<PAGE>
[LETTERHEAD]
File No. 1-3431
REGULATION BW
RULE 2
November 10, 2000
VIA EDGAR
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
Please find enclosed herewith for filing in compliance with Rule 2 of
Regulation BW:
(a) the Management's Discussion & Analysis and Financial
Statements (Unaudited) of the International Bank for
Reconstruction and Development for the quarter ending
September 30, 2000; and
(b) the list of transactions with regard to the Bank's securities
and borrowings during the quarter ending September 30, 2000.
Sincerely yours,
/s/ J. Clifford Frazier
J. Clifford Frazier
Acting Chief Counsel, Finance
Attachments
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
[WORLD BANK LOGO]
MANAGEMENT'S DISCUSSION & ANALYSIS
AND
CONDENSED QUARTERLY FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
<PAGE>
CONTENTS
SEPTEMBER 30, 2000
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL STATEMENT REPORTING 2
MANAGEMENT REPORTING 2
CURRENT VALUE BASIS 3
EQUITY CAPITAL-TO-LOANS 4
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS 5
FUNDING RESOURCES 6
IBRD CONDENSED FINANCIAL STATEMENTS
BALANCE SHEET 8
STATEMENT OF INCOME 9
STATEMENT OF COMPREHENSIVE INCOME 10
STATEMENT OF CHANGES IN RETAINED EARNINGS 10
STATEMENT OF CASH FLOWS 11
NOTES TO FINANCIAL STATEMENTS 12
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS 16
<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, 2000 (FY
2000). IBRD undertakes no obligation to update any forward-looking statements
made in such documents.
FINANCIAL STATEMENT REPORTING
IBRD prepares its financial statements in accordance with generally accepted
accounting principles (GAAP) in the United States and International GAAP
(together referred to herein as the "reported basis"). Effective July 1, 2000,
IBRD adopted Financial Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities", along with its related amendments under
Financial Accounting Standard No. 138. Concurrently, IBRD also adopted
International Accounting Standard No. 39, "Financial Instruments: Recognition
and Measurement". These three standards are collectively termed "FAS 133" for
purposes of this discussion.
These new standards require that all derivatives be carried at fair value. IBRD
has marked all derivative instruments, as defined by FAS 133, to fair value,
with changes in the fair value being recognized currently in earnings.
Although these standards allow hedge accounting for certain qualifying hedging
relationships, when these criteria are applied to IBRD's financial instrument
portfolios, certain of the hedged instruments would be carried at fair value,
while other similar hedged instruments would be carried at amortized cost.
Therefore, in applying the new standards on the reported basis, IBRD has elected
not to define any qualifying hedging relationships. While IBRD believes that its
hedging strategies are appropriate, the application of FAS 133 qualifying hedge
criteria would not make fully evident the risk management strategy that IBRD
employs.
MANAGEMENT REPORTING
For management reporting purposes, IBRD prepares current value financial
statements as described in the Current Value Basis section of this document.
IBRD manages its balance sheet by making extensive use of derivatives to manage
the interest rate and currency risks associated with its financial assets and
liabilities. IBRD uses derivative instruments for asset/liability management of
individual positions and portfolios, and to reduce transaction costs.
IBRD's funding operations are designed to meet a major organizational objective
of providing lower cost funds to borrowing members. Because of the extent of
IBRD's long- dated funding, the reported volatility under FAS 133 may be more
acute than for many other financial institutions. FAS 133 adjustments may
significantly affect reported results in each accounting period, depending on
changes in market rates. However, IBRD believes that its funding and asset/
liability management strategies accomplish its objectives of protection from
market risk and providing lower cost funding, and that a current value basis
provides more meaningful information for risk management and management
reporting.
IBRD believes that a current value presentation best reflects the economic value
of all of its financial instruments. Table 1 presents IBRD's balance sheet on a
current value basis, together with a reconciliation to the reported accounts at
September 30, 2000.
<PAGE>
TABLE 1: CONDENSED CURRENT VALUE BALANCE SHEET AT SEPTEMBER 30, 2000 AND
JUNE 30, 2000
<TABLE>
<CAPTION>
IN MILLIONS OF U.S. DOLLARS
--------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 JUNE 30, 2000
---------------------------------------------------------- -------------------
REVERSAL OF CURRENT CURRENT
REPORTED FAS 133 VALUE VALUE PRO FORMA
BASIS EFFECTS ADJUSTMENT BASIS CURRENT VALUE
------------- -------------- -------------- ----------- ------------------
<S> <C> <C> <C> <C> <C>
CASH $ 721 $ 721 $ 691
INVESTMENTS 24,654 24,654 25,042
LOANS OUTSTANDING 119,295 $ 2,530 121,825 122,265
LESS ACCUMULATED PROVISION
FOR LOAN LOSSES AND
DEFERRED LOAN INCOME (3,959) (3,959) (3,860)
SWAPS RECEIVABLE
INVESTMENTS 10,546 10,546 11,317
BORROWINGS 67,415 $ (1,971) 1,971 67,415 69,410
OTHER ASSETS 6,803 6,803 7,285
------------- -------------- -------------- ----------- ------------------
TOTAL ASSETS $ 225,475 $ (1,971) $ 4,501 $ 228,005 $ 232,150
============= ============== ============== =========== ==================
BORROWINGS $ 107,935 $ 560 $ 2,385 $ 110,880 $ 112,379
SWAPS PAYABLE
INVESTMENTS 10,581 10,581 11,720
BORROWINGS 71,487 (1,752) 1,752 71,487 73,089
OTHER LIABILITIES 5,993 5,993 5,558
------------- -------------- -------------- ----------- ------------------
TOTAL LIABILITIES 195,996 (1,192) 4,137 198,941 202,746
PAID IN CAPITAL 11,421 11,421 11,418
RETAINED EARNINGS AND
OTHER EQUITY 18,058 (779) 364 17,643 17,986
------------- -------------- -------------- ----------- ------------------
TOTAL LIABILITIES AND
EQUITY $ 225,475 $ (1,971) $ 4,501 $ 228,005 $ 232,150
============= ========================================== ==================
--------------------------------------------------------------------------------------------------------------
</TABLE>
CURRENT VALUE BASIS
The Condensed Current Value Balance Sheet above presents IBRD's estimates of the
economic value of its financial assets and liabilities, after considering
interest rate, currency and credit risks. The basis for the current value model
is the present value of expected cash flows based on an appropriate discount
rate and incorporating market data.
LOAN PORTFOLIO
All of IBRD's loans are made to or guaranteed by countries that are members of
the IBRD. IBRD does not currently sell its loans, nor is there a market for
loans comparable to those made by IBRD. The current value amount of loans
incorporates management's best estimate of the probable expected cash flows of
these instruments to IBRD.
The current value of all loans is based on a discounted cash flow method. The
estimated cash flows from principal repayments and interest are discounted by
the applicable market yield curves for IBRD's funding cost, plus IBRD's lending
spread, adjusted for interest waivers.
