[1@ ~22667

International Finance Corporation

Annual Report 1981

25 years

I5 I r L V t C

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Contents4 The First 25 Years

6 Summary of Operations

8 Trade and Investment Climate

13 IFC's Purpose

14 IFC's Operations

32 Administration and Staff

33 Appendices

37 Financial Statements

Frontispiece

The integrated Ismailia Fish Farming Companyproject in Egypt, at full production, is expected toproduce ducks and fruit as well as 2,200 metric tons offish a year.

to- ~~~~~~~~~~~- - -O - .:¼th CK s X

Am,~ ~ ~

U00~~~~~. -: . , ,, ,,I,

AnnuaiM '' F -

Jr~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A.

-:~ ~ ~ ~ ~ ~ ~~~~- 4,- _ -

-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - _-

-~~ =-

ws , ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. , ..- .. % .r. _

August 4, 1981

To the Board of Governors:

The Board of Directors of the International Finance Corporation has Directors Alternateshad this Annual Report preparedfor the fiscal year July 1, 1980, to

June 30, 1981, in accordance with the By-Laws of the Corporation.

Mr. A. W. Clausen, who succeeded Mr. Robert S. McNamara as Y. S. M. Abdulai William Smith

President of the Corporation and as Chairman of the Board of Directors John Anson Derek F. Smith

on July 1, 1981, has submitted this Report, together with accompanying David Blanco Alberto Sola

auditedfinancial statements, to the Board of Governors.' ~~~~~~~~~~~~~~~Jacques de Groote Turan Kivanc

Fiscal 1981 is a milestone in that it is the Corporation's 25th year. In Earl G. Drake Reno J. Brown

two and one-half decades, IFC has grown from small beginnings to Said E. El-Naggar Saleh A. Al-Hegelan

become one of the major development institutions in the world today and Jaime Garcia-Parra Jose G. Cardenas

the leader in the private investment sector of development. Ismail Khelil Saad Zerhouni

Eberhard Kurth Norbert Schmidt-Gerritzen

The Directors are pleased to report that the Corporation this fiscal; . . . . . . , ~~~~~~~~~~~~~~~~~Anthony IJ. A. Looijen Miodrag M. Stojiljkovic

year further expanded its operations, reflecting the increase in its share

capital and in accordance with the objectives set forth by the Board of Hans Lundstrom Ole L. Poulsen

Directors. S. A. McLeod Anthony S. Cole

Paul Mentre de Loye Marthe Parent

The Board wishes to take this opportunity to thank Mr. McNamara Seiji Morioka Kimiaki Nakajima

for his 13 years of dynamic and thoughtful leadership as Chairman of Joaquin Muns Roberto Mayorga-Cortes

IFC's Board of Directors and his dedication to the interests of the Giorgio Ragazzi Rodrigo M. Guimaraes

Corporatzon and its member countries.H. N. Ray M. Syeduz-Zaman

We also express our appreciation to the staff of IFC for the high Armand Razafindrabe Nicephore Soglo

standards of their performance during the year and their dedication to Wang Liansheng Chen Hui

the purposes of the Corporation. Zain Azraai Aung Pe

Officers and Department Heads As ofJu4ly 1, 1981

*President .............................................................. A. W. ClausenExecutive Vice President ...................... ......................... Hanis A. WuttkeVice President and General Counlsel ................ .................... Jose E. CamachoVice President, Engineering and Technical Assistance ....... .. ............ Makarand V. Dehejia Advisory PanelVice President, Administration and Finance ............ .. ................ James M. KearnsVice President, Asia, Europe and Middle East ........... .. ............... Judhvir Parmar IFC's international advisory panel,Vice President, Latin America and the Caribbean ........ .. .............. Jose M. Ruisanichez which was established in 1962,Vice President, Africa (acting) ................... ....................... Judhvir Parmar continues to meet regularly with theDirector, Finance and Management Department .......... .. .............. Marshall Burkes Corporation's management to (liscuss IFC's

*Secretary ............................................................. Timothy T. Thahane activities and policies.*Director-General, Operations Evaluation ............. .. .................. Mervyn L. Weiner

Director, Corporate Planning Department ............................... Richard W. Richardson Members of the panel are:Director, Department of Investments, Asia ............................... Torstein StephansenDirector, Department of Investments, Jan Ekman, President

EuLope an(d Middle East .............. ............................... )ouglas Guslalfson Svenski HandelsbankenDiirector, Department of Investmilenits, Stockholm

Latin America and the Caribbean I ................................. Giovanni VacchelliDirector, Department of Investments, Dr. Wilfried Guth, Managing Director

Latin America and the Caribbean 11 .................................. Daniel F. Adams Deutsche Bank, A.G.Director, Department of Investments, Africa I ........................... Gunter H. Kreuter FratnkftlltDirector, Department of Investments, Africa 11 .... ........... ...... M. Azam K. Alizai YusuDirector, Capital Markets Department ................................... David Gill ke Kashiwag', PresidentDirector of Syndications .............. .................................. Rolf Th. Lundberg The Bank of Tokyo, Ltd.Chief, Information Office ............. ................................. Carl T Bell Pierre Moussa, President and Managing

*Director, Compensation Departmnent .................................... R. A. Clarke Director*Director, Personnel Management Department ............................ Hans Pollan Banque de Paris et des Pays-Bas, S.A.*Director, Internal Auditing Department ................................. Lawrence N. Rapley*Director, Administrative Services Department ............................ James E. Twining Lord Roll of Ipsden, Chairman*Director, Programming and Budgeting Department ...... ................ Heinz Vergin S. G. Warburg and Co., Ltd.

Special Representative, Middle East ..................................... Cherif Hlassan LondonSpecial Representative, Far East .......... ............................... Naokado Nishihara Robert V. Roosa, PartnerSpecial Representative, Europe .......... ............................... J. W. Strobl Brown B. others Harriman and Co.

Regional Mission in East Asia ........... ................................ Sakdiyiam Kupasrimnonkol New YorkRegional Mission in Eastern Africa ......... ............................. V. S. RaghavanRegional Mission in Western Africa ..................................... Guy C. Antoine

Senior Advisor, Portfolio .............. ................................. Fawzi HabibSenior Advisor, Technical ............. ................................. H. Geoffrey Hilton

Mr. Pierre C. Damiba has been appointed as Special Advisor for Africanl Affairs effective October 1, 1981.

*These officers and department heads hold the same positionis in the IBRD.

The First 25 Years million to the amount it can invest in its mem-ber countries.

By the end of the current fiscal year, the Article One

In the late 1940's attention had begun to Corporation had invested about $4,100 million Articles of Agreementshift from the post war reconstruction of in nearly 600 ventures with a total cost of"TeproefthCroainisofuhrindustrial countries to economic deeeopment of almost $18,500 millon. Syndications a im- economic development by encouraging the growththe less developed states. Up to that time the portant measure of the Corporation's ability to of productive private enterprise in memberview had prevailed that economic growth attract private financing for the projects in countries, particularly in the less developed areas,would be adequately furthered by the private which it is involved, have increased from an thus supplementing the activities of thesector, under the guidance of market forces and average of about $2 million per year during International Bank for Reconstruction andwith basic infrastructural support from govern- the early 1960's to an annual total of $374 Development .... In carrying out this purpose, thements. But it began to be recognized that even million in the current year. Corporation shall:the provision of essential infrastructure would Today, IFC's $1,647 million portfolio ofnot be enough to attract private investment loans and equity investments in some 314 com- i. in association with private investors, assist inflows where underdevelopment was pro- panies is spread over 71 developing financing the establishment, improvement andnounced. Imperfections in the marketplace ad- countries. expansion of productive private enterprisesversely affected the economic contribution of The Corporation is still evolving in response which would contribute to the development ofinstitutions and individuals. Born of this recog- to the changing needs of both its member gov- its member countries by making investments,nition, the International Finance Corporation ernments and its investor clients. without guarantee of repayment by thewas created to help encourage the growth of In recent years greater emphasis has been member Government concerned, in casesproductive private investment and saving in the placed on helping to develop energy resources where sufoicient private capital is notdeveloping world. and increase the availability of foodstuffs. In available on reasonable terms;

By the time the original member govern- addition to providing assistance to a number of ii. seek to bring together investmentments established IFC in July 1956 with a companies to exploit the more traditional en- opportunities, domestic and foreign privatesubscribed capital of $78 million, the broad ergy resources such as oil, gas and coal, in the capital, and experienced management; andconcept of an IFC had been translated into past few years the Corporation has helped tospecific objectives. These objectives were incor- establish a number of ventures to develop non- iii. seek to stimulate, and to help createporated into IFC's Articles of Agreement and traditional energy sources, such as alcohol. . conditions conducive to, the flow of privatehave remained unaltered for the past 25 years. With respect to the food sector, not only has capital, domestic and foreign, into productive(See box). the Corporation taken a more active lead in investment in member countries.

In the broadest terms, the Corporation's re- helping to increase production of basic foodcord is one of growth and expansion. Starting commodities, especially in the poultry and fish- "The Corporation shall be guided in all itswith 31 member countries and an authorized ing industries, but has, as importantly, sup- decisions by the provisions of this Article."capital of $100 million, the Corporation today ported efforts to improve processing and stor-has 119 member countries and an authorized age facilities for a number of basic commoditiescapital of $650 million. In terms of its invest- such as flour, milk, cocoa, edible oils, andment volume, the current year's investments of sugar.$811 million approved by IFC's Board of Di- Reflecting the changing needs of its memberrectors equals the total approved during the countries as well as the changing character offirst 15 years of the Corporation's history. In financial markets, the Corporation is now pro-each year of its existence the Corporation has viding more assistance to developing country Internatzonal Finance Corporationshown a net profit so that it has been.able to enterprises and institutions to gain access to in-add, through retained earnings, about $159 ternational capital markets. This takes the

form of arranging public issues, loan syndica- promote private sector investments in ways IFC is an international developmenttions and other techniques. other institutions cannot. Unlike commercial fi- institution established to promote the growth of

IFC is changing in other ways as well. nancial institutions, it judges potential ventures productive private investment and to assistWithin the past five years it has been able to in terms of both financial viability and their enterprises which will contribute to thedevelop its operations in its low-income mem- contribution to the economic development of economic development of its developingber countries-countries in particular need of the country concerned. Unlike other official de- member countries.assistance in attracting and developing private velopment institutions, it participates directly The Corporation was established in 1956 assector investment. For the past four years, over with the private sector in both the developed an affiliate of the World Bank. Its capital50 percent of the enterprises to which it has and developing worlds. Unlike both types of resources are provided by its 119 memberprovided technical and financial assistance have institutions, it provides both equity and fixed countries, 98 of which are developing, whobeen located in low-income countries. IFC has rate financing. IFC fills specific needs of both collectively determine its policies and activities.also made a particular effort to increase the member countries and private investors that The ultimate objective of the Corporation isnumber of countries in which it operates from neither type of institution can fully address. to improve the well-being of the people in itsan annual average of 20 in the early 1970's to Thus it has gone places where other institu- developing member countries. Its principal34 in the year just ended. And, during each of tions would not, has taken risks others would tasks are to provide and bring together financ-the more recent years, the Corporation has not accept, and has taken initiatives where ing, technical assistance and managementbeen able to undertake first-time investments others would not act. needed to develop productive investment oppor-in at least one member country. The enlarged tunities in its developing member countriesscope of IFC activities has been made possible whether they take the form of private, mixed,by the capital increase approved by the Board or government enterprises where they areof Governors in 1978. channels for assistance to the private sector.

The unique characteristics of IFC that were Construction of the heavy foundations necessary for IFC is one of the few international organi-designed more than 25 years ago place the Minera Real de Angeles, S.A. de C.V.'s silver ore zations which can make both equity invest-Corporation in the position of being able to processing facilities near Zacatecas, Mexico. ments and loans without government guaran-

tees. This permits the Corporation to providefinancial assistance suited to the needs of each

I ~~~~~project and to the ability of each firm to raise4 ' ~~~~funds from other sources on reasonable terms.In all of its activities, the Corporation works

- to raise investor confidence. In addition to pro-viding financial and technical assistance, theCorporation may, as an international institu-tion, help facilitate the process by which inves-

Itors and governments can arrive at mutuallysatisfactory agreements.

The Corporation seeks to encourage the flowof private capital through the establishment orexpansion of local capital markets and finan-cial institutions. It also offers technical assis-tance to member governments in support of theefforts to create investment conditions whichwill encourage productive and beneficial do-

I 4 J I ~~~~~~~~~~~~~~~~~~~~~mestic and foreign investment.

t Summary of Operations Cumulative Projects Approved

1 (USS millions)600

1961 1966 1971 197(6 1977 1978 1979 19810 1981

OPERATIONS 500

Approved Investmentsnumber of projects 10 17 23 33 34 41 48 55 56 400number of countries 8 13 15 22 21 31 33 30 34amount (gross $'s) 6 36 91 236 259 338 425 681 811 Number of Projectstotal project costs 30 137 420 1,383 1,228 1,872 1,714 2,377 3,340 300

Cumulative Approvalsnumber of projects 46 120 210 354 388 429 477 532 588 200amount (gross $'s) 51 177 581 1,549 1,808 2,146 2,571 3,252 4,063total project costs 231 1,080 3,047 7,962 9,190 11,062 12,776 15,153 18,493syndications 6 37 124 440 548 688 890 1,157 1,559 100

Investments Heldnumber of firms 37 75 128 187 200 225 253 288 314 077 78 79 80 8loans 35 61 244 627 704 799 889 1,159 1,374equity - 35 106 152 160 184 223 245 273total 35 96 350 779 864 983 1,112 1,404 1,647

RESOURCES AND INCOME US$ Millions

Capitalizationborrowings (cumulative) - - 63 327 445 462 455 438 509paid-in capital 96 99 107 108 108 144 229 307 392 5,000accumulated earnings 11 24 49 78 87 100 119 140 159

Earningsnet income 2.2 4.2 3.3 7.7 8.9 12.5 19.2 20.7 19.5 4,000

3,000

2.000

iFC Investments

1,000

0'77 '78 '79 '80 '81

After 13 years as Chairman of IFC's Board At the end of the year, the Corporation's in- a per capita income of less than $626 perof Directors and President of the Corporation, vestment portfolio (including undisbursed bal- year.1 The Corporation undertook investmentsMr. Robert S. McNamara retired as of the ances) held for its own account was $1,647 in 34 countries, six of them for the first time.end of the fiscal year; succeeded by million, up from last year's year-end balance The Corporation's interest in promotingMr. A. W. Clausen. of $1,404 million. In addition, $916 million business ventures in its African member coun-

The expansion of the Corporation's activi- was held for participants in IFC financing. tries continued unabated. Including the ap-ties, which began four years ago with the The Corporation has allocated $19 million to provals for two major projects, a coal mine inincrease in its capital resources, continued in its Reserve Against Losses (as against $10.6 Zimbabwe and a fertilizer plant in Senegal,Fiscal Year 1981 despite the continuing eco- million last year). The Reserve now totals the year's investments in Africa for the firstnomic difficulties worldwide and the resulting $61.5 million. time exceeded $100 million. The total costs ofpressures on the developing countries' balance Member countries continued to take up sub- these ventures exceeded $800 million. In lightof payments. scriptions in IFC's capital increase. By the end of the importance of Africa in IFC's opera-

The Board of Directors approved 56 projects of the Fiscal Year, 373,200 shares ($373.2 tions, the position of Vice President for invest-with an equity and loan commitment value of million) had been subscribed, i.e., about 80 ment operations in Africa was established inover $810 million. This was up 19 percent percent of the 468,800 shares ($468.8 million) 1981.over the $681 million worth of approvals of allocated. Of the amount subscribed, $283 mil- The total cost of approved investments wasthe previous year. Operating income for the lion had been paid in, raising the Corpora- about $3,300 million for the year as comparedcurrent year was up over 11 percent to $100.3 tion's paid-in capital to $392 million-$85 to the $2,400 million in the previous year. Ofmillion. Syndications, a measure of the Corpo- million above last year's levels. this, IFC provided $811 million so that of ev-ration's ability to attract others to help finance Disbursements, which increased 88 percent ery dollar of project costs, IFC contributedprojects with which it is involved, reached over the previous year's, totaled $587.4 million about 24 cents of which about half, or 11$374 million and involved over 50 financial in- (including disbursements for participants) as a cents, was raised from other financial institu-stitutions-compared to $266.8 million in the result of the threefold increase in commitments tions through syndications of IFC loans. Of theprevious year. over the past five years. balance, $1,940 million was raised through

A number of companies in which the Corpo- As expected, regular cash inflows and re- other financial institutions, mainly commercialration has invested faced operating and debt ceipts from payments of capital subscriptions banks, and $589 million was provided by theservicing problems attributable in part to bal- were not sufficient to cover the rapid increase. sponsors and through cash generation.ance of payment difficulties in their countries. Thus, the Corporation contracted additional Of the total financing approved by theAs a precautionary measure, the Corporation borrowings of $100 million of which it drew Board of Directors, $396.9 million went to es-set aside additional amounts to its Reserve down about $51 million. It is the first time tablish new operations; $344.2 million to ex-Against Losses over and above those which since the approval of the capital increase that pand and modernize existing plants; and $61.4would reflect the growth in the Corporation's additional borrowings have been needed. million to support financial institutions. Theinvestment portfolio. Symptomatic of high in- With respect to the investments approved by balance, $8.5 million, involved the exercise ofterest rates, several companies reduced the Board of Directors, agroindustrial, hotel, stock rights.dividends to finance expansions rather than as- cement and pulp and paper ventures were The Corporation is pleased to report that sixsume additional debt. more prominent than in the recent past. Man- countries: Djibouti, Dominica, People's Repub-

In addition, because of depressed capital ufacturing, making up about 44 percent of the lic of the Congo, Seychelles, Solomon Islandsmarkets in some member countries, the total number of projects approved, dropped be- and Zimbabwe took up membership in IFCCorporation realized fewer capital gains than low the 50 percent level for the first time. during the year, bringing the membership inexpected. The Corporation continued to place greater the Corporation to 119.

As a result, net earnings for the fiscal year emphasis on its activities in some of thewere $19.5 million against last year's $20.7 smaller and low-income countries so that 29million. ventures, roughly half, were in countries with 1. Measured on per capita GNP in 1979 equivalents.

because they have continued to accord growth Real GDP Growth RatesTrade and high priority even in the face of inflation and 8

Investment Climate balance of payments deficits. Their strategy Oil Importing Developing Countries

has been to maintain rapid growth of invest- 7All Developing Countries

ment and imports, financed by growing exportsSustained by the momentum of earlier and by increasing access to private interna- 6

strong economic performance and growth- tional capital markets. Commercial bank loansoriented policies, many developing countries 1 to many developing countries grew particularly 5were able, in 1980 and early 1981, to maintain rapidly during the 1970's, as a result of in-their growth rates of GDP and exports at or creased liquidity in international financial 4 %%\%|

near recent levels despite quite adverse condi- markets and the relative absence of competing 3

tions in world trade and financial markets. Re- industrial country borrowers. The continuedcent escalation of fuel and some other import healthy growth of domestic output and exports 2

costs were nonetheless reflected in generally se- in these countries helped to reassure privatevere balance of payments problems for most oil lenders that increased foreign debt could be 1 Industrialized Countries

importing countries, within both the developing serviced by the borrowing countries.and industrialized worlds. These difficulties The volume of non-fuel exports of develop- 0were compounded by depressed conditions in ing countries overall grew at over 6 percentindustrial nation markets for developing coun- annually in the 1970's (compared to 5.5 per- 1

try exports, and by higher costs and greater cent annual growth of total world trade), while '70 '72 '74 '76 '78 '80-'81

volatility in international financial and ex- the real value of total exports of the oil im-change markets. porting developing countries grew at 6.3 per- Estimated Projected

Overall, the real growth rate of GDP of the cent annually for the period. Preliminary indi- worldwide shift to weight and cost-saving tech-developing countries appears to have dipped cations are that 1980 performance continued nology. Now that energy adjustment is wellonly marginally to around the 4.5 percent level these trends: exports of the oil importing devel- advanced in the industrial nations, even a mod-from the over 5 percent average level of recent oping countries, for example, grew at an esti- est rate of recovery in their industrial produc-years. This performance, however, masked mated 23 percent in current U.S. dollar terms, tion and new capital formation could generatecontinued weak results in many parts of the or at about 7 percent in real terms. a firming trend in relative prices of many suchdeveloping world and the heightened difficul- Such export performance by the developing primary commodities.ties being experienced generally in completing countries as a whole has been achieved despite The principal contributor to developingstructural adjustments to higher energy costs. significant deterioration over the 1970's in the country export performance in the 1970's wasThe continued overall growth of the developing export prices of non-fuel primary commodities the strength of their exports of manufactures.world was accomplished in spite of the marked relative to other traded products. These are theslowdown in the industrial countries, where commodities on which more than 90 of thereal growth of GDP hovered in the I to 1.5 poorest developing countries rely for more than 1. Throughout this discussion, World Bank definitionspercent range, unemployment rates approached two-thirds of their exports. Metals and other are employed for all categories of developing countries.

Capital surplus oil exporting countries (Iraq, Kuwait,6.5 to 7 percent, and the combined current ac- non-fuel minerals, which are particularly im- Libya, Qatar, Saudi Arabia and the United Arabcount deficit was around $65,000 million 2 in portant for sub-Saharan African countries, Emirates) are not included in any of these developing1980. were the hardest hit because of over-investment country categories. For purposes of consistency of

in mining in the early 1970's coupled with the analysis over time, the People's Republic of China hasThe 70's in Retrospect slowdown in productive capital formation in been excluded from all data series in this year's re-

Many of the developing countries have been the industrial countries. Another factor reduc- 2. Close to $40,000 million if official transfers are ex-able to maintain economic growth momentum ing demand for non-fuel minerals was the cluded.

8

In constant value terms, these grew at almost tries, and of the potential of imports from 3 1 .

