23461 Volume 2 IFC gt 2 0 0 1 A N N U A L R E P O R T Volume 2 Management's Discussion and Analysis, Financial Statements, and Investment Portfolio INTERNATIONAL FINANCE CORPORATION World Bank Group International Finance Corporation Since its founding in 1956 IFC has committed more than $31 billion of its own funds and has arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC coordinates its activities with the other institutions in the World Bank Group-the International Bank for Reconstruction and Development, the International Development Association, and the Multilateral Investment Guarantee Agency-but is legally and financially independent. Its 175 member countries provide its share capital and collectively determine its policies. The IFC Annual Report on the Web: www.ifc.org/ar2001 Enhanced this year for easier navigation and searches for IFC investment and portfolio projects. Note: The regional reports, project listings, and other information on IFC operations during the 2001 fiscal year appear in Volume 1 of the annual report. Currency is given in U.S. dollars throughout unless otherwise specified. 2 O 0 1 A N N U A L R E P O R T Volume 2 CONTENTS Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Financial Statements 16 Investment Portfolio 40 INTERNATIONAL FINANCE CORPORATION World Bank Group MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 1. OVERVIEW Internationa Finance Corporation (iFC or the Corporation) is an international organization, established in 1956 to further economic growth in its developing member countries by promoting private sector development. IFC is a member of the World Bank Group, which also includes the International Bank for Reconstruction anc Development (IBRD or the World Bank), the International Development Association (IDA), and the Multilateral Investment Guarantee Agency (MIGA). It is a lega entity separate and distinct from the World Bank, IDA, and MIGA, with its own Articles of Agreement, share capital, financial structure, management, and staft. Membership in IFC is open only to member countries of the World Bank. As of June 30, 2001, IFC's entire share capital was held by 175 member countries. IFC's principal products are loans and equity investments, with a small but growing guarantee portfolio. Unlike most multilateral development institutions, IFC does not accept host government guarantees. I FC raises virtually all of the funds for its lend ng activities through the issuance of debt ob igations in the internationa capital markets, while mainta ning a small borrowinig window with the World Bank. Equity investnients are funded from net worth. During the year ended June 30, 2001 (FY01), IFC had an authorized borrowing ceiling of $4.0 billion. Under th s authority, IFC was authorized to borrow up to $200 million (5%) under a facility with the World Bank. IFC's capital base and its assets ard liabilities are primarily in US dolars. The Corporation seeks to minimize market risk (foreign exchange and interest rate risks) by closely matching the currency, rate bases, and maturity of its liabilities in various currencies with assets with the same characteristics. The Corporatior controls residual market risk by utilizing currency and interest rate swaps and other derivative instruments. 11. FINANCIAL SUMMARY BASIS OF PREPARATION OF THE CORPORATION'S FINANCIAL STATEMENTS The Corporation has tracitionally prepared one set of financial statements, complying with both generally accepted accounting princples in the United States (US GAAP) and International Accounting Standards (IAS). However, due to the promulgation of US Statement ot Financial Accounting Standards (SFAS) No. 133. Accounting for Derivative Instruments and HedgingActivities, as amended by SFAS No. 138, Accounting for Certain Derivatives and Certain Hedging Relationships (collectively SFAS No. 133), it is no longer possible for the Corporation to satisfy the requirements of both US GAAP and IAS via one set of financial statements. Accordingly, as explained in the Corporation's financial statements for the year ended June 30, 2001 (FY01) the accounting and reporting policies conform with US GAAP, and the Corporation has presented in Note T to the FY01 financial statements a balance sheet and income statement conforming with IAS, together with a reconciliation between US GAAP and IAS. Unless stated otherwise, discussions of financial performance refer to operating income excluding the effects of adopting SFAS No. 133. The effects of SFAS No. 133 on net income are discussed in Section VI. FINANCIAL PERFORMANCE SUMMARY From year to year, IFC's operating income is affected by a number of factors, principally the magnitude of provisions for oasses against its loans, equity investmrents, and guarantees; loans in nonaccrual status; and income (dividends and capital gains) generated from its equity portfolio. Beginning in FY01, the Corporation classified all liquid asset securities as trading securities. As such, unrealized and realized gains and losses on a I liquid asset securities are recorded in operating income. Prior to FY01, unrealized gains and losses on liquid asset securities classified as availa ble for sale were excluded from operating income until realized. A significant part of IFC's liquid assets portfolio is invested in fixed-income securities, which are also subject to external market factors that affect the value of such securities, adding variability to operating income. Beginn ng in FY01, net income also includes unrealized gains and losses on financial instruments other than from trading activities, pursuant to the implementation of SFAS No. 133. IFC has been consistently profitable since its inception in 1956, and operating income for FY01 was $241 million as compared with $380 million for the year ended June 30, 2000 (FY00), and $249 million for the year ended June 30, 1999 (FY99). The Corporation's operating income fcr the past five fiscal years ending June 30 is presented below: ~5 4 0 0 ---- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -~~~~~ 300 ---O-O - -- - - - - - --------------- 100 ---A --- ------- --- - - --- --------- .- 3 0 ---- --- - |- ----- - -- -- -- -- - -- - -- -- -- -- - --- ------- ---- --- ------------ 200; I- II I F FY97 FY98 FY99 FYO0 FY01 The table below presents selected financial data for the last five fiscal years (in miliions of US doolars, except where otherwise stated): As of and for the years ended Jane 30 FY01 FYOO FY99 FY98 FY97 Net income highlights: Interest income 1,505 1,328 1,154 1,120 992 Of which: Interest and financial fees from loans 715 694 607 583 580 Income from tioe depos ts and securities 790 634 547 537 412 Charges on borrowings (961) (812) (670) (651) (536) Net gains and losses on trading activities 87 (38) (15) 13 (1) Income from equity investments 222 262 265 314 344 Of which: Capital gains on equity sales 91 132 166 218 196 Dividends and profit participations 131 130 99 96 148 Provision for losses on loans, equity investments, and guarantees (402) (215) (333) (481) (266) Net nonnterest expense (210) (145) (152) (103) (101) Operating income 