The current value also includes IBRD's assessment of the appropriate credit
risk, considering its history of payment receipts from borrowers. IBRD has never
suffered a loss on any of its loans, with the exception of losses resulting from
the difference between the discounted present value of expected payments for
interest and charges, according to the loan's contractual terms, and the actual
timing of cash flows. To recognize the risk inherent in these and any other
potential overdue payments, IBRD has adjusted the value of the loans through its
loan loss provision.
<PAGE>
INVESTMENT PORTFOLIO
Under both the reported and current value basis, the investment securities and
related financial instruments held in IBRD's trading portfolio are carried and
reported at market value or at their estimated fair values. Market value is
based on market quotations; instruments for which market quotations are not
readily available have been valued using market-based methodologies and market
information.
BORROWINGS
The current value of these liabilities includes the value of the debt securities
and the financial derivative instruments associated with the borrowings
portfolio. The current value is calculated based on market data using
market-based methodologies.
EQUITY CAPITAL-TO-LOANS
The equity capital-to-loans ratio is a summary statistic that IBRD uses as a
measure of its risk bearing capacity. Table 2 presents this ratio computed on
the current value management reporting basis, as well as on the reported basis
before and after the effects of FAS 133. IBRD also uses cash flow analysis as a
measure of income generating capacity and capital adequacy.
IBRD has maintained a relatively stable equity capital-to-loans ratio over the
periods presented in Table 2. At June 30, 2000, the equity capital-to-loans
ratio on the reported basis is slightly higher than on a current value basis
because the June 30, 2000 current value basis ratio includes the one-time
effect of marking all the financial assets and liabilities to current value.
On the current value basis, the equity capital-to-loans ratio increased from
20.94% at June 30, 2000 to 21.04% at September 30, 2000. Because IBRD's duration
of equity is slightly longer than that of its loan portfolio, equity is more
sensitive to changes in market rates than the loan portfolio. As a result, given
the decreasing interest rate environment experienced during the first quarter of
FY 2001, the equity capital-to-loans ratio has increased.
IBRD's condensed income statement, under a current value basis, is presented in
Table 3, followed by selected financial indicators in Table 4.
TABLE 2: EQUITY CAPITAL-TO-LOANS
<TABLE>
<CAPTION>
IN MILLIONS OF U.S. DOLLARS
---------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 JUNE 30, 2000 SEPTEMBER 30, 1999
-------------------------------------- --------------------------- --------------------
CURRENT PRE FAS 133 CURRENT
VALUE REPORTED REPORTED VALUE REPORTED REPORTED
BASIS BASIS BASIS BASIS BASIS BASIS
---------- -------------- ------------- ------------- ------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY CAPITAL $ 25,152 $ 24,787 $ 25,566 $ 25,181 $ 25,067 $ 24,276(a)
LOANS AND GUARANTEES
OUTSTANDING, NET OF
ACCUMULATED
PROVISION FOR LOAN
LOSSES $ 119,517 $ 116,987 $ 116,987 $ 120,241 $ 118,080 $ 117,555
EQUITY CAPITAL-TO-LOANS 21.04% 21.19% 21.85% 20.94% 21.23% 20.65%
---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) THE SEPTEMBER 30, 1999 EQUITY CAPITAL AMOUNT DOES NOT INCLUDE ANY ESTIMATE
OF PROPOSED TRANSFERS TO GENERAL RESERVE.
<PAGE>
TABLE 3: CONDENSED CURRENT VALUE INCOME STATEMENT
<TABLE>
<CAPTION>
IN MILLIONS OF U.S. DOLLARS
--------------------------------------------------------------------------------------------------------------
FY01 YEAR TO DATE ADJUSTMENTS FY01 YEAR TO DATE
REPORTED BASIS CURRENT VALUE
BASIS
------------------- ------------------- -------------------
<S> <C> <C> <C>
INCOME FROM LOANS $2,087 $2,087
INCOME FROM INVESTMENTS 416 $ (9) 407
OTHER INCOME 70 70
----------------- ----------------- -----------------
TOTAL INCOME 2,573 (9) 2,564
----------------- ----------------- -----------------
BORROWINGS EXPENSE 1,858 1,858
ADMINISTRATIVE EXPENSES 196 196
PROVISION FOR LOAN LOSSES 117 (117) --
OTHER EXPENSES 19 19
----------------- ----------------- -----------------
TOTAL EXPENSES 2,190 (117) 2,073
----------------- ----------------- -----------------
OPERATING INCOME 383 108 491
FAS 133 ADJUSTMENTS 344 (344) --
CURRENT VALUE ADJUSTMENTS -- 173 173
PROVISION FOR LOAN LOSSES -- (117) (117)
----------------- ----------------- -----------------
NET INCOME $ 727 $ (180) $ 547
================= ================= =================
--------------------------------------------------------------------------------------------------------------
</TABLE>
TABLE 4: SELECTED FINANCIAL INDICATORS
<TABLE>
<CAPTION>
IN MILLIONS OF U.S. DOLLARS
--------------------------------------------------------------------------------------------------------------
FY01 1ST QTR FY00 1ST FY00 FULL YEAR
QTR
----------------------------------------------- --------------- ---------------
CURRENT VALUE PRE FAS 133 REPORTED REPORTED BASIS
BASIS REPORTED BASIS BASIS
---------------------------------------------- ------------------------------
<S> <C> <C> <C> <C> <C>
NET INCOME $ 547 $ 383 $ 727 $ 417 $ 1,991
AVERAGE INTEREST-EARNING ASSETS $149,258 $ 146,912 $ 146,912 $ 151,615 $ 149,107
NET RETURN ON AVERAGE
INTEREST- EARNING ASSETS 1.15%(a) 1.04% 1.37%(b) 1.09% 1.34%
RETURN ON LOANS 3.71%(a) 6.76% 6.76% 6.56% 6.71%
RETURN ON INVESTMENTS 6.01%(a) 6.72% 6.72% 5.16% 5.74%
COST OF BORROWINGS 3.44%(a) 6.31% 5.92%(b) 5.78% 5.92%
--------------------------------------------------------------------------------------------------------------
</TABLE>
a. EXCLUDES THE CUMULATIVE EFFECT OF THE ADOPTION OF CURRENT VALUE BASIS OF
ACCOUNTING
b. EXCLUDES THE CUMULATIVE EFFECT OF THE ADOPTION OF FAS 133.
