The International Bank for Reconstruction and Development has arranged to borrow $58 million in United States dollars from the Central Bank of Germany (the Deutsche Bundesbank). Of this sum, $25 million will replace the $25 million maturity due January 16, 1959 on a previous loan by the Bundesbank to the World Bank.
As evidence of its indebtedness, the World Bank will place with the Bundesbank an issue of Three-Year 3-7/8% Notes, dated January 16, 1959 and maturing on January 16, 1962. The new notes will be denominated in U.S. dollars.
Net borrowings by the World Bank from the Bundesbank, on completion of the current transaction, will amount to the equivalent of $348 million.
Of this sum $300 million will be denominated in United States dollars a DM 200 million ($48 million) in Deutsche Mark.