13 percent per year over the decade, more than developing countries for provoking gains in do-three times faster, on average, than their non- mestic productivity and containing inflation.fuel primary exports. As a result, manufac- Exports to developing countries, in fact, repre-tured exports displaced non-fuel primary ex- sented one of the most prosperous segments of .ports as the leading merchandise export cate- the industrial economies in the 1970's, growinggory of the developing countries as a whole. in constant prices at an average annual rate ofLabor intensive products such as clothing and about 7 percent. By the end of the decade thesetextiles were the fastest growing manufactured exports accounted for over a third of U.S. ex-exports. ports; almost two-fifths of exports by the EEC

Rapid growth in the manufactured exports outside the Common Market; and almost one-of developing countries has been possible over half of Japan's exports. In the course of thethe past several years partly because new con- past decade, industrial countries increased theircessions to protectionist pressures in the exports of manufactures to developing coun- ; -industrial countries have, on the whole, been tries by three times as much in absolute terms p ."

held in check, except in specific product areas as they increased their imports of manufacturessuch as textiles and clothing. In fact, some pos- from them.itive changes were made, particularly in such The growth of trade between developed andareas as the adoption of the Generalized Sys- developing countries has been accompanied bytem of Preferences and the Lome Convention. their growing financial interdependence. AWhile some industrial countries did increase large number of developing countries have es- the extent of their trade surveillance activities, tablished strong client relationships with athe new quantitative protectionist measures of growing number of international banks, asthe 1970's were generally not directed against both depositors and borrowers. As these rela- -developing country exports of manufactures. tionships have matured, lending to developingWhere they were, they tended to affect mainly countries has become a competitive and rela-the strongest and most resilient developing tively secure profit center in relation to domes- . ,.economies which were best equipped to cope tic banking activity in the industrial countries;with them. Exporters usually anticipated and however, it still accounts for no more than 5 to scountered such restrictions by adopting flexible 10 percent of total domestic bank lending. Theinvestment and marketing postures which facil- accompanying charts illustrate the growing ac-itated rapid product and market diversification cess of developing country borrowers to private :and involved, in some instances, even the international capital markets. From 1973 on- ,relocation of export production to other, less wards, a total of some 85 developing countries ' "t

affected developing countries. As a result, gained publicized access to private interna- £ _'developing nations were able to increase their tional medium and long-term money and bond ' '.exports of manufactures to the industrial markets. Over 80 of these countries have beencountries by 8 percent per year in real terms active in these markets during the last threeduring the 1970's.

The above trends have been fostered by an ,

increasin' wrns oni the part of the -.- ~<increasing aw areness on the part of the Oil drilling by Petroleos Colombianos, Ltd., Colombia- .*industrial nations of the importance to the'ir the first project assisted by IFC that includes exploration .i4own economies of exports to developing coun- for oil. i

Total Volume of Borrowings in Eurocurrency and Foreign and International Bond Markets (gross publicized commitments) Weighted Average Spreads Above(US $ thousands of millions) LIBOR on Eurocurrency Borrowings80

70 2

60

50

40 Developing Countries

30

201

10 HI iIndustrialized Countries1976 1977 1978 1979 1980 1981'

Eurocurrency Markets Foreign and International Bond MarketsDeveloping Country BorrowersIndustrialized Country Borrowers

'First half - Preliminary Other Borrowers 0'76 '77 '78 '79 80 '8A

years alone, including 46 middle-income and percent annually in real terms during the TFirst half - Preliminary

19 low-income oil importing countries, along period, reflecting their relatively weak export Weighted Average Maturities of Eurocurrency Credits

with 17 oil exporting countries. performance and deteriorating terms of trade. Number of Years

A modest 3.5 percent average annual growth 10Persistent ProblemsPersistent Problemsmin the volume of their exports was more than

This favorable experience in growth, trade, offset by a 4.5 percent average annualand access to capital markets is not universally deterioration in their terms of trade. 9

shared throughout the developing world. In the The situation of low-income oil-importing Industralizedfirst place, many developing countries, and Africa was particularly serious. Their per cap- Countriesparticularly some of the poorest, have not par- ita GDP declined in real terms during the 8

ticipated in overall growth. And, secondly, the 1970's. Exports declined over the period by

borrowing strategy of the 1970's has now be- more than 1 percent annually in real terms,come more difficult to pursue, not least of all dropping from 23 percent of GDP in 1970 tofor some of the most successful developing around 16 percent in 1980. Imports, mean- 7countries who were previously the heaviest while, became relatively more expensive, prin- Developing Countriesborrowers. cipally due to the rising prices of fuel imports. 3 D C

Most of the low-income oil importing coun- Such countries appear likely, for the most part, 6

tries were not able to perform as well as therest of the Third World during the 1970's. Theseriousness of the difficulties confronting these 3. Between 1970 and 1980, the prices of their fuel im-

countries cannot be overemphasized. Their ports increased by a factor some five times that ofGDP pe capit grewon aveage a less han ~ their other main merchandise import categories: man- '76 '77 '78 '79 '80 B

GDP per capita grew on average at less than I ufacture of goods, and food and beverages. 'First half-Preliminary

to be unable to avoid falling per capita income Size of Current Account persistent inflationary pressures and to imbal-at least in the first part of the 1980's. Even in Deficits of Oil Importing ances in international payments. The heavy re-

themiddle-incoeoil importing countries ofoe Countries liance of these nations since 1979 on restrictive

sub-Saharan Africa , only negligible increases 6 D MincomeCountries monetary policies to stem inflation and balancein per capita income were registered during 6 All Mil Importers of payments deficits has meant, for developingthe 1970's. Continued economic stagnation in A country borrowers as for others, sharply higherthese countries would cause great losses, both 5 and more volatile interest rates on both newin human terms and in untapped resource po- Eurocurrency borrowings and outstandingtentials, which would be difficult to redress in 4 loans, reduced availability of longer term fi-the future. nance, and the prospect of prolonged recession

The second major problem stems from the 3 in the industrial markets for developing coun-difficulties of servicing external debt in the _ try exports.1980's during a period of heavy balance of pay- 2 - The solution to these problems requiresments deficits and more difficult conditions in structural adjustments in the developing coun-private international capital markets. In 1980, 1 tries to higher energy costs, growth of develop-the maintenance of growth was achieved at a - ing countries export receipts and workers' re-cost of a 55 percent increase in the 0 mittances, and official aid flows from industrialcombined current account deficit of the oil im- 1970 1973 1975 1978 1980 and oil-exporting countries. But, for a numberporting developing countries. This deficit ap- of reasons, the prospects for these responses areproached $70,000 million, more than that of ments by developing countries also declined in not as good as might be hoped. This is causethe industrial countries even though it was in- 1980, by some $6,000 million to a level of for concern over the ability of the successful oilcurred on a volume of trade less than one- about $37,000 million. importing developing countries to maintain thequarter as large. This deficit represented close In the face of higher borrowing costs and growth strategy employed in the 1970's, andto 5 percent of the GDP of oil importing de- growing financing requirements during 1979 for the less successful ones to improve.veloping countries in 1980. and 1980, oil importing developing countries

Coinciding with the heavier borrowing re- appeared to resort increasingly to short-term Outlook for the 1980's: New Challenges andquirements, Eurocurrency interest rates rose in expedients to finance growing current account Responses1979 to levels sharply above general inflation deficits. Large international reserves, and pre- Looking ahead, it seems clear that currentrates-something which had not happened viously undisbursed borrowing commitments circumstances have conspired to complicatebefore-and have broadly remained so since. (estimated at close to $80,000 million at the even further the already difficult problem ofAppreciation of the dollar further raised bor- end of 1979), helped cushion the short-term economic development. To name only the mostrowing costs in Euromarkets, where most tran- burden of adjustment. But in 1980, and contin- prominent difficulties, industrial country mar-sactions are dollar-denominated. As a result of uing into 1981, there has been a sharp increase kets have been made sluggish by low growththese and other factors, in 1980 international in reliance on borrowing from the IMF. This, and policies directed at containing inflation;and foreign bond markets stagnated in overall coupled with a recent spate of official and the escalation of energy costs has imposed newvolume and diminished as a source of develop- commercial debt reschedulings, reflects the burdens on domestic growth and external pay-ing country finance. New bond issues on inter- growing payments adjustment difficulties being ments; and prospects for official developmentnational markets accounted for only $3,000 encountered by developing countries in general. assistance are discouraging. Together, such fac-million, or 7 percent of total new publicized The payments adjustment and deficit financ- tors appear to add up to a bleak landscape forprivate market commitments to developing ing problems of the developing countries are development.country borrowers, half the proportion prevail- seriously compounded by the deflationary poli-ing prior to the latest oil price increases. New cies now almost uniformly adopted bypublicized Eurocurrency borrowing commit- industrial countries in response to their own 4. Excluding South Africa.

However, there may be some comfort-and less welcoming policy toward direct investors. industrial nations would also ultimately benefitsome new opportunities-to be extracted from But now, both middle-income and low-income from an expansion of their concessional aid, es-these circumstances which should not go un- countries (notably China and India amongst pecially to the poorest developing countries,heeded. New approaches are called for, and the latter) are actively seeking foreign invest- and from the active promotion of fuller accessthe foundations for them are in some cases al- ment and the benefits that the fuller financial to their capital markets by the moreready evident. involvement, and hence commitment, of foreign industrially advanced developing countries.

Developments over the past several years partners can offer, particularly in export and The oil exporting countries, for their part,have combined to strengthen the trade and in- new technology industries. can enhance their role by greater participationvestment prospects of the developing countries. Even in sectors and industries where foreign in equity and quasi-equity investrnents in theBalance of payments pressures and depreciat- ownership is not acceptable to developing developing world, both through existing chan-ing exchange rates have tended to keep their countries it may be possible to encourage for- nels and through participating in the creationlabor costs low by world standards, even with eign capital flows which involve elements of of new mechanisms. The latter might includerapid inflation. At the same time, higher risk sharing and, thus, do not have fixed debt- new portfolio investment trusts and otherenergy costs have tended to improve the inter- servicing requirements. The use of production schemes which would match developing coun-national competitiveness of more labor-inten- sharing arrangements and loans amortized by try needs with the financial requirements ofsive-and less energy intensive-industries, production have a long history of successful investing countries.both export oriented and import substituting. application in oil resource development and The more industrially advanced developingMoreover, export industries have increasing more recently in other export mining indus- countries can play a role by actively encourag-incentive to add more domestic value to their tries. These and other techniques for sharing ing their local industries to invest more inexport products by additional processing in or- risk might possibly be emulated in a variety of other developing countries and to increasinglyder to help offset the growing weight of rising export manufacturing and other industries in supply local and export markets from there, atransport costs in total export value. More gen- the developing world. At the national level, trend that is already under way. Such coun-erally, industries in developing countries can partial risk sharing instruments have recently tries should also be willing, as their economiesalso derive some comparative advantage, rela- come into vogue with the appearance of com- mature, eventually to graduate themselves fromtive to their industrial nation competitors, from modity bonds. The cost of these bonds to the the preferential tariff treatment accorded bybeing able to build their plants from the outset issuing country depends on the market behav- the industrial nations.using the latest energy-efficient technologies; ior of the export commodity with which they The poorest developing countries face a stag-and for existing plants in the developing coun- are backed. Thus, the bond purchaser shares gering set of constraints. They will need all thetries, the more rapid growth of domestic mar- with the issuer the risks and benefits of com- concessional capital that now appears to bekets can sometimes enable energy conversion to modity market fluctuations. available, and more, as well as improved ef-be completed at comparatively lower cost as Taking advantage of these and other oppor- forts on their own part to develop and useexpansion occurs. tunities afforded by the present situation will more efficiently the resources they do have in

The recent high cost of foreign lending also mean a full and demanding agenda for the order to lift themselves from the grinding pov-creates an incentive for the developing coun- entire international community in the next dec- erty they now face.tries to mobilize additienal equity and quasi- ade. The prosperity of the industrial world re- Finally, IFC, as well as other internationalequity capital flows at much lower initial, and mains, of course, crucial to the success of the financial institutions, can aid the process of ad-even long-term, cost. The apparent low cost of development effort. Restoration of higher justment by continuing to be flexible in theirprivate international borrowing undoubtedly industrial growth rates will, apart from obvi- responses and by seeking ways to transfercontributed to the relative stagnation of net ous domestic benefits, revitalize essential export more resources effectively and expeditiously.private direct investment flows to the develop- markets for the developing world; it would, The coming decade will demand imaginationing countries during the 1970s. The availabil- moreover, reduce the ever-present threat of and innovation in the range of techniques andity of foreign loans certainly reduced the need increased protectionism, particularly for agri- instruments employed, particularly in meetingfor foreign direct investment capital flows, and cultural commodities and for more highly proc- the needs of the poorest countries.may have led developing countries to adopt a essed raw materials. In a similar vein, the July 1, 1981

IFC's Purpose benefits extend beyond those directly related to tors and, often, the host governments can ar-the business. rive at mutually satisfactory agreements. ToThey contribute to the development of a this end, the Corporation puts at the disposal

If the full potential of developing countries country's natural resources, thus providing a of the parties involved its experience andif tohbe fulli in the foreseeable future, all source of economic activity based on unexploi- standing as an international institution as ais to be realized both puble future, ted resources. They contribute to the develop- means to finding reasonable and practical solu-

must be mobilized and used in an efficient and ment of human resources as training is intro- tions to difficult investment problems.socially beneficial manner. As the private sec- duced, and skills are developed and passed on In all of these matters, the Corporation rec-tor currently generates well over half of the through a network of supporting enterprises. ognizes that the degree to which private sectortoross curently geroutes ihell dverhalf ofpingThey contribute to the development of the resources can contribute to economic develop-Gross Domestic Product in the developing country's industrial infrastructure by filling ment depends upon the needs and circum-

economies where private enterprise can be the gaps in the industrial process, thus allowing stances of each member country. Thus it sup-most effective agent for furthering economic other related business to develop and grow. ports projects varying from purely private todevelopment. Lastly, they contribute to developing the qual- mixed public/private ventures and even to

IFC's role is to help, where appropriate ity of life of a country's peoples by providing wholly-owned government enterprises wheremobilize e resources needed to develop these goods and services such as food, clothing and they act as channels for assistance to the pri-ninvesthent resopportues.needed towevelop thes chousing to satisfy basic human needs efficiently vate sector.investment opportunities. However, IFC can an ga yopttv yrcsonly supplement, not replace, private initiative and at competitive prices. h a _ iand resources. Thus, in circumstances where The Corporation also has an indirect impactthe market-oriented approach is applicable and on the development of business opportunities inappropriate and where private resources would its member countries. Through the "demon-not otherwise be forthcoming on reasonable stration effect it stimulates investorterms, IFC is prepared to provide both techni- confidence, thereby enriching the investmentcal and financial assistance to individual entre- climate. It helps to introduce and prove thepreneurs, enterprises and institutions, commercial viability of unfamiliar techniques ,i

Often these are situations where the invest- and technologies, thus encouraging similar in-ment opportunities are not taken up by others vestments in other developing countries. Bybecause they involve unusual problems-either working to establish a mutual understandingtechnical or financial-so that in the initial and trust between the private and public sec-stages of the project's development the business tors, it can help break down those barriers torisks are perceived as being unacceptably high. increased flows in private investment.These are the types of situations to which the Operationally, the Corporation seeks to es-Corporation can best respond. The Corpora- tablish productive enterprises in its developingtion, together with the sponsors, will work to member countries by bringing together invest-minimize the project's business risks. In this ment opportunities, capital, technology andway the enterprise becomes not only a viable management. While IFC's financing and expebusiness proposition but it becomes an attrac- rience are important factors, the ability of the 'tive investment for other commercial investors Corporation to raise the level of investor confi- . ;who could not have supported the project as dence in potentially productive projects is per-originally conceived. haps one of the more effective means it has to '

Such ventures not only provide direct bene- accomplish this task. Delta Sugar Company S.A.E. harvesting rice, part of afits in the form of employment, training, for- The Corporation also promotes investments multicrop agribusiness operation located on landseign exchange earnings and savings, but their by facilitating the process by which the inves- reclaimed from Lake Burullus in Egypt.

IFC s Operations tance only in those cases where it determines Ownership in IFC Investments Fiscal 1981that private resources woul(l not otherwise bcforthcoming on reasonable terms.

iBy insisting that they be established on asound technical and financial footing, the Cor- 54%

The Corporation tailors its investment oper- poration seeks to ensure that the companies in 50

ations to the needs and circumstances of each which it invests make a positive economic con-member country. However, the degree to tribution to the development of the country.which it can meet its program objectives is 40heavily dependent upon the decisions of private The Year's Investments-An Overviewinvestors which, in turn, are influenced by As a result of its accelerated promotional ef- 30

their perceptions of the business climate and forts in recent years, the Corporation was ableopportunities. For this reason, a significant to realize investments in a number of countries 21%part of IFC's efforts are devoted to developing in which it had not been active recently and 20 16%

investment opportunities through its promo- added six, Burundi, Somalia, Haiti, Zim-tional work and helping raise the level of in- babwe, People's Republic of the Congo and 10vestor confidence in selected projects by work- Portugal to its investment portfolio.ing with local investors, foreign partners, other By actively pursuing investment opportuni- 0financial institutions and host governments. ties in countries in which it had never operated Minority Majority Majority Majority

In determining what investment opportuni- or had not for some time, the Corporation was shareholders foreign owned ocally owned locally owneties to pursue, the Corporation maintains a able to achieve a wider country coverage than only (public) (private)

fundamental policy of investing in enterprises in the past-increasing the number of coun-that can provide both an adequate financial re- tries to 34 from the previous year's 30. Of The geographic distribution, in terms of theturn on the Corporation's investment and an these 34 countries, 16 have a per capita GNP number of projects approved by the Board ofadequate economic return to the country in of less than $626 per yearl and of the total Directors, followed roughly the same patternswhich the investment is made. Additionally, number of projects, 52 percent were in coun- as in previous years: 16 projects in Africa, fivethe Corporation is prepared to provide assis- tries of the same GNP grouping. in the Middle East and Europe, 14 in Asia,

and 21 in Latin America and the Caribbean.Regional Distribution of IFC Investments: Fiscal 1981

Sector Distribution

Number of Projects Amount of Investment Africa In responding to the differing needs and cir-Africa _ 15% cumstances of its member countries, the Corpo-

Asia 213% ration continued its policy of investing in a25% wide variety of cnterprises. The scope of the

Asa Fiscal Year 1981 program ranged from a pri-22'1__ vate clectrical transmission venture in Peru, to

a logging and veneer operation in the Congo, aMiddle East venture capital company in Brazil, to a $312__________ million fertilizer plant in Senegal.

Europe' _ Out of the total 56 projects, most were in, asMiddle East _iati n America/ Latin Ameica/ in past years, manufacturing. The Corporation

9% _ earibbean Caribbean~~~~~ ~~~~38% 53%~~~~~~~~~~~~ ~~~~~~~~~~~I Measured on per capita GNP in 1979 equivalents.

provided technical assistance and financing for 35 were wholly-owned private enterprises, 12 Approved by Business Sector: FY 1981

seven cement plants, three steel operations, were mixed government/private, and ninefour pulp and paper mills and two fertilizer were wholly public owned financial institutions Number of Investments Amount of Investmentplants. For the first time, the number of man- designed specifically to assist the private sector. 11% 5%ufacturing projects dropped below 50 percent The chart on page 14 shows the distribution 7%of the total. by majority ownership.

Agroindustry projects figured more promi- About 41 percent of the financing came from 18%

nently in this year's investment program than national sources, including private investors,in the past. The 10 projects, with a total cost commercial banks and government agencies. 41%

of $208 million, covered a number of different Another 13 percent was provided by foreign 17%types of operations including flour milling, rice private investors, including both commercialgrowing, rubber and palm oil production, as banks and corporations. About 13 percent waswell as two terminal/storage operations. raised from public foreign institutions and 11% 4

Of the other investments, six were for fuels agencies. IFC provided 24 percent-46 percentand minerals (including an ethanol from mo- of that was raised from other financial institu- 9%lasses project in Malawi), six for hotels and tions through syndications of IFC's loans. Cash 7% 16%

nine for a number of different kinds of finan- generation accounted for the balance.cial institutions. Of the private enterprises, 83 percent were 16% 11%

majority owned by domestic interests. In most

Financing and Ownership ventures, 67 percent, there was some element 8%of foreign participation and, in most cases, the 11% 8%

Excluding IFC's contribution, of the 56 foreign participants were also suppliers ofprojects approved by the Board of Directors, technology and technical assistance.

Of the portion of project costs not financed-- ~~ ~ ; through IFC, $951 million in equity and cash

. , .... ,. * I 4j- --- ' generation, or 28 percent, was provided by the!.^t -- I~~ 'I ' | ~ F; ~ -- sponsors, both foreign and domestic. An addi-

- - -~ I ____ tional $848 million was provided by domestic'M \< . _ sj J financial institutions. And $730 million was

-,, _L r______ ~ '_ .t ] - provided by offshore sources, including suppli-P A ~ - ~ l~3 invers' credits, commercial banks and national and

international financial institutions.

r The Corporation this fiscal year helped expanid Belisce-* u S . .? Bel Tvornica Papira Plolucelil>oze i Kortonaze-Belisir

a 'ugosilav company wvhicil IFC first assistedl in 1973.'I~~~~~~~

. .. . . . . . .

IFC's Financial Record Income on IFC's borrowings. About 69 cents out of ev-For the year the Corporation's operating in- ery dollar of operating income went for operat-

Net Income come (including gains on sales of investments) ing expenses as compared to 66 cents duringSUS Millions increased $10.1 million over the previous the previous year.25 year's $90.2 million to $100.3 million.

However, the slowdown in worldwide Capital and Borrowingseconomic activity combined with operating dif- The Corporation is currently accepting addi-

20 ficulties in particular cases had an adverse im- tional subscriptions from its member countriespact on the Corporation's reported net income. following a $540 million increase in its autho-The Corporation set aside provision for losses rized capital approved by IFC's Board of Gov-of $19 million compared with the $10.6 mil- ernors in November 1977. Of the $468.8 mil-

15 lion in Fiscal Year 1980. This, coupled with a lion allocated to 106 member countries, theleveling of capital gains, higher administrative Corporation has received subscriptions totalling

10 expenses and an increase in the arrearages, re- $373.2 million (80 percent of the allocation)sulted in a net income of $19.5 million as from 70 countries. Based on indications re-against the $20.7 million reported for FY1980. ceived from the other member countries, the

As in the past, interest earnings were the Corporation expects that almost all of the re-major component of IFC's operating income, maining offered capital shares will be sub-amounting to $76.0 million or 76 percent of scribed in the near future.

