
Receivable from currency swaps
Investments-Trading .................................................................... 11,308 10,510
Borrowings ............................................................................. 69,128 55,767
Loans outstanding-Note D
Total loans ............................................................................ 166,830 157,641
Less undisbursed balance ............................................................... 50,761 51,065
--------- ---------
Loans outstanding ................................................................... 116,069 106,576
Less accumulated provision for loan losses ............................................. 3,530 3,240
--------- ---------
Loans outstanding net of accumulated provision ...................................... 112,539 103,336
--------- ---------
Other assets-Note C ....................................................................... 4,873 4,822
--------- ---------
TOTAL ASSETS .............................................................................. $ 230,017 $ 204,971
--------- ---------
--------- ---------
LIABILITIES
Borrowings
Short-term ............................................................................. $ 3,978 $ 6,729
Medium- and long-term .................................................................. 110,966 96,860
Securities sold under repurchase agreements and payable for cash collateral received-Note B
Trading ................................................................................ 139 860
Held-to-maturity ....................................................................... -- 1,374
Payable for currency swaps
Investments-Trading .................................................................... 11,455 10,113
Borrowings ............................................................................. 71,504 57,755
Payable for Board of Governors-approved transfers-Note E .................................. 639 122
Liabilities for other postretirement benefits-Note C ...................................... 91 717
Other liabilities ......................................................................... 3,810 3,927
--------- ---------
TOTAL LIABILITIES ................................................................... 202,582 178,457
--------- ---------
EQUITY
Capital stock-Authorized (1,581,724 shares-March 31, 1999 and June 30, 1998)
Subscribed (1,553,798 shares-March 31, 1999; 1,545,457-June 30, 1998) .................. 187,442 186,436
Less uncalled portion of subscriptions ................................................. 176,094 175,148
--------- ---------
11,348 11,288
Amounts to maintain value of currency holdings of paid-in capital stock ................... (715) (554)
Payments on account of pending subscriptions .............................................. 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note E) ................. 17,324 16,733
Accumulated other comprehensive income-Note F ............................................. (529) (960)
--------- ---------
TOTAL EQUITY ........................................................................ 27,435 26,514
--------- ---------
TOTAL LIABILITIES AND EQUITY .............................................................. $ 230,017 $ 204,971
--------- ---------
--------- ---------
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
IBRD Condensed Financial Statements 7
- --------------------------------------------------------------------------------
STATEMENT OF INCOME
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS ENDED
ENDED MARCH 31
MARCH 31 (UNAUDITED)
(UNAUDITED)
------------------- --------------------
1999 1998 1999 1998
---------- -------- ---------- --------
<S> <C> <C> <C> <C>
Income
Loans-Note D............................................................ $1,923 $1,716 $5,705 $5,090
Investments-Note B
Trading.............................................................. 379 271 1,051 789
Held-to-maturity..................................................... - 40 284 123
Securities purchased under resale agreements............................ 2 20 11 41
Income from Staff Retirement Plan and other postretirement benefits plans 64 47 197 142
Other................................................................... 2 4 17 8
---------- -------- ---------- --------
Total income....................................................... 2,370 2,098 7,265 6,193
---------- -------- ---------- --------
Expenses
Borrowings.............................................................. 1,736 1,550 5,114 4,508
Securities sold under repurchase agreements and payable for cash
collateral received.................................................. 3 21 35 67
Administrative.......................................................... 233 230 687 626
Provision for loan losses-Note D........................................ 45 53 195 233
Other .................................................................. 2 3 7 8
---------- -------- ---------- --------
Total expenses..................................................... 2,019 1,857 6,038 5,442
---------- -------- ---------- --------
OPERATING INCOME........................................................... 351 241 1,227 751
Less contributions to special programs..................................... 31 32 94 93
---------- -------- ---------- --------
NET INCOME................................................................. $ 320 $ 209 $1,133 $ 658
---------- -------- ---------- --------
---------- -------- ---------- --------
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
8 IBRD Condensed Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31 MARCH 31
(UNAUDITED) (UNAUDITED)
------------------- ------------------
1999 1998 1999 1998
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net income ............................ $ 320 $ 209 $1,133 $ 658
Other comprehensive income-Note F
Currency translation adjustments ... (381) (69) 431 (770)
------ ------ ------ ------
Total other comprehensive income (loss) (381) (69) 431 (770)
------ ------ ------ ------
