<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
MANAGEMENT'S DISCUSSION & ANALYSIS
AND
CONDENSED QUARTERLY FINANCIAL STATEMENTS
MARCH 31, 2000
(UNAUDITED)
<PAGE>
CONTENTS
MARCH 31, 2000
<TABLE>
<S> <C>
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS 2
EQUITY 3
NEW LOAN AND HEDGING PRODUCTS 3
YEAR 2000 3
IBRD CONDENSED FINANCIAL STATEMENTS
BALANCE SHEET 4
STATEMENT OF INCOME 5
STATEMENT OF COMPREHENSIVE INCOME 6
STATEMENT OF CASH FLOWS 7
NOTES TO FINANCIAL STATEMENTS 8
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS 11
</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, 1999 (FY
1999). IBRD undertakes no obligation to update any forward-looking statements
made in these documents.
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS
For the three and nine months ended March 31, 2000 (third quarter FY 2000),
reported net income was $451 million and $1,350 million, compared with $320
million and $1,133 million for the respective periods of the prior fiscal year.
Quarter-to-date FY 2000 versus FY 1999
The increase of $131 million in net income for the third quarter of FY 2000,
compared to the third quarter of FY 1999, is predominantly attributable to the
following:
- - An increase in income from loans of $108 million reflecting both the impact
of an increased average volume of loans outstanding, as well as increased
average rates earned. The higher rates are due to the effect of a greater
proportion of outstanding Special Structural Adjustment Loans (SSAL), which
are priced higher than other loan instruments; as well as higher average
rates on the Single Currency Pool Loans (SCP). The higher rates only had a
partial impact in the third quarter of FY 1999. Reduced interest waivers
also contributed to higher income on loans. These increases were partially
offset by a reduction in income resulting from a lower volume of the
higher-yielding old fixed rate loans.
- - A decrease of $82 million in administrative expenses mainly due to the
higher management fee charged to International Development Association
(IDA), (to reflect the change in estimate of IDA's share of the combined
operations of IBRD and IDA); and the effect of a lower spending rate
compared to the same period in FY 1999.
- - A decrease of $35 million in the provision for loan loss expense.
- - An increase of $61 million in borrowing costs. This is mainly due to the
cost increase in this quarter resulting from interest rate resets on
variable rate debt in an increasing interest rate environment.
- - A $22 million decrease in income from the Staff Retirement Plan and other
postretirement benefits plans.
The net return on average interest-earning assets for the third quarter of FY
2000 was 1.20%, compared to 0.86% for the third quarter of FY 1999. This
increase in the return reflects the higher earnings on loan assets described
above, and the effect of a reduced expense for loan loss provisioning. Further
improvements in this indicator also show the effects of increased investment
returns resulting from the relatively higher USD interest rate environment this
quarter versus the same period last fiscal year.
Year-to-date FY 2000 versus FY 1999
Year-to-date net income for the nine-month period ended March shows an increase
of $217 million. The fiscal year-to-date net return on average interest earning
assets for FY 2000 and FY 1999 was 1.20% and 1.06%, respectively, compared to
1.05% for the fiscal year ended June 30, 1999.
The increase in net income and the significant improvement in the return are
mainly due to the following:
- - An increase of $407 million in loan income, including interest and charges.
As described in the quarter-to-date discussion, the increased return on
loans reflects the full effect of the higher outstanding balance of higher
priced SSALs; the effect of SCPs resetting to higher rates for the full
nine months of FY 2000; and the improvement in returns on loans achieved
through other changes in loan pricing, including the charging of front-end
fees and reduced interest waivers.
- - An increase of $198 million in borrowing costs mainly due to an increase in
average borrowings outstanding. However, the year-to-date cost of average
borrowings decreased 5 basis points from 5.92% in the prior year to 5.87%,
despite an adverse change in the quarterly costs as described in the
quarter-to-date discussion. This improvement is due to the maturity of
higher cost debt on a year-to-date basis which more than offset any
increase in costs resulting from interest rate resets on variable rate debt
thus far this year.
- - A decrease of $159 million in investment income. The return on cash and
investments has also declined from 6.45% in the prior year to 5.55%. These
reductions are primarily the result of the one-time gain realized in the
first quarter of FY 1999 of $237 million on the liquidation of the
held-to-maturity portfolio. The return excluding this gain would have been
5.29%. Higher returns were earned on the trading portfolio during FY 2000
as a result of the increasing interest rate environment.
- - A decrease of $140 million in the provision for loan loss expense.
- - A decrease of $121 million in administrative expenses mainly due to the
higher management fee charged to IDA and a slower spending rate as
described in the quarter-to-date discussion.
- - A $69 million decrease in income from the Staff Retirement Plan and other
postretirement benefits plans.