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS
For the three months ended September 30, 2000 (first quarter of FY 2001), the
reported net income was $727 million, compared with $417 million in the first
quarter of FY 2000. The increase of $310 million in net income is predominantly
attributable to the following:
o Income of $344 million related to FAS 133 adjustments reflected the
adoption of this standard on July 1, 2000 and the year-to-date mark to
fair value of IBRD's derivative instruments. (See Notes to Financial
Statements - Note E).
o An increase of $85 million in income from loans reflected 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 higher yielding Special Structural
Adjustment Loans (SSAL) outstanding
<PAGE>
in FY 2001, as well as a larger percentage of the loan portfolio in
U.S. dollars, which has had higher nominal interest rates than most
other major currencies. In addition, these higher rates reflected the
higher interest rate environment seen in this quarter compared to the
first quarter of FY 2000. These increases were partially offset by the
loss of income representing reversals of unpaid interest and other
charges accrued on loans that went into nonaccrual, as well as the
effect of increased waivers in this quarter compared to the same
period in FY 2000.
o A decrease in administrative expenses and contributions to special
programs of $28 million.
o An increase of $19 million in income from investments and securities
purchased and sold under resale agreements was mainly due to higher
investment returns partially offset by a lower investment portfolio
balance. The higher returns reflected the effects of the higher
interest rate environment in FY 2001 on an investment portfolio which
carries an interest rate duration of less than one year.
o An increase of $16 million in other income reflected an increase in
fees from reimbursable programs associated with administrative
services.
o An increase of $96 million in the provision for loan loss expense was
primarily due to an additional provision taken on certain loans overdue
at September 30, 2000, which were placed in non-accrual on October 2,
2000. (See Notes to Financial Statements--Note B). However, this
increase was partially offset by the slightly reduced provision on the
accruing loan portfolio, compared to the prior year, reflecting some
general credit improvements in the accrual portfolio.
o An increase of $79 million (excluding the effects of FAS 133) in
borrowing costs mainly resulted from an increase in the average
borrowing rates, partially offset by a decrease in the average volume
of debt outstanding. The higher rates reflected the higher interest
rate environment in the first quarter FY 2001 compared to the same
period in FY 2000, as well as the higher proportion of more U.S. dollar
borrowings with higher nominal rates in the total borrowings portfolio.
The net return on average interest-earning assets on the reported basis for the
first quarter of FY 2001 was 1.37%, compared to 1.09% for the first quarter of
FY 2000. The increase in the net return was due primarily to the year-to- date
FAS 133 adjustment mentioned above.
The net return on average interest-earning assets excluding the FAS 133
adjustment would have been 1.04%. This decrease in the return (when compared to
that for the first quarter of FY 2000) resulted mainly from the increase in the
provision for loan loss expense mentioned above. The return, before the current
quarter's income effects of the probable nonaccrual event, would have been
1.39%. Excluding this event, the provision for loan loss expense actually
decreased from the same period in FY 2000, reflecting some general improvement
in the credit quality of the accrual portfolio. In addition, the following have
also contributed positively to the net return on average interest- bearing
assets:
o The higher net spreads obtained on loans in part due to the higher
proportion of SSALs mentioned above, as well as higher average lending
rates, net of funding costs, on the Single Currency Pool Loans (SCP).
In FY 2000, the higher borrowing costs associated with the SCPs were
only partially passed onto SCP borrowers via the lending rates, due to
the timing of interest rate resets;
o The higher equity balance within IBRD available to fund these
interest-earning assets; and
o The decrease in net non-interest expenses.
For the first quarter of FY 2001, net income was $383 million and the net return
on average interest-earning assets was 1.04%, under the pre FAS 133 reported
basis. Under the current value basis (excluding the cumulative effects of the
adoption of the current value basis of accounting), both net income and the net
return on average interest-earning assets were higher, at $431 million and
1.15%, respectively. The duration of equity is longer than that of
interest-earning assets, as a result, the relative increase in net income was
greater than the increase in the value of the interest-earning assets.
The returns on loans and investments, and the cost of borrowings all decreased
due to the inclusion of currency translation effects in loan and investment
income and borrowings expense under a current value basis. However, on average,
the combined effect of the total mark for currency and interest rates had a
positive effect on equity.
FUNDING RESOURCES
EQUITY
On August 1, 2000, the Executive Directors allocated out of the net income
earned during FY 2000, $1,114 million to General Reserves and $166 million to
the Pension Reserve.
On September 27, 2000, the Board of Governors allocated $320 million (in SDRs
valued at June 30, 2000) to be transferred to the International Development
Association (IDA). Of this amount, $300 million is to be drawn down in FY 2005,
at the end of the defined encashment schedule for donor contributions to IDA's
Twelfth Replenishment and $20 million may be transferred as an immediate grant.
Additional net income transfers approved on that date included a $250 million
immediate grant to the Heavily Indebted Poor Countries Debt Initiative Trust
Fund, a $30 million grant for capacity building in Africa and a $35 million
grant to the Trust Fund for Kosovo. An amount of $76 million was allocated to
surplus.
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
<PAGE>
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000
(UNAUDITED) JUNE 30, 2000
------------------ ---------------
ASSETS
<S> <C> <C>
Due from banks $ 721 $ 691
Investments--Trading 24,451 24,941
Securities purchased under resale agreements--Trading 203 101
Nonnegotiable, noninterest-bearing demand obligations on account of
subscribed capital 1,798 1,670
Receivable from currency and interest rate swaps
Investments--Trading 10,546 11,317
Borrowings (including FAS 133 adjustment of $1,971 million--Note E) 67,415 67,231
Loans outstanding--Note B
Total loans 159,471 164,858
Less undisbursed balance 40,176 44,754
------------- -------------
Loans outstanding 119,295 120,104
Less:
Accumulated provision for loan losses 3,480 3,400
Deferred loan income 479 460
------------- -------------
Net loans outstanding 115,336 116,244
Other assets 5,005 5,615
------------- -------------
TOTAL ASSETS $ 225,475 $ 227,810
============= =============
LIABILITIES
Borrowings
Short-term $ 5,654 $ 4,730
Medium- and long-term (less FAS 133 adjustment of $560 million--Note E) 102,281 105,649
Securities sold under repurchase agreements and payable for cash collateral
received--Trading 50 --
Payable for currency and interest rate swaps
Investments--Trading 10,581 11,720
Borrowings (including FAS 133 adjustment of $1,752 million--Note E) 71,487 70,864
Payable for Board of Governors-approved transfers--Note C 1,474 861
Other liabilities 4,469 4,697
------------- -------------
TOTAL LIABILITIES 195,996 198,521
------------- -------------
EQUITY
Capital stock--Authorized (1,581,724 shares--September 30, 2000 and
