International Bank for Reconstruction and Development

Abstract

The International Bank for Reconstruction and Development announced on September 6, 1961, a loan equivalent to $3 million to the Central Bank of Costa Rica to assist in a program for the importation of equipment for the development of private industry. The loan was guaranteed by the government of Costa Rica and was for a twelve-year term; the six private banks participating in the loan for a total of $314,000 were to receive the first two maturities falling due in October 1964 and April 1965. On October 13, 1961, the Bank announced three loans. The first, amounting to $34 million, was to the National Power Corporation of the Philippines to assist in financing a large hydroelectric project on the island of Luzon. Twelve United States commercial banks participated in the loan to the amount of $1,217,000 covering the first three maturities of the 25-year term of the loan that was scheduled for semi-annual amortization payments beginning June 1, 1965. On the same day a loan of $50 million to India to assist in railway development under the Third Five-Year Plan was made known. Five United States commercial banks participated for a total of $1,075,000 in the twenty-year term loan with repayment scheduled to begin in February 1965. The final loan announced on October 13 was to Costa Rica for the improvement of its highway system; the International Bank and the International Development Association (IDA) joined in making $11 million available for that purpose, each offering $5.5 million for the financing of the reconstruction and construction of about 420 miles of national and regional highways and for the import of equipment for highway construction and maintenance. Three commercial banks participated to the extent of $150,000 in the fifteen-year term loan; amortization was to begin on May 1, 1965.