2 IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: MARCH 31, 2000
<PAGE>
OTHER FINANCIAL HIGHLIGHTS
- - IBRD's cumulative loan commitment activity for FY 2000 has been notably
lower than during the global financial crisis of the past two years: $6.5
billion as of March 31, 2000, compared to $16.7 billion and $13.9 billion
for the same periods in FY 1999 and FY 1998 respectively. The decline in
commitments in FY 2000 reflects individual country circumstances, as well
as the improving external financial situation for some of IBRD's
borrowers. This level of commitments is, however, comparable to the
pre-crisis level experienced in FY 1997.
- - For the same reasons, year-to-date gross loan disbursements as of
March 31, 2000 were substantially lower at $9.2 billion, compared to
$14.0 billion and $16.0 billion in FY 1999 and FY 1998 respectively. This
level of disbursement is, however, comparable to the pre-crisis average
experienced between FY 1995 and FY 1997.
The following are highlights of IBRD's financial performance:
<TABLE>
<CAPTION>
THIRD QUARTER YEAR TO DATE FULL YEAR
--------------------- --------------------- ---------
FY 2000 FY 1999 FY 2000 FY 1999 FY 1999
------- ------- ------- ------- -------
IN MILLIONS OF U.S. DOLLARS
<S> <C> <C> <C> <C> <C>
Net interest $ 623 $ 565 $ 1,952 $ 1,902a $ 2,483
Average interest-earning assets $148,914 $147,988 $149,609 $142,772 $144,138
Return on average loans 6.60% 6.41% 6.67% 6.57% 6.58%
Return on average cash and
investments 5.88% 5.19% 5.55% 6.45% 6.01%
Cost of average borrowings,
after swaps 6.03% 5.69% 5.87% 5.92% 5.92%
</TABLE>
a. Includes the impact of $237 million non-recurring gain realized upon
liquidation of the held-to-maturity investment portfolio. The return
excluding this gain would have been 5.29%.
EQUITY
IBRD's subscribed capital at the end of the third quarter of FY 2000 was
$188.6 billion, of which $11.4 billion had been paid in. IBRD's equity also
included $18.4 billion of retained earnings.
At March 31, 2000 the equity capital-to-loans ratio was 20.48% compared to
20.32% at March 31, 1999.
NEW LOAN AND HEDGING PRODUCTS
On September 1, 1999, IBRD introduced a fixed-spread loan product available
for loans for which the invitation to negotiate is issued on or after
September 1, 1999. As of March 31, 2000, 11 fixed-spread loans had been
approved totalling $2.2 billion equivalent.
In addition to the new loan product, IBRD also plans to begin offering
hedging products that would be linked to borrowers' existing IBRD loans,
providing them with additional instruments by which to manage currency,
interest rate, and on a case-by-case basis, commodity price risks. These
hedging products are expected to be available before the end of FY 2000.
YEAR 2000
To date there has been no indication that any Year 2000 problems have
occurred within any critical applications. Neither have there been
indications from any borrowers that they have experienced any serious
disruptions to national infrastructure or public administration due to Year
2000 problems which would affect their ability to continue to service IBRD
loans.
IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: MARCH 31, 2000 3
<PAGE>
IBRD Condensed Financial Statements
BALANCE SHEET
EXPRESSED IN MILLIONS OF U.S. DOLLARS
<TABLE>
<CAPTION>
MARCH 31,2000 JUNE 30, 1999
(UNAUDITED)
------------- -------------
<S> <C> <C>
ASSETS
Due from banks $ 734 $ 697
Investments--Trading 27,405 30,345
Securities purchased under resale agreements--Trading 120 6
Nonnegotiable, noninterest-bearing demand obligations on account
of subscribed capital 1,752 1,846
Receivable from currency swaps
Investments--Trading 9,849 11,420
Borrowings 68,538 67,592
Loans outstanding--Note B
Total loans 165,106 168,600
Less undisbursed balance 46,032 51,372
--------- ---------
Loans outstanding 119,074 117,228
Less accumulated provision for loan losses 3,629 3,560
--------- ---------
Loans outstanding net of accumulated provision 115,445 113,668
Other assets 5,021 5,234
--------- ---------
TOTAL ASSETS $ 228,864 $ 230,808
========= =========
LIABILITIES
Borrowings
Short-term $ 5,290 $ 5,328
Medium- and long-term 108,111 110,411
Securities sold under repurchase agreements and payable for cash
collateral received--Trading 13 102
Payable for currency swaps
Investments--Trading 10,307 11,501
Borrowings 71,219 70,484
Payable for Board of Governors-approved transfers--Note C 911 607
Other liabilities 4,303 4,354
--------- ---------
TOTAL LIABILITIES 200,154 202,787
--------- ---------
EQUITY
Capital stock--Authorized (1,581,724 shares--March 31, 2000 and
June 30, 1999)
Subscribed (1,563,443 shares--March 31, 2000; 1,560,243 shares--
June 30, 1999) 188,606 188,220
Less uncalled portion of subscriptions 177,187 176,825
--------- ---------
11,419 11,395
Amounts to maintain value of currency holdings of paid-in capital stock (513) (453)
Payments on account of pending subscriptions 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note C) 18,386 17,709
Accumulated other comprehensive income--Note D (589) (637)
--------- ---------
TOTAL EQUITY 28,710 28,021
--------- ---------
TOTAL LIABILITIES AND EQUITY $ 228,864 $ 230,808
========= =========