Comprehensive income (loss) ........... $ (61) $ 140 $1,564 $ (112)
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN RETAINED EARNINGS
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31
(UNAUDITED)
-----------------------
1999 1998
----------- ----------
<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 ..................... 1,133 658
-------- --------
Retained earnings at end of the period ............ $ 17,324 $ 16,298
-------- --------
-------- --------
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
IBRD Condensed Financial Statements 9
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED MARCH 31
(UNAUDITED)
-------------------------
1999 1998
------------- ----------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements ............................................................... $(13,984) $(16,048)
Principal repayments and prepayments ........................................ 7,721 8,482
Investments: Held-to-maturity
Purchases of securities and repayments of securities sold under repurchase
agreements................................................................. (13,266) (22,637)
Maturities of securities and proceeds from securities sold under repurchase
agreements................................................................. 13,426 22,639
Proceeds from sale of held-to-maturity portfolio ............................ 1,389 --
-------- --------
Net cash used in lending and investing activities ...................... (4,714) (7,564)
-------- --------
Cash flows used for payments for Board of Governors-approved transfers ............ (33) (617)
Cash flows from financing activities
Medium- and long-term borrowings
New issues .................................................................. 19,657 22,614
Retirements ................................................................. (8,382) (12,110)
Net short-term borrowings ...................................................... (2,826) 2,157
Net currency swaps ............................................................. (192) (44)
Net capital stock transactions ................................................. 145 88
-------- --------
Net cash provided by financing activities .............................. 8,402 12,705
-------- --------
Cash flows from operating activities
Net income ..................................................................... 1,133 658
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization ............................................... 629 657
Provision for loan losses ................................................... 195 233
Net changes in other assets and liabilities ................................. (51) 203
Gain on sale of held-to-maturity portfolio .................................. (237) --
-------- --------
Net cash provided by operating activities .............................. 1,669 1,751
-------- --------
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 ....... 246 (141)
-------- --------
Net increase in unrestricted cash and liquid investments .......................... 6,220 6,134
Unrestricted cash and liquid investments at beginning of the fiscal year .......... 23,506 16,940
-------- --------
Unrestricted cash and liquid investments at end of the period ..................... $ 29,726 $ 23,074
-------- --------
-------- --------
Composed of
Investments held in trading portfolio .......................................... $ 29,762 $ 23,844
Unrestricted currencies (included in Due from banks) ........................... 51 37
Net payable for investment securities traded/purchased ......................... (22) (719)
Net payable from currency swaps-Investments .................................... (147) (39)
Net payable for securities purchased/sold under resale/repurchase agreements and
payable for cash collateral received......................................... (95) (201)
Accrued Interest-Investments (included in Other assets) ........................ 177 152
-------- --------
$ 29,726 $ 23,074
-------- --------
-------- --------
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
10 IBRD Condensed Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS(CONTINUED)
EXPRESSED IN MILLIONS OF U.S. DOLLARS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED MARCH 31
(UNAUDITED)
-------------------------
1999 1998
------------- ----------
<S> <C> <C>
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate fluctuations
Loans outstanding ........................................................... $ 3,230 $ (5,089)
Investments: Held-to-maturity ............................................... 13 12
Borrowings .................................................................. 2,213 (4,859)
Currency swaps-Borrowings ................................................... 580 797
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
IBRD Condensed Financial Statements 11
- --------------------------------------------------------------------------------
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 and nine months ended March
31, 1999 and 1998, 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 nine 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. During the second quarter of fiscal year 1999, 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
where the invitation to negotiate was issued 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.
During the second quarter of fiscal year 1999, 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 U.S. dollar LIBOR equivalent interest rate plus a minimum fixed
spread, currently set
<PAGE>
12 IBRD Condensed Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
at 400 basis points, but which may vary over time depending on IBRD's overall
risk-bearing 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 where the invitation
to negotiate was issued 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
nine months ended March 31, 1999, the effect of this waiver was to reduce Net
Income by $17 million and $89 million, respectively, compared to $61 million and
$183 million, for the respective fiscal year 1998 periods.
