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PRESS RELEASE January 9, 1992

World Bank’s Semi-Annual Loan Charges Virtually Unchanged

The World Bank has announced the interest rates it will charge on its outstanding loans for the six months that began January 1, 1992. For loans made under, or converted to, the Bank's current variable lending rate system adopted in May 1989 the rate is 7. 73 percent, unchanged from the past six months. For older variable rate loans not converted to the current system the interest rate is 7.72 percent, compared to 7.71 percent for the last semester.

The interest rate under the current system is fundamentally based on the costs during the last semester of outstanding post-FY82 World Bank borrowings allocate4 to loans, 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 (50 basis points). As previously announced, during the semester beginning January 1, 1992 the Bank will waive one-half of this interest-rate spread for any loan payment if, during the six months preceding the billing date, the borrower had serviced all its loans from the Bank within 30 days of their due date.