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000 4
<PAGE>
STATEMENT OF INCOME
EXPRESSED IN MILLIONS OF U.S. DOLLARS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31 MARCH 31
(UNAUDITED) (UNAUDITED)
------------------ -----------------
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Income
Loans--Note B $2,031 $1,923 $6,112 $5,705
Investments
Trading 387 379 1,146 1,051
Held-to-maturity -- -- -- 284
Securities purchased under resale agreements 3 2 9 11
Income from Staff Retirement Plan and other
postretirement benefits plans 42 64 128 197
Other 33 43 81 99
------ ------ ------ ------
Total income 2,496 2,411 7,476 7,347
------ ------ ------ ------
Expenses
Borrowings 1,797 1,736 5,312 5,114
Securities sold under repurchase agreements and payable
for cash collateral received 1 3 3 35
Administrative 192 274 648 769
Contributions to special programs 39 31 102 94
Provision for loan losses--Note B 10 45 55 195
Other 6 2 6 7
------ ------ ------ ------
Total Expenses 2,045 2,091 6,126 6,214
------ ------ ------ ------
Net Income $ 451 $ 320 $1,350 $1,133
====== ====== ====== ======
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000 5
<PAGE>
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)
------------------ -----------------
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net income $ 451 $ 320 $1,350 $1,133
Other comprehensive income--Note D
Currency translation adjustments (208) (381) 48 431
------ ------ ------ ------
Total other comprehensive income (208) (381) 48 431
------ ------ ------ ------
Comprehensive income $ 243 $ (61) $1,398 $1,564
====== ====== ====== ======
</TABLE>
STATEMENT OF CHANGES IN RETAINED EARNINGS
EXPRESSED IN MILLIONS OF U.S. DOLLARS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31
(UNAUDITED)
--------------------
2000 1999
------ --------
<S> <C> <C>
Retained earnings at beginning of the fiscal year $ 17,709 $ 16,733
Board of Governors-approved transfers--Note C (673) (542)
Net income for the period 1,350 1,133
------ --------
Retained earnings at end of the period 18,386 $ 17,324
====== ========
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
6 IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000
<PAGE>
STATEMENT OF CASH FLOWS
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31, 2000
(UNAUDITED)
---------------------
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements $ (9,213) $(13,984)
Principal repayments and prepayments 7,726 7,721
Investments: Held-to-maturity
Purchases of securities and repayments of securities sold under
repurchase agreements -- (13,266)
Maturities of securities and proceeds from securities sold under
repurchase agreements -- 13,426
Proceeds from sale of held-to-maturity portfolio -- 1,389
---------- ----------
Net cash used in lending and investing activities (1,487) (4,714)
---------- ----------
Cash flows used for payments for Board of Governors-approved transfers (373) (33)
Cash flows from financing activities
Medium- and long-term borrowings
New issues 12,372 19,657
Retirements (15,075) (8,382)
Net capital stock transactions 85 145
Other financing activities (649) (3,018)
---------- ----------
Net cash (used in) provided by financing activities (3,267) 8,402
---------- ----------
Cash flows from operating activities
Net income 1,350 1,133
Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation and amortization 649 629
Income from Staff Retirement Plan and other postretirement benefits
plans (128) (197)
Provision for loan losses 55 195
Net changes in other assets and liabilities (41) 146
Gain on sale of held-to-maturity portfolio -- (237)
---------- ----------
Net cash provided by operating activities 1,885 1,669
---------- ----------
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 (9) 246
---------- ----------
Net (decrease) increase in unrestricted cash and liquid investments (3,251) 6,220
Unrestricted cash and liquid investments at beginning of the fiscal year 30,122 23,506
---------- ----------
Unrestricted cash and liquid investments at end of the period $ 26,871 $ 29,726
---------- ----------
---------- ----------
Composed of
Investments held in trading portfolio $ 27,405 $ 29,762
Other (534) (36)
---------- ----------
$ 26,871 $ 29,726
========== ==========
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate
fluctuations
Loand outstanding $ 359 $ 3,230
Investments: Held-to-maturity -- 13
Borrowings 124 2,213
Currency swaps--Borrowings 139 580
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000 7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A--FINANCIAL INFORMATION
The unaudited condensed financial statements should be read in conjunction with
the June 30, 1999 financial statements and the notes included therein. A review
of the interim financial information for the nine months ended March 31, 2000
and 1999, 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--LOANS AND GUARANTEES
FINANCIAL TERMS OF LOANS
Effective September 1, 1999, IBRD introduced fixed-spread loans. These loans
have an interest rate based on LIBOR plus a spread that will be fixed for the
life of the loan. The spread is currently 55 basis points for U.S. dollar and
Euro, and 40 basis points for Japanese yen denominated loans.