0 the total. Again reflecting the general down- The net income of $19.5 million was allo-'77 '78 '79 80 '81 turn in economic activity in a number of coun- cated to Accumulated Earnings and is available

tries and the retention of earnings by several for the Corporation's investment program in itsPayments: Receipts: companies, dividends of $12.3 million received member countries. This brought Accumulated

Fiscal Year 1981 Fiscal Year 1981 on the Corporation's equity portfolio were Earnings to $159.2 million and the total paid-8% slightly lower than last year's all-time high of in capital and Accumulated Earnings of the9% 22% $13.3 million. Corporation to $551.3 million, up from $4469% 22% Realized gains on the sales of $4.8 million million at the end of Fiscal 1980.

from IFC's equity portfolio accounted for $1.9 With a near tripling of the IFC's investmentmillion of total, or about 2 percent of total op- commitments over the past five years, disburse-erating income. This compares with realized ments, have been increasing at a rapid pace.

22% gains of $3.4 million, or about 4 percent, in During Fiscal 1981 approximately $293 mil-- the previous year. lion was disbursed for the Corporation's ac-The remaining $10.1 million of operating count or a total of $587 million including dis-

income came from other sources such as com- bursements for participants in IFC financing.28% mitment, syndication and other fees, and inter- This was a 54 percent increase over the $190

74% est on short-term investments. Included also million ($312 million total) disbursed duringwas $2.4 million interest from a $9.4 million the previous fiscal year. In addition to therecovery of an investment previously written funds provided by cash flow and payments ofoff. capital subscriptions, the Corporation con-

28% Operating expenses of $68.9 million were tracted additional borrowings of $100 million~~ ~ $9.4 million greater than the previous year and and drew down $108.1 million to meet the

consisted of $34.3 million in administrative ex- rapid growth in disbursements.penses and $34.6 million in financial charges With repayments and exchange adjustments

totalling $36.9 million, the Corporation's total Portfolio have amounted to $20.5 million against netborrowings, including undisbursed balances, Number of Ventures by Region disbursements over the same period of $1,694increased from $500.1 million as of June 30, Asia Africa million. This amounted to 0.6 percent of its1980 to $563.2 million as of the close of Fiscal 26% _ 25% disbursed loans and 4.0 percent of its disbursedYear 1981. equity investments and reflects the Corpora-

tion's policy of providing assistance to, andPortfolio working with, firms facing unusual difficulties.

At the end of the fiscal year, the Corpora- Write-offs against the Reserve during Fiscaltion's investment portfolio (including undis- Year 1981 amounted to $6.5 million.bursed balances) held for its own account was W This year's equity sales resulted in capital$1,647 million. Of this, $1,374 million was in Ln edle Ea gains of $1.9 million. Consistent with IEC'sthe form of loans and $273 million in equity Caribbean 16% policy to encourage and broaden local owner-investments. In addition, IFC held $916 mil- 33% ship in the private sector, 10 of the 12 saleslion, which it manages for participants in IFC were undertaken in the countries where thefinancing. As of June 30. 1981 companies are located.

During the year, IFC added $737 million of IFC's loan investment of $7.6 million innew investments to its portfolio ($347 million Minera Sagasca (Chile) was written off infor its own account and $390 million for the 1977-78 as it did not appear recoverable then.accounts of others) of which $40 million was same time, repayments of loans and recoveries In FY1981 IFC recovered $9.4 million consist-in equity and $697 million in loans. At the amounted to $85 million and $4.8 million of ing of $7 million in principal and $2.4 million

equity investments were sold. The net increase of unpaid interest. This was in addition toin IFC's portfolio during the year was $243 $600,000 recovered in FY1980.million.

The portfolio contained loans to 245 firms$US Mliions and financial institutions and equity invest-

ments in 202. While adding'30 new enterprises Portfolio

2,500 i to its portfolio during the year, the Corpora- Numberof Venturestion's investments in six enterprises were re-

2,250 paid. sold or written off. Other and Paper2,000 With the growth in its portfolio, the net in- Ma nufacturing 7%

crease in IFC's Reserve Against Losses was Minerals 7%1,750 $12.5 million during the year and totalled Fertilizer and

1,500 $61.5 million as compared to $49 million at Petrochemicals1,5000 maeta rvie8uigmuho%h era te6IFC the end of the previous year. Reflecting the in- 1,250 creasingly difficult economic and business cli- C Services

1000 mate that prevailed during much of the year as SCteeel 1n6°/% j z9well as changed circumstances of a few invest-

750 _ ments, Reserves stood at 5.5 percent of the to- -g\nut

500 ~~~~~~~~~~~~~~~~tal disbursed portfolio by the end of the year. Capital Agroindustry!Hldfr thr This was marginally higher than the 5.4 per- Markets 11%

250 cent at the end of the previous fiscal year.

0 Losses written off by the Corporation since As of June 30, 1981'77 '78 '79 '80 '81 1956 on investments held for its own account

I 7 1

The Year's InvestmentsIFC; Syvndications Total Proj'ectInvestments as approved by Board of Directors y

(US$ thousancis) Loan Equity Costt

ArgentinaJuan Minetti S.A. (cement and construction material)* .......................... $ 15,000 $ - $ 50,000 $ 65,000 $ 154,300

BangladeshAsia Leather Industrial Company Limited (leather) ........ i............ 2,100 172 - 2,272 9,500

BoliviaCerveceria Boliviana Nacional S.A. (food and food processing) ..... .............. 5,700 - - 5,700 22,900

BrazilBRASILPAR Comercio e Participacoes S.A. (money and capital market) ..... 1...... - ,0 _ 1,500 15,000Ciminas-Cimento Nacional de Minas, S.A. (cement and construction material)* ... 30,000 3,500 110,000 143,50() 197,000Companhia Brasileira de Agropecuaria-COBRAPE (food andl food processing) . 5,500 3,000 8,500 37,400Companhia Siderurgica da Guanabara (COSIGUA) (irorn and steel)* ..... ........ - 3,727 - 3,727 3,730Itabuna Industrial S.A.-Itaisa (food and food processing) ..... ................. 9,00( 1,((0 - 10,(00 40,700Petroquimica Triunib S.A. (cheric4ls and petrochemicals) ...... ................. 15,000 4,000 31,000 50,000 139,000PPH-Companhia Industrial de Polipropileio (chemicals and petrochemicals)* ... - - 12,000 12,000 (1)

BurundiVerreries du Burundi, S.A.R.L. (glass containers) ............................... 4,774 860 - 5,634 22,560

CameroonS.A.F.A. Cameroun, S.A.. (food and food processing)* ......................... - 187 - 187 19(Societe Camerounaise de Minoteries (food and food processing) ..... ............ 1,122 186i - 1,308 5,69()Societe Camerounaise de Verrerie (glass containers) ............................ 1,700 131 - 1,831 17,540

ColombiaCorporacion Financiera Colombiana (DFC)* ................................... I - - 10,(0( 30,000Leasing Bolivar, S.A. (money and capital market) ............................... 3,(00 181 i,(0(0 9,181 12,000Petroleos Colombianos Limilited (chemicals and petrochemicals) ..... ............. 3,150 3,424 9,(00 15,574 25,920

Congo, People's Republic of theSociete des Placages au Congo (PLACONGO S.A.) (logginig and veneer) .... ...... 3,500 - - 3,500 15,640

Dominican RepublicCementos Nacionales, S.A. (cement and construction material)* ..... ............. 360 - 360 360

i EcuadorEcuatotriana de Desarrollo, S.A. (Compania Finariciera) (DFC)* ........... I ...... 29 - 29 30Palmoriente,S.A.(palmoil) ............................................ ..... 9,000 1,810 - 10,810 51,570

Egypt, Arab Republic ofCrocodile Tourist Project Hotel Company SAE (tOUr ism) ........................ 4,410 857 - 5,267 21,300

HaitiPronmoteurset InvestisselursAssocies,S.A. (food and Ifod processing) ............. 1,350 150 1,65() 3,150 5,850

IndiaCoromandel Fertilisers Limited (cement and conistruction material) ..... .......... 15,875 - - 15,875 98,750Mahindra & Mahindra Limited (motor vehiicles and accessories) ......... ........ 15,000 - - 15,000 132,950Nagarjuna Steels Limited; Nagarjuna Signode Limited; Nagarjuna Coated Tubes

Limited (iron and steel) ............ ....................................... 6,725 549 - 7,274 27,150The Tata Iron and Steel Companiy Limited (iron and steel) ..... ................. 18,000 - 20,000 38,00() 263,000

JamaicaWest Indies Glass Comiipaniy Limited (glass containers) ...... .................... 2,250 - - 2,250 12,170

JordanJordan Fertilizer In(lustry Company, Ltd. (fertilizers)*. - 2,232 - 2,232 128,560Jordan Leasing Company, Ltd. (money and capital market). - 298 - 298 3,330

KenvaKenya Commercial Finance Com pany Limited (money and capital market) .5,000 - 5,000 13,100Panafrican Paper Mills (E.A.), Ltd. (pulp and paper products) .5,000 - - 5,000 26,190

KoreaTaihan Bulk Terminal Co., Ltd. (grain bulk terminal) .3,500 2,500 3,500 9,50( 27,500

Investments as approved bv Board of Dir e c t o r s IIC Syndications Total Project(US$ thousanlds) Loan Equity Costt

MalawiDwangwa Sugar Corporation Limited (food and food processing)* ............... 945 - - 945 950Ethanol Company Limited (chenmicals and petrochemicals) . ,700 245 - 1,945 8,780

MauritiusGrand Baie Hotel Company Limited (tourismil) 1,525 225 - 1,750 5,250

MexicoCancun Aristos Hotel (tourism)* .- 63 - 63 60Celulosicos Centauro, S.A. (pulp and paper procIuCts .15,500 - 44,000 59,500 117,800Hotel Camino Real Ixtapa, S.A. (tourism)* .- 833 - 833 15,080Papeles Ponderosa, S.A. (pulp and paper products)* .- 835 - 835 3,800

MoroccoCimenterie Nouvelle de Casablanca, S.A. (cement and constructionl matelrial) 15,800 - - 15,800 155,430

NieeriaIkeja Hotel Limited (tourism) .7,560 2,170 - 9,730 53,100

PakistanHabib Arkady Limited (fOod aii(d lou( processing).. 3,150 202 - 3,352 13,400

ParaguayEnmpresa Hotelera de Encarnacion S.A. (tourism) .900 280 - 1,180 4,750

PeruConsorcio Energetico de Huacavelica, S.A. (itilities) .4,500 - 4,000 8,500 18,000

PhilippinesDavao Union Cement Corporation (cement and constructioni material) .16,000 - - 16,000 83,590Philippine Associated Smelting and Refining Corporation (mining) .- 5,(0() - 5,000 435,000Loans to seven corporations for small and medium-scale enterprises (money and

capital market) .18,500 735 - 19,235 28,400Portugal

Sociedade Portuguesa de In vesti mentos (DFC) ................................. I (00 1,184 - II,184 52,000Senegal

Industries Chimiques du Senegal (fertilizers) .25,000 - - 25,000 311,8((Societe Financiere Senegalaise pour le Developpemnent cle l'lndustrie et du oui risme

(DFC)* .- 175 - 175 18,550Somalia

Somali Molasses Company Limited (f'ood and food processing) .375 - 375 1,500Sri Lanka

Bank of Ceylon (money and capital market)* .5,000 - 5,000 17,000Ceylon Synthetic lextile Mills Limited (textiles and fibers)* .- 79 - 79 80Ta1 Lanka Hotels Limited (tourism) .8,200 700 9,100 18,000 35,500

ThailandCompany to be organized for offshore mining (mining) .- 604 - 604 3,770Siam City Cement Co., Ltd. (cement and constrtuction material)* .11,000 - 16,000 27,000 54,60()

TurkeyKirklareli Cam Sanavii A.S. (glass tableware) ................................... 11,(00 - 2,547 13,547 45,810

YugoslaviaBelisce-Bel TYvoInica Papira, Poluceluloze i Kartoniaze-

Belisce (pulp and paper products)* .20,000 - 37,577 57,577 103,600Zimbabwe

Wankie Colliery Company Limited (mining) .20,000 - 18,000 38,000 191,40()Totals .$392,311 $43,983 $374,374(2) $810,668 $3,339,780

(1) Project cost of$125.1 million was inludeddwith originial iivesntient in ['U198(0.

(2) In addition, IF( syndicated $28 million loii a project approved iri a prior year.* IFC has made one or more previous investments in this (coipanY.

t Rights issues and share acquisitions from rhird parties: in cases where other inH rsh t( sS Ubsc iptions are niot known. omly i FC's poI t iioi is listed.

Technical and Policy and silver mine were increased to improve ital markets in general, and securities marketsAssistance their financial and economic viability. A refin- in particular. In fiscal 1981, IFC supported se-

ery project in Argentina was modified so that curities market development through advisoryIFC hsaramnttheit could handle local crude oil to produce a work in Chile, Colombia, Cyprus, Ecuador,

ber countries create a domestic environment more profitable product mix. Basic changes in Egypt, Jordan, Mexico, Sri Lanka, Thailandconducive to the flow of private capital in sup- concept were introduced in paper mill projects and Uruguay.portfdevelopmentr ob jetive itthrfe up- in the Philippines and Bangladesh in order to The Engineering Department likewise hasderta in ad diopento rojetives. ct inestmeunt make their products profitable and more suited been active in providing industry and sectoralnumerta of oh activiti desn to assst in to market needs. Specific assistance also was technical assistance. A plan for the develop-numberth f techn activities matersig o eassist in provided by the Capital Markets Department ment of petroleum based industries in an Afri-both technical and policy matters bearing on connection with a Mexican mutual fund can country was reviewed, and suggestions forthe efficiency and growth of pri,ate enterprise, that was marketed abroad. While related to changes were made. A study of natural gas uti-The Corporation brings to this task its opera- specific projects such initiatives by the Capital lization by an Asian nation was initiated totional experience, its close collaboration with s i

th World Bank, and its unique position as an Markets Department often have broader help formulate a development strategy. A planthe World Bank, and Its unique position as aninternational institution concerned with the de- implications. for national development of the cement indus-velopmental role of the private sector. try to achieve self-sufficiency was proposed to

Two types of non-financial assistance are Policy Advice and More General a Central American Government, as wereprovided by the Corporation. One is specific to Technical Assistance strategies to facilitate the development of forest

products industries in two countries-in Africathe projects which the Corporation is helping IFC experience with specific projects often and the Pacific. Reflecting the growth of tech-to finance. The other goes beyond projects, and leads to an involvement in broader issues of nical assistance, a Vice President of Engineer-assists governments in the development of poli- policy and institutional development. The Cap- ing and Technical Assistance was appointedcies, institutions and programs that will enable ital Markets Department has utilized its exten- early in 1981.the private sector to make a greater contribu- sive experience with leasing companies to pro- General policy assistance also has grown intion to economic development..tion to*economic development. vide continuing advice on leasing policies and importance. Extensive work by the CorporateProject Technical Assistance regulations to a growing number of countries. Planning Department on policies to promote

Advice on cement pricing and market alloca- private development in the Caribbean was fol-The Corporation provides specific technical tion issues by the Corporate Planning Depart- lowed this year by development of a promotion

assistance in the course of appraising and mon- ment to an African country grew out of IFC facility to help encourage private project iden-itoring individual projects. This type of assis- financing of several cement plants. tification in the region. It is expected that thistance is usually the responsibility of the Engi- Increasingly, non-financial assistance by facility will be operational by the end of calen-neering Department, or the Capital Markets IFC has taken a perspective that is broader dar year 1981. Other policy assistance includedDepartment in the case of projects to establish than that suggested by individual IFC projects. an assessment of the impact on private enter-financial institutions. For many years the Capital Markets Depart- prise of the more open and competitive situa-

As a result of such advice, capacities of an ment has assisted governments in establishing a tion in a Latin American country (a joint un-Indonesian cement project and a Bolivian lead legal and institutional framework for their cap- dertaking with the World Bank).

2)0

* *

_k- - IFC ProjectCompany Country Type of Business Investment Cost

_ E _ (in USS$ millions)Consorcio Energetico de Huancavelica, S.A. Peru Power transmission $ 8.5 $ 18.0

- u ; __._ Ethanol Company Limited Malawi Ethanol 1.9 8.8Petroleos Colombianos Limited Colombia Oil exploration,

development 15.6 25.9

Philippines Associated Smelting and Refining- j_ Corporation Philippines Copper smelting 5.0 435.0

Company to be organized for offshore mining Thailand Tin exploration .6 3.8Wankie Colliery Company Limited Zimbabwe Coal mining 38.0 191.4

TOTALS $69.6 $682.9

An IFC investment is helping Societe Miniere du Bou-Gaffer "SOMIFER" develop its underground copper minein Morocco.

Many developing nations are emphasizing loan, $18 million was taken up by eight finan- concession area of some 100,000 acres by drill-natural resource projects, especially those that cial institutions in Europe, India and North ing 1,500 to 2,500 test holes in deep water (upcan reduce their imported energy costs. In ad- America-the initial introduction of Zimbabwe to 200 feet). If adequate reserves are found,dition, new mineral reserves are being sought industry to the international capital markets. the group will undertake a separate project forfor their foreign exchange earnings potential While IFC has made several oil project in- the design and building of a dredge to mineand downstream processing plants are being vestments in the past, the $25.9 million Petro- and process the ore. Dredges have been limitedbuilt to add value to mineral exports. leos Colombianos Limited, Colombia, project is to about 120-foot depths up to now.

IFC has been supporting these efforts the first to involve oil exploration. Petrocol, a Last year's cassava/ethanol project in Brazilthrough an expanded program to identify and privately owned company, will develop its An- is being followed by a molasses/ethanol projecthelp finance energy and minerals projects. In dalucia Sur oilfield in the Huila area and ex- in Malawi that could produce up to 10 percentaddition to the usual types of projects in this plore other promising sites in Huila and in the of the country's gasoline needs. The Corpora-sector, the Corporation is also assisting less Sinu area. Again, participations in IFC's in- tion will also help finance a Philippine coppertraditional enterprises such as synfuels and vestment provided part of the financing smelting project, the country's first, which willoffshore mining. through a $9 million syndication to three fi- utilize geothermal generated electric power.

The first investment by the Corporation in nancial institutions in Europe and Latin America. Finally, an $18 million electric power trans-Zimbabwe was also its first in coal mining. An unusual venture this year is the offshore mission line that will bring cheaper power to aThe $191.4 million Wankie Colliery Company drilling program aimed at proving up tin ore consortium of seven medium and small-sizeLimited project is expected to produce at least reserves about 20 miles off Takuapa on the mining companies in the central Andes of Peru3.9 million tons of coal a year to supply a new west coast of Thailand. IFC is joining a con- and to several nearby villages will be sup-thermal power station and to help meet local sortium of Thai and Malaysian tin mining ported by an $8.5 million loan, of whichand foreign coal demand. Of IFC's $38 million companies in the project which will explore a $4 million will be syndicated.

IFC ProjectCompany Country Type of Btusiness Investment Cost

(in USS millions)Industries Chimiques du Senegal Senegal Fertilizers $25.0 $311.8Jordan Fertilizer Industry Company, Ltd. Jordan Fertilizers 2.2 12 8 6 bPetroquimica Triunfo S.A. Brazil Petrochemicals 50.0 139.0PPH-Companhia Industrial de Polipropileno Brazil Petrochemicals 12.0

TOTALS $89.2 $579.4-Project cost of $125.1 million was included with original investment in FY 1980.b Additional financing to complete the project and support a downstream, related project.

Jordan Fertilizer Industry Company Limited's $300million phosphate fertilizer project at Aqaba.

Fertilizer and petrochemical projects often ICS will have a capacity of 238,000 metric near Porto Alegre in southern Brazil. Therequire large amounts of capital from abroad tons of phosphoric acid a year. Half will be complex is the third to be built in Brazil and isand the Corporation can help provide it by its sold to the group of Indian companies and being assisted by the World Bank and theown investments, by syndication of its loans to most of the remainder will be transformed into Inter-American Development Bank, as well asother institutions and by encouraging other in- granulated diammonium phosphate and triple IFC.vestors to make their own, separate commit- super-phosphate fertilizer intermediates for the Petroquimica Triunfo will produce low-den-ments. West and Central Africa markets. sity polyethylene. It is one of three down-

Ventures in this sector also often require In addition to its loan, IFC assisted various stream projects in the complex to be assisted bysubstantial technical assistance and training aspects of the project: determining product mix IFC-the Corporation also helped finance Pol-and the transfer of technology, which IFC can and facilities' sites, sizing the plant, and help- isul Petroquimica S.A. and PPH-Companhiahelp facilitate. And, because of the size and ing in negotiating the Indian consortium's in- Industrial de Polipropileno last fiscal year.long development periods of such projects, IFC vestment and offtake of phosphoric acid. This year, IFC made an additional investmentis able, where needed, to maintain an active The project will upgrade domestic materials in PPH.role from the conception of the project through for export, result in estimated net foreign ex- A supplemental investment was made into the actual startup of the plant. change benefits of $10 million a year, increase Jordan Fertilizer Industry Company, Ltd. in

IFC is joining a large group of lenders and exports about $90 million a year, reduce fertil- support of that Company's fully subscribedequity investors to finance Industries Chimi- izer production costs, provide India with an capital increase undertaken to support addi-ques du Senegal (lCS), a $311.8 million fertil- important raw material and encourage fertil- tional debt finance being raised to complete theizer enterprise. Investments are being made by izer use in Africa's agricultural sector. project as well as to support development of anine multilateral and bilateral economic assis- The Corporation also invested in Petro- downstream, related project.tance agencies, three African governments, and quimica Triunfo S.A., a major component inFrench and Indian companies. the petrochemical complex being developed

Company Country Type of Business Investment Cost

(U$millions)Cementos Nacionales, S.A. Dominican

PA 'PI j Xw : Republic Cement $ .3 $ .3-- / ,7 \ 4 4aqCimenterie Nouvelle de Casablanca, S.A. Morocco Cement 15.8 155.4

e w Ar 1 - Ciminas-Cimento Nacional de Minas, S.A. Brazil Cement 143.5 197.0Companhia Siderurgica da Guanabara

(COSIGUA) Brazil Iron and steel 3.7 3.7Coromandel Fertilisers Limited India Cement 15.9 98.8

I 01 {, 2-& Davao Union Cement Corporation Philippines Cement 16.0 83.6Juan Minetti S.A. Argentina Cement 65.0 154.3Nagarjuna Steels Ltd.; Nagarjuna Signode Ltd.;

*'4, -fi 1; Nagarjuna Coated Tubes Ltd. India Iron and steel 7.3 27.24 ;~ A X ~~ w ; t ~ -Siam City Cement Co., Ltd. Thailand Cement 27.0 54.6The Tata Iron and Steel Company Limited India Iron and steel 38.0 263.0

-r 6 d1a n 4*,4- TOTALS $332.5 $1,037.9

The Kaen Khoi facilities of The Siam Cement Co., Ltd., oneof two Thai cement companies which IFC has helped tofinance.