June 30, 2000)
Subscribed (1,564,038 shares--September 30, 2000;
1,563,443 shares--June 30, 2000) 188,678 188,606
Less uncalled portion of subscriptions 177,257 177,188
------------- -------------
11,421 11,418
Amounts to maintain value of currency holdings of paid-in capital stock (662) (522)
Payments on account of pending subscriptions 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note C) 19,119 19,027
Accumulated other comprehensive income--Note D (406) (641)
------------- -------------
TOTAL EQUITY 29,479 29,289
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 225,475 $ 227,810
============= =============
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
STATEMENT OF INCOME
<TABLE>
<CAPTION>
EXPRESSED IN MILLIONS OF U.S. DOLLARS
THREE MONTHS ENDED
SEPTEMBER 30
(UNAUDITED)
--------------------------
2000 1999
--------------------------
<S> <C> <C>
INCOME
Loans--Note B $ 2,087 $ 2,002
Investments--Trading 409 396
Securities purchased under resale agreements 7 1
Income from Staff Retirement Plan and other postretirement benefits plans 39 43
Other 31 15
--------------------------
Total income 2,573 2,457
--------------------------
EXPENSES
Borrowings 1,858 1,779
Securities sold under repurchase agreements and payable for cash
collateral received -- --
Administrative 196 209
Contributions to special programs 16 31
Provision for loan lossesNote B 117 21
Other 3 --
--------------------------
Total expenses 2,190 2,040
--------------------------
OPERATING INCOME 383 417
FAS 133 adjustmentNote E 125 --
Cumulative effect of change in accounting principleNote E 219 --
--------------------------
NET INCOME $ 727 $ 417
==========================
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
STATEMENT OF COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
EXPRESSED IN MILLIONS OF U.S. DOLLARS
THREE MONTHS ENDED
SEPTEMBER 30
(UNAUDITED)
-------------------------------
2000 1999
--------------- ---------------
<S> <C> <C>
Net income $ 727 $ 417
Other comprehensive income--Note D
Cumulative effect of change in accounting principle--Note E 500 --
Reclassification of FAS 133 transition adjustment to net income (26) --
Currency translation adjustments (239) 278
--------------- ---------------
Total other comprehensive income 235 278
--------------- ---------------
Comprehensive income $ 962 $ 695
=============== ===============
STATEMENT OF CHANGES IN RETAINED EARNINGS
<CAPTION>
EXPRESSED IN MILLIONS OF U.S. DOLLARS
THREE MONTHS ENDED
SEPTEMBER 30
(UNAUDITED)
-------------------------------
2000 1999
-------------- --------------
<S> <C> <C>
Retained earnings at beginning of the fiscal year $ 19,027 $ 17,709
Board of Governors-approved transfers--Note C (635) (663)
Net income for the period 727 417
-------------- --------------
Retained earnings at end of the period $ 19,119 $ 17,463
============== ==============
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
STATEMENT OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
EXPRESSED IN MILLIONS OF U.S. DOLLARS
THREE MONTHS ENDED
SEPTEMBER 30 (UNAUDITED)
---------------------------------
2000 1999
------------- ------------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements $ (3,059) $ (3,137)
Principal repayments and prepayments 2,566 2,624
Loan origination fees received -- 3
------------- ------------
Net cash used in lending and investing activities (493) (510)
------------- ------------
Cash flows used for payments for Board of Governors-approved transfers -- (15)
Cash flows from financing activities
Medium- and long-term borrowings
New issues 3,294 5,280
Retirements (3,778) (6,508)
Net capital stock transactions 10 15
Other financing activities 34 (2,126)
------------- ------------
Net cash used in financing activities (440) (3,339)
------------- ------------
Cash flows from operating activities
Net income 727 417
Adjustments to reconcile net income to net cash provided by operating
activities
FAS 133 adjustment (125) --
Cumulative effect of change in accounting principle (219) --
Depreciation and amortization 224 206
Income from Staff Retirement Plan and other postretirement benefits
plans (39) (43)
Provision for loan losses 117 21
Net changes in other assets and liabilities 72 16
------------- ------------
Net cash provided by operating activities 757 617
------------- ------------
Effect of exchange rate changes on unrestricted cash and liquid investments (46) 33
------------- ------------
Net decrease in unrestricted cash and liquid investments (222) (3,214)
Unrestricted cash and liquid investments at beginning of the fiscal year 24,331 30,122
------------- ------------
Unrestricted cash and liquid investments at end of the period $ 24,109 $ 26,908
============= ============
Composed of
Investments held in trading portfolio $ 24,451 $ 28,078
Other (342) (1,170)
------------- ------------
$ 24,109 $ 26,908
============= ============
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate
fluctuations
Loans outstanding $ (1,311) $ 1,932
Borrowings (2,447) 3,047
Currency and interest rate swapsBorrowings 1,482 (1,611)
Capitalized loan origination fees included in total loans 9 12
</TABLE>
THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A--FINANCIAL INFORMATION
The unaudited condensed financial statements should be read in conjunction with
the June 30, 2000 financial statements and the notes included therein. A review
of the interim financial information for the three months ended September 30,
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
three months of the current fiscal year are not necessarily indicative of
results that may be expected for the full year. Certain reclassifications of the
prior period's information have been made to conform to the current period's
presentation.
NOTE B--LOANS AND GUARANTEES
WAIVERS OF LOAN INTEREST AND COMMITMENT CHARGES
For payment periods beginning during the fiscal year ending June 30, 2001, the
following interest waivers on disbursed and outstanding loans to eligible
borrowers are in effect. With respect to loans for which the invitation to
negotiate was issued on or after July 31, 1998, and 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, 2000. With respect to loans for which
the invitation to negotiate was issued before July 31, 1998, and which carry a
50 basis point lending spread, the interest waiver is 15 basis points. A waiver
of 5 basis points was in effect during the fiscal year ended June 30, 2000. For
the three months ended September 30, 2000 and 1999, the effect of this waiver
was to reduce Net Income by $22 million and $14 million, respectively.
A one-year commitment charge waiver of 50 basis points is in effect on all
eligible undisbursed loans to all borrowers for all payment periods commencing
in the fiscal year ending June 30, 2001. A similar waiver of 50 basis points was
in effect for the fiscal year ended June 30, 2000. For the three months ended
September 30, 2000 and 1999, the effect of the commitment charge waiver was to
reduce Net Income by $46 million and $60 million, respectively.
OVERDUE AMOUNTS
At September 30, 2000, in addition to those loans referred to in the following
paragraph, principal installments of $10 million and charges of $3 million
payable to IBRD on loans, were overdue by more than three months. At September
30, 2000, the aggregate principal amounts outstanding on all loans to any
borrower, other than those referred to in the following paragraph, with any loan
overdue by more than three months, was $448 million.
At September 30, 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 $1,994 million ($2,031 million-- June 30,
2000), of which $1,294 million ($1,302 million-- June 30, 2000) was overdue,
were in nonaccrual status. At such date, overdue interest and other charges in
respect of these loans totaled $1,054 million ($1,060 million--June 30, 2000).