A commitment charge premium of 10 basis points over the standard 75 basis points
charged on other IBRD loans will be included for the first four years from the
date the commitment charge begins to accrue.
WAIVERS OF LOAN INTEREST AND COMMITMENT CHARGES
For payment periods beginning during the fiscal year ending June 30, 2000, 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 similar waiver was in
effect for the fiscal year ended June 30, 1999. For the three and nine months
ended March 31, 2000, the effect of this waiver was to reduce Net Income by $16
million and $44 million, respectively, compared to $17 million and $89 million,
for the respective fiscal year 1999 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, 2000. A similar waiver of 50 basis points was in
effect for the fiscal year ended June 30, 1999. For the three and nine months
ended March 31, 2000, the effect of the commitment charge waiver was to reduce
Net Income by $56 million and $173 million, respectively, compared to $61
million and $168 million for the respective fiscal year 1999 periods.
OVERDUE AMOUNTS
At March 31, 2000, no loans payable to IBRD, other than those referred to in the
following paragraph, were overdue by more than three months.
At March 31, 2000, 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 $2,038 million ($2,053 million--June 30, 1999),
of which $1,291 million ($1,249 million--June 30, 1999) was overdue, were in
nonaccrual status. At such date, overdue interest and other charges in respect
of these loans totaled $1,050 million ($1,011 million--June 30, 1999). If these
loans had not been in nonaccrual status, income from loans for the three and
nine months ended March 31, 2000 would have been higher by $16 million and $43
million, respectively, compared to $15 million and $46 million for the
respective fiscal year 1999 periods.
8 IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000
<PAGE>
A summary of countries with loans in nonaccrual status follows:
IN MILLIONS
<TABLE>
<CAPTION>
MARCH 31, 2000
PRINCIPAL PRINCIPAL, INTEREST NONACCRUAL
BORROWER OUTSTANDING AND CHARGES OVERDUE SINCE
----------- ------------------- ----------
<S> <C> <C> <C>
WITH OVERDUES
Congo, Democratic Republic of $81 $107 November 1993
Congo, Republic of 67 50 November 1997
Iraq 38 65 December 1990
Liberia 133 285 June 1987
Sudan 3 2 January 1994
Syrian Arab Republic 31 147(a) February 1987
Yugoslavia, Federal Republic of (Serbia and
Montenegro) 1,114 1,685 September 1992
------ ------
Total 1,467 2,341
WITHOUT OVERDUES
Bosnia and Herzegovina 571 -- September 1992
------ ------
TOTAL $2,038 $2,341
------ ------
------ ------
</TABLE>
- ------------------------
(a.) REPRESENTS INTEREST AND CHARGES OVERDUE.
During fiscal year 1999 Sudan reached an understanding with IBRD and the
International Development Association (IDA) under which Sudan agreed to make
regular monthly payments of $1 million commencing in July 1999. These payments
are being applied first to IBRD arrears and then to arrears with IDA.
The average recorded investment in nonaccruing loans during the three and
nine months ended March 31, 2000 was $2,053 million and $2,068 million,
respectively, compared to $2,109 million and $2,092 million for the respective
fiscal year 1999 periods.
During the nine months ended March 31, 2000 and 1999, no loans came out
of nonaccrual status.
ACCUMULATED PROVISION FOR LOAN LOSSES
Changes to the Accumulated Provision for Loan Losses for the nine months ended
March 31, 2000 and for the fiscal year ended June 30, 1999 are summarized below:
IN MILLIONS
<TABLE>
<CAPTION>
MARCH 31 JUNE 30
-------- --------
<S> <C> <C>
Balance, beginning of
the fiscal year $3,560 $3,240
Provision for loan losses 55 246
Translation adjustment 14 74
------ ------
Balance, end of the
period $3,629 $3,560
------ ------
------ ------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,629 million ($3,560
million--June 30, 1999), $700 million is attributable to the nonaccruing loan
portfolio at March 31, 2000 ($700 million--June 30, 1999).
IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000 9
<PAGE>
GUARANTEES
Guarantees of $2,005 million at March 31, 2000 ($1,973 million--June 30, 1999)
were not included in reported loan balances. At March 31, 2000, $469 million of
these guarantees were subject to call ($466 million--June 30, 1999). In some
cases, IBRD guarantees have included interest payments in addition to principal.
At March 31, 2000, interest guarantees of approximately $11 million ($2
million--June 30, 1999) were subject to call.
