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PRESS RELEASE July 9, 1957

World Bank Borrows $100 Million Outside U.S.

The International. Bank for Reconstruction and Development has arranged to borrow $100 million in United States dollars from outside the United States.

As evidence of its indebtedness the World Bank will issue 41/2%, notes dated July 11, 1957 and maturing as follows: $40 million on July 11, 1958; $30 million on July 11, 1959; and $30 million on July 11, 196o. The notes which will be denominated in United States dollars, are being privately placed with the Bank Deutscher Laender of Frankfurt-am-Main.

Interest on the notes will be payable semi-annually on January 11 and July 11 of each year, with the first payment coming due on January 11, 1958. Payments of interest and principal will be made at the Federal Reserve Bank of New York.

This transaction is the third sale of World Bank obligations in the current calendar year. Previously two issues of Bank bonds were offered publicly through United States investment firms: $100 million of 4½% twenty-year bonds in January 1957 and, $100 million of 41/2%, twenty-one-year bonds in April 1957. The transaction also marks the third placement outside the United States of an entire issue of the Bank's dollar obligations. In September 1954, $50 million of World Bank dollar bonds were placed with investors in twenty-three countries outside the United States; and, in September 1956 a $75 million issue of dollar bonds was similarly placed in twenty-two countries.

The total outstanding obligations of the Bank, giving effect to the present loan, will amount to about $1,135,000,000 and will consist of $935,000,000 of United States dollar bonds and the equivalent of $200,000,000 of bonds denominated in Swiss francs, Canadian dollars, sterling and Netherlands guilders.