By far the largest amount of IFC's invest- tons-a-year plant being built in the Province of node Limited to produce 12,000 tons of strap-ments have been in the cement and iron and Jujuy by Juan Minetti S.A., a leading Argen- ping steel annually, and Nagarjuna Coatedsteel industries. These projects provide essen- tine cement manufacturer that IFC has helped Tubes Limited to produce 18,000 tons of zinctial materials for infrastructure development finance in the past. The plant will be able to galvanized steel tube.and for the construction of other industries, as use both fuel oil and natural gas but expects to Other cement and steel projects supportedwell as the raw materials for a variety of busi- rely on domestic gas fields about 95 miles during FY81 were: a $263 million moderniza-nesses. distant. tion program by The Tata Iron and Steel

The largest single investment by the Corpo- A second coal-using IFC cement project is Company Limited, India, to which IFC loanedration in its 25 years of operations was made the $83.6 million, 450,000 tons-per-year $38 million, including $20 million syndicatedthis fiscal year by approving $143.5 million for facility being built by Davao Union Cement to a group of five major international commer-a $197 million expansion of Cimento Nacional Corporation in southern Mindanao, the cial banks; a $54.6 million, 600,000 metricde Minas S.A.'s facilities in the state of Minas Philippines. tons expansion by Siam City Cement Co.,Gerais. And in Morocco, a $155.4 million cement Ltd., Thailand, which includes facilities to

IFC helped to establish the Company in plant near Casablanca will produce about 1.2 store, process and burn coal in order to reduce1972. The new project consists of increasing million tons of cement for the local market. fuel imports and to promote the use of indige-the present 1.1 million tons-a-year cement ca- An unusual three-part project will increase nous lignite resources; and an approximatelypacity to more than 2.2 million tons, construct- the production of specialty steels by a group of $98.8 million, coal burning cement project of 1ing two terminals for cement distribution in three related Indian companies. The $27.2 million tons capacity by Coromandel Fertilisersthe interior of the country and adding facilities million venture will almost double the produc- Limited, India. Small, supplemental invest-to use Brazilian coal as kiln fuel. Lion of cold rolled steel by Nagarjuna Steels ments were also made in a Brazilian steel com-

Another major cement expansion IFC is as- Limited to 28,000 tons a year and establish pany and a cement company in the Dominicansisting is the new, $154.3 million, 720,000 two downstream companies-Nagarjuna Sig- Republic.

IFC ProjectConmpany Country Type of Business Investment Cost

(in USS millions)-1 -i. _ _ - Asia Leather Industrial Company Limited Bangladesh Tannery $ 2.3 $ 9.5

Ceylon Synthetic Textile Mills Limited Sri Lanka Textiles . I . IKirklareli Cam Sanayii A.S. Turkey Glassware 13.5 45.8

_ _ t. ' -_Societe Camerounaise de Verrerie Cameroon Glass containers 1.8 17.5Mahindra & Mahindra Limited India Diesel engines 15.0 132.9Verreries du Burundi, S.A.R.L. Burundi Glass containers 5.6 22.6West Indies Glass Company Limited Jamaica Glass containers 2.3 12.2

TOTALS $40.6 $240.6

Trucks manufactured by Volvo do Brasil nearing end ofassembly line which is designed to produce 6,500 trucksand buses per year.

Manufacturing projects cover a wide range mand and lessen the need for imports, result- Mahindra, a major producer of tractorsof industries, including products for direct con- ing in estimated net foreign exchange benefits and light commercial vehicles and India's onlysumption-such as soap, textiles, garments, of $10 million annually. manufacturer of jeeps, is being supported byplastic products, containers and ceramics-to Similar projects are expanding the glass bot- an IFC loan. The Company will increaseintermediate industrial goods, including electri- tle manufacturing capacity of Societe Came- light commercial vehicle production from 3,000cal wire and cable, compressors and motor ve- rounaise de Verrerie in Cameroon from 14,000 to 10,000 units per year and tractor productionhicles and accessories. tons annually at present to 24,000 tons and from 12,000 to 15,000 units per year. In addi-

This category of investments has tended to establishing Verreries du Burundi, S.A.R.L., tion, Mahindra & Mahindra will introduce abe one of IFC's larger in terms of the number in Burundi to manufacture 7,600 tons of glass new diesel engine and produce about 25,000of projects undertaken. But they also tend to be containers a year. wil help r The agricutractor pro -smaller measured by IFC's average invest- In another glass project, IFC is supporting a ductivity and increase farm yields. The eco-ment-per-project because they are usually more glass tableware project in which Kirklareli omy will also benefit from the introduction oflabor intensive and their output generally is for Cam Sanayii A.S. will build a plant to pro- the new diesel engine which offers improveddomestic use where markets tend to be smaller. duce 20,000 tons of glass tableware a year. performance and greater fuel efficiency.

Supporting one of the largest private sector The venture will increase Turkey's glass ta- The Corporation also invested in a tanneryinvestments in Jamaica in recent years, IFC bleware capacity by 80 percent and create venture in Bangladesh that will add value tomade a loan to help finance West Indies Glass some 450 direct jobs. It will also benefit the exported hides which have been exported inCompany's $12.2 million program to modern- economy by utilizing domestic raw materials, semi-finished form up to now, utilize locallyize and expand its glass container plant and provide goods for a growing population and available hides and upgrade the tanning tech-increase throughput from 13,000 metric tons a earn foreign exchange through exports, princi- nology in the country. And a small, supple-year at present to 26,000 metric tons. The pally to neighboring countries. mental investment was made in a Sri Lankanproject will help meet growing domestic de- And in India, the expansion of Mahindra & textile company.

.2 i J IFC Project

Ir ,ts ' ,1_-t; WCompany Country Type of Business Investment Cost

- - ' |11*1 l RtiL Bank of Ceylon Sri Lanka Small and medium- (USS millions)X w - ; scale enterprises $ 5.0 $ 17.0

BRASILPAR Comercio e Participacoes S.A. Brazil Venture capital 1.5 15.0

'K. 4 tCorporacion Financiera Colombiana Colombia DFC 10.0 30.0Ecuatoriana de Desarrollo, S.A.

(Compania Financiera) Ecuador DFC 'Jordan Leasing Company, Ltd. Jordan Leasing .3 3.3Kenya Commercial Finance Company Limited Kenya Small and medium-

scale enterprises 5.0 13.0t% * -*|= Leasing Bolivar, S.A. Colombia Leasing 9.2 12.0

f, PX : -k Societe Financiere Senegalaise pour le__a Developpement de l'Industrie et

du Tourisme Senegal DFC .2 18.6Sociedade Portuguesa de Investimentos Portugal Small and medium-

scale enterprises 11.2 52.0_ - ,JL!< Loans to seven corporations for small and

2' ( ~ medium-scale enterprises Philippines Small and medium-scale enterprises 19.2 28.4

less than $50,000. TOTALS $61.6 $189.3

A small furniture enterprise assisted by the Investmentand Development Bank of Malawi Limited-partly withIFC provided funds.

Domestic sources of capital are a key ele- ment and identify needed institutions. This has Another first for IFC is the Board's ap-ment in the economic development process be- been augmented by help in establishing and fi- proval for an underwriting of a Eurodollarcause a large part of the financing needed for nancing a wide variety of institutions which bond issue.1 The underwriting is for $10 mil-

ventures-in both the public and private sec- can contribute to capital market development. lion of a $30 million offering by Corporaciontors-must be generated locally. The Corporation's initial investment in Por- Financiera Colombiana (CFC) which will give

To meet the emerging financial and invest- tugal was approved this fiscal year with an CFC access to the international capital mar-ment needs of economies at different stages of $11.2 million investment as part of $52 million kets by issuing fixed-rate bonds.development, IFC's capital markets program is in financing for Sociedade Portuguesa de The proceeds will be used by CFC for on-aimed at helping member countries broaden Investimentos (SPI), a development finance lending to Colombian enterprises as cofinanc-and diversify the range of financial services company being established to provide loan, ing for the World Bank's development financeand instruments within the country. It does equity and related services to domestic company loans through Banco de la Republica.this in two ways. It provides loan and equity enterprises. SPI will help finance projects that The Eurobond issue is in line with the Gov-funds, along with technical assistance to help contribute to increased exports and substitute ernment's policy of increasing the proportionestablish new or expand existing financial in- for imports. It will support the expansion of of resources for development obtained from in-stitutions. It also provides technical services on private investment in Portugal, contribute to ternational private sources.

polcy nd eguatoy mttes t gservicens the revival of the capital market and seek topolicy and regulatory matters to governments broaden stock ownership. It is also expected toand individual financial institutions to help play a role in channelling technical expertise,them strengthen their financial markets. providing management assistance and

The Corporation has assisted a number of facilitating the introduction of new technology

countries to develop financial sector plans, es- and foreign capital by way of promoting joint 1. At the close of the fiscal year the issue had been pre-

tablish the legislative and regulatory environ- ventures. pared but not yet marketed.

The Corporation joined a broad group of tinuation of an earlier IFC investment in livar S.A., Colombia, with about $9.2 millionBrazilian and foreign investors in providing Kenya and will make available a substantial to expand and diversify its operations. Leasingmore than $15 million in equity to expand and amount of funds to small and medium-scale Bolivar's principal activity will be leasingdiversify the operations of BRASILPAR industrial enterprises, together with business industrial equipment to small and medium-Comercio e Participacoes S.A. BRASILPAR, a advisory services. Some 40 small and 15 scale companies which are important to theventure capital company, will make equity in- medium-size enterprises are expected to benefit Colombian economy but have limited access tovestments in medium-size companies engaged from the project. existing financial resources. Thus, the Com-mainly in high-priority sectors such as agroin- And, in Sri Lanka, a $5 million IFC loan to pany expects to offer a more flexible, alterna-dustry and energy and will also provide a vari- the Bank of Ceylon will be onlent to local tive source of industrial financing to smallerety of corporate financial services. It will em- medium-scale industrial enterprises. Bank of firms and for longer terms and at lower ratesphasize new projects with good prospects for Ceylon is matching IFC's financing and will than now prevail domestically.profitability and growth and which will con- furnish eligible private sector firms with an in- In addition, investments are being made in atribute to increased employment and improve tegrated package of long, medium and short- $28.4 million project which will assist smallthe balance of trade. term finance, supplemented by business adviso- and medium-scale industrial enterprises in the

Investments were made both in Kenya and ry services. DEG, the German Development Philippines through six local private commer-Sri Lanka to finance private industrial enter- Agency, is also providing financing. The proj- cial banks and one private savings bank; in anprises that are too small for IFC to reach ect is a follow-up to a similar one IFC assisted approximately $18.6 million development fi-directly. in 1978. It complements International Devel- nance company project in Senegal; and in a

A $5 million IFC loan, together with com- opment Association financing for small and new institution, Jordan Leasing Company,A $ million IFC loan, together with com- medium-scale Sri Lankan firms. Some 55 to 80 Ltd., which will add leasing to the financial

plementary funds mobilized from the OPEC firm are Sri benefi frome 55 services in Jordan's financial market. The Cor-Fund for International Development and fi- ~~~poration also made a small supplemental in-

nancing by the Kenya Commercial Bank project. vestment in a previously assisted EcuadorianGroup, will be made to Kenya Commercial Fi- In the leasing sector, IFC is joining local development finance company, Ecuatoriana denance Company Limited. The project is a con- and foreign investors in providing Leasing Bo- Desarrollo, S.A. (Compania Financiera).

IFC technical advice to Korean regulatory authorities aims

at improving operations of the Korea Stock Exchangethrough improved procedures and increased volume.

- CS ProjectCompany Country Type of Business Investment Cost

' _ (USS$ millions)_-~- _ w ~ . Cancun Aristos Hotel Mexico Hotel $ .1 $ .I

Crocodile Tourist Project Hotel Company SAE Egypt Hotel 5.3 21.31, , 2.l Grand Baie Hotel Company Limited. Mauritius Hotel 1.7 5.2

_ _ $ Hotel Camino Real Ixtapa, S.A. Mexico Hotel .8 15.1- rU s tt!f-/- -- Ikeja Hotel Limited Nigeria Hotel 9.7 53.1

Empresa Hotelera de Encarnacion S.A. Paraguay Hotel 1.2 4.7

- ,.1 ~ ~. Taj Lanka Hotels Limited Sri Lanka Hotel 18.0 35.5

ti^fft ', 111l . TOTALS $36.8 $135.0

Construction by Hae Un Dae Development Company, Ltd.of a beach hotel near Busan, Korea, with financingprovided by Korean and U.S. investors and IFC.

Several benefits are common to most tourism a year. The venture is in line with the Gov- opening of the hotel.projects. They frequently earn substantial for- ernment's efforts to encourage tourism and will The project will generate estimated net for-eign exchange and are relatively labor inten- be a major addition to the first-class hotels in eign exchange earnings of $8 million a yearsive both through direct employment and by Colombo. and create more than 440 direct jobs plus addi-creating job opportunities in related areas such The Corporation's investment in Crocodile tional indirect jobs. A large Swiss restaurantas entertainment, sports, food, handicrafts, Tourist Project Hotel Company, which will and hotel chain will implement and managetransportation and the like. build a $21.3 million, 320-room international the hotel.

One venture assisted by 1FC this year, the standard hotel in Luxor, Egypt, complements IFC also invested in: the 340-room, first-$35.5 million Taj Lanka Hotels Limited in Sri an International Development Association class, largely locally financed Ikeja Hotel inLanka, has as its principal sponsor and techni- credit which is being used to improve the tour- Lagos, Nigeria; the 106-room, international-cal partner a firm from another developing ism infrastructure. The IDA credit aims at class Novotel near Encarnacion, Paraguay,country-The Indian Hotels Company Lim- correcting imbalances between Cairo and out- sponsored by local, Brazilian and French in-ited. Indian Hotels was established more than lying areas and will be used, in part, for im- vestors; and the Grand Baie Hotel Company75 years ago and operates a chain of hotels in provements to Luxor's airport and the Valley Limited, 150-room, first-class resort hotel atIndia. Additional equity is being invested by of the Kings-a famous tourist attraction. Grand Baie, Mauritius, sponsored and fi-private Omani investors who are associated The project will be located on a 41-acre site nanced by Mauritian nationals.with Indian Hotels. on an island in the Nile River. The size of the The Corporation made small, supplemental

Taj Lanka is expected to employ directly site permitted the hotel to be designed as 20 investments in two tourism projects in Mexicoabout 1,000 persons and to create, indirectly, separate, single-story buildings which will be which it had helped finance in previous years.another 400 jobs. It will also generate esti- prefabricated. The prefabricated buildings, inmated foreign exchange earnings of $9 million turn, will permit fast construction and early

IFC ProjectCompany Country Type of Business Investrnent Cost

(in US$ millions)Cerveceria Boliviana Nacional S.A. Bolivia Barley and malt $ 5.7 $ 22.9Companhia Brasileira de Agropecuaria-

COBRAPE Brazil Rice growing 8.5 37.4_Dwangwa Sugar Corporation Limite(d Malawi Sugar .9 .9Habib Arkady Linmited Pakistan Fructose syrup 3.4 13.4Itabuna Industrial S.A.-Itaisa Brazil Cocoa 10.0 40.7Palmoriente, S.A. Ecuador Palm oil 10.8 51.6Promoteurs et Investisseurs Associes, S.A. Haiti Poultry 3.1 5.9Societe Camerounaise de Minoteries Cameroon Flour milling 1.3 5.7Somali Molasses Company Limited Somalia Molasses .4 1.5Taihan Bulk Terminal Co., Ltd. Korea Grain terminal 9.5 27.5

S.A.EA. Cameroun, S.A. Cameroon Palm oil .2 .2

TOTALS $53.8 $207.7

Land is cleared for cane planting at the Dwangwa SugarCorporation Limited project, Malawi.

Food and agroindustrial projects are ac- metric tons per year of molasses. The project economy by creating some 260 jobs and pro-counting for a growing share of IFC's invest- reflects IFC's efforts to increase its activities in ducing, as a by-product, 7,200 tons a year ofments as a result of a deliberate policy to in- the lesser developed countries by supporting protein cake to be sold as animal feed.crease assistance to the agricultural sector. small projects. The terminal will utilize molas- In Ecuador, IFC is investing in PalmorienteProjects in farm crops, fish, poultry, livestock ses produced by Juma Sugar Project, augment- S.A. which will grow oil palms on approxi-and dairy products not only can improve the ing that project and increasing its profits and, mately 5,000 hectares of rainforest land in theamount and quality of food available in the at the same time, generating foreign exchange country's Amazon region and, at full produc-developing countries but can increase exports earnings of $900,000 a year through molasses tion, process 27,500 metric tons of palm oil aand enhance their foreign exchange earnings exports. year. The output will be for the domestic mar-potential. Broken, inedible rice is to be used in a Paki- ket and reduce imports which now supply

The Corporation also encourages ventures in stan venture to produce 45,000 tons of fructose more than half of the country's edible oil andrelated areas such as transportation, storage syrup a year for use by the domestic food and fats needs.and processing which help improve distribution beverage industry. The $13.4 million project The project is in line with the Government'sand product handling and reduce spoilage and being assisted by IFC will be based on an en- efforts to utilize some of the country's largewaste. When appropriate, the introduction of zyme conversion process using dry milling and, fertile land tracts in the Amazon basin andnew crops, processes and technology are em- for the first time, rice as a raw material. will increase the availability of foodstuffs, easephasized. The project is being implemented by Habib unemployment and improve the balance of

For its first project in Somalia, the Corpora- Arkady Limited and will help make up a payments.tion is assisting Somali Molasses Company shortfall in Pakistan sugar production, reduce The Corporation is also supporting a large-Limited which is building a $1.5 million bulk the need for sugar imports and minimize con- scale, private enterprise effort to grow irrigatedterminal and handling facility to export 21,000 sumer sugar prices. It will also benefit the rice in Brazil's Amazon region. Two crops a

year on the 20,000-acre site near Gurupi inGoias State are expected to produce 56,500tons of unmilled rice. The project will help Financial Institutions Which Participated in IFC Loans During FY 1981meet growing domestic demand for rice and re-sult in an estimated net foreign exchange im-pact of $12 million a year by reducing theneed for imports.

The Corporation is making its first invest- Ahu Dhabi International Bank Inc. Euro-Latinamerican Bank Limited-ment in Haiti by assisting Promoteurs et American Express International B1anking EULABANK-Investisseurs Associes, S.A. in establishing a Cor-poration First Canadian Financial Corporation Limitedmodern, integrated poultry operation with an- Amsterdam-Rotterdam Bank N. V. 'I'he First National Bank of Chicago

nual production, at full capacity, of 1.8 million Arab Latin American Bank-ARLABANK- Girard Bankbroilers for sale domestically. The project will BA Asia Limited Industrial Multinational Investments Ltd.augment the food supply in one of the least de- Banco cle Bogota, S. A. Panamia J. P. Morgan Interfunding Corp.veloped countries in the Western Hemisphere Banco Sudameris Internacionial S. A. Kredietbaank S. A. Luxembourgeoiseand increase the availability of protein. Bancortine; S. A. Landesbank Rheinland-Pfalz und Saar

Taihan Bulk Terminal Co., Ltd. is building, Bank fur Oberosterreich und Salzburg International S. A. Luxembourgwith IFC financial assistance, a $27.5 million, Bank of British Columbia Lazard Brothers & Co., Limited2.6 million metric tons-a-year grain bulk ter- Bank of Montreal Libra Bank Limitedminal that will support expanded production Bankers Trust Comilpany Lloyds Bank International Limiteclof meat, poultry and dairy products by lower BaniquLe de la Societe Finarciere Europeenine Manuf:acturers Hanover Trust Companyshipping costs, reducing grain losses and im- Banque Europeenine cle Credit Morgan Guaranty Trust Company of New York

proving grain distribution. The project will be Banique Interinationale a Luxembourg, S. A. National Bank of Abu Dhabilocated in the port of Inchon and includes pier, Barclays Bank Internationial Limited The Riggs National Bank of Washingtoi, D). C.unloading equipment, storage bins and truck Baring Brothers Asia Limited The Royal Bank of Canadaloading facilities. BfG:Luxembourg, S. A. The Royal Bank of Canada (Asia) Limited

In addition, financing is being provided for a Canadian Imperial Bank of Commerce Scandinavian Bank Limitedcocoa processing venture in northeast Brazil Chemical Bank Siam Commercial Finance Limitedthat will obtain its cocoa beans from an 8,000 Citibank, N. A. Societe Genierale de Banque S. A.

member cocoa growers cooperative co-sponsor- Connecticut General Life Insurance Company Stanbr-idge International Bank Limiteding the project; for the expansion of a Cam- Continenital Illinois National Bank and Standard Chartered Bank Ltd.eroon flour mill which will assure the country Trust Company of Chicago State Bank (f Indiaof a domestic supply of flour; and, in Bolivia, Credit and Finance Corporation (CFC) Union Bankfor a 17,000 metric tons-a-year malt processing Den norske Creditbank (Luxembourg) S. A. Union Bank of Switzerlandplant and complementary agricultural develop- Deutsch-Sudamerikaniscihe Bank AG. Westdeutsche Landesbank Girozentralement program to supply the plant with barley.