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, 2000, IDA had approved credits of $1,625 million ($1,623
million--June 30, 1999) under this program from its inception, of which $1,606
million ($1,604 million--June 30, 1999) had been disbursed to the eligible
countries.
SEGMENT REPORTING
Based on an evaluation of IBRD's operations, management has determined that IBRD
has only one reportable segment.
For the nine months ended March 31, 2000, loans to two countries individually
generated in excess of ten percent of loan income. Loan income from these two
countries was $686 million and $645 million, respectively.
NOTE C--RETAINED EARNINGS, ALLOCATIONS AND TRANSFERS
Retained Earnings was comprised of the following elements at March 31, 2000 and
June 30, 1999:
IN MILLIONS
<TABLE>
<CAPTION>
MARCH 31 JUNE 30
-------- --------
<S> <C> <C>
Special Reserve $ 293 $ 293
General Reserve 16,109 15,409
Pension Reserve 549 294
Surplus 85 195
Unallocated Net
Income 1,350 1,518
------- -------
Total $18,386 $17,709
------- -------
------- -------
</TABLE>
On July 29, 1999, the Executive Directors allocated $700 million of the net
income earned in the fiscal year ended June 30, 1999 to the General Reserve
and $255 million to the Pension Reserve, representing the difference between
actual funding of the Staff Retirement Plan (SRP) and its accounting income
for the fiscal year 1999.
On September 30, 1999, the Board of Governors approved the following
transfers out of Unallocated Net Income: an amount equivalent to $273 million
in SDRs (valued at June 30, 1999) to IDA, $200 million to the Heavily
Indebted Poor Countries (HIPC) Debt Initiative Trust Fund, $60 million to the
Trust Fund for Gaza and West Bank, and $30 million for capacity building in
Africa. In addition, the Board of Governors approved the following transfers
out of Surplus: $75 million in SDRs (valued at June 30, 1999) to IDA and $25
million for emergency rehabilitation assistance for Kosovo. Of the total
amount of these transfers by IBRD to IDA ($348 million in SDRs valued at June
30, 1999) $300 million is to be drawn down in fiscal year 2005; the remaining
$48 million was transferred in October 1999 as a reimbursement of IDA's share
of the fiscal year 1999 cost of implementing the Strategic Compact of IBRD
and IDA.
At March 31, 2000, 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.
On March 13, 2000 the Board of Governors approved a $10 million transfer out of
Surplus to the Trust Fund for East Timor, to be drawn down immediately. As of
March 31, 2000 this amount had been paid.
NOTE D--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, 2000 and 1999:
IN MILLIONS
<TABLE>
<CAPTION>
ACCUMULATED OTHER
COMPREHENSIVE INCOME(a)
2000 1999
------- --------
<S> <C> <C>
Balance, beginning
of the fiscal year $(637) $(960)
Changes from
period activity 48 431
------- ------
Balance, end of the
period $(589) $(529)
------- ------
------- ------
</TABLE>
- ------------------------
(a.) THE TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME REPRESENTS THE CUMULATIVE
TRANSLATION ADJUSTMENT.
10 IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000
<PAGE>
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS
DELOITTE TOUCHE
TOHMATSU
(International Firm)
____________________ _________________________________
[LOGO] 555 12th 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, 2000, 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, 2000 and 1999. 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 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 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, 1999, and the related statements of income, comprehensive income,
changes in retained earnings, and cash flows for the fiscal year then ended
(not presented herein); and in our report dated July 28, 1999, 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, 1999 is fairly stated, in all material respects, in relation to the
balance sheet from which it has been derived.
