The World Bank announced the interest rates it will charge on its outstanding loans for the six months that began July 1, 1992. For loans made under, or converted to, the Bank's current variable lending rate system adopted in May 1989 the rate is 7.60 percent, compared to 7.73 percent for the past six months. For older variable rate loans not converted to the current system the interest rate is 7.58 percent, compared to 7.72 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 allocated 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).