If these loans had not been in nonaccrual status, income from loans for the
three months ended September 30, 2000 would have been higher by $11 million ($18
million--September 30, 1999). A summary of countries with loans in nonaccrual
status follows:
<PAGE>
<TABLE>
<CAPTION>
IN MILLIONS
--------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000
----------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
BORROWER PRINCIPAL PRINCIPAL, NONACCRUAL SINCE
OUTSTANDING INTEREST AND
CHARGES OVERDUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WITH OVERDUES
Congo, Democratic Republic Of $ 81 $ 113 NOVEMBER 1993
Congo, Republic of 67 58 NOVEMBER 1997
Iraq 35 62 DECEMBER 1990
Liberia 128 285 JUNE 1987
Syrian Arab Republic 25 118(a) FEBRUARY 1987
Yugoslavia, Federal Republic of
(Serbia and Montenegro) 1,095 1,712 SEPTEMBER 1992
--------- ----------
Total 1,431 2,348
WITHOUT OVERDUES
Bosnia and Herzegovina 562 -- SEPTEMBER 1992
Sudan 1 -- JANUARY 1994
--------- ----------
TOTAL $ 1,994 $ 2,348
========= ==========
--------------------------------------------------------------------------------------------------------------
</TABLE>
a. REPRESENTS INTEREST AND CHARGES OVERDUE
The average recorded investment in nonaccruing loans during the three months
ended September 30, 2000 was $2,012 million ($2,072 million--September 30,
1999).
During the three months ended September 30, 2000 and 1999, no loans went into or
came out of nonaccrual status. However, effective October 2, 2000, loans made to
or guaranteed by Zimbabwe were placed in nonaccrual status. The aggregate
principal balance outstanding on these loans at September 30, 2000 was $448
million, of which $27 million was overdue. Loan income for the three months
ended September 30, 2000 was reduced by $19 million representing unpaid interest
and other charges accrued on loans outstanding to Zimbabwe.
ACCUMULATED PROVISION FOR LOAN LOSSES
Changes to the Accumulated Provision for Loan Losses for the three months ended
September 30, 2000 and for the fiscal year ended June 30, 2000 are summarized
below:
<TABLE>
<CAPTION>
IN MILLIONS
------------------------------------------------------
SEPTEMBER 30 JUNE 30
-------------- ------------
<S> <C> <C>
Balance, beginning of the
fiscal year $3,400 $3,560
Provision for loan losses 117 (166)
Translation adjustment (37) 6
------------ ------------
BALANCE, END OF THE PERIOD $3,480 $3,400
============ ============
------------------------------------------------------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,480 Million ($3,400
million--June 30, 2000), $940 million is attributable to the nonaccruing loan
portfolio and Zimbabwe at September 30, 2000 ($700 Million--June 30, 2000).
GUARANTEES
Guarantees of $1,441 million at September 30, 2000 ($1,661 million--June 30,
2000) were not included in reported loan balances. At September 30, 2000, $451
million of these guarantees were subject to call ($467 million--June 30, 2000).
In some cases, IBRD guarantees have included interest payments in addition to
principal. At September 30, 2000, interest guarantees of $16 million ($10
million--June 30, 2000) 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 September 30, 2000, IDA had approved credits of $1,658 million ($1,659
million--June 30, 2000) under this program from its inception, of which $1,631
million ($1,630 million--June 30, 2000) 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 three months ended September 30, 2000,
loans to each of two countries generated in excess of ten percent of loan
income. Loan income from these two countries was $238 million and $219 million,
respectively.
<PAGE>
NOTE C--RETAINED EARNINGS, ALLOCATIONS AND TRANSFERS
Retained Earnings was comprised of the following elements at September 30, 2000
and June 30, 2000:
<TABLE>
<CAPTION>
IN MILLIONS
------------------------------------------------------
SEPTEMBER 30 JUNE 30
---------------- -----------
<S> <C> <C>
Special Reserve $ 293 $ 293
General Reserve 17,223 16,109
Pension Reserve 715 549
Surplus 161 85
Unallocated Net Income 727 1,991
------------- -----------
Total $ 19,119 $ 19,027
============= ===========
------------------------------------------------------
</TABLE>
On August 1, 2000 the Executive Directors allocated $1,114 million of the net
income earned in the fiscal year ended June 30, 2000 to the General Reserve and
$166 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 2000.
On September 27, 2000, the Board of Governors approved the following transfers
out of unallocated Net Income: an amount equivalent to $320 million in SDRs
(valued at June 30, 2000) to IDA, $250 million to the Heavily Indebted Poor
Countries (HIPC) Debt Initiative Trust Fund, $35 million to the Trust fund for
Kosovo, and $30 million for capacity building in Africa. The remaining $76
million was allocated to surplus. Of the $320 million in SDRs valued at June 30,
2000 that was approved for transfer to IDA, $300 million is to be drawn down in
fiscal year 2005 and $20 million is available immediately as a reimbursement of
IDA's share of the fiscal year 2000 cost of implementing the Strategic Compact
of IBRD and IDA.
At September 30, 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.
NOTE D--COMPREHENSIVE INCOME
For IBRD, comprehensive income comprises the effects of the implementation of
FAS 133 as described in Note E, currency translation adjustments, and net
income. These items are presented in the Statement of Comprehensive Income. The
following tables presents the changes in Accumulated Other Comprehensive Income
balances for the three months ended September 30, 2000 and September 30, 1999:
<TABLE>
<CAPTION>
IN MILLIONS
------------------------------------------------------------------------------------------------------------
2000
---------------------------------------------------------------
CUMULATIVE CUMULATIVE RECLASSIFICATION(a) ACCUMULATED
TRANSLATION EFFECT OF COMPREHENSIVE
ADJUSTMENT CHANGE IN INCOME
ACCOUNTING
RINCIPLE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance, beginning of the fiscal year $(641) $ -- $ -- $(641)
Changes from period activity (239) 500 (26) 235
---------------------------------------------------------------
Balance, end of the period $(880) $500 $(26) $(406)
===============================================================
------------------------------------------------------------------------------------------------------------
<CAPTION>
IN MILLIONS
------------------------------------------------------------------------------------------------------------
1999
---------------------------------------------------------------
CUMULATIVE CUMULATIVE RECLASSIFICATION(a) ACCUMULATED
TRANSLATION EFFECT OF COMPREHENSIVE
ADJUSTMENT CHANGE IN INCOME
ACCOUNTING
PRINCIPLE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance, beginning of the fiscal year $(637) $ -- $ -- $(637)
Changes from period activity 278 -- -- 278
--------------------------------------------------------------
Balance, end of the period $(359) $ -- $ -- $(359)
==============================================================
------------------------------------------------------------------------------------------------------------
</TABLE>
a. RECLASSIFICATION OF PAS 133 TRANSITION ADJUSTMENTS TO NET INCOME.
<PAGE>
NOTE E--DERIVATIVE INSTRUMENTS
On July 1, 2000, IBRD adopted the Statement of Financial Accounting Standards
(SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities",
along with its amendments under SFAS No. 138, "Accounting for Certain Derivative
Instruments and Certain Hedging Activities". In addition, IBRD adopted
International Accounting Standard (IAS) 39, "Financial Instruments: Recognition
and Measurement". Although adoption of IAS 39 is not required for IBRD until
fiscal year 2002, IBRD elected to adopt this standard concurrently with SFAS No.
133. SFAS No. 133, along with its amendments under SFAS No. 138, and IAS 39 are
collectively referred to as FAS 133 in this document. These standards require
that all derivatives be measured at fair value.