Deloitte Touche Tohmatsu (International Firm)
May 2, 2000
______________________________________________
Beijing London Mexico City Moscow New York
Paris Tokyo Toronto
IBRD CONDENSED FINANCIAL STATEMENTS: MARCH 31, 2000 11
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<CAPTION>
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY EXTERNAL ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
DATE DATE
- -------------- ----------- -------- -------- ----------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
NEW BORROWINGS
- --------------
MTBOC
-----
AUSTRALIAN DOLLAR
- -----------------
BOND/SELL AUD/IBRD/0503AUD05.50 0000004281 AUD 250,000,000 166,012,500 25-Jan-2000 14-May-2003
-------------
TOTAL BY CURRENCY 166,012,500
-------------
POUND STERLING
- --------------
BOND/SELL GBP/IBRD/0303GBP05.90 0000004411 GBP 100,000,000 156,695,000 22-Mar-2000 24-Mar-2003
-------------
TOTAL BY CURRENCY 156,695,000
-------------
HONG KONG DOLLAR
- ----------------
BOND/SELL HKD/IBRD/0205HKD7.50 0000004290 HKD 200,000,000 25,704,298 09-Feb-2000 09-Feb-2005
BOND/SELL HKD/IBRD/0210HKD08.00 0000004292 HKD 100,000,000 12,852,149 09-Feb-2000 09-Feb-2010
-------------
TOTAL BY CURRENCY 38,556,447
-------------
JAPANESE YEN
- ------------
BOND/SELL JPY/IBRD/0210JPYSTR 0000004285 JPY 1,200,000,000 11,343,763 27-Jan-2000 14-Feb-2010
BOND/SELL JPY/IBRD/0210JPYSTR01 0000004300 JPY 3,600,000,000 33,387,433 08-Feb-2000 08-Feb-2010
BOND/SELL JPY/IBRD/0210JPYSTR01 0000004360 JPY 500,000,000 4,637,144 08-Feb-2000 08-Feb-2010
BOND/SELL JPY/IBRD/0220JPYSTR 0000004311 JPY 1,000,000,000 9,225,518 16-Feb-2000 17-Feb-2020
BOND/SELL JPY/IBRD/0312JPYSTR 0000004371 JPY 1,000,000,000 9,176,838 01-Mar-2000 01-Mar-2012
BOND/SELL JPY/IBRD/0320JPYSTR01 0000004375 JPY 3,000,000,000 27,530,513 01-Mar-2000 01-Mar-2020
BOND/SELL JPY/IBRD/0310JPYSTR 0000004383 JPY 1,000,000,000 9,502,090 15-Mar-2000 15-Mar-2010
BOND/SELL JPY/IBRD/0320JPYSTR 0000004367 JPY 2,000,000,000 19,061,234 16-Mar-2000 16-Mar-2020
BOND/SELL JPY/IBRD/0320JPYSTR04 0000004387 JPY 1,000,000,000 9,530,617 16-Mar-2000 16-Mar-2020
BOND/SELL JPY/IBRD/0320JPYSTR02 0000004377 JPY 7,600,000,000 71,803,108 21-Mar-2000 18-Mar-2020
BOND/SELL JPY/IBRD/0320JPYSTR03 0000004385 JPY 1,000,000,000 9,378,664 23-Mar-2000 23-Mar-2020
BOND/SELL JPY/IBRD/0310JPYSTR01 0000004399 JPY 1,200,000,000 11,254,396 23-Mar-2000 23-Mar-2010
BOND/SELL JPY/IBRD/0320JPYSTR05 0000004409 JPY 3,000,000,000 28,135,991 23-Mar-2000 24-Mar-2020
BOND/SELL JPY/IBRD/0320JPYSTR06 0000004415 JPY 3,000,000,000 28,202,115 30-Mar-2000 30-Mar-2020
-------------
TOTAL BY CURRENCY 282,169,423
-------------
MEXICAN PESO
- ------------
BOND/SELL MXN/IBRD/0203MXN15.87 0000004369 MXN 1,000,000,000 106,700,811 28-Feb-2000 28-Feb-2003
-------------
TOTAL BY CURRENCY 106,700,811
-------------
NEW ZEALAND DOLLAR
- ------------------
BOND/SELL NZD/IBRD/1105NZD7.5 0000004282 NZD 250,000,000 127,312,500 28-Jan-2000 30-Nov-2005
-------------
TOTAL BY CURRENCY 127,312,500
-------------
SLOVAK KORUNA
- -------------
</TABLE>
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<CAPTION>
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY EXTERNAL ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
DATE DATE
- -------------- ----------- -------- -------- ----------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND/SELL SKK/IBRD/0202SKK10.25 0000004307 SKK 750,000,000 17,237,021 04-Feb-2000 04-Feb-2002
-------------
TOTAL BY CURRENCY 17,237,021
-------------
UNITED STATES DOLLAR
- --------------------
BOND/SELL USD/IBRD/0115USDSTR 0000004302 USD 15,000,000 15,000,000 26-Jan-2000 26-Jan-2015
