The World Bank has lowered the interest rates it charges on its loans for the six months that began July 1, 1990. For loans made under, or converted to, the Bank's new variable lending rate system the rate is 7.72 percent, compared to 7.75 percent for the past six months. For older variable rate loans not converted to the new system the interest rate is 7.70 percent, compared to 7.75 percent for the past six months.
The interest rate under the new system is based on the cost during the last semester of outstanding post-FY82 borrowings, excluding borrowings allocated to investments, weighted by the currencies outstanding in the Bank's loan pool. The interest rate under the old system is based on the average cost during the past semester of all outstanding post-FY82 borrowings. To each of these calculations the Bank adds a spread of one-half of one percent.
The World Bank will announce on July 17 its financial results for the fiscal year ended June 30, 1990.