Small supplementary investments were madein two previously financed projects-a Ma-lawian sugar venture and a Cameroon rubberand palm oil project.

idications about the investments in which the Corpora- IFC's loan of $57.6 million equivalent for ation is involved and, where appropriate, invite Yugoslavian pulp and paper company was no-their participation in syndications being ar- table because of its various currency compo-

design and out of necessity, IFC works ranged by the Corporation. nents tailored to the needs of the borrower andose association with private investors, com- of the commercial bank participations reflect-ial banks and other financial institutions. Year's Activities ing then prevailing market conditions. Thes resources are meager in relation to the The Corporation syndicated, or has pending loan consisted of a fixed and floating interests of the private sector in developing coun- syndications of $374.4 million of participations. rate dollar portion, a fixed interest rate portionI IFC must act primarily as a catalyst. Its In addition, IFC syndicated $28 million for a in Deutschemarks and Austrian schillingsis to stimulate and assist investment by project approved in a prior year. This year's tranches structured partly on fixed and partlys: not to replace or compete with other syndications compare with $266.8 million the on floating rate basis.-es of financing. preceding fiscal year. All of the participations)th as a way to accomplish this goal and at were taken by commercial sources, mostly iname time encourage private sector involve- the capital exporting countries. These IFCin international lending, IFC is con- loans were for 16 enterprises located in Argen- Sources of Funds in IFC Assisted

ly seeking to interest commercial banks, as tina, Brazil, Colombia, Haiti, India, Projects Fiscal Year 1981

as other financial institutions, in joining Korea, Mexico, Peru, Sri Lanka, Thailand, US$ Millions

an syndications and parallel financings, Turkey, Yugoslavia and Zimbabwe. her the financing is initiated by IFC or by Fifty-two institutions signed participations Japan 10

's. in IFC loans in Fiscal Year 1981, including 23 European)mmercial banks are often interested in which had not previously participated. $328 Communiy 10%

rig directly in IFC's own lending and the Among the more interesting of IFC's opera- $54 United States 2%)oration achieves this through syndications tions this year was its role in financing a large $38 Other 1%

loans. Most commonly, participations in coal mining project in Zimbabwe. Part of thes loans are syndicated either at the time of financing was provided by an IFC loan for $811 IFC 24%

nvestment or shortly thereafter. Under this $38 million (without government guarantees)igement, an overall loan agreement is of which the Corporation was able to place,d by IFC and the borrower while each $18 million with eight commercial banks fromor institution will be issued participation Belgium, France, India, Luxembourg, the

icates corresponding to its respective por- Netherlands, the United Kingdom, and theof the financing. Typically, the portion re- United States. As part of the same transaction,d for IFC's own acount would be on a IFC, in collaboration with a U.S. bank, also-rate basis, while the portion placed with placed $10 million in the early maturities of acipants would be on a floating rate basis loan by the Export-Import Bank of the United $1,725 Developingilly related to LIBOR). States with the same eight banks. Countries 52%order to carry out its catalytic role, the Another transaction involved IFC's largest

,oration maintains close contact with com- syndication to date-$1 10 million equivalent,ial and development banks and interna- denominated in U.S. dollars and Swiss francs,l and regional financial institutions for the expansion of a Brazilian cement com-ighout the world to keep them informed pany's facilities.

Administration the Department of Syndications to better On May 1, 1981 Mr. Daniel F. Adams wasreflect the nature of its activities. promoted from Divisional Manager, Mexico-

and Staff -The Director of Engineering, Mr. Ma- Caribbean, to replace Mr. Ruisanchez.karand V. Dehejia, was named Vice Pres- Mr. Gordon F. McClure, Vice President,ident, Engineering and Technical Assis- left on April 1, 1981 to join a privatetance, reflecting the assumption of respon- industrial company in the United States.

Mr. Moeen A. Qureshi, formerly Executive siblity for the Corporation's technical as-Vice President, moved full time to his duties as sistance programs. Staff DevelopmentsSenior Vice President, Finance, of the World -At the same time there was created a newBank. As previously reported, Mr. Hans A. position of Vice President, Operations, for Over the past Fiscal Year, IFC's staff in-Wuttke took up the appointment of Executive Africa. Mr. Judhvir Parmar, Vice Presi- creased from a total of 361 to 388 with theVice President of the Corporation on January dent for Asia, Europe and the Middle number of higher level staff increasing from1, 1981. East, will act in this capacity until this 205 to 221.

Reflecting the increasing volume and grow- post is filled. A total of 66 nationalities were representeding complexity of the Corporation's world- Mr. Jose M. Ruisanchez, formerly Director on the staff which included 48 developingwide operations, a number of organizational of Investments for Latin America and the Ca- countries. The number of higher level staffchanges were approved by the Board of Direc- ribbean II (LAC II), was promoted to Vice members from developing countries, 39 per-tors in March 1981. President, Latin America and the Caribbean. cent, has remained about constant over the past

-The Corporation's General Counsel, Mr. Mr. James M. Kearns will continue as Vice several years. Sixteen members of the higherJose E. Camacho, was designated Vice President, Administration and Finance. level staff and 22 of the Corporation's assistantPresident and General Counsel. In this The Development Department, headed by level staff were women, which was marginallynew capacity he will continue to manage Mr. Richard W. Richardson, was redesignated higher than in previous years.the Corporation's Legal Department as the Corporate Planning Department and as- Twelve of the World Bank's Young Profes-well as assume responsibility for the Cap- signed to the Office of the Executive Vice sionals took six-month rotational assignmentsital Markets Department and the Market- President as was the Corporation's Information and five Young Professionals joined IFC on aing Department, which was redesignated Office. permanent basis.

overnors and Alternates/Appendix A As of' JUne 30, 1981

iber G overIor Alternate

hanistan ..................... Abdul Wakil ......................... Khair Mohammad Sultanientina ..................... Lorenizo Juan Sigaut ......................... Egidio lannellatralia ................ W. Howard .................. J. C. Ingramtria ..................... Herbert Salcher .......................... Hans Seidelgladesh ..................... Saifur Rahman ...... ................... A. M. A. Muhithbados ...................... J. M. G. M. Adams ......................... Stephen E. Emtage

i.um ..................... Robert Vancleputte .......................... Cecil de Stryckerivia ..................... jorge Tamayo Ramos ............... .......... Marcelo Montero Nu*ezswana ..................... P. S. Mmusi ......................... Baledzi Gaolathezil ..................... Antonio Delfim Netto ................. ........ Carlos Geraldo Langoni*ma .......... I........... hlin in.......................... Aye Koundi ..................... Andre Bibwa ......................... Anselme Habonimananeroon ..................... Youssoufa Daoucla ......................... Louis-Claude Nyassatada ..................... Allan J. MacEaiclieni ......................... Marcel Massele ..................... Sergio de Castro Spikula ......................... Martini Costabal Llonana ..................... Wang Biiigqian ........ ................. Li Pengombia ..................... Eduardo Wiesner Duran ......................... Rafael Gama Quijanoago, People's Republic of the ..................... Pierre Moussat ......................... Andre Batangaita Rica ..................... Emilio Garnier Borella ......................... Manuel Naranjo C.Irs ..................... Af'xentis C. Af'xentiou .................. ....... H. Hadjipanayiotouimark ..................... Kjeld Olesen ......................... Mogens Isaksen3outi ...................... Ibrahimt Mohimie(d Sultan ......................... Ibrahim Kassim Chehemminica ..................... Mary Eugeniia Charles ......................... Alick B. Lazaremninican Republic ....... .............. Carlos Despradel ......... ................ Rafael Hernandez Machadoiador ....................... Csar Robalino G .......................... Gonzalo Cordero Crespoqpt, Arab Republic of ....... .............. Abdel Razak Abdel Meguid ......................... M. Samii iiKoraiemSalvador ..................... Gtuillermo Dliaz Salazar........................... Atilio VieytezLiopia ..................... I-eferra Wol(Ie-Sefitait ......................... Desta Beshaw.Ch........... ........... ,hrarles Walke. Winstont TIhomnpson

land ........ Pirkko Tolajarvi... Annikki Saarelaince ..... Renaudc de la Geni6ie .Gabriel Lefortbon ....... Pascal Nze . 1. Felix Mamalepotrmany ........ Has Mattoefer .Rainer Offergeldana.George Benneh.............Ebenezer Lartey Nyakotey,eece ....... Stavros Dimas .George Soufliasenada ........ Bernard Coard .. Dessima Williamsatemala ....... Arinol(io Beltet6n San Jose .Juan Valentin Sol6rzano F.inea-Bissau ....... Victor Freire Monteiro . Jose Lima Barberiyaa.. ........ Hoyte .Clarence Ellis,iti ........ Emimianuel BCos..erard Martineaunduras ......... Valentiin I. Mendoza.. Praxedes Martinez S.land .... I omas Arnason. .Ragnar ArnalidsJia ....... . R. Venkataranian ............. R. N. Mallotraiclonesia ... R ., . .. . .............. R.achniitt Salelb ........... Soegito SastromidjojoIn .M.... Nose Noorbakhsh. .(vacant)q . Fharner Rezooki ............ x Subhi Frankoollild . john Brutoni ............. , . .. lounls E 0 Cofaigh

*ael . Arnoni Gafiry ............. Ezra SadanIVy .C Carlo Ciampi .......... Felice Ruggiero

Governors and Alternates/Appendix A (co,,ain'd) As of Jurie 30, 1981

Mernber (Governor Alternate

Ivory Coast ..... ........ Abdoulaye Kone ....... ................ L&on NakaJamaica ............. E. P. C. Seaga ....................... Horace BarberJapan ............. Michio Watanabe ....................... Haruo MayekawaJordan ............. Hanna Salim Odeh ....................... Mohammacl Saleh HoraniKenya ............. Mwai Kibaki ........................ H. M. MuleKorea, Republic of ............. Seung-Yuni Lee ....................... Joon Sung KimKuwait ..... ........ Abdlatif Y. Al-Hamad ........... ............ Faisal Al-KhaledLebanon ............. Khattar Chebli ....................... Sabbah Al-HajLesotho ..... ........ E. R. Sekhonyana ....... ................ M. P. SejanamaneLiberia ............. lbgba-Nah Tipoteh ........................ John CG. BestmanLibya ............. Kasem M. Sherlala ....................... Abclulla A. SaudiLuxembourg ............. Ernest Muehlen ....................... Raymond KirschMadagascar ............. Rakotovao Razakaboana ....................... Rajaona AndriamMalawi ............. . L. Chakakala Chaziya ....................... S. M. KakhobweMalaysia .. 1engku Razaleigh Hanz;ili ....................... l honig Yaw HongMali .. Ahimecd Mohamed Ag Haiiari ....................... Ibrahima Bocar BaMauritania ............. Dieng Boubou Farba ....................... M'Rabih Rabou Ouldi Cheikh BounenaMauritius ............. Rabindrah GhurbLirrtiun ....................... Madhukarlall BaguantMexico ............. .D avid Ibarra Mufioz ....................... Jorge Espinosa de los ReyesMorocco ............. Abdelkaimel Rerhaye ....................... Abdelkader BenslimaneNepal ............. Yadav Prasad Pant ........................ Goraksha Bahadur Nhuchhe P'radhanNetherlands ........................................ A. P'. J. Nl. M. van der Stee ........................... J. de KoningNew Zealand ........ B. V. Calvin ........................... C. H. eI-rryNicaragua .... .... Joaquin Cua(lia Chamnorro ........................... Haroldo MontealegreNiger .... .... Hamid Algabid .......... ....... ......... Brah MamaneNigeria ........ V. 1. Masi ........................... Adernola ThomasNorway .. Ulf Sandl ................................. Joolani joergen HoistOman .............. ... Qais Abdul NMunimn Zawatwi ........................... Sherif LotfyPakistani ............ CGlihlamil Ishaq Khan ............................... Ejaz Abimiacd NaikPanama .............. Eriesto Perez Balladares ............................. Rogelio F<ibrega ZarakPapua New Guinea ............. Jolihn Rumet Kaputin ............... M.... 1fekere NMorautaParaguay ............. . Csar Romileo Acosta ............... Augusto ColhAn V.Peru ..... ........ Manuel Ulloa Elias ............... Pedro Pablo KuczynskiPhilippines . ..... Cesar- F. A. Virata .Jaime C. LayaPortugal .. Joao Ant6nio Nforais Leitao ....................... Alberto Regteir-aRwanda .... .... Denis Ntirugiiiilbhahazi ............. .......... Jean-Damascene NMunlyar-ukikoSaudi Arabia ........ Sheikh Mohamimled Abalkhail ....................... Sheikh Hamad Saud Al-SayariSenegal ........ Louis Alexandrenne ....................... Matar SeyeSeychelles .... .... Maxime Ferrari ...... ................. Robert W. J. GrandIcourtSierra Leone ... m...... Siia Siama Banya .................................. 1. Amara-BangaliSingapore ... .. Ilon Sui Sen ....... J. Y. M. PillaySolomon Islands ........... Benedict Kinika ................... A. V. HughesSomalia .... . ...... Abdullahli Ahiiiel Addou ........ ............ Iolhamun( Mohamed NmirSouth Atrica ........ P. P C. de Kock ........... C. L. StalsSpain ... Jaime (Garcia Afoveros ................. Jose Ram6n Alvarez RendLuelesSri Lanka ..... ................... Roniie de Mel ......... .................. W. M. I'ilakaratnaSudan .. Nasr Eldin Mustafa ........................... Nfirghanii Mohamed AhmedSwaziland ..... V. E. Sikhondze ........................... Timothy M. J. ZwaneSweden ..... Rolf Wirten ........................... Hans Blix

Governors and Alternates/Appendix A (,.iI.ed) As of'J tile 30, 1981

Member Governor Alternate

Syrian Arab Republic ................. Hadi Al-Sakka .................................... Mohaluliail iMouatflac I.aral)ishiTanzania ................ K. A. Maliiia .................................... Fulgence Michael K1i.auraThailand ................ Soniinai Fl ooniitrakool ................................ hanIcltai LeetavotrnTogo ................ Koucljolou Dogo ................................... E. K. AgbobliTrinidad and 'lobago ................ George Chambers ................................... E BarsottiTunisia ................ Mansour Moalla ................................... M oncef' Zaaf'ianicTurkey ................ Kaya Erdem ................................... Osmall SikliaUganda ................ Apollo Milton Obote ..................... Robert E. EkinuLUnited Arab Emirates ................ Sheikh Hamndan Bin Rashid Al Maktoumii ............ Alimlecl llumiaid( Al-'L,axerUnited Kingdom ................. Gordoni Richardson ................................. Sir Douglas WassUnited States ................ Donald T Regan ................................... Richaid N. CooperUpper Volta ................ Sanfo Mamadou ................................... C Cyril Gounigouliga 'Uruguay ................ Valentit Arisimiendi .................................. Juan Jose AnicliniVenezuela ................ Ricardo Martfinez ................................... Hernmann ILuis Sorianoi 'Viet Nam ................ Nguyen Duy Gia .................................... Le HoangWestern Samoa ................ Vaovasamanaia R. P. Phillips . . Naiav.il lLdai TonlaYemen Arab Republic ................ Fuad Kaid Mohamiiiied .............................. Ali A. KliocdeYugoslavia ................. letar Kostic .................................... Gavra P1opovicZaire ................ Naimwisi Ma Koyi .................................. BazuLindania Mbandantzu t,.zIutbuluZambia........ 7 ...... Kebby K. S. Musokotwane . .......................... Fred KazuLigaZimbabwe ................ Enos Mzombi Nkita ............a..................... Desmodll(i C. Krogi

'Appointment effective after ljme 30, 1981.

Directors and Alternates and Their Voting Power June 3t, 1981

D)irector Altcrnate Casting Votes of lotal Votes

AppointedUnited States ......... 124,613

J ohn Anison .................. Derek F. Sniith .................. Unitied Kiing(lomi ............................................................................ 38,15()Eberhard Kurth ............. Norbert Schmidt-Gerritzen ... Germany ............................................................................... 27,545Seiji Morioka ................ Kimiaki Nakajinia ........... Japan ............................................................................... 16,685Paul Mentre de Loye ........ Marthe Parent '. ............. France e............................................................................... 10,717ElectedSaid E. El-Naggar ........... Saleh A. Al-Hegelan .Egypt (Arab Repulblic of), Iracq, Jordan, Kuwait, Lebanon, Pakistan, Satich Arabia, Syrian

(Ar-ab Republic of Egypt) (Saudi Arabia) Arab Republic, UJnitecd Arab Emirates, Yemen Arab Republic .21,688Earl G. Drake ......... Reno 1. Brown ........... 13Barbados, Canacda, Domiiiica, (;renada, (Guyana, Ireland, Jamaica ............................ 20,846

(Canadla) (Bahamas)Giorgio Ragazzi ........... Rodrigo M. Guimaraes G....... reece, Italy, Portugal ................................................................... 19,377

(Italy) (Portugal)Jacques de Groote ........... uran Kivanc ............... Austria, Belgiulmii, LuxeliboUrg, Turkey .18,153

(Belgium) (Iurkey)H. N. Ray ............. M. SyedL1z-Zatiatin .... ....... Bangladesh, Inclia, Sri Lanka.. 17,581

(Indclia) (Bangladlesh)Zain Azraai ............ Aung Pe .................... B 1 3urmiau, Fiji, Indonesia, Nalalysia, Nepal, Singapore. ITha ilan d, Viet Nail .14,888

(Malaysia) (Burma)Jaime Garcia-Parra .......... Jos . CJ(irderias ............ Brazil, Colombia, Dominicni Republic, E.cuadl)or, Haiti, Philippines .13,275

(Colombia) (Ecua(dor)Anthony IJ. A. Looijen ...... Miodrag M. Stojiljkovik ... Cyprus, Israel, Netherlands, Yugoslavia .13,271

(Netherlands) (Yugoslavia)David Blanco ............ Alberto Sola ....... ... Argentina, Bolivia, Chile, Paraguay, Peru-L, Ulru.gua..y ......................................... 12,039

(Botivia) (Argentina)Hans L.undstriin ............ Ole L. Poulsen .......... Denmiiark, Finland, Iceland, Norway, Swedeni ............................................... 9,455

(Swecleid ) (Denmllark)Y. S. M. Abdulai .......... William Smith .Botswana, Burundi, Ethiopia, Kenya, I.esotho, L.iberia, Malawi, Nigeria, Seychelles, Sieria

(Nigeria) (Liberia) Leone, SSrutdan, Swaziland, Tanzania, Trinidad an(l Tbago, Uganda, Zambia,.in.babw.. ....... 9,b033Arman(d Razafindrahe ....... Nicephiore Soglo .... ulerooun, Congo (People.s Republic of the), 1)jibouti, (Glabon, (G;tinea-Bissati, Ivory Coast,

(Madagascar) (Beniit) Ma(Lagascar, Mali, Matiritantia, Nlauiritiuis, Niger, Rwainda, Senegal, Somalia, logo,Upper Volta, Zaile . ...................................................................... 8,227

Joaquim Muns ............... Roberto Mayorga-Cortes. Costa Rica, El Salvador, Guatemala, Honduras, Nexico, Nicaragua, PanIama, Spail, Venezuela. 7,823(Spain) (Nicaragua)

S. A. McLeod ............ Anthony S. Cole .Ausiralia, Korea (Republic of), New Zealand, Papua New Guinea, Solomioni Islands.(New Zealan(l) (Australia) Western Samoa ......................................................................... 6,852

Isinail Khelil .......... Saad( Zerhouni .Afghanistan, Ghana, Irani, Libya, NIorocco, Omall, Tunisia .................................. 5,919(Tunisia) (Algeria)

Wa n g Liansheng .......... Chei Huti. China ............................................................................... 4,404(China) (China)

In addition to the Directors and Alternates shown in the foregoing list, the following also served after October 31, 1980:

Director End( of period of se vice: Alternate Director End of period of scivice:

Guillermo Conistain (Colombia) ........................ February 4, 1981 Sang-Chul Suh (Republic of Korea) ........ . .............. February 28, 1981Colbert 1. King (United States) ........................ March 31, 1981 Haris-Dieter HanHancd ((Gerimany) ............................ Mal-ci 31, 1981

David S. King (United States) .......... a Nlrch 31, 1981Note: South Africa (1,358 votcs) did not parti(6ipate in the 198() Rcguilari Elcutiotn of Biank Exccttitje lDirectors.'las resigne(d effective july 31, 1981; to be sti(cded by Robert ludry.

Financial Statements

International Finance Corporation

Annual Report 1981

38 Balance Sheet

40 Statement of Income

41 Statement of Changesin Financial Position

42 Statement of Loan andEquity Investments

52 Statement of CumulativeGross Commitments

53 Statement of Subscriptions to Capital Stockand Voting Power

54 Notes to Financial Statements

55 Report of Independent Accountants

International Finance Corporation

Balance SheetJune 30, 1981 and June 30, 1980Expressed in United States Dollars-See Notes to Financial Statements, Exhibit G

1981 1980

ASSETS

Cash ............................................................................................ $ 2,598,917 $ 4,461,155

Investments

Short-term obligations of governments(At cost or amortized cost, which approximates market) ...................................................... 5,497,990 10,011,622

Loan and Equity Investments-(See Exhibit D)

Investments held for the Corporation ........................................................ $1,647,023,608 1,404,118,739Less-Undisbursed ........................................................................ 535,440,231 489,125,089Disbursed and outstanding . ............................................................... 1,111,583,377 914,993,650Less-Reserve against losses-Note A ...................................................... 61,540,000 49,000,000

1,050,043,377 865,993,650

Assets Acquired Through Foreclosure .......................................................................... 4,400,000 4,400,000

Accrued Income on Loans .................................................................................... 17,927,557 14,320,149

Receivable from Purchasers of Loan and Equity Investments(sold or agreed to be sold) ............................................... $ 370,578,476 295,941,218

Less-Undisbursed investments (agreed to be sold) .......................................... 369,249,215 295,457,7741,329,261 483,444

Other Assets ............................................... . 3,011,069 8,097,871

TOTAL ................................................................................................ $1,084,808,171 $ 907,767,891

38

Exhibit A

1981 1980

LIABILITIES AND CAPITAL

Liabilities and Deferred Income

Accrued charges on borrowings .................... .......................................... $ 12,064,256, $ 11,373,306Accounts payable and other liabilities ............................. ............................ 8,573,525 8,158,315Deferred income ........... 3,654,639 3,880,957

$ 24,292,420 23,412,578

Borrowings-Note C

Loans from the International Bank for Reconstruction and Development ........................ $ 528,206,815 460,076,629Less-Undrawn .......................................................................... 54,000,000 62,106,023Withdrawn and outstanding ..................... .......................................... 474,206,815 397,970,606

Loans from others-Withdrawn and outstanding .............................................. 35,000,000 40,000,000509,206,815 437,970,606

Capital and Accumulated Earnings

Capital stock-Note DAuthorized 650,000 shares of $1,000 par value each, 650,000 shares-1980

Subscribed 482,768 shares, 477,201 shares-1980 ......................................... $ 482,768,000 447,201,000Less-Portion for which payment is not yet due 90,619 shares, 141,132 shares-1980 ......... 90,619,000 141,132,000

392,149,000 306,069,000

Payment on account of pending subscriptions ............................................................... - 634,000

Accumulated earnings . ..................................................................................... 159,159,936 139,681,707

TOTAL .............................................................................................. $1,084,808,171 $ 907,767,891

39

Internaional Finance Corporation

Statement of Income Exhibit BFor the Fucal Years Ended June 30, 1981 and June 30, 1980Expressd in United States Dollars-See Notes to Financial Statements, Exhibit G

1981 1980

Operating IncomeIncome from obligations of governments ..................................................................... $ 1,817,556 $ 4,808,959Income from loan and equity investments and underwriting commitments:

Interest ..................................................... .......... $75,969,033 64,290,961Interest recovered from investment written off ............................................. 2,367,395Dividends and profit participations ........................................................ 13,897,013 13,681,184Commitment charges ...................................................................... 3,628,463 2,581,718Commissions ............................................................................ 958,919 552,643

96,820,823 81,106,506Other operating income . ................................................................................... (223,112) 923,250

$98,415,267 $86,838,715

Operating ExpensesCharges on borrowings .......................... I ........................................... $34,607,563 $33,054,654Administrative expenses"' . ................................................................... 34,289,812 26,469,577

68,897,375 59,524,231

Income from Operations ..................... ......................... $...................2...3...4. $29,517,892 S27,314,484

Realized Gain on Sales of Loan and Equity Investments ........................................................ 1,918,581 3,383,482

Provision for Losses-Note A. ..... (19,009,327) (10,607,000)

Recovery of Investment Previously Written Off ................................................................ 7,051,083 571,917

Net Income-Transferred to Accumulated Earnings ............................................................ $19,478,229 $20,662,883

(')The International Bank for Reconstruction and Development is charging the Corporation an annual "Service and Support Fee" which for the year ended June 30,1 981 was fixed at $2,874,000 ($2,447,000-1980).