IBRD uses derivative instruments for asset/liability management of individual
positions and portfolios, as well as for the reduction of transaction costs. In
applying these standards for purposes of financial statement reporting, IBRD has
elected not to define any qualifying hedging relationships. Rather, all
derivative instruments, as defined by FAS 133, have been marked to fair value
and all changes in the fair value have been recognized in net income. IBRD has
elected not to define any qualifying hedging relationships, not because economic
hedges do not exist, but rather because the application of FAS 133 hedging
criteria does not make evident IBRD's existing risk management strategy.
IBRD's loans and other financial instrument contracts, other than those in the
investments and borrowings portfolios, do not contain any financial derivative
instruments as defined by FAS 133. For derivative instruments included in the
investment portfolio, FAS 133 adjustments are not required since they are
already recorded at fair value as part of the trading portfolio. Consequently,
only the borrowings portfolio, and its related swaps, are affected by FAS 133.
The cumulative effect of a change in accounting principle includes the
difference between the carrying value and the fair value of the embedded
derivatives and derivative instruments in the borrowings portfolio on July 1,
2000, offset by any gains or losses on those borrowings for which a fair value
exposure was being hedged. Of the total amount of $719 million, $500 million is
reported in other comprehensive income and $219 million is reported in net
income. The allocation between net income and other comprehensive income was
based upon the hedging relationships that existed before the initial application
of this statement.
Since IBRD has not defined any qualifying hedging relationships under this
standard, the amount recorded in other comprehensive income is being
reclassified into earnings in the same period or periods in which the hedged
forecasted transactions affect earnings.
<PAGE>
[LETTERHEAD]
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
President and Board of Governors
International Bank for Reconstruction and Development
We have reviewed the accompanying condensed balance sheet of the International
Bank for Reconstruction and Development (IBRD) as of September 30, 2000, and the
related condensed statements of income, comprehensive income, changes in
retained earnings, and cash flows for the three-month periods ended September
30, 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, 2000, 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 31, 2000, 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, 2000 is fairly
stated, in all material respects, in relation to the balance sheet from which it
has been derived.
<PAGE>
As discussed in Note E to the condensed financial statements, IBRD changed its
method of accounting for derivative instruments to conform with Statement of
Accounting Standards (SFAS) No. 133 ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND
HEDGING ACTIVITIES, as amended by SFAS Nos. 137, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES--DEFERRAL OF THE EFFECTIVE DATE OF FASB
STATEMENT NO. 133 and 138, ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND
CERTAIN HEDGING ACTIVITIES. IBRD has also early-adopted International Accounting
Standard No. 39, FINANCIAL INSTRUMENTS: RECOGNITION AND MEASUREMENTS.
/s/ Deloitte Touche Tohmatsu (International Firm)
November 9, 2000
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABLITY RISK SYSTEM (TALRS)
SEC REPORT - CHANGES IN BORROWINGS Page 1
BORROWINGS (MLT) JULY 01, 2000 THRU SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
EXTERNAL
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
-------------- ----------- -------- -------- -------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
NEW BORROWINGS
--------------
MTBOC
-----
EURO CURRENCY
BOND/SELL EUR/IBRD/0705EUR04.74 0000004680 EUR 100,000,000 94,205,000 27-Jul-2000 25-Jul-2005
BOND/SELL EUR/IBRD/0905EUR04.90 0000004760 EUR 100,000,000 88,975,000 05-Sep-2000 06-Sep-2005
TOTAL BY CURRENCY 183,180,000
POUND STERLING
BOND/SELL GBP/IBRD/0621GBP05.40 0000004581 GBP 50,000,000 75,972,500 03-Jul-2000 07-Jun-2021
BOND/SELL GBP/IBRD/0632GBP05.75 0000004626 GBP 100,000,000 151,400,000 07-Jul-2000 07-Jun-2032
BOND/SELL GBP/IBRD/0632GBP05.75 0000004667 GBP 100,000,000 151,400,000 07-Jul-2000 07-Jun-2032
BOND/SELL GBP/IBRD/1104GBP06.25 0000004683 GBP 50,000,000 74,917,500 18-Jul-2000 26-Nov-2004
BOND/SELL GBP/IBRD/0632GBP05.75 0000004685 GBP 50,000,000 74,917,500 18-Jul-2000 07-Jun-2032
BOND/SELL GBP/IBRD/1209GBP06.12 0000004688 GBP 250,000,000 378,737,500 27-Jul-2000 07-Dec-2009
BOND/SELL GBP/IBRD/0707GBP07.13 0000004715 GBP 100,000,000 150,405,000 16-Aug-2000 30-Jul-2007
BOND/SELL GBP/IBRD/1201GBP05.37 0000004717 GBP 50,000,000 75,202,500 16-Aug-2000 03-Dec-2001
BOND/SELL GBP/IBRD/0621GBP05.40 0000004756 GBP 50,000,000 74,792,500 22-Aug-2000 07-Jun-2021
BOND/SELL GBP/IBRD/0730GBPSTR 0000004749 GBP 100,000,000 148,490,000 24-Aug-2000 22-Jul-2030