A one-year commitment charge waiver of 50 basis points is in effect 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 and nine months
ended March 31, 1999, the effect of the commitment charge waiver was to reduce
Net Income by $61 million and $168 million, respectively, compared to $51
million and $160 million for the respective fiscal year 1998 periods.
OVERDUE AMOUNTS
At March 31, 1999, no loans payable to IBRD, other than those referred to in the
following paragraph, were overdue by more than three months.
At March 31, 1999, 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 $2,071 million ($2,044 million-June 30, 1998),
of which $1,239 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 $1,006 million ($948 million--June 30, 1998). If these
loans had not been in nonaccrual status, income from loans for the three and
nine months ended March 31, 1999 would have been higher by $15 million and $46
million, respectively, compared to $14 million and $70 million for the
respective fiscal year 1998 periods. A summary of countries with loans in
nonaccrual status follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
IN MILLIONS
MARCH 31, 1999
--------------------------------------------------------
BORROWER PRINCIPAL PRINCIPAL, INTEREST AND NONACCRUAL
OUTSTANDING CHARGES OVERDUE SINCE
- -------------------------------------------------------------------------------------------------------------------
WITH OVERDUES
<S> <C> <C> <C>
Congo, Democratic Republic of .......................... $ 82 $ 94 November 1993
Congo, Republic of ..................................... 69 34 November 1997
Iraq ................................................... 42 70 December 1990
Liberia ................................................ 136 275 June 1987
Sudan .................................................. 6 6 January 1994
Syrian Arab Republic ................................... 51 197(a) February 1987
Yugoslavia, Federal Republic of (Serbia and Montenegro). 1,116 1,569 September 1992
------ ------
Total ................................................... $1,502 2,245
WITHOUT OVERDUES
Bosnia and Herzegovina ................................. 569 -- September 1992
------ ------
TOTAL ................................................... $2,071 $2,245
------ ------
------ ------
</TABLE>
- ----------------------
a. Represents interest and charges overdue.
<PAGE>
IBRD Condensed Financial Statements 13
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The average recorded investment in nonaccruing loans during the three and nine
months ended March 31, 1999 was $2,109 million and $2,092 million, respectively,
compared to $2,094 million and $2,159 million for the respective fiscal year
1998 periods.
During the nine months ended March 31, 1999 and 1998, 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
nine months ended March 31, 1999 and for the fiscal year ended June 30, 1998
appears below:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
IN MILLIONS
MARCH 31 JUNE 30
-------- -------
<S> <C> <C>
Balance, beginning of the fiscal year ......... $ 3,240 $ 3,210
Provision for loan losses ..................... 195 251
Translation adjustment ........................ 95 (221)
-------- -------
Balance, end of the period .................... $ 3,530 $ 3,240
-------- -------
-------- -------
- --------------------------------------------------------------------------------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,530 million ($3,240
million--June 30, 1998), $1,000 million is attributable to the nonaccruing loan
portfolio at March 31, 1999 ($1,000 million--June 30, 1998).
GUARANTEES
Guarantees of $2,206 million at March 31, 1999 ($2,047 million--June 30, 1998)
were not included in reported loan balances. At March 31, 1999, $348 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 March 31, 1999, IDA had approved credits of $1,618 million ($1,590
million--June 30, 1998) under this program from its inception, of which $1,587
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 MARCH 31, 1999 AND
JUNE 30, 1998:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
IN MILLIONS
MARCH 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 ................... 1,133 1,243
-------- --------
Total .................................... $17,324 $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. At March 31, 1999, $80 million was payable.
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 in SDRs valued at June 30, 1998) 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 March 31, 1999, all of
these amounts remained payable.
At March 31, 1999, the unpaid balances of all of the above-mentioned
Board-approved transfers have been included in Payable for Board of
Governors-approved Transfers on the balance sheet.