BOND/SELL USD/IBRD/0105USD07.00 0000004294 USD 3,000,000,000 3,000,000,000 27-Jan-2000 27-Jan-2005
BOND/SELL USD/IBRD/0110USDSTR01 0000004291 USD 10,000,000 10,000,000 28-Jan-2000 28-Jan-2010
BOND/SELL USD/IBRD/0110USDSTR02 0000004293 USD 10,000,000 10,000,000 28-Jan-2000 28-Jan-2010
BOND/SELL USD/IBRD/0205USDSTR 0000004283 USD 100,000,000 100,000,000 02-Feb-2000 02-Feb-2005
BOND/SELL USD/IBRD/0203USD06.30 0000004373 USD 63,000,000 63,000,000 03-Feb-2000 03-Feb-2003
BOND/SELL USD/IBRD/0210USDSTR 0000004298 USD 10,000,000 10,000,000 04-Feb-2000 04-Feb-2010
BOND/SELL USD/IBRD/0210USDSTR01 0000004289 USD 25,000,000 25,000,000 11-Feb-2000 11-Feb-2010
BOND/SELL USD/IBRD/0205USDSTR01 0000004359 USD 0205USDSTR01 15,000,000 15,000,000 15-Feb-2000 15-Feb-2005
BOND/SELL USD/IBRD/0215USDSTR 0000004296 USD 25,000,000 25,000,000 18-Feb-2000 20-Feb-2015
BOND/SELL USD/IBRD/0210USDSTR02 0000004362 USD 25,000,000 25,000,000 22-Feb-2000 22-Feb-2010
BOND/SELL USD/IBRD/0302USD06.75 0000004379 USD 2,000,000,000 2,000,000,000 06-Mar-2000 06-Mar-2002
BOND/SELL USD/IBRD/0305USDSTR 0000004380 USD 20,000,000 20,000,000 09-Mar-2000 09-Mar-2005
BOND/SELL USD/IBRD/0303USDSTR01 0000004402 USD 50,000,000 50,000,000 21-Mar-2000 21-Mar-2003
BOND/SELL USD/IBRD/0315USDSTR 0000004423 USD 10,000,000 10,000,000 30-Mar-2000 30-Mar-2015
-------------
TOTAL BY CURRENCY 5,378,000,000
-------------
SOUTH AFRICAN RAND
- ------------------
BOND/SELL ZAR/IBRD/0210ZAR13.00 0000004276 ZAR 100,000,000 15,870,497 03-Feb-2000 03-Feb-2010
BOND/SELL ZAR/IBRD/0308ZAR13.13 0000004413 ZAR 100,000,000 15,497,869 24-Mar-2000 19-Mar-2008
-------------
TOTAL BY CURRENCY 31,368,366
=============
TOTAL 6,304,052,067
-------------
MTBOZ
-----
POLISH ZLOTY
- ------------
BOND/SELL PLN/IBRD/0328PLNSTR 0000004404 PLN 3,000,000,000 728,774,444 13-Mar-2000 20-Mar-2028
-------------
TOTAL BY CURRENCY 728,774,444
=============
TOTAL 728,774,444
-------------
</TABLE>
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<CAPTION>
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY EXTERNAL ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
DATE DATE
- -------------- ----------- -------- -------- ----------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
MATURING BORROWINGS
- -------------------
MTBOC
-----
SWISS FRANC
- -----------
BOND/SELL CHF/IBRD/0200CHF05.38 0000000083 CHF CHF0245MLT01 200,000,000 122,963,418 22-Feb-1995 22-Feb-2000
-------------
TOTAL BY CURRENCY 122,963,418
-------------
DEUTSCHE MARK
- -------------
BOND/SELL DEM/IBRD/1299DEM04.63 0000000134 DEM DEM0527GMT01 300,000,000 154,514,963 04-Apr-1996 04-Jan-2000
-------------
TOTAL BY CURRENCY 154,514,963
-------------
FRENCH FRANC
- ------------
BOND/SELL FRF/IBRD/0300FRF08.38 0000000154 FRF FRF0008MLT01 1,000,000,000 146,663,577 16-Mar-1992 16-Mar-2000
-------------
TOTAL BY CURRENCY 146,663,577
-------------
POUND STERLING
- --------------
BOND/SELL GBP/IBRD/0300GBP06.00 0000000171 GBP GBP0032MLT01 250,000,000 397,437,500 26-Feb-1997 01-Mar-2000
BOND/SELL GBP/IBRD/0300GBP06.10 0000000172 GBP GBP0033MLT01 300,000,000 471,720,000 17-Mar-1997 17-Mar-2000
BOND/SELL GBP/IBRD/0100GBP06.88 0000000178 GBP GBP0648GDI01 150,000,000 245,145,000 19-Jan-1998 19-Jan-2000
-------------
TOTAL BY CURRENCY 1,114,302,500
-------------
HONG KONG DOLLAR
- ----------------
BOND/SELL HKD/IBRD/0200HKD9.86 0000000020 HKD HKD0719GDI01 300,000,000 38,559,420 10-Aug-1998 10-Feb-2000
-------------
TOTAL BY CURRENCY 38,559,420
-------------
JAPANESE YEN
- ------------
BOND/SELL JPY/IBRD/0201JPY02.50 0000000314 JPY JPY0123MLT01 1,800,000,000 16,605,932 16-Mar-1987 16-Feb-2000
BOND/SELL JPY/IBRD/0801JPY02.50 0000000316 JPY JPY0125MLT03 1,000,000,000 9,167,163 01-Apr-1987 10-Feb-2000
