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PRESS RELEASE January 23, 1996

World Bank Announces Interest Rates and Spreads

The International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group, has announced the interest rates for its currency pool loans and the interest spreads for its single currency loans. Borrowers with a record of timely payments are eligible for a waiver that reduces the loan rates or spreads by 25 basis points (1/4 percent).

Currency Pool Loan Rates

For loans made under, or converted to, the IBRD's new variable lending rate system, the rate is 6.98 percent, down from 7.07 percent, charged during the past six months.

For older variable-rate loans that have not been converted to the current system, the interest rate is 6.97 percent, down from 7.09 percent for the previous period.

The above interest rates are to be charged for the six-month period that began January 1, 1996.

LIBOR-Based Single Currency Loan Spread

For LIBOR-based single currency loans, the total spread over LIBOR is 26 basis points.

The lending rates to be charged will be based on six-month LIBOR in the currency chosen by the borrower for value on the relevant rate-setting date during the six-month period starting January 1, 1996.

Fixed-Rate Single Currency Loan Spread

For fixed-rate single currency loans, the total spread over the appropriate maturity swap rate (fixed-rate equivalent of LIBOR) is 45 basis points for US dollar loans and 60 basis points for French franc loans -- the two currencies in which disbursement is expected.

These spreads will apply to any rate-setting during the six-month period that began January 1, 1996.