<PAGE>
14 IBRD Condensed Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE F--COMPREHENSIVE INCOME
During the first quarter of fiscal year 1999, ibrd adopted SFAS No. 130,
"Reporting Comprehensive Income", which 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 nine months ended March 31, 1999 and 1998:
<TABLE>
<CAPTION>
IN MILLIONS
- -----------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME(a)
-----------------------------------------
1999 1998
------------- --------------
<S> <C> <C>
Balance, beginning of the fiscal year .. $(960) $ 85
Changes from period activity ........... 431 (770)
------------- -----------
Balance, end of the period ............. $(529) $(685)
------------- -----------
------------- -----------
</TABLE>
- --------------------
a. The total accumulated other comprehensive income represents the cumulative
translation adjustment.
<PAGE>
IBRD Condensed Financial Statements 15
- --------------------------------------------------------------------------------
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 March 31, 1999, and the
related condensed statements of income, comprehensive income, changes in
retained earnings, and cash flows for the three-month and nine-month periods
ended March 31, 1999 and 1998. 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 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)
April 26, 1999
---------------------------------------------
Bejing London Mexico City Moscow New York
Paris Tokyo Toronto
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 1
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
Czech Koruna
- ------------
CZK 2 BILLION NEW ISSUE OF 8.125% CZK EUROBOND DUE 1/14/2000 760 CZK 1 2,008,000,000 65,161,437 14-JAN-1999
EURO
- ----
<S> <C> <C> <C> <C> <C> <C>
EURO 150 MILLION DOMESTIC STRUCTURED BONDS 32 EUR 1 150,000,000 169,957,500 05-FEB-1999
EURO 150 MIL. 20-YEAR MULTI-CALL FIX-REV DUE JAN. 29, 2019 97 EUR 1 150,000,000 172,860,000 29-JAN-1999
EURO 100 MILLION 15-YR FIXED/REVERSE FLOATER 99 EUR 1 100,000,000 109,870,000 24-FEB-1999
EUR 60M 20yr Multicall step down fix reverse float due 3/8/19 100 EUR 1 60,000,000 65,070,000 08-MAR-1999
EUR 25 MILL multicall increase eur fixreverse fl. 3/8/19 100 EUR 2 25,000,000 27,112,500 18-MAR-1999
EUR 25M INCREASE OF EUR 85M 20YR MULTICALL FLOATER DUE 3/8/19 100 EUR 3 25,000,000 27,325,000 16-MAR-1999
EUR 100 MILLION 25-YEAR FIXED/REVERSE FLOATER due 3/18/24 101 EUR 1 100,000,000 108,675,000 18-MAR-1999
EUR 75MILLION 5-YEAR EUROSTOXX 50 LINKED EUROBONDS due 33104 105 EUR 1 75,000,000 80,321,250 11-MAR-1999
NEW ISSUE OF EUR 70 MILLION 2.7% EUROBOND DUE 1/13/03 763 EUR 1 70,000,000 81,133,500 13-JAN-1999
EUR 60 MILLION STEP DOWN EURONOTES DUE FEB 18, 2019 769 EUR 1 60,000,000 67,107,000 18-FEB-1999
EUR 25M INCREASE OF EUR STEP DOWN NOTES DUE 2/18/2019 769 EUR 2 25,000,000 27,961,250 18-FEB-1999
---------------
** Total By Currency 937,393,000
---------------
Pounds sterling
- ---------------
GBP 100 MILLION REOPENING OF GBP EUROBOND DUE DEC. 3, 2001 744 GBP 2 100,000,000 165,240,000 11-JAN-1999
GBP 200 MILLION 4.875% EUROBONDS DUE DECEMBER 7, 2028 774 GBP 1 200,000,000 321,370,000 03-MAR-1999
---------------
** Total By Currency 486,610,000
---------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 2
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
Greek drachmas
- --------------
<S> <C> <C> <C> <C> <C> <C>
GRD 15 BIL. 7.00 PERCENT EURONOTES DUE JANUARY 7, 2002 755 GRD 1 15,000,000 54,557,358 07-JAN-1999