BOND/SELL GBP/IBRD/0632GBP05.75 0000004769 GBP 75,000,000 108,581,250 08-Sep-2000 07-Jun-2032
BOND/SELL GBP/IBRD/0621GBP05.40 0000004776 GBP 50,000,000 72,992,500 27-Sep-2000 07-Jun-2021
TOTAL BY CURRENCY 1,537,808,750
HONG KONG DOLLAR
BOND/SELL HKD/IBRD/0910HKD07.40 0000004764 HKD 100,000,000 12,823,637 14-Sep-2000 14-Sep-2010
TOTAL BY CURRENCY 12,823,637
JAPANESE YEN
BOND/SELL JPY/IBRD/0720JPYSTR 0000004563 JPY 20,000,000,000 191,031,090 03-Jul-2000 02-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR01 0000004566 JPY 10,000,000,000 95,515,545 03-Jul-2000 02-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR02 0000004571 JPY 5,000,000,000 47,757,773 03-Jul-2000 03-Jul-2020
BOND/SELL JPY/IBRD/0710JPYSTR01 0000004562 JPY 1,000,000,000 9,406,453 06-Jul-2000 06-Jul-2010
BOND/SELL JPY/IBRD/0820JPYSTR 0000004576 JPY 3,000,000,000 28,219,358 06-Jul-2000 06-Aug-2020
BOND/SELL JPY/IBRD/0720JPYSTR03 0000004574 JPY 2,900,000,000 27,189,199 13-Jul-2000 13-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR04 0000004586 JPY 1,000,000,000 9,375,586 13-Jul-2000 13-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR05 0000004669 JPY 1,900,000,000 17,813,613 13-Jul-2000 13-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR06 0000004671 JPY 2,000,000,000 18,751,172 13-Jul-2000 13-Jul-2020
BOND/SELL JPY/IBRD/0720JPYSTR07 0000004674 JPY 1,200,000,000 11,191,942 17-Jul-2000 17-Jul-2020
BOND/SELL JPY/IBRD/0703JPYSTR 0000004693 JPY 10,000,000,000 91,772,588 27-Jul-2000 29-Jul-2003
BOND/SELL JPY/IBRD/0720JPYSTR08 0000004690 JPY 2,000,000,000 18,343,575 28-Jul-2000 28-Jul-2020
BOND/SELL JPY/IBRD/0221JPYSTR 0000004687 JPY 3,500,000,000 31,918,289 03-Aug-2000 03-Feb-2021
BOND/SELL JPY/IBRD/0221JPYSTR01 0000004695 JPY 2,000,000,000 18,239,022 03-Aug-2000 03-Feb-2021
BOND/SELL JPY/IBRD/0820JPYSTR01 0000004697 JPY 2,000,000,000 18,476,604 07-Aug-2000 07-Aug-2020
BOND/SELL JPY/IBRD/0820JPYSTR02 0000004699 JPY 1,000,000,000 9,238,302 07-Aug-2000 07-Aug-2020
BOND/SELL JPY/IBRD/0820JPYSTR03 0000004705 JPY 1,000,000,000 9,238,302 07-Aug-2000 06-Aug-2020
BOND/SELL JPY/IBRD/0820JPYSTR04 0000004703 JPY 1,000,000,000 9,150,805 17-Aug-2000 17-Aug-2020
BOND/SELL JPY/IBRD/0825JPYSTR 0000004732 JPY 2,000,000,000 18,445,930 21-Aug-2000 21-Aug-2025
BOND/SELL JPY/IBRD/0220JPYSTR01 0000004711 JPY 1,450,000,000 13,373,300 24-Aug-2000 24-Feb-2020
BOND/SELL JPY/IBRD/0815JPYSTR 0000004742 JPY 1,200,000,000 11,067,558 24-Aug-2000 24-Aug-2015
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABLITY RISK SYSTEM (TALRS)
SEC REPORT - CHANGES IN BORROWINGS Page 2
BORROWINGS (MLT) JULY 01, 2000 THRU SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
EXTERNAL
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
-------------- ----------- -------- -------- -------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND/SELL JPY/IBRD/0226JPYSTR 0000004748 JPY 3,000,000,000 27,668,896 24-Aug-2000 24-Feb-2026
BOND/SELL JPY/IBRD/0920JPYSTR 0000004719 JPY 20,000,000,000 188,093,671 01-Sep-2000 31-Aug-2020
BOND/SELL JPY/IBRD/0925JPYSTR01 0000004758 JPY 1,100,000,000 10,322,823 05-Sep-2000 05-Sep-2025
BOND/SELL JPY/IBRD/0925JPYSTR 0000004757 JPY 1,000,000,000 9,473,285 12-Sep-2000 12-Sep-2025
BOND/SELL JPY/IBRD/0820JPYSTR06 0000004752 JPY 1,300,000,000 12,130,260 18-Sep-2000 27-Aug-2020
BOND/SELL JPY/IBRD/0915JPYSTR 0000004763 JPY 1,000,000,000 9,343,611 21-Sep-2000 21-Sep-2015
BOND/SELL JPY/IBRD/0930JPYSTR 0000004773 JPY 2,000,000,000 18,801,410 25-Sep-2000 25-Sep-2030
BOND/SELL JPY/IBRD/0920JPYSTR04 0000004774 JPY 1,000,000,000 9,400,705 25-Sep-2000 25-Sep-2020
BOND/SELL JPY/IBRD/0321JPYSTR 0000004770 JPY 1,500,000,000 14,032,462 26-Sep-2000 26-Mar-2021
BOND/SELL JPY/IBRD/0920JPYSTR01 0000004765 JPY 1,000,000,000 9,319,230 28-Sep-2000 28-Sep-2020
BOND/SELL JPY/IBRD/0920JPYSTR02 0000004766 JPY 1,000,000,000 9,319,230 28-Sep-2000 28-Sep-2020
BOND/SELL JPY/IBRD/0320JPYSTR10 0000004767 JPY 1,100,000,000 10,251,153 28-Sep-2000 30-Mar-2020
BOND/SELL JPY/IBRD/0920JPYSTR03 0000004771 JPY 20,000,000,000 185,382,583 29-Sep-2000 28-Sep-2020
TOTAL BY CURRENCY 1,219,055,327
UNITED STATES DOLLAR
BOND/SELL USD/IBRD/0905USD06.28 0000004759 USD 100,000,000 100,000,000 05-Sep-2000 06-Sep-2005
BOND/SELL USD/IBRD/0903USD06.21 0000004761 USD 50,000,000 50,000,000 08-Sep-2000 08-Sep-2003
BOND/SELL USD/IBRD/0904USD06.10 0000004775 USD 77,000,000 77,000,000 19-Sep-2000 22-Sep-2004
TOTAL BY CURRENCY 227,000,000
SOUTH AFRICAN RAND
BOND/SELL ZAR/IBRD/0710ZAR13.375 0000004666 ZAR 125,000,000 17,921,148 24-Jul-2000 26-Jul-2010
BOND/SELL ZAR/IBRD/0810ZAR13.000 0000004707 ZAR 100,000,000 14,415,453 29-Aug-2000 31-Aug-2010
TOTAL BY CURRENCY 32,336,601
TOTAL 3,212,204,314
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABLITY RISK SYSTEM (TALRS)
SEC REPORT - CHANGES IN BORROWINGS Page 3
BORROWINGS (MLT) JULY 01, 2000 THRU SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
EXTERNAL
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
-------------- ----------- -------- -------- -------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
MATURING BORROWINGS
-------------------
MTBOC
-----
AUSTRALIAN DOLLAR
BOND/SELL AUD/IBRD/0700AUD08.25 0000000045 AUD AUD0543GMT01 100,000,000 59,100,000 31-Jul-1996 31-Jul-2000