BOND/SELL JPY/IBRD/0701JPY03.10 0000000317 JPY JPY0127MLT01 660,000,000 6,245,860 29-May-1987 31-Jan-2000
BOND/SELL JPY/IBRD/0303JPY05.50 0000000331 JPY JPY0154MLT01 5,900,000,000 54,870,960 25-Mar-1988 27-Mar-2000
BOND/SELL JPY/IBRD/0300JPY06.75 0000000344 JPY JPY0187MLT01 50,000,000,000 469,505,611 15-Mar-1990 14-Mar-2000
-------------
TOTAL BY CURRENCY 556,395,526
-------------
NETHERLANDS GUILDER
- -------------------
BOND/SELL NLG/IBRD/0100NLG07.88 0000000373 NLG NLG0063MLT01 5,155,080 2,406,410 15-Jan-1985 13-Jan-2000
BOND/SELL NLG/IBRD/0105NLG07.88 0000000375 NLG NLG0063MLT03 2,700,000 1,260,370 15-Jan-1985 13-Jan-2000
BOND/SELL NLG/IBRD/0100NLG07.882 0000001107 NLG NLG0063MLT02 4,565,000 2,130,959 15-Jan-1985 13-Jan-2000
BOND/SELL NLG/IBRD/0300NLG08.75 0000000376 NLG NLG0067MLT01 10,000,000 4,401,895 15-Mar-1985 15-Mar-2000
-------------
TOTAL BY CURRENCY 10,199,634
-------------
UNITED STATES DOLLAR
- --------------------
BOND/SELL USD/IBRD/0200USD08.98 0000000519 USD USD0226COL01 5,000,000 5,000,000 23-Feb-1988 15-Feb-2000
BOND/SELL USD/IBRD/0300USD08.85 0000000752 USD USD1389COL01 30,000 30,000 01-Feb-1990 15-Mar-2000
</TABLE>
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<CAPTION>
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY EXTERNAL ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
DATE DATE
- -------------- ----------- -------- -------- ----------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND/SELL USD/IBRD/0300USD08.97 0000000753 USD USD1390COL01 50,000 50,000 07-Feb-1990 15-Mar-2000
BOND/SELL USD/IBRD/0200USD08.96 0000000755 USD USD1392COL01 30,000 30,000 07-Feb-1990 07-Feb-2000
BOND/SELL USD/IBRD/0300USD08.95 0000000757 USD USD1394COL01 1,500,000 1,500,000 12-Feb-1990 15-Mar-2000
BOND/SELL USD/IBRD/0200USD08.97 0000000758 USD USD1395COL01 100,000 100,000 13-Feb-1990 15-Feb-2000
BOND/SELL USD/IBRD/0200USD08.82 0000000759 USD USD1396COL01 5,000,000 5,000,000 16-Feb-1990 15-Feb-2000
BOND/SELL USD/IBRD/0200USD08.78 0000000762 USD USD1399COL01 30,000 30,000 21-Feb-1990 15-Feb-2000
BOND/SELL USD/IBRD/0300USD09.05 0000000764 USD USD1401COL01 50,000 50,000 28-Feb-1990 15-Mar-2000
BOND/SELL USD/IBRD/0300USD08.00 0000000787 USD USD1440COL01 500,000 500,000 31-May-1990 15-Mar-2000
BOND/SELL USD/IBRD/0300USD05.15 0000000589 USD USD0564GMT01 1,000,000,000 1,000,000,000 24-Dec-1996 23-Mar-2000
-------------
TOTAL BY CURRENCY 1,012,290,000
=============
TOTAL 3,155,889,038
-------------
MTBOZ
-----
UNITED STATES DOLLAR
- --------------------
BOND/SELL USD/IBRD/0200USD00.00 0000000488 USD USD0189MLT45 18,000,000 18,000,000 06-Mar-1985 15-Feb-2000
BOND/SELL USD/IBRD/0300USD00.00 0000000747 USD USD1384COL01 125,000 125,000 11-Jan-1990 15-Mar-2000
BOND/SELL USD/IBRD/0100USD00.00 0000000750 USD USD1387COL01 120,000 120,000 29-Jan-1990 31-Jan-2000
-------------
TOTAL BY CURRENCY 18,245,000
=============
TOTAL 18,245,000
-------------
</TABLE>
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<CAPTION>
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY EXTERNAL ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
DATE DATE
- -------------- ----------- -------- -------- ----------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
EARLY RETIREMENT
- ----------------
MTBOC
-----
ITALIAN LIRA
- ------------
BOND/BUY ITL/IBRD/0307ITLSTR 0000004401 ITL 650,000,000,000 322,940,499 27-Mar-2000 27-Mar-2007
-------------
TOTAL BY CURRENCY 322,940,499
-------------
JAPANESE YEN
- ------------
BOND/BUY JPY/IBRD/0105JPY05.43 0000004273 JPY 10,000,000,000 94,531,361 27-Jan-2000 27-Jan-2005
-------------
TOTAL BY CURRENCY 94,531,361
=============
TOTAL 417,471,860
-------------
</TABLE>