GRD 5 BILLION INCREASE OF 7% EUROBOND DUE JANUARY 7, 2002 755 GRD 2 5,000,000 18,185,786 07-JAN-1999
GRD 40BN 6.25% EURONOTES OF 2/99 DUE 2/1/02 758 GRD 1 40,000,000 142,007,638 01-FEB-1999
GRD 10BN INCREASE OF GRD 40BN EURON. DUE 2/1/02 758 GRD 2 10,000,000 35,501,909 01-FEB-1999
GRD 15BN REOPENING OF 6.25% GRD 50BN DUE 2/1/02 758 GRD 3 15,000,000 51,357,550 22-MAR-1999
GRD 10BN 5.25% EURONOTES OF 2/99 DUE 2/3/2009 767 GRD 1 10,000,000 35,406,377 03-FEB-1999
GRD 30 bill 6% EURONOTES DUE FEBRUARY 25, 2002 771 GRD 1 30,000,000 102,073,799 25-FEB-1999
---------------
** Total By Currency 439,090,417
---------------
Hong Kong dollars
- -----------------
HKD 300 M FRN DUE 1/22/2002 766 HKD 1 300,000,000 38,715,922 22-JAN-1999
HKD 200 MILL INCREASE OF FRN due 1/22/02 766 HKD 2 200,000,000 25,810,615 22-JAN-1999
HKD 300 mill 7.31% notes due March 22, 2002 777 HKD 1 300,000,000 38,711,176 22-MAR-1999
---------------
** Total By Currency 103,237,713
---------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 3
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
Polish Zlotys
- -------------
PLN 100M 11.375% EURNOTES EUR-LINKED DUE 3/1/00 764 PLN 1 100,000,000 25,637,739 01-MAR-1999
United States dollars
- ---------------------
<S> <C> <C> <C> <C> <C> <C>
150 mill 10yr non call 1yr Eurobonds due Jan 13 2009 90 USD 1 150,000,000 150,000,000 13-JAN-1999
USD 125 mill 10yr non-call 1yr step down Eurobonds due2/2/09 98 USD 1 125,000,000 125,000,000 02-FEB-1999
USD 75 MILL INCREASE OF 125 MILL 10Y NONCALL 1Y DUE 2/2/09 98 USD 2 75,000,000 75,000,000 02-FEB-1999
USD 50 MILLION INCREASE OF USD 200 MILLION DUE FEB 2 2009 98 USD 3 50,000,000 50,000,000 02-MAR-1999
USD 100M 10 YR MULTICALLABLE STEP DOWN EURONOTES DUE 3/12/09 102 USD 1 100,000,000 100,000,000 12-MAR-1999
USD 50M INCREASE OF 10NC1 DUE 12 MARCH 2009 102 USD 2 50,000,000 50,000,000 12-MAR-1999
USD 250 MILLION 5NC1 EUROBONDS DUE 3/10/04 103 USD 1 250,000,000 250,000,000 10-MAR-1999
USD 250M 5yr noncall 1 multicall eurobonds due 3/10/04 104 USD 1 250,000,000 250,000,000 10-MAR-1999
USD 150M 5YR CALLABLE EURONOTES DUE MARCH 22 2004 106 USD 1 150,000,000 150,000,000 24-MAR-1999
USD 250M 5yr non call 1 Multicallable Eurobonds due 3/16/04 107 USD 1 250,000,000 250,000,000 16-MAR-1999
USD 250M 5YR NON CALL 1 DUE MARCH 16 2004 108 USD 1 250,000,000 250,000,000 16-MAR-1999
USD 250 MILLION REOPENING of USD 1BILL 5% EURONOTES 11/04/05 741 USD 5 250,000,000 250,000,000 16-FEB-1999
USD 1BN REOPEN. OF 4.875% USD 1BN NOTES 12/3/01 751 USD 2 1,000,000,000 1,000,000,000 14-JAN-1999
USD 1BN EURONOTES 5.25% OF 1/99 DUE 1/12/2009 761 USD 1 1,000,000,000 1,000,000,000 12-JAN-1999
USD 1BN 5.25% EUROBONDS OF 1999 DUE 3/4/2002 776 USD 1 1,000,000,000 1,000,000,000 04-MAR-1999
---------------
** Total By Currency 4,950,000,000
---------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 4
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
South African Rand
- ------------------
<S> <C> <C> <C> <C> <C> <C>
ZAR 300M EUROBONDS 16% OF 1/99 DUE 1/22/02 759 ZAR 1 300,000,000 50,041,701 22-JAN-1999
ZAR 100M 15.25% EURONOTES OF 1/99 DUE 1/22/09 762 ZAR 1 100,000,000 16,680,567 22-JAN-1999
ZAR 100 MILLION 15% EURONOTES DUE FEB 12, 2001 770 ZAR 1 100,000,000 16,299,919 12-FEB-1999
ZAR 100M 14.0% EUROBONDS OF 1999 DUE 3/10/2004 772 ZAR 1 100,000,000 16,155,089 10-MAR-1999
14.0% ZAR 200M EURONOTES OF 1999 DUE 3/8/2001 775 ZAR 1 200,000,000 32,051,282 08-MAR-1999