40

International Finance Corporation

Statement of Changes in Financial Position Exhibit CFor the Fiscal Years Ended June 30, 1981 and June 30, 1980

Expressed in United States dollars-See Notes to Financial Statements, Exhibit (i

1981 1980

Funds Provided

Net income ........................................................................................... $ 19,478,229 $ 20,662,883

Items not requiring or providing cash:Provision for losses ......................................... ............................................. 19,009,327 10,607,000Changes in accrued income and expenses .................................................................. 167,497 (676,061)Other ........................................................................................... (171,560) (2,563,309)

Funds provided from operations ........................................................................ $ 38,483,493 $ 28,030,513

Capital subscriptions . ...................................................................................... 86,080,000 77,462,000

Borrowings ........................................................................................... 108,106,023 5,587,529

Repayments of loans ....................... 77,775,376 80,992,708

Other. .......................................................................................... 6,209,925 3,061,309

Total Funds Provided . .................................................................................. $316,654,817 $195,134,059

Funds Used

Disbursements on loan and equity investments net of $294,887,205($122,050,525-1980) disbursed on behalf of participants ................................................... $292,531,042 $189,799,045

Repayments on borrowings ................................... 30,499,645 23,846,658

Total Funds Used . ..................................................................................... $323,030,687 $213,645,703

Decrease in Cash and Short-Term Obligations of Governments ................................................... 6,375,870 $ 18,511,644

41

International Finance Corporation

Statement of Loan and Equity Investments Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes io Fiianicial Statements, Exhibit G

Investments held for the =oprton

Fiscal years in Original CommitmnentsM) (inaluding undisbursedbancsCOUNTRY. REGION OR OTHER AREA which comniitments Total Total Equitm y Total loansand Obligor Type of business were made IFC Syndications Loans (at cost) anid equity

ArgentinaAlpargatas S.A.I.C ......................... Textiles and fibers 1977 $ 3,500 $ 3,500 $ 3,310 $ - $ 3,310Alpesca S.A .................................................. Food and food processing 1979 5,687 - 5,200 487 5,687Celulosa Argentina, S.A ....................... Pulp and paper products 1965, 1972 8,500 4,000 1,300 - 1,300Dalmine Siderca, S.A.IC ................................... Iron and steel 1969, 1975 14,750 2,250 7,469 - 7,469Ipako Industrias Petroquimicas Argentinas S.A .................. Chemicals and petrochemicals 1978 10,000 - 10,000 - 10,000Juan Minetti S.A .......................... Cement and construction material 1978, 1981 19,000 50,000 19,000 - 19,000Massuh S.A ................................................... Pulp and paper products 1978 5,000 3,000 5,000 - 5,000Soyex S.A .................................................... Food and food processing 1977 9,000 - 9,000 - 9,000

60,279 487 60,766

Ban5ladeahHsghspeed Shipbuilding and Heavy Engineering

Company Uniited ............. . , Ship-building 1979 1,564 - 1,200 364 1,564Industrial Promotion and Developnient

Company of Batigladesh Limited ............................. Development finance 1980 1,050 - - 1,050 1,050

1,200 1,414 2,614

BoliviaBanco Industrial, S.A .......................................... Development finance 1976 550 - - 550 550Cerveceria Boliviana Nacional S.A .............................. Food and food processing 1981 5,700 - 5,700 - 5,700Molino Andino S.R.L ....... .................................. Food anid food processing 1978 1,300 1,000 1,258 - 1,258Plasmar, S.A .................................................. Plastic products 1973 359 41 - 100 100

6,958 650 7,608

BotswanaBotswana Development Corporation Limited ...... .............. Development finance 1979 367 - - 367 367

BrazilAcos Villares, S.A ............................................. Iron and steel 1966, 1968, 1972 7,282 2,644 . - 116 116Brasilpar Comercio e Participacoes S.A .......................... Money and capital market 1981 1,500 - - 1,500 1,500Capuava Carbonos Industriais, Ltda ..................... ...... Chemicals and petrochemicals 1975, 1979 3,673 3,700 1,515 841 2,356Cimetal Siderurgia S.A ........................ ............... Iron and steel 1978 10,000 - 6,000 3,000 9,000Ciminas-Cimento Nacional de Minas, S.A ..................... Cement and construction material 1972, 1975, 1981 41,084 134,756 32,000 6,700 38,700Companhia Brasileira de Agropecuaria COBRAPE ..... ......... Food and food processing 1981 8,500 - 5,500 3,000 8,500Companhia Siderurgica da Guanabara (COSIGUA) .............. Iron and steel 1973, 1974, 1977, 1981 23,227 64,968 4,141 11,164 15,305Dende do Para S/A-DENPASA-Agricultura,

Industria e Comercio de Oleaginosas ....... .................. Palmn oil 1980 4,500 . - 3,500 1,000 4,500Destilaria Cianorte S.A ........................................ Chemicals and petrochemicals 1980 250 - - 250 250Empresa de Desenvolvimento de Recursos Minerais

"CODEMIN" S.A ........................................... Mining 1973, 1978 25,740 67,600 5,000 3,940 8,940Fabrica de Tecidos Tatuape S.A ................................. Textiles and fibers 1974 7,750 23,250 3,098 - 3,098FMB S.A. Produtos Metalurgicos ............... . .............. Iron and aluminum castitigs 1977 20,000 - 20,000 - 20,000Industrias Villares, S.A ........................................ Machinery 1974 3,000 3,000 1,064 - 1,064Mineracao Rio do Norte S.A ................... g............... 1977 15,000 - 12,188 - 12,188Oxiteno Nordeste, S.A ........................................ Chemicals and petrochemicals 1975 10,000 - 5,920 - 5,920Oxiteno, S.A. Industria e Comercio ............ ............... Chemicals and petrochemicals 1971 6,040 - 862 1,240 2,102Papel e Celulose Catarinense, S.A ............... ............... Pulp and paper products 1966, 1969 5,591 1,601 - 3,408 3,408Petroquimica Triunfo S.A ...................................... Chemicals and petrochemicals 1981 19,000 31,000 15,000 4,000 19,000Petroquimica Uniao S.A ....................................... Chemicals and petrochemicals 1969 5,921 2,459 - 2,046 2,046Poliolefinas, S.A. Industria e Comercio ......... ............... Chemicals and petrochemicals 1970 7,302 1,075 - 1,856 1,856Polisul Petroquimica S.A ....................................... Chemicals and petrochemicals 1980, 1981 20,000 28,000 15,000 5,000 20,000PPH-Companhia Industrial de Polipropileno ...... ............ Chemicals and petrochemicals 1980 17,000 - 15,000 2,000 17,000Rio Grande-Companhia de Celulose do Sul .................... Pulp and paper products 1971 4,900 - 1,715 - 1,715

I 2

Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit C

FInvestments held for the CorporauonFiscal years *n ~Original Commsitments(') (ncludng undisbursed balances)

COUNTRY, REGION OR OTHER AREA which comintments Total lotal Equity Total loansand Obligor Type of business were made IFC Syndications Loans (at cosi) and equity

Brazil (continued)Santista Industria Textil do Nordeste, S.A ....................... Textiles and fibers 1976 S 7,450 S - $ 1,846 $ 1,000 S 2,846Sotave Amazonia Quimica e Mineral S/A ........................ Fertilizers 1980 20,000 - 16,000 4,000 20,000Tecanor S.A. TexLil Catarinense do Nordeste and

Hering do Nordeste S.A.-MALHAS ....... ................. Textiles anid fibers 1976, 1980 18,200 - 14,729 - 14,729Villares Industrias de Base S.A.-VIBASA ...................... Iron and steel 1980 5,000 - 5,000 - 5,000Volvo do Brasil Motores e Veiculos S.A .......................... Motor vehicles and accessories 1979 15,000 50,000 10,000 5,000 15,000

195,078 61,061 256,139

BurundiVerreries du Burundi, S.A.R.L ................................. Glass containers 1981 5,428 - 4,650 778 5,428

CaineroonAlticam-Compagnie Ca merounaise de

l'Aluminium Pechiney-Ugine ................................. Nonferr-ous metal 1979 7,932 - 7,000 932 7,932Bata Soci&t6 Anonyrne Camerounaise ........................... Slsoes 1975 127 253 - 127 127S.A.F.A. Cameroun, S.A.C ..................................... Food and food processing 1977, 1979, 1981 1,407 - - 1,407 1,407Societe Camerounaise de Minoteries.. ........................... Food and food processing 1981 1,308 - 1,122 186 1,308Societe Camerounaise de Verrerie ..... ........................ Glass containers 1981 1,831 - 1,700 131 1,831

9,822 2,783 12,605

ChileEmpresa Minera de Mantos Blancos, S.A ........................ Mining 1958, 1959, 1966 4,145 193 - 1,238 1,238

ColombiaCementos Boyaca, S.A ........... . ............................ Cement and construction material 1974 1,500 - 618 - 618Cementos del Caribe, S.A ................................ ..... Cement and construction material 1975 3,600 - 1,350 - 1,350Compania Colonibiana de Clinker, S.A .......................... Cement and construction material 1977, 1980 2,731 - 2,432 299 2,731Corporaci6n Financiera Colombiana ........................... Development finance 1962 2,024 - - 959 959Corporaci6n Financiera de Caldas .............................. Development finance 1964, 1970 812 - - 701 701Corporaci6n Financiera del Note. ...................... .. Development finance 1969, 1973 454 - - 450 450Corporaci6n Financiera Nacional ............................... Development finiance 1962, 1963 2,042 - - 211 211Enka de Colombia, S.A ........................................ 'I'extiles and fibers 1967, 1970, 1974 7,465 140 94 - 94Leasing Bolivar, S.A ........................................... Money anid capital nsarket 1981 3,181 6,000 3,000 181 3,181Petroleos Colombianos Limited ................................. Chemicals and petrochemicals 1981 6,574 9,000 3,150 3,424 6,574Pro-Hoteles, S.A ............................................. T oburism 1970, 1977 973 71 222 136 358Promigas, S.A ................................................. Utilities 1977 8,000 7,000 4,126 2,000 6,126

14,992 8,361 23,353

Congo, People's Republic of theSociete des Placages au Congo (PLACONGO S.A.) ............... Logging and veneer 1981 3,500 - 3,500 - 3,500

Costa RicaMaricultura, S.A ........................ ..................... Food and food processing 1979 2,100 - 1,400 700 2,100Scott Paper Company de Costa Rica, S.A ........................ Pulp and paper products 1978 2,500 - 2,500 - 2,500

3,900 700 4,600

CypusThe Cyprus Cement Conipany Limited ....... .................. Cement and construction material 1973 2,287 597 582 150 732The Cyprus Pipes Industries Limited ...... ................. Cenient and construction material 1977 736 - 333 236 569

915 386 1,301

Dominican RepublicCementos Nacionales, S.A . .................................... Cenient and construction material 1974, 1981 7,740 - 5,667 1,740 7,407

43

International Finance Corporation

Statement of Loan and Equity Investments (continued)June 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Fitiancial Statements, Exhibit G

Investments held for the Corporeao

Fiscal years in Original Comnitnients() (includiig undisbursed bane

COUNTRY. REGION OR OTHER AREA which commitmients Iotal Total Equity Total loans

and Obligor lype of business were made IFC Syndications Loans (at cost) atsd equity

EcuadorAdamas Andina S.A ........................................... Pulp and paper products 1980 S 4,250 $ - $ 3,250 $ 1,000 $ 4,250

Ecuatoriana de Desarrollo, S.A. (Companila Financiera) ........... Development finance 1969, 1973, 1975,1977, 1981 442 - - 228 228

La Cemento Nacional, C.E.M ................... .............. Cement and construction material 1978, 1980 13,062 - 12,000 1,062 13,062

La Internacional, S.A ............................ Textiles and fibers 1966, 1972 3,267 696 125 - 125

Minera Toachi S.A .............................. ............. Mining 1981 1,250 - 1,000 250 1,250

Sociedad Agricola e Industrial San Carlos, S.A.. ................. Food and food processing 1976 5,000 - 3,529 - 3,529

19,904 2,540 22,444

Egypt, Arab Republic ofArab Ceramic Company S.A ............................. ..... Ceramics 1976 4,135 1,500 2,825 835 3.660

Crocodile Tourist Project Hotel Company S.A.E .................. T Aourism 1981 5,267 - . 4,410 857 5,267

Delta Sugar Company S.A.E .. ............................ Food and food processing 1978 15,001 8,000 12,000 3,001 15,001

Ismailia Fish Farming Company SA.E. ..................... Food and food processing 1980, 1981 2,484 - 1,930 554 2,484

Ismailia Misr Poultry Company, S.A.E ....... ............. ..... Food and food processing 1979 7,489 - 5,970 1,519 7,489

Nile Clothing Company, S.A ................................... Ready-made garments 1978 592 - 397 159 556

Suez Cement Company ................ Cement and construction material 1980 30,000 - 30,000 - 30,000

57,532 6,925 64,457

El SalvadorHoteles de Centro America, Sociedad Annima ....... ........... Tourism 1969 934 - 246 233 479

EthiopiaEthiopian Pulp and Paper, S.C ................................. Pulp and paper products 1966 1,209 700 - 121 121

H.V.A.-Metahara, S.C .Food and food processing 1968 7,824 1,221 - 1,622 1,622

Textile Mills of Dire Dawa .Textiles and fibers 1965, 1970, 1973 4,103 712 104 8372 941

104 2,580 2,684

GreeceAluminium de Gr&e, Societe Anonyme Industrielle

et Commerciale .Nonferrous metal 1970, 1972 5,372 3,281 - 577 577

Asbestos Mines of Northern Greece, Mining S.A .Mining 1980 10,792 - 8,000 2,792 10,792

Hellenic Food Industries, S.A ............................ ..... Food and food processing 1975, 1977, 1979 1,324 - 214 324 538

National Investment Bank for Industrial Development, S.A ....... Development finance 1966, 1977 5,719 35,000 2,902 - 2,902

11,116 3,693 14,809

GuatemulaCementos Progreso, S.A ................... Cement and construction material 1977 3,000 - 3,000 - 3,000

Exploraciones y Explotaciones Mineras Izabal,Sociedad An6oma ........ __ .............................. Ntining 1974 15,000 - 6,750 - 6,750

9,750 - 9,750

Indusaial Domestc and Electrical Apphlances Limited ..... H..... Home appliances 1979 2,000 - 2,000 - 2,000

Textl Rio Lindo, SA. de CV . ---------------------- Textilus and fibers 1978 4,000 6,000 2,700 1,000 3.700

CMndd FersW,e Liaaiod -) - - - Cmnt and constructio ma.eCia 1981 13875 - 13.875 - 15,873

l)grA F C d 5 sasxMeMuCAkCrp t -- C)aem.ad p, nxbe lso 19O &M* - 7300 I."@ m 48.

Es - ----------------- .L.e.e ps 16 6.6 - 4.715 - t713

1Eum Li _ ... - s"d cS i - 5 616 4.416

5Z I_iiIu L ............ ... . t.Fcxst.sesr tit 10354 -S _ e 2.26

j lA;j_it.AeW S.tDLINuzes 1964 1,171 141 - 314 S14

X labima ,k MaYndra Limik ............. .......... Motor eabci-s and accesories 19d81 15,000 - 15.000 - 15,000

44

Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

Investments held for the Corporation

Fiscal years in Original Commnitments(l) (including undisbursed balances)COUNTRY, REGION OR OTHER AREA which commitments Total Total Equity Total loansand Obligor Type of business were made IFC Syndications Loans (at cost) and equiy

India (continued)Mahindra Ugine Steel Company, Ltd ........................... Iron and steel 1964, 1975, 1979 $ 13,000 $ 142 $ 7,719 $ 1,176 $ 8,895Nagarjuna Steels Limited; Nagarjuna Signode Limited;

Nagarjuna Coated Tubes Limited ....... ..................... Iron and steel 1981 7,274 - 6,725 549 7,274

The Tata Iron and Steel Company Limited ............. ....... Iron and steel 1981 18,000 20,000 18,000 - 18,000

Zuari Agro Chemicals, Ltd ..................................... Fertilizers 1969, 1970 14,961 3,950 3,037 3,040 6,07782,371 8,958 91,329

IndonesiaPT. Daralon Textile Manufacturing Corporation ................. Textiles and fibers 1972, 1977, 1979 5,548 1,733 2,658 - 2,658PT Jakarta International Hotel ......... ....................... Tourism 1973 4,000 7,000 2,000 - 2,000P.T Kamaltex ................................................ Textiles and fibers 1974, 1977 4,100 400 1,560 750 2,S10PT Papan Sejahtera ............... ........................... Money and capital market 1980 5,203 - 4,000 1,203 5,203PT. Primatexco Indonesia ........... .......................... Textiles and fibers 1971, 1974 4,651 150 - 765 765P.T Private Development Finance Company of Indonesia ......... Development finance 1974 483 - - 362 362P.T Semen Andalas Indonesia ......... ........................ Cement and construction material 1980 24,993 28,000 20,000 4,993 24,993

PT Semen Cibinong .......................................... Cement and construction material 1971, 1973, 1974, 1976 18,546 8,270 5,750 4,500 10,250PT Supreme Indo-American Industries ....... ................. Glass dinnerware 1980 6,036 6,000 5,100 936 6,036PT Unitex ................................................... Textiles and fibers 1971 2,050 1,250 - 800 800

41,068 14,309 55,377

IranGorouh Sanaye Kaghas Pars Sherkate Sahami Aam ..... ......... Pulp and paper products 1972 12,159 2,034 2,678 - 2,678

Sherkate Sahami Carbon Iran, Sahami Khass .................... Chemicals and petrochemicals 1973 2,719 834 1,525 348 1,873

4,203 348 4,551

IsraelMakhteshim Chemical Works Ltd ............................... Chemicals and petrochemicals 1974, 1976 10,500 - 5,436 - 5,436

Ivory CoastBanque Ivoirienne de Developpement Industriel, S.A ............ Development finance 1965, 1978 424 - - 424 424

Ets R. Gonfreville, S.A ................ Textiles and fibers 1977 885 - - 885 885

Moulin du Sud-Ouest ................................. ....... Food and food processing 1980 3,306 - 2,900 406 3,306

Societe Ivoirienne d'Engrais (Siveng) ....... .................... Fertilizers 1980 6,392 - 5,120 1,272 6,392

8,020 2,987 11 007

JamaicaPegasus Hotels of Jamaica, Ltd ................................. Tourism 1969 1,987 926 618 669 1,287

West Indies Glass Company Limited ............................ G lass containers 1981 2,250 - 2,250 - 2,250

2,868 669 3,537

JordanJordan Ceramic Industries Company Ltd ........................ Ceramics 1974 1,576 250 900 226 1,126

Jordan Fertilizer Industry Company, Ltd ........................ Fertilizers 1975, 1978 26,543 50,000 20,000 6,543 26,543

Jordan Lime and Silicate Brick Industries Company Limited ...... Censent and construction material 1979 3,160 - 2,500 660 3,160

Jordan Securities Corporation Limited .......................... Money and capital market 1979 674 - - 674 674

23,400 8,103 31,503

KenyaDevelopment Finance Company of Kenya Limited ..... .......... Development finance 1980 1,314 - - 1,314 1,314

Kenya Commercial Finance Company Limited ................... Money and capital market 1981 5,000 - 5,000 - 5,000

Kenya Hotel Properties, Ltd .................................... Tourism 1967, 1968, 1973 4,918 962 2,543 718 3,261

Panafrican Paper Mills (E.A.), Ltd .............................. Pulp and paper products 1970, 1974, 1977,1979, 1981 24,549 3,965 15,272 4,510 19,782

45

International Finance Corporation

Statement of Loan and Equity Investments (cnminued)June 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit f-

lInvsetments held for the CorporaonFiscal yeats in Original Commitments(') (including undisbursed balan

COUNTRY, REGION OR OTHER AREA which commitments Total Total EquiLy Total loansand Obligor Type of business were made IFC Syndications Loans (at cost) and equity

Kenya (cossnsud)Rift Valley Textiles Limited ..................... Textiles and fibers 1976 S 8,069 S 1,000 $ 5,300 S 2,769 $ 8,069Tourism Promotion Services (Kenya) Ltd ........................ Tourism 1972 1,629 791 1,157 - 1,157Loans to small and medium scale industries in Kenya

in cooperation with Kenya Commercial Bank Limited ..... ..... Money and capital market 1977 2,000 - 1,718 - 1,718

30,990 9,311 40,301

Korea, Republic ofChonju Paper Manufacturing Co., Ltd .......................... Pulp and paper products 1976 5,534 - 2,666 534 3,200Gold Star Company, Ltd .......... . ........................... Electric products 1975, 1976, 1977,

