The interest rate on loans to developing countries has been reduced from 9.89% to 9.29% for the six months beginning January 1, 1985, the International Bank for Reconstruction and Development (IBRD) announced today.
This is the fifth consecutive semi-annual reduction since July 1, 1982 when the IBRD adopted a policy of variable rates for new loans. For the first six months under that policy the rate was 11.43%. It dropped to 10.97% on January 1, 1983, to 10.47% six months later, to 10.08% on January 1, 1984, and to 9.89% for the last six months.
The rate is calculated by adding a spread of 0.5% to the average cost during the most recent six months of a "pool" of outstanding IBRD borrowings. The pool was established at the start of the variable rate program on July 1, 1982.