---------------
** Total By Currency 131, 228,558
---------------
---------------
** Total By Source 7,138,358,864
---------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 5
SEC Report On Changes in Borrowings
NEW BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Private
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Bond Amount US$ Equivalent Settlement Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Japanese yen
- ------------
JPY 2 BN FX LINKED NOTE 20 NC1 DUE 1/11/2019 96 JPY 1 2,000,000,000 17,971,068 11-JAN-1999
United States dollars
- ---------------------
15-YR S&P 500 INDEX VOLATILITY LINKED BONDS DUE JAN. 15, 2014 94 USD 1 75,000,000 75,000,000 15-JAN-1999
--------------
** Total By Source 92,971,068
--------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 6
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Official
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Redemption Amount US$ Equivalent Redemption Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Deutsche mark
- -------------
5.27 DEM Note of 1994 due 1999 (Rollover DEM #257) 282 DEM 1 250,000,000 145,980,223 01-FEB-1999
</TABLE>
* Indicates Partial Maturity
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 7
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Redemption Amount US$ Equivalent Redemption Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
IBRD DEM 125,000,000 Reset Notes of 1994/99 281 DEM 1 125,000,000 74,437,707 19-JAN-1999
Pounds sterling
- ---------------
10.375% L Notes of 1987, due 1999 19 GBP 1 100,000,000 163,170,000 18-FEB-1999
10% Bonds of 1989, due 1999 22 GBP 1 100,000,000 160,275,000 01-MAR-1999
----------------
** Total By Currency 323,445,000
----------------
United States dollars
- ---------------------
USD ZERO Coupon of 1985, due 15 Feb. 1999 189 USD 44 18,000,000 18,000,000 15-FEB-1999
9 5/8% US$ Notes of 1989, due February 1, 1999 221 USD 1 480,000,000 480,000,000 01-FEB-1999
----------------
** Total By Currency 498,000,000
----------------
South African Rand
- ------------------
ZAR 200 million 15% Euronotes due February 12, 1999 568 ZAR 1 200,000,000 32,599,838 12-FEB-1999
ZAR 100 million 15% Euronotes due February 12, 1999 568 ZAR 2 100,000,000 16,299,919 12-FEB-1999
ZAR 100 million 15% notes due February 12, 1999 568 ZAR 3 100,000,000 16,299,919 12-FEB-1999
ZAR 100 million 15% Euronotes due February 12, 1999 568 ZAR 4 100,000,000 16,299,919 12-FEB-1999
----------------
** Total By Currency 81,499,595
----------------
----------------
** Total By Source 977,382,302
----------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 8
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Private
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Redemption Amount US$ Equivalent Redemption Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Swiss francs
- ------------
7% CHF Notes of 1992 due January 7, 1999 234 CHF 1 125,000,000 91,400,994 07-JAN-1999
Netherlands guilders
- --------------------
9% NLG Private Placement of '84 Due 1990-99. 50 NLG 1 15,000,000 7,707,230 15-FEB-1999
United States dollars
- ---------------------
4.55% USD NOTES OF 1996 DUE FEBRUARY 22, 1999 521 USD 1 100,000,000 100,000,000 22-FEB-1999
ZERO COUPON USD NOTES OF 1996, DUE MARCH 11, 1999 524 USD 1 300,000,000 300,000,000 11-MAR-1999
-----------------
** Total By Currency 400,000,000
-----------------
-----------------
** Total By Source 499,108,224
-----------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 9