1979, 1980 19,854 13,000 6,571 5,938 12,509Hae Un Dae Development Company, Ltd ....................... Tourisni 1975 3,450 - 2,171 700 2,871Korea Development Leasing Corporation .................. .... Money and capital market 1977, 1979 5,621 10,000 3,438 621 4,059Korea Investment and Finance Corporation ...... ............... Money and capital market 1971, 1974, 1976, 1979,

1980 2,611 - - 1,481 1,481Korea Long Term Credit Bank ................................. Development finance 1968, 1974, 1976, 1977

1978, 1980 13,565 8,938 8,900 3,868 12,768Korea Securities Finance Corporation ........................... Money and capital market 1975, 1977, 1980 6,895 - 2,188 1,895 4,083Korea Zinc Company, Ltd ...................................... Nonferrous metal 1976 19,017 - 9,750 4,016 13,766Taihan Bulk Terminal Co., Ltd ................................. Grain bulk terminal 1981 6,000 3,500 3,500 2,500 6,000Tong Yang Nylon Company, Limited ....... .................... Textiles and fiber 1975 9,000 - 3,032 2,070 5,102

42,216 23,623 65,839

LebanonLebanon Textiles (Libtex) S.A.L ................... ........... Textiles and fibers 1975, 1978 4,125 1,600 1,684 - 1,684

LesothoLesotho Quality Aggregate Industries (Proprietary) Limited ...... Cement and construction material 1978 330 - 299 - 299

LiberiaLiberian Bank for Development and Investment .... ............ Development finance 1966, 1977 555 1 - 555 555

Bata S.A. Malgache ................. .......................... Shoes 1980 1,250 - 1,250 - 1,250Societe Textile de Majunga S.A ................................. Textiles and fibers 1977 11,300 - 9,900 300 10,200

11,150 300 11,450

MalawiDavid Whitehead and Sons (Malawi) Ltd ........................ Textiles and fibers 1976 6,000 - 4,000 - 4,000Dwangwa Sugar Corporation Limited ............................ Food and food processing 1977, 1981 9,945 - 9,945 - 9,945Ethanol Conspany Limited ..................................... Chemicals and petrochemicals 1981 1,945 - 1,700 245 1,945Investment and Development Bank of Malawi Limited ..... ...... Development finance 1979 605 - - 605 605Malawi Hotels Limited ............. ........................... Tourism 1980 1,965 - 1,965 - 1,965

17,610 850 18,460

MalarsiaIndia-Malaysia Textiles, Berhad ......... ....................... Textiles and fibers 1970 1,498 - 890 248 1,138

MaliSociete Mamadou Sada Diallo et Freres SARI. (Somaci) ..... ..... Bleach and plastic products 1978 600 - 557 - 557

MarntiusDinarobin Inns and Motels Limited ............... ............ Tourism 1971 517 98 82 82Grand Baie Hotel Company Limited ........... u......... otirism 1981 1,750 - 1,525 225 1,750

1,607 225 1,832

4 6)

Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Finaticial Statements, Exhibit C

Investments held for the CorporationOriginal Cotnmitmnents(') (including undisbursed balances)

Fiscal years inCOUNTRY, REGION OR OTHER AREA which commitments Total Total Equity Total loansanid Obligor Type of business were made IFC Syndications Loans (at cost) and equity

MexicoCancun Aristos Hotel . . ............................. Tourism 1974, 1981 $ 1,304 $ - S 537 S 327 $ 864Celanese Mexicana, S.A ....................................... . Textiles and fibers 1971 8,000 4,000 2,857 - 2,857Celulosicos Centauro, S.A . . .............. Pulp and paper products 1981 15,500 44,000 15,500 - 15,500Cementos Veracruz, S.A .. .............. Cement and construction material 1973, 1979 11,352 4,500 5,352 - 3,52

C ,a m~~~~~~~. i.E. ______________~~uE lnei7da- F... i" ___ 4.w iiS t.1cmq ; _ _ S SSL CIr :_ it_, Wc=W is iA, - ; 0IA E_ m i. - M m f eMit Z -

Hotel Red Ixpa, S.A ......... ........... ....... ... Tourism 1979, 1981 3,101 - - 3,101 3,101Industrias Resistol, S.A ........................................ Particle board 1980 8,000 17,000 8,000 - 8,000Mexinox, S.A ............. .................... Iron and steel 1975, 1978 15,180 - 8,670 3,180 11,850Minera Real de Angeles, S.A. de C .V . .... I............ I . Mining 1980 30,000 80,000 30,000 - 30,000Papeles Ponderosa, S.A ........................................ Pulp and paper products 1978, 1981 7,957 4,500 3,492 3,458 6,950Tereftalatos Mexicanos, S.A ................. . ................. Chemicals and petrochemicals 1978 19,000 - 19,000 - 19,000Vidrio Piano de Mexico, S.A. and Vitro Flotado, S.A ............. Flat glass 1980 15,000 99,900 15,000 - 15,000

135,467 14,486 149,953

MoroccoAsment de Temara S.A ........................................ Cement and construction material 1977, 1980 8,S28 - 4,505 3,573 8,078Banque Nationale pour le Developpement Economique ..... ..... Development finanice 1963, 1978 2,442 253 - 1,544 1,544Companla Industrial del Lukus, S.A ............................ Food and food processing 1966 1,268 120 - 399 399Societe des Ciments de Marrakech, S.A ......................... Cement and construction material 1976 1,296 - - 1,296 1,296Societe Miniere du Bou-Gaffer "SOMIFER" ....................... Mining 1980 15,335 - 12,987 2,348 15,335

17,492 9,160 26,652

NepalSoaltee Hotel Limited ............... ...................... Totirism 1975 3,128 - 2,274 428 2,702

NicaraguaNicaragua Sugar Estates, Ltd ................................. Food and food processing 1976 6,500 - 3,133 - 3,133Posada del Sol, S.A ............................................ Tourism 1976 900 - 656 200 856Textiles Fabricato de Nicaragua, S.A ............................ Textiles and fibers 1968 1,143 928 80 - 80

3,869 200 4,069

NigeriaArewa Textiles,Ltd ............................................ Textiles and fibers 1964, 1967, 1970 847 728 - 442 442Funtua Cottonseed Crushing Company Limited ...... ........... Cottonseed oil 1973 1,064 516 399 - 399lkgja Hotel Limited ............. Tourism 1981 9.730 - 6,480 2,170 8,650Nigerian Aluminium Extrusions Limited ........................ Nonferrous metals 1973, 1974 1,328 - 535 32b 861Nigerian Textile Mills Limited ......... ........................ Textiles anid fibers 1980 6,889 - 6,154 735 6,889

13,568 3,673 17,241

Oma0Oman Development Bank S.A.0 ............................... Development finance 1979 2,029 - - 2,029 2,029

PakistanDawood Hercules Chemicals, Ltd ............................... Fertilizers 1969 3,923 - - 2,923 2,923Fauji Foundation .............. Woven polypropylene bags 1980 1,776 - 1,776 - 1,776Gharibwal Cement, Ltd ........................................ Cement and construction material 1962, 1965 5,379 289 - 418 418Habib Arkady Limited .............. .......................... Food antI food processing 1981 3,352 - 3,150 202 3,352Milkpak Limited .............................................. Food and food processing 1979 2,304 500 1,900 404 2,304Packages Limited . ............................................ Pulp and paper products 1965, 1980 4,913 362 2,123 605 2,728Pakistan Industrial Credit and Investment Corporation, Ltd ....... Development finance 1963, 1969, 1975 520 - - 483 483Pakistan Oilfields Limited and Attock Refinery Limited ........... Chensicals anid petrochemicals 1979 16,116 14,500 14,500 1,616 16,116Pakistan Paper Corporation, Ltd .............. . ................ Pulp and paper products 1967, 1976 6,855 546 4,511 2,019 6,530(Premier Board Mills Limited ............................ Particle board 1980 2,700 - 2,700 - 2,700

30,660 8,670 39,330

47

International Finance Corporation

Statement of Loan and Equity Investments (continued)June 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Fisiasicial Statements, Exhibit C

investments held for the CoroatnFiscal years in Original Commitments(l) (including undisbursed balances) ~

COUNTRY, REGION OR OTHER AREA which commstments Total Total Equity Toh a loansand Obligor Type of business were made IFC Syndications Loans (at cost) and equity

Banco Latinoamericano de Exportaciones, S.A ................... Money and capital market 1979 $ 2,500 S - $ - - 2,500 $ 2,500Corporacion de Desarrollo Hotelero, S.A ........................ Tourism 1971 1,473 - 783 - 783Vidrios Panamehios, S.A ....................................... Glass containers 1978 3,800 - 2,400 1,400 3,800

3,183 3,900 7,083

Empresa Hotelera de Encarnacion, S.A . ........................ Tourism 1981 1,180 - 900 280 1,180

PeruCemento Andino, S.A ......................................... Cement and construction material 1962, 1968 2,462 - 192 192Compatifa de Cemento Pacasmayo, S.A .......................... Cement and construction material 1964, 1967 296 1,309 - 91 91Compafila de Minas Buenaventura, S.A ......................... Mining 1979 2,500 - 1,666 500 2,166Compailfa Minera San Ignacio de Morococha, S.A ............... Mining 1980 3,200 - 2,700 500 3,200Southern Peru Copper Corporation ........ .................... Mining 1975 15,000 - 9,000 - 9,000

13,366 1,283 14,649

PhilippinesAcoje Mining Company, Inc .................................... Mining 1977 3,521 - 1,415 1,221 2,636Cebu Slsipyard and Engineering Works, Inc ..................... Ship-repairing 1978 2,100 - 2,100 - 2,100Davao Union Cement Corporation ........ ..................... Cement and construction material 1981 16,000 - 16,000 - 16,000Filipinas Synthetic Fiber Corporation ........ ................... Textiles and fibers 1974 1,500 - 631 - 631General Milling Corporation ................................... Food and food processing 1979 5,082 - 4,000 1,082 5,082Manila Electric Company ...................................... Utilities 1967 6,478 1,522 261 - 261Maria Cristina Chemical Industries, Inc ......................... Iron and steel 1974, 1979 2,190 - 638 640 1,278Marinduque Mining and Industrial Corporation . ........... Mining 1972 15,000 - 6,875 - 6,875Mariwasa Manufacturing, Inc ............................... Cement and construction material 1970, 1972 646 547 - 98 98Philagro Edible Oils, Inc ....................................... Coconut oil and copra 1976, 1980 2,839 - 2,153 - 2,153Philippine Asssociated Smelting and Refining Corporation ........ Mining 1981 5,000 - - 5,000 5,000Philippine Long Distance Telephone Company ...... ............ Utilities 1970 4,500 - 1,432 - 1,432Philippine Petroleum Corporation .............................. Chemicals and petrochemicals 1971, 1977 8,272 - 2,170 872 3,042Philippine Polyamide Industrial Corporation ...... .............. Textiles and fibers 1975 7,000 - 5,250 - 5,250Piso Leasing Corporation ...................................... Money and capital market 1980 2,152 3,000 2,000 152 2,152Private Development Corporation of the Philippines ..... ........ Development finance 1963, 1973, 1977 6,728 12,631 4,800 - 4,800RFM Corporation .......... ......... ................... Food and food processing 1974 1,200 - 507 - 507Sarmiento Industries, Inc ...................................... Plywood 1977 3,500 - 2,800 - 2,800Ventures in Industry and Business Enterprises, Inc ............... Money and capital market 1980 269 - - 269 269Victorias Chemical Corporation ......... ....................... Chemicals and petrochemicals 1973 2,196 - 266 - 266Loans to seven corporations for small and 1981 19,235 - 18,500 735 19,235

medium-scale enterprises .................................... Money and capital market 71,798 10,069 81,867

RwandaSociete Rwandaise pour la Production et la

Commercialisation du The (SORWATHE) ..................... Food and food processing 1976, 1979 821 - 681 60 741

SenegalBanque de l'Habitat du Senegal S.A ............................ Money and capital market 1980 . 465 - - 465 465Societe Financiere Senegalaise pour le Developpement

de l'industrie et du Tourisme ............................... Development finance 1974 237 - - 237 237Soci&t' Hoteliere du Barachois, S.A ............................. Tourism 1980 3,000 - 3,000 - 3,000Soci&t Industrielle d'Engrais au Senegal ... . ..... Fertilizers 1967 3,460 - - 810 810

3,000 1,512 4,512

Sierra LeoneSierra Cement Manufacturing Company Limited-"Seracem . Cenment and construction material 1980 2,050 - 2.050 - 2,050

48

Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

Investments held for the Corporation

Fiscal years in Original Commitments() (including undisbursed balances)COUNTRY, REGION OR OTlHER AREA which commitments Total TIlal Equity Total loansand Obligor Type of business were made IFC Syndications Loans (at cost) and equity

SomaliaSomali Molasses Company Limited ........ ..................... Food and foodl processing 1981 $ 375 $ - $ 375 $ - $ 375

SpainIndustrias de Tableros y Derivados de la Madera, S.A ............ Fiberboaid 1974, 1979 6,346 - 4,998 1,035 6,033Sociedad Espafiola de Financiaci6n de la Innovaci6n, S.A ......... Money and capital market 1978 877 - - 877 877

4,998 1,912 6,910

Sri LankaBank of Ceylon ............................................... Money and capital market 1978, 1981 7,000 - 6,946 - 6,946Ceylon Synthetic Textile Mills Limited ....... ................... Textiles and fibers 1979, 1981 2,412 1,272 1,875 537 2,412Development Finance Corporation of Ceylon .................... Development finance 1978, 1980 155 - - 155 155Lanka Orient Leasing Company Limited ............ o........... Money and capital market 1980 260 - 260 260Mikechris Industries Limited .......... ........................ Woven polypropylene bags 1979 985 - 890 94 984Taj Lanka Hotels Limited ........... .......................... Tourism 1981 8,900 9,100 8,200 700 8,900

17.911 1,746 19,657

SudanCotton Textile Mills, Ltd ....................................... Textiles and fibers 1976 9,979 - 8,714 1,265 9,979Gezira Managil Textile Company Limited ...... ................. Textiles and fibers 1978 8,083 - 6,687 1,396 8,083Seleit Food Production Limited ................. .............. Food and food processing 1978 7,382 5,000 6,154 1,207 7,361Sudan Eagle Cement Company Ltd .............. .............. Cement and construction material 1980 250 - - 250 250

21,555 4,118 25,673

SwazilandThe Royal Swaziland Sugar Corporation Limited ...... .......... Food and food processing 1978 8,461 - 8,000 461 8,461

TanzaniaHighland Soap and Allied Products Limited ..................... Soap 1978 1,741 - 1,375 366 1,741Metal Products Limited ............. .......................... Household utensils 1979 1,510 - 1,247 184 1,431

2,622 550 3,172

ThailandBangkok Class Industry Co., Ltd ............ . ............. Glass containers 1979, 1980 5,193 - 4,850 343 5,193Siam City Cement Co., Ltd ..................................... Cement and construction material 1979, 1981 31,000 36,000 27,000 4,000 31,000Thai Onent Leasing Company Limited ....... .................. Money and capital market 1979 147 - - 147 147The Mutual Fund Company Limited ........ ................... Money and capital market 1977 294 - - 294 294The Siam Cement Co., Ltd .................................... Cement and construction material 1969, 1976, 1978, 1980 17,699 14,874' 111 2,065 2,176United Sugar Terminal Limited ................................ Food and food processing 1977 2,700 - 1,667 200 1,867Loans to small and medium scale industries in Thailand

in cooperation with Siam Commercial Bank, Limited ........... Money and capital market 1978 2,000 - 2,000 - 2,000

35,628 7,049 42,677

Trinidad and TobagoCanning and Company, Limited ........ ....................... Food and food processing 1978 1,150 - 958 - 958Carib Glassworks Limited ...................................... G lass containers 1979 1,200 - 1,100 - 1,100

2,058 - 2,058

TbnisihBanque de Developpement Economique de Tunisie ..... ......... Development finance 1966, 1970, 1978 2,305 - - 2,305 2,305Compagnie Financiere et Touristique, S.A ........ . ............. Tourism 1969 9,081 1,167 4,000 2,248 6,248Industries Chimiques du Flour, S.A ............................. Chemicals and petrochemicals 1974 640 - - 640 640Societe d'Etudes et de Developpement de Sousse-Nord ........... Tourism 1973, 1975 3,161 - 1,898 631 2,529Societe Touristique et Hoteliere Rym, S.A ....................... Tourism 1973 1,930 - 816 - 816

6,714 5,824 12,538

49

International Finance Corporation

Statement of Loan and Equity Investments cetinsed.

June 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

Investments held for the CorporationFiscal years in Original Commnitments(') (incluading undisbursedbancs

COUNTRY, REGION OR OTHER AREA which commitments Total Total Eqnuitty Total loansand O REligor Type of business weire imade IFC Syndications Loans (at cost) and equity

lbrkeyAnadolu Catn Sanayii, A.S ..................................... G lass 1970 S 8,289 $ 3,294 $ 2,051 $ 1,583 S 3,634Asil Celik Sanayi ve Ticaret A.S ................................. Iron and steel 1976, 1979 16,000 - 12,000 4,000 16,000Aslan ve Eskihisar Muttehit Cimento ve su Kireci Fabrikalari, A.S., Cement and construction material 1975 5,600 5,000 3,535 - 3,535Borusan Gemlik Boru Tesiskeri, A.S ............................. Iron and steel 1974, 1977 4,093 - 330 - 330Doktas Dokumculuk Ticaret ve Sanayii, A.S ...................... Iron and steel 1975, 1978 8,962 - 5,250 1,404 6,654Ege Mosan Motorlu Araclar Sanayi ve Ticaret A.S ................ Engines for mopeds 1979 2,150 - 1,985 - 1,985Istanbul Segrnan Sanayi ve Ticaret A.S .......................... Motor vehicles and accessories 1979, 1980 10,250 - 8,849 1,401 10,250Kartaltepe Mensucat Fabrikasi, TA.S ............................ Textiles and fibers 1975 1,300 - 375 - 375Kirklareli Cam Sanayii A.S ..................................... Glass tableware 1981 11,000 2,547 11,000 - 11,000Mensucat Sanayi ve ricaret, A.S ........... .................... Textiles and fibers 1980 4,000 - 4,000 - 4,000Nasas-Aluminyum Sanayii ve Ticareti A.S ...................... Nonferrous metal 1971, 1976 9,946 - 437 1,372 1,809Sasa Sun'i ve Sentetik Elyaf Sanayii, A.S ......................... Chemicals and petrochemicals 1975 7,500 7,500 795 - 795Sentetik Iplik Fabrikalan, A.S ..................... ......... Textiles and fibers 1966, 1969, 1971, 1972 4,568 - - 555 555Trakya Cam Sanayii A.S ....................................... Glass 1979, 1981 24,000 11,396 21,751 2,249 24,000Turkiye Sinai Kalkinma Bankasi, A.S ................ ........... Development finance 1964, 1967. 1969, 1972,

1973, 1975, 1976, 1977,1980 19,388 45,028 7,111 2,344 9,455

Viking Kagit ve Seluloz, A.S .................................... Pulp and paper products 1970, 1971 3,169 - - 669 669

79,469 15,577 95,046

Upper VoltaSociete Voltaique de Plastique SARL (SOVOLPLAS) ..... ........ Plastic packaging materials 1979 542 - 405 137 542

Ur=u90u0480Acike Supergas S.A .................... .................... Chemicals and petrochemicals 1979 950 - 804 - 804Astra Pesquerias Uruguayas S.A ........... . ................... Food and food processing 1979 5,400 - 4,500 900 5,400Fabrica Uruguaya de Neumaticos, S.A ........................... Motor vehicles and accessories 1976 3,800 - 2,850 - 2,850Sur Invest Casa Bancaria S.A ................................... Money and capital market 1980 10,586 - 11),000 586 10,586

18,154 1,486 19,640

VenezuelaSociedad Financiera Promotora del Mercado de Capitales, C.A .... Money and capital market 1975 701 - - 701 701

Yemen Arab RepublicYemen Dairy and Juice Industries ........ ...................... Food and food processing 1978 2,400 750 2.400 - 2,400

YugoslaviaBelisce-Bel Tvomnica Papira, Poluceluloze i Kartonaze-Belisce .... Pulp and paper products 1973, 1981 30,976 39,860 21,485 - 21,485Fap-Famos Belgrade/Daimier-Benz, A.G ......................... Motor vehicles and accessories 1972, 1980 15,796 1,273 6,577 - 6,577Fnkom Ro Industrija Smrznute Hrane ....... .................. Food and food processing 1977 5,427 1,000 3,000 2,427 5,427International Investment Corporation for Yugoslavia ......... ... Development finance 1970 1,812 188 - 1,625 1,625Investiciona Banka Titograd-Udruzena Banka ................... Tourism 1980 21,000 - 21,000 - 21,000Radna Organizacija Hermeticki Kompresori u Osnivanju, Mostar . Hermetic compressors 1978 7,000 - 6,125 - 6,125Radoje Dakic ................................................. Machinery 1980 18,700 - 18,700 - 18,700Rudarsko Metalurski Kombinat Zenica .......................... Iron and steel 1976 5,000 45,000 2,500 - 2,500Salonit Anhovo Industrija Gradbenega Materiala ...... .......... Cement and construction msaterial 1974 2,500 7,500 1,250 - 1,250Tovarna Avtomobilov in Motorjev Maribor/Klockner

Humboldt-Deutz, A.G ....................................... Motor vehicles and accessories 1971, 1980 9,239 869 3,980 - 3,980Tovarna Avtopnevmatike 'Sava-Semperit ......................... Motor vehicles and accessories 1972, 1978, 1980 13,692 1,341 7,847 - 7,847Tvornica Kartona I Ambalaze Cazin ........................... . Pulp and paper products 1977 10,821 7,366 5,420 2,569 7,989Z.P. Slovenske Zelezarne Zelezarna Jesenice ...... ............... Iron and steel 1974 10,000 - 5,000 - 5,000Zavodi Crvena Zastava/Fiat S.p.A ............................... Motor vehicles and accessories 1970, 1972, 1980 12,400 600 6,586 - 6,586Loan to eight banks for small-scale enterprises ...... ............ Money and capital market 1980 26,000 4,261 26,000 - 26,000

135,470 6,621 142,091

5()

Exhibit DJune 30, 1981

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

Investments held for the Corporation

Fiscal years in Original Commitments(l) (including undisbursed balances)

COUNT'RY, RE;ION OR OTlHER AREA which commitments Total Total Equity Total loansand Obligor Type of business were made IFC Syndications Loans (at cost) and equity

ZaireSociete Financiere de Developpement ........................... Developmenit finance 1970 $ 756 S - $ 756 S 756Zaire Gulf Oil Company and Zaire 1etroleum Company Ltd. Chemicals and petrochemicals 1979 4,114 - 2,460 - 2,460

2,460 756 3,216

ZambiaCentury Packages Limited ............. ........................ Plastic wrappings 1975, 1978 1,086 - 540 211 751Development Bank of Zambia .................................. Development finance 1976 545 - 545 545Kafue Textiles of Zambia Limited ......... ..................... Textiles and fibers 1980 7,602 - 7,602 - 7,602Nchanga Consolidated Copper Mines Limited ........... ..... Mining 1980 20,000 8,000 20,000 - 20,000Zambia Bata Shoe Company Limited ........ ................... Shoes 1972, 1973 1,147 1,131 - 227 227

28,142 983 29,125

ZimbabweWankie Colliery Company Limited ........ ..................... Mining 1981 20,000 18,000 20,000 - 20,000

Taiwun, China'5 t

Asia Cement Corporauon ............. ........................ Cement and construction material 1970 4,119 100 - 495 495Far Eastern Textile Limited .................................... Textiles and fibers 1970, 1971 5,055 570 - 400 400

- 895 895

Regioral InvestmentsAfrica

SIFIDA Investment Company, S.A .............................. Development finance 1971, 1976 680 - 635 635Latin America

ADELA Investment Company, S.A .Development finance 1970 10,000 - 5,050 - 5,0505,050 635 5,685

INVESTMENTS HELD FOR THE CORPORATION $1,374,401 $ 272,623 $1,647,024Undisbursed balances 489,100 46,340 535,440

Disbursed balances $ 885,301 $ 226,283 $1,111,584

INVESTMENTS HELD BY THE CORPORATIONFOR PARTICIPANTS

Total $ 915,801 $ - $ 915,801Undisbursed balances 369,249 - 369,249

Disbursed balances $ 546,552 $ - $ 546,552

TOTAI. INVESTMENTS HELD FOR THE CORPORATIONAND FOR PARTICIPANTS

Total $2,290,202 $ 272,623 $2,562,825Undisbursed balances 858,349 46,340 904,689

Disbursed balances $1,431,853 $ 226,283 $1,658,136

Note (1): Commitments include funds to be provided by IFC for its own account, funds to be provided by participants through the purchase of an interest in IFC's investment, and futnds to beprovided by other financial institutions in association with IFC, where IFC has rendered material assistance in mobilizing those funds.Original commitments are composed of disbursed and undisbursed balances. 'I'he undisbursed portion is revalued at current exchange rates while the disbursed portion represents thecost of the commitment at the time of disbursement. Loan investments held for the Corporatioii are revalued at the current exchange rates.

