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PRESS RELEASE October 24, 1961

World Bank to Receive Loan from Swiss Government

The Swiss Confederation and the International Bank for Reconstruction and Development yesterday entered into an agreement whereby the Swiss Government will lend Sw. fr. 100 million (about $23 million) to the Bank. Under the agreement half of the proceeds will be made available on November 1, 1961 and the other half on January 1, 1962. The interest rate on the loan is 3-3/4% and it is to be repaid in two equal installments in 1966 and 1968.

In welcoming the agreement, Eugene R. Black, President of the World Bank, said that he is especially pleased that the Swiss Government has again chosen the Bank as the vehicle by which Swiss funds will be invested in economic development.

He also expressed his gratitude at this further evidence of cooperation and confidence displayed by the Swiss people and their Government.

This is the second loan by the Swiss Government to the Bank. The first loan was in 1956 when the Swiss Government made 200 million Swiss francs available to the Bank with an average repayment period of six years. The Bank has also sold ten issues of bonds to the public and made two private placements in Switzerland. Giving effect to the present loan, gross borrowings by the Bank in Switzerland have amounted to almost 1 billion francs ($232 million), of which Sw. fr. 887 million (approximately $206 million) is outstanding.