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Loans
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Redemption Amount US$ Equivalent Redemption Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Japanese yen
- ------------
5.80% JPY Loan of 1987 due Feb. 16, 2001 123 JPY 1 1,800,000,000 15,739,769 16-FEB-1999 *
JAPANESE YEN LOAN OF 1987, DUE 1994/2001 125 JPY 3 1,000,000,000 8,804,367 10-FEB-1999 *
JAPANESE YEN LOAN OF 1987, DUE 1996-2001 127 JPY 1 660,000,000 5,702,929 01-FEB-1999 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 131 JPY 1 2,700,000,000 24,260,942 11-JAN-1999 *
JAPANESE YEN LOAN OF 1987, DUE 1994-1999 136 JPY 1 1,350,000,000 12,130,471 11-JAN-1999 *
5.5% JPY Loan of 1988, due Mar.25, 98/03(Ref.#64/JPY 45b) 154 JPY 1 5,000,900,000 49,850,027 25-MAR-1999 *
---------------
** Total By Currency 116,488,505
---------------
Netherlands guilders
- --------------------
7.875% f. Loan of 1984, due 1986-00 63 NLG 1 5,155,080 2,734,727 15-JAN-1999 *
7.875% f. Loan of 1984, due 1991-00 63 NLG 2 4,565,000 2,421,695 15-JAN-1999 *
7.875% f. Loan of 1984, due 1996-05 63 NLG 3 2,700,000 1,432,328 15-JAN-1999 *
8.75% f. Loan of 1985, due 1991/2000 67 NLG 1 10,000,000 4,945,297 15-MAR-1999 *
---------------
** Total By Currency 11,534,047
---------------
---------------
** Total By Source 128,022,552
---------------
</TABLE>
* Indicates Partial Maturity
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 10
SEC Report On Changes in Borrowings
MATURED BORROWINGS (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Redemption Amount US$ Equivalent Redemption Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States dollars
- ---------------------
10% COLTS DUE 15-MAR-1999 853 USD 1 250,000 250,000 15-MAR-1999
9.31% COLTS DUE 01-FEB-1999 909 USD 1 50,000 50,000 01-FEB-1999
9.43% COLTS DUE 03-FEB-1999 916 USD 1 100,000 100,000 03-FEB-1999
9.36% COLTS DUE 10-FEB-1999 927 USD 1 25,000 25,000 10-FEB-1999
9.75% COLTS DUE 15-MAR-1999 956 USD 1 3,000,000 3,000,000 15-MAR-1999
10% COLTS DUE 10-MAR-1999 976 USD 1 10,000,000 10,000,000 10-MAR-1999
9.65% COLTS DUE 15-MAR-1999 984 USD 1 10,000,000 10,000,000 15-MAR-1999
10% COLTS DUE 15-MAR-1999 985 USD 1 250,000 250,000 15-MAR-1999
0% COLTS DUE 22-MAR-1999 988 USD 1 500,000 500,000 22-MAR-1999
0% COLTS DUE 22-MAR-1999 992 USD 1 1,000,000 1,000,000 22-MAR-1999
9.94% COLTS DUE 29-MAR-1999 999 USD 1 50,000 50,000 29-MAR-1999
8.875% COLTS DUE 15-MAR-1999 1451 USD 1 175,000 175,000 15-MAR-1999
8.1% COLTS DUE 15-FEB-1999 1504 USD 1 50,000 50,000 15-FEB-1999
----------------
** Total By Currency 25,450,000
----------------
----------------
** Total By Source 25,450,000
----------------
</TABLE>
<PAGE>
APRIL 16 1999 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT_RPT_025
04:34:49 LIABILITIES MANAGEMENT SYSTEM Page 11
SEC Report On Changes in Borrowings
PREPYMENT ADVICES (MLT) 01-JAN-1999 thru 31-MAR-1999
Source : Public
<TABLE>
<CAPTION>
Description Issue # Currency Tranche Prepayment Amount US$ Equivalent Prepayment Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Deutsche mark
- -------------
DEM 100 mn Dual Interest Basis Notes due 3/8/2004 283 DEM 1 100,000,000 55,449,605 08-MAR-1999
United States dollars
- ---------------------
USD 150 million 6% non-call 1-year euronotes due 3/11/2003 51 USD 1 150,000,000 150,000,000 11-MAR-1999
----------------
** Total By Source 205,449,605
----------------
</TABLE>