Note (2): IFC's equity investment has been the subject of acquisition procedures by the Government; the matter of payment is pending.Note (3): Represents investments made at a time when the authorities on Taiwan represented China in the International Finance Corporation (prior to May 15, 1980).General: The operational investments are represented by loans and equity, as stated. In addition, in certain investmentS, the Corporation has the right to acquire shares and/or participate in the profits of

the enterprise.

51

International Finance CorporationExi tStatement of Cumulative Gross Commitments ExiiEJune 30, 1981Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

COUNTRY, Number Cumulative Gross Commitments(') COUNTRY, Number Cumulative Gross Commitments(') COUNTRY, Number Cumulative Gross CommitmentsM'REGION OR of Enter- Syndica- REGION OR of Enter- Syndica- REGION OR of Enter- Syndica-OTHER AREA prises IFC tions Total OTHER AREA prises IFC tions Total OTHER AREA prises _IFC tions Total

Afghanistan ... 1 $ 322 $ - $ 322 Israel ...... I $ 10,500 $ - $ 10,500 Sierra Leone ... 1 $ 2,050 $ -$ 2,050Argentina .... 14 96,264 65,633 161,897 Italy ...... 1 960 - 960 Somalia ..... 1 375 -375

Australia..... 2 975 - 975 Ivory Coast ... 4 11,007 - 11,007 Spain ...... 5 20,433 300 20,733Bangladesh ... 2 2,614 - 2,614 Jamaica...... 3 4,461 926 5,387 Sri Lanka..... 7 21,660 11,672 33,332Bolivia...... 5 8,246 1,041 9,287 Jordan...... 4 31,953 50,250 82,203 Sudan ...... 5 26,442 6,464 32,906Botswana..... 1 367 - 367 Kenya ...... 7 47,480 6,718 54,198 Swaziland..... 1 8,461 - 8,461Brazil ...... 36 357,131 417,382 774,513 Korea, Tanzania..... 3 6,095 1,814 7,909Burundi ..... 1 5,428' - 5,428 Republic of .. 12 96,723 36,939 133,662 Thailand..... 9 59,717 50,874 110,591Cameroon .... 5 12,605 253 12,858 Lebanon. .... 4 6,505 2,600 9,105 Trinidad andChile....... 5 20,573 618 21,191 Lesotho ..... 1 330 - 330 Tobago..... 2 2,350 - 2,350Colombia.....26 54,172 24,539 78,711 Liberia...... 1 555 1 556 Tunisia...... 6 19,705 2,079 21,784Congo, People's Madagascar ... 2 12,549 - 12,549 Turkey......18 150,819 74,765 225,584

Republic of the 1 3,500 - 3,500 Malawi...... 5 20,460 - 20,460 Uganda .... 2 2,942 1,676 4,618Costa Rica .... 3 4,973 217 5,190 Malaysia ..... 4 7,062 1,629 8,691 Upper Volta ... 1 542 - 542Cyprus.......2 3,023 597 3,620 Mali.......1 600 - 600 Uruguay ..... 4 20,736 - 20,736Dominican Mauritania .... 1 10,449 9,558 20,007 Venezuela .... 8 24,540 7,581 32,121

Republic .... 2 10,740 - 10,740 Mauritius..... 2 2,267 98 2,365 Yemen ArabEcuador ..... 6 27,271 696 27,967 Mexico......23 174,630 376,542 551,172 Republic .... 1 2,400 750 3,150Egypt, Arab Morocco ..... 6 43,382 373 43,755 Yugoslavia .... 15 190,362 109,259 299,621

Republic of .. 7 64,968 9,500 74,468 Nepal ...... 1 3,128 - 3,128 Zaire ...... 2 4,870 - 4,870El Salvador ... 2 1,074 - 1,074 Nicaragua .... 3 8,543 928 9,471 Zambia...... 5 30,379 9,131 39,510Ethiopia ..... 3 13,136 2,632 15,768 Nigeria...... 7 21,388 1,245 22,633 Zimbabwe .... 1 20,000 18,000 38,000Finland...... 4 1,490 1,658 3,148 Oman ...... 1 2,029 - 2,029Greece...... 7 26,906 40,207 67,113 Pakistan ..... 14 54,536 19,059 73,595 Taiwan, China'5 ' 2 9,174 670 9,844Guatemala .... 3 18,200 - 18,200 Panama ..... 3 7,773 - 7,773 ReinlGuyana...... 1 2,000 - 2,000 Paraguay..... 2 6,580 - 6,580 Areional:.... 160 8Honduras .... 3 4,352 6,101 10,453 Peru ...... 9 26,107 3,573 29,680 Africa160n8India........18 123,047 25,573 148,620 Philippines ... 24 124,358 19,458 143,816 LAmein a.. 000- 1,0Indonesia.....12 78,681 53,803 132,484 Rwanda ..... 1 821 - 821 Amrc 1000- 1,0Iran ....... 7 34,343 8,193 42,536 Senegal...... 5 8,006 - 8,006 TOTAL 432 $2,356,275 $1,483,575 $3,839,850

June 30 June 30Summary 1981 1980 Increase

Investments held for the Corporation......................... $1,647,024 $1,404,119 $242,905Principal repayments to the Corporation and recoveries ................ 470,692 385,866 84,826Syndication and portfolio sales............................ 1,378,381 1,004,714 373,667Syndic-ation sales pending.............................. 153,100 133,688 19,412Cancellations ................................... 168,688 161,007 7,681Investments written off-net of recoveries ...................... 20,549 20,460 89Revaluation of disbursed non-US dollar loans ..................... (2,984) (9,209) 6,225Assets acquired through foreclosure ......................... 4,400 4,400 ____

Total Commitments ............................. $3,839,850 $3,105,045 $734,805

Note (1) Cumulative commiitments are composed of disbursed and undisbursed balances. The undisbursed portion is revalued at current exchange rates while the disbursed portion represents the cost of the communsitnzat the time of disbursement.

Note (2) Represents investments made at a time when the authorities on Taiwan represented China in the International Finance Corporation (prior to May 15, 1980).

52

International Finance Corporation

Statement of Subscriptions to Capital Stock and Voting Power Exhibit FJune 30, 1981 and June 30, 1980

Expressed in United States Dollars (in thousands)-See Notes to Financial Statements, Exhibit G

Subscrption Voting Power Subscription Voting Power Subscription Voting Power

Amount Percent Number Percent Amount Percent Number Percent Amount Percent Number PercentMembers Paid in of Total of Vutes of Total Members Paid in of Total of Votes of Total Members Paid in of Total of Votes of Total

Afghanistan .... $ I11 .03 361 .09 Iceland ...... $ 1 * 261 .06 Rwanda ...... $ 224 .06 474 .11Argentina ..... 6,558 1.67 6,808 1.61 India ....... 13,646 3.48 13,896 3.29 Saudi Arabia ... 9,251 2.36 9,501 2.25Australia...... 2,215 .56 2,465 .58 Indonesia ..... 6,125 1.56 6,375 1.51 Senegal ...... 184 .05 434 .10Austria ...... 3,273 .83 3,523 .84 Iran........ 372 .09 622 .15 Seychelles ..... 7 *257 .06Bangladesh .... 1,682 .43 1,932 .46 Iraq ........ 67 .02 317 .08 Sierra Leone ... 83 .02 333 .08Barbados ..... 93 .02 343 .08 Ireland ...... 332 .08 582 .14 Singapore ..... 177 .05 427 .10Belgium...... 11,477 2.93 11,727 2.78 Israel ....... 50 .01 300 .07 Solomon Islands .. 11 *261 .06Bolivia....... 242 .06 492 .12 Italy........ 15,646 3.99 15,896 3.77 Somalia ...... 83 .02 333 .08Botswana ..... 29 .01 279 .07 Ivory Coast .... 459 .12 709 .17 South Africa ... 1,108 .28 1,358 .32Brazil ....... 6,566 1.67 6,816 1.62 Jamaica ...... 912 .23 1,162 .28 Spain ....... 4,046 1.03 4,296 1.02Burma ...... 666 .17 916 .22 Japan ....... 16,435 4.19 16,685 3.95 Sri Lanka ..... 1,503 .38 1,753 .42Burundi ..... 100 .03 350 .08 Jordan....... 271 .07 521 .12 Sudan .... 11.. I .03 361 .09Cameroon .... 414 .11 664 .16 Kenya....... 870 .22 1,120 .27 Swaziland ..... 184 .05 434 .10Canada ...... 17,480 4.46 17,730 4.20 Korea, Sweden ...... 1,108 .28 1,358 .32Chile ....... 1,552 .40 1,802 .43 Republic of . ... 1,988 .51 2,238 .53 SyrianChina....... 4,154 1.06 4,404 1.04 Kuwait ...... 2,867 .73 3,117 .74 Arab Republic 72 .02 322 .08Colombia ..... 1,405 .36 1,655 .39 Lebanon...... 50 .01 300 .07 Tanzania...... 589 .15 839 .20Congo, People's Lesotho ...... 18 * 268 .06 Thailand...... 2,282 .58 2,532 .60

Republic of the 67 .02 317 .08 Liberia ...... 83 .02 333 .08 Togo ....... 311 .08 561 .13Costa Rica .... 200 .05 450 .11 Libya ....... 55 .01 305 .07 Trinidad andCyprus ...... 363 .09 613 .15 Luxembourg.... 375 .10 625 .15 Tobago ..... 376 .10 626 .15Denmark ..... 753 .19 1,003 .24 Madagascar .. 1.. II .03 361 .09 Tunisia ...... 133 .03 383 .09Djibouti ...... 21 .01 271 .06 Malawi ...... 311 .08 561 .13 Turkey ...... 2,028 .52 2,278 .54Dominica ...... I 261 .06 Malaysia...... 3,192 .81 3,442 .82 Uganda ...... 184 .05 434 .10Dominican Mali........ 116 .03 366 .09 United ArabRepublic .... 250 .06 500 .12 Mauritania..... 55 .01 305 .07 Emirates .... 86 .02 336 .08

Ecuador...... 674 .17 924 .22 Mauritius ..... 95 .02 345 .08 United Kingdom .37,900 9.66 38,150 9.04Egypt, Arab Mexico ...... 720 .18 970 .23 United States....124,363 31.71 124,613 29.54Republic of ... 2,618 .67 2,868 .68 Morocco...... 1,940 .49 2,190 .52 Upper Volta .... 167 .04 417 .10

El Salvador .... 11 * 261 .06 Nepal....... 206 .05 456 .11 Uruguay...... 919 .23 1,169 .28Ethiopia ..... 33 .01 283 .07 Netherlands .... 9,894 2.52 10,144 2.40 Venezuela ..... 116 .03 366 .09Fiji ........ 74 .02 324 .08 New Zealand.... 923 .24 1,173 .28 Viet Nam ..... ,166 .04 416 .10Finland ...... 2,595 .66 2,845 .67 Nicaragua ..... 114 .03 364 .09 Western Samoa 9..*9259 .06France....... 10,467 2.67 10,717 2.54 Niger ....... 67 .02 317 .08 YemenGabon....... 55 .01 305 .07 Nigeria ...... 369 .09 619 .15 Arab Republic 156 .04 406 .10Germany, Federal Norway ...... 3,738 .95 3,988 .95 Yugoslavia .... 1,964 .50 2,214 .52

Republic of ... 27,295 6.96 27,545 6.53 Oman....... 252 .06 502 .12 Zaire ....... 1,530 .39 1,780 .42Ghana....... 1,306 .53 1,556 .37 Pakistan...... 3,750 .96 4,000 .95 Zambia ...... 890 .23 1,140 .27Greece....... 1,177 .30 1,427 .34 Panama ...... 2 * 252 .06 Zimbabwe ..... 546 .14 796 .19Grenada ..... 11 * 261 .06 Papua NewToaGuatemala .... 249 .06 499 .12 Guinea ..... 206 .05 456 .11 ToaGuinea-Bissau ... 18 * 268 .06 Paraguay...... 123 .03 373 109 Jn 0 91 $9,4 0.O 2,9 0.OGuyana ...... 257 .07 507 .12 Peru........ 1,145 .29 1,395 .33 ToaHaiti ....... 249 .06 499 .12 Philippines..... 2,631 .67 2,881 .68 Total 90 $360910.0 3439 0.0Honduras ..... 115 .03 365 .09 Portugal...... 1,804 .46 2,054 .49 Jn 0 90 $0,6 0.O 3,1 0.O

*Les than .005 percent.tMay differ from the sum of the individual percentages shown because of rounding.

53

Intemational Finance Corporation

Notes to Financial Statements Exhibit GJune 30, 1981 andJune 30, 1980

Note A-Significant Accounting Policies Revenue Recognition-Dividends, profit participations and Note C-BorrowingsTRanslation of Currncies-Equity investments disbursed in commissions are recorded as income when received. The Corporation's borrowings comprise the following:currencies other than United States dollars are expressed Interest, commitment and other charges on loans arein United States dollars at the exchange rates which recorded as income on an accrual basis except that the and Development totalingonal Bank for Reconstructionapplied at the time of disbursement. Other assets and Corporation does not currently accrue interest where 1980). A commitment charge is payable on the undrawnliabilities not denominated in United States dollars are collectibility is in doubt. balances of the loans at the rate of ¾V of 1% per annum.expressed in terms of United States dollars at the Staff Retirement Plan-The International Bank for The loans, repayable in semi-annual instalments, areapproximate market rates prevailing at June 30, 1981 Reconstruction and Development has a contributory summarized below:(June 30, 1980). Exchange gains and losses are credited retirement plan for its staff, which also covers the staff ofor charged to income as they occur. the Corporation. The staff contribute a fixed percentage Principallimount Interest Rate Maturity

Reserve Against Losses-The Corporation charges income of pensionable remuneration and the Corporation con-directly with a provision for losses on investments with a tributes the remainder of the cost of funding the Plan. 1981 1980corresponding credit to the Reserve Against Losses. The Effective July 1, 1980, the Bank and the Corporation $128 $140 7.00% 1981 to 1989annual charge represents the amount of mature invest- changed to an aggregate funding method for determining 173 183 7.25% 1981 to 1994ments in respect of which a significant and relatively its contribution. This change does not have a significant 108 117 8.50% 1981 to 1996permanent decline in value is recognized and an estimate, effect on the cost of the Plan to the Corporation. Such 19 20 8.20% 1981 to 1992based on historical experience, of the amount of immature cost is funded as accrued. The cost of the Plan to the 100 - 11.00% 1984 to 1995investments for which losses cannot yet be identified. Corporation for the fiscal year ended June 30, 1981 was The principal amounts repayable during the fiscal years

Net income remaining after the above charge to income is $3,852,557 ($2,605,794-1980). All contributions to the ending June 30, 1982 and 1983 are $26.6 and $28.4transferred to Accumulated Earnings. Losses on invest- of the Plan are held by the Bank separately from the other msillion, respectively.ments when written off are charged directly to the Reserve assets and income of the Bank and Corporation and can The proceeds of these loans may only be used by theAgainst Losses. Changes in the Reserve Against Losses are be used only for the benefit of the participants in the Plan Corporation in its lending operations.

summarized as follows: and their beneficiaries until all liabilities to them have (2) Loans from others totaling $35 million ($40 million-Fiscai Year Ended June 30 been discharged. 1980):

1981 1980 Principal Amount Interest Rate Maturity

Balance beginning of period . $49,000,000 $41,700,000 (S millions) Per Annum DateProvision charged to income . 19,009,327 10,607,000 Note B-Amounts Due Within One Year 1981 1980Investments written off ..... (6,469,327) (3,307,000) Asset balances due the Corporation within one year are $ $ 5 _ 1979 to 2000

Balance end of period ..... $. 61,540,000 $49,000,000 summarized as ollows: 35 35 7.875% 1985As at June 30

Investment Transactions-Investments are recorded at the g( thousands) The Corporation may use the proceeds of these loans indate investment commitments are signed by the Corpora- 1981 1980 any operation authorized by its Articles of Agreement.tion and are reflected as assets when disbursed. As of June Cash .. .............. $ 2,599 $ 4,46130, 1981 investments approved by the Board of Directors Short-term obligations of Note DCapital Stockbut not signed as investment commitments totalled $135.9 governments ............... 5,498 10,012 On November 2, 1977 the Board of Governors approved amillion ($106.3 million-1980) of which $17.7 million Principal instalments on loans . . 88,662 81,773 resolution increasing the authorized capital to($62.0 million-1980) are to be placed with participants Accrued income on loans ...... 17,928 14,320 $650,000,000. The resolution, as amended, also allocatedand $118.2 million ($44.3 million-1980) are to be held by Receivable from purchasers $468,829,000 for additional subscriptions by membersthe Corporation. Gains or losses on sales of investments of loan and equity during a subscription period ending February 1, 1982. Atare measured against the average cost of the investments investments sold ............ 1,082 154 June 30, 1981, seventy members had subscribedsold. Gains on investments are credited directly to income Other ....................... 1,109 5,897 $373,198,000 of the allocated additional subscription.when realized and losses are provided for as described in $116,617 Members may elect to pay subscriptions in full or inthe preceding paragraph. $1 16,878 Sllf,617 instalments payable not later than August 1, 1982.

54

Financial StatementsReport of Independent Covered by theAccountants Foregoing Report

1801 K Street, N.W. Balance SheetWashington, D.C. 20006 Statement of IncomeJuly 29, 1981 Statement of Changes in Financial Position

Statement of Loan and Equity InvestmentsStatement of Cumulative Gross Commitments

To Statement of Subscriptions to Capital StockInternational Finance Corporation and Voting PowerWashington, D.C. Notes to Financial Statements

In our opinion, the accompanying financialstatements present fairly, in terms of UnitedStates currency, the financial position of Inter-national Finance Corporation at June 30, 1981and 1980, and the results of its operations andthe changes in its financial position for theyears then ended, in conformity with generallyaccepted accounting principles consistentlyapplied. Our examinations of these statementswere made in accordance with generallyaccepted auditing standards and accordinglyincluded such tests of the accounting recordsand such other auditing procedures as weconsidered necessary in the circumstances.

PRICE WATERHOUSE & CO.

55

International Finance Corporation

Headquarters1818 t I Street. NWV.Waslhington, D.G. 20-133, U.S.A.Telephone; (202) 477-1234Telex: IlT 440098

RCA 248423WVU 64145

Cable: CORINTFIN

New York Office Regional Mission in120 Broadwax Eastern AfricaNew York, NY'. 144271, U.S.A. Extelcoms HouseTelephone: (212) 964-614100 Haile Selassie AvenuLe

P.O. box 30577European Office Nairobi, KetnaNew Zealand lIlonse, Ha%market telephone: 2 4726London SWUI Y4TE, England Telex: 963-22022Telephone: 930-3886 Cable: CORINTIFINTelex: 851-919462Cable: CORINTFIN Regional Mission in

the Middle EastParis Office 3 Elbergas Street66 A re. d Frna (;arden Citv7'5116 Paris, Franice (airo, Arab Republic of EgxptTelephone: 723-54-21 Teleplhone: 250)45 and 27759(iWex: 842-620628 'relex. 927-93110Cable: CORINT(FIN Cable: CORINTFIN

Tokyo Office Regional Mission in5-1. N ibancho, Chisoda-kii Western AfricaTo'(Yo 102. jIapan Ininicuble Alpia 2000Telephone: (03) 261-3626 Rute Golp-gasTelex: 781-26554 01-P.O. Box 1748Cable: SPCORINTFIN Abi-Rja( 1vor% Coast

Regional Mission in East Asia leiephonie: 32-65-97Central Banik of' the Philippines lelex: 969-3533Mlanila. Philippines (Cable: CORINTFINTelephone: 58-93-12Telex: 742-0541Cable: CORINTFIN