The International Bank for Reconstruction and Development ("World Bank") has been informed by the German Government that interest payments on coupons presented for payment ("Tafelgeschaeft") at the fiscal and paying agents appointed by the World Bank for its outstanding bonds will be exempt from the German capital yields tax, which is scheduled to enter into effect on January 1, 1993. This applies both in respect of World Bank bonds denominated in Deutsche mark and those in any other currency which are outstanding as of September 24, 1992, as well as World Bank bonds already committed for issuance contingent on the exercise of warrants outstanding as of that date. No such exemption will be applicable to interest payments made to bondholders by intermediaries other than the fiscal and paying agents appointed by the World Bank, or in respect of any bonds held in security custody accounts; such interest payments will be subject to the general German tax withholding rules.
