Increased Financial Resources for IFC
Formalities for increasing the financial resources of the International Finance Corporation were completed during the quarter ended on December 31, 1965. An amendment to the Bank’s Articles of Agreement permitting it to make loans to IFC up to four times the Corporation’s unimpaired subscribed capital and surplus came into force on December 17. As a result, approximately $400 million will be added to IFC’s potential resources for lending to private enterprises in its member countries. This will enable IFC to participate in large capital-intensive projects and to make loan and equity commitments to a larger number of individual enterprises.
Study on Supplementary Financing Completed
A study of financial measures to prevent the disruption of development programs in less developed countries, resulting from unpredictable shortfalls in their export earnings, was completed by the staff of the Bank. The study was undertaken at the request of the United Nations Conference on Trade and Development which met in Geneva in 1964. The scheme elaborated in the study is designed to assure countries pursuing agreed development policies that unexpected shortfalls from agreed projections of export earnings would not significantly arrest their development programs. The scheme is envisaged to operate initially on a scale averaging $300 million to $400 million a year.
The Bank joined the International Coffee Organization and the Food and Agriculture Organization of the United Nations in arranging a study of the need for coffee producing countries to diversify into other lines of production that would impart greater strength and stability to their economies.
Project and Sector Feasibility Studies
The Bank joined the Government of Brazil in organizing a study of the steel industry in Brazil, aimed at a comprehensive expansion program. The Bank will pay up to the equivalent of $420,000 to cover the foreign exchange costs of the study. The Government will bear the local currency costs, estimated at the equivalent of $243,000. IFC, which acts for the Bank Group in the appraisal of industrial and mining projects, will supervise the study on behalf of the Bank.
The Bank is acting as Executing Agency for a UN Special Fund study to establish priorities for the improvement and expansion of the road network in Western Nigeria.
General Survey Mission
The report of a general survey mission to Morocco, organized by the Bank, was submitted to the Government.
World Bank Group’s Commitment During Fourth Quarter of 1965
In the fourth quarter of 1965, the World Bank Group committed a total equivalent to $355 million in new loans, credits, and investments for economic development. The total was made up of $336 million of loans from the Bank, $11 million in credits from IDA, and $8 million of investment commitments by IFC.
In the calendar year 1965, the Group’s commitments reached a record level of $1,386 million. Loans by the Bank totaled $1,167 million, the highest level reported for any one calendar year. The International Development Association extended credits amounting to $196 million. Investment commitments by the International Finance Corporation totaled $23 million.
|New Zealand||Electric Power||20.50|
|Loans made during the fourth quarter of 1965||335.80|
|Loans made during the first three quarters of 1965||831.40|
|Total amount lent during the calendar year 1965||1,167.20|
|Credit extended during the fourth quarter of 1965||11.00|
|Credits extended during the first three quarters of 1965||185.20|
|Total amount of credits extended during the calendar year 1965||196.20|
|Country||Type of Project||Amount|
|Greece||Development Finance Company||717,601|
|Liberia||Development Finance Company||250,000|
|Investments announced during the fourth quarter of 1965||8,016,447|
|Investments announced during the first three quarters of 1965||15,131,632|
|Total investments during the calendar year 1965||$23,148,079|