The Bank of Japan and the World Bank signed an agreement today, January 12, 1971, in Washington, for the loan to the World Bank of Yen 36,000,000,000 (U.S. $100,000,000 equivalent). This loan, carrying interest at the rate of 7.43% per annum, will be repaid in three equal installments from January 1975 to January 1976.
This is the third loan that The Bank of Japan has granted to the World Bank. The first two also amounting to Yen 36,000,000,000 each were granted in February and March 1970. Today's transaction thus brings to the equivalent of U.S. $300,000,000 the amount of funds recently made available to the World Bank by The Bank of Japan.
In commenting on this third loan, Robert S. McNamara, President of the World Bank, expressed his "deep appreciation to The Bank of Japan and the Government of Japan for making available again substantial resources to the World Bank."
Mr. McNamara also said: "This continued support by The Bank of Japan as a significant supplier of resources to the World Bank is a factor of prime importance to the financing of our lending program. Only through such a broadening of resources can the World Bank hope to meet the requirements and needs of developing nations."