BOND/SELL AUD/IBRD/0700AUD07.00 0000000047 AUD AUD0546GMT01 100,000,000 58,495,000 27-Aug-1996 27-Jul-2000
TOTAL BY CURRENCY 117,595,000
SWISS FRANC
BOND/SELL CHF/IBRD/0700CHF07.13 0000000073 CHF CHF0224MLT01 200,000,000 122,047,965 05-Jul-1990 05-Jul-2000
BOND/SELL CHF/IBRD/0900CHF04.25 0000000079 CHF CHF0240MLT01 300,000,000 169,942,786 14-Sep-1993 14-Sep-2000
TOTAL BY CURRENCY 291,990,751
POUND STERLING
BOND/SELL GBP/IBRD/0700GBP06.88 0000000182 GBP GBP0686GDI01 500,000,000 756,825,000 14-Apr-1998 14-Jul-2000
BOND/SELL GBP/IBRD/0700GBP06.121 0000000184 GBP GBP0706GDI01 50,000,000 75,617,500 11-Jun-1998 11-Jul-2000
BOND/SELL GBP/IBRD/0700GBP06.122 0000000185 GBP GBP0713GDI01 40,000,000 60,778,000 29-Jun-1998 03-Jul-2000
BOND/SELL GBP/IBRD/0700GBP06.44 0000000186 GBP GBP0716GDI01 53,000,000 80,170,450 13-Jul-1998 13-Jul-2000
BOND/SELL GBP/IBRD/0900GBP06.20 0000000032 GBP GBP729GDI01 23,500,000 33,234,875 16-Sep-1998 18-Sep-2000
TOTAL BY CURRENCY 1,006,625,825
HONG KONG DOLLAR
BOND/SELL HKD/IBRD/082000HDKFRN 0000000012 HKD HKD0718GDI01 1,000,000,000 128,214,991 13-Aug-1998 14-Aug-2000
BOND/SELL HKD/IBRD/0800HKD10.75 0000000029 HKD HKD0724GDI01 1,000,000,000 128,208,416 25-Aug-1998 25-Aug-2000
TOTAL BY CURRENCY 256,423,406
JAPANESE YEN
BOND/SELL JPY/IBRD/0201JPY02.50 0000000314 JPY JPY0123MLT01 1,800,000,000 16,491,823 16-Mar-1987 16-Aug-2000
BOND/SELL JPY/IBRD/0801JPY02.50 0000000316 JPY JPY0125MLT03 1,000,000,000 9,208,951 01-Apr-1987 10-Aug-2000
BOND/SELL JPY/IBRD/0701JPY03.10 0000000317 JPY JPY0127MLT01 660,000,000 6,053,102 29-May-1987 31-Jul-2000
BOND/SELL JPY/IBRD/0303JPY05.50 0000000331 JPY JPY0154MLT01 5,900,000,000 55,464,160 25-Mar-1988 25-Sep-2000
BOND/SELL JPY/IBRD/0700JPY05.50 0000000333 JPY JPY0161MLT01 65,000,000,000 596,138,854 29-Jul-1988 31-Jul-2000
TOTAL BY CURRENCY 683,356,890
NETHERLANDS GUILDER
BOND/SELL NLG/IBRD/0700NLG08.13 0000000378 NLG NLG0072MLT01 12,500,000 5,433,167 10-Jul-1985 10-Jul-2000
TOTAL BY CURRENCY 5,433,167
NEW ZEALAND DOLLAR
BOND/SELL NZD/IBRD/0700NZD07.00 0000000398 NZD NZD0595GMT01 100,000,000 46,505,000 25-Jul-1997 25-Jul-2000
BOND/SELL NZD/IBRD/0900NZD07.002 0000000404 NZD NZD0613GMT01 500,000,000 210,175,000 18-Sep-1997 18-Sep-2000
BOND/SELL NZD/IBRD/0900NZD07.001 0000000401 NZD NZD0613GDI02 250,000,000 105,087,500 03-Mar-1998 18-Sep-2000
BOND/SELL NZD/IBRD/0900NZD07.001 0000000402 NZD NZD0613GDI03 100,000,000 42,035,000 03-Mar-1998 18-Sep-2000
BOND/SELL NZD/IBRD/0900NZD07.001 0000000403 NZD NZD0613GDI04 150,000,000 63,052,500 14-Apr-1998 18-Sep-2000
TOTAL BY CURRENCY 466,855,000
UNITED STATES DOLLAR
BOND/SELL USD/IBRD/0900USD09.40 0000000567 USD USD0495COL01 94,000 94,000 29-Jun-1988 15-Sep-2000
BOND/SELL USD/IBRD/0900USD09.45 0000000573 USD USD0511COL01 50,000 50,000 06-Jul-1988 15-Sep-2000
BOND/SELL USD/IBRD/0900USD08.35 0000000723 USD USD1238COL01 530,000 530,000 04-Aug-1989 15-Sep-2000
BOND/SELL USD/IBRD/0700USD09.24 0000000795 USD USD1459COL01 9,400,000 9,400,000 07-Sep-1990 31-Jul-2000
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABLITY RISK SYSTEM (TALRS)
SEC REPORT - CHANGES IN BORROWINGS Page 4
BORROWINGS (MLT) JULY 01, 2000 THRU SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
EXTERNAL
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
-------------- ----------- -------- -------- -------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND/SELL USD/IBRD/0700USD05.50 0000000599 USD USD0605GMT01 200,000,000 200,000,000 22-Jul-1997 27-Jul-2000
BOND/SELL USD/IBRD/0800USD06.00 0000000601 USD USD0608GMT01 300,000,000 300,000,000 22-Aug-1997 22-Aug-2000
TOTAL BY CURRENCY 510,074,000
SOUTH AFRICAN RAND
BOND/SELL ZAR/IBRD/0900ZAR14.13 0000000880 ZAR ZAR0617GMT01 250,000,000 34,305,318 25-Sep-1997 26-Sep-2000
TOTAL BY CURRENCY 34,305,318
TOTAL 3,372,659,357
MTBOZ
POUND STERLING
BOND/SELL GBP/IBRD/0700GBP00.00 0000000170 GBP GBP0031MLT01 180,000,000 270,486,000 16-Dec-1996 17-Jul-2000
TOTAL BY CURRENCY 270,486,000
UNITED STATES DOLLAR
BOND/SELL USD/IBRD/0800USD00.001 0000000472 USD USD0189MLT16 18,000,000 18,000,000 06-Mar-1985 15-Aug-2000
TOTAL BY CURRENCY 18,000,000
TOTAL 288,486,000
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABLITY RISK SYSTEM (TALRS)
SEC REPORT - CHANGES IN BORROWINGS Page 5
BORROWINGS (MLT) JULY 01, 2000 THRU SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
EXTERNAL
BORROWING TYPE DESCRIPTION TRADE ID CURRENCY ID CURRENCY AMOUNT US$ EQUIVALENT SETTLEMENT MATURITY
-------------- ----------- -------- -------- -------- --------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
EARLY RETIREMENT
MTBOC
SWISS FRANC
BOND/BUY CHF/IBRD/0704CHF06.13 0000004513 CHF 100,000,000 61,532,782 12-Jul-2000 12-Jul-2004
TOTAL BY CURRENCY 61,532,782
JAPANESE YEN
BOND/BUY JPY/IBRD/0709JPYSTR02 0000004676 JPY 1,000,000,000 9,235,742 21-Jul-2000 21-Jul-2009
BOND/BUY JPY/IBRD/0709JPYSTR 0000004678 JPY 1,000,000,000 9,235,742 21-Jul-2000 21-Jul-2009
BOND/BUY JPY/IBRD/0809JPYSTR01 0000004701 JPY 1,000,000,000 9,150,805 17-Aug-2000 17-Aug-2009
BOND/BUY JPY/IBRD/0904JPYSTR 0000004762 JPY 3,000,000,000 28,051,802 16-Sep-2000 16-Sep-2004
TOTAL BY CURRENCY 55,674,092
TOTAL 117,206,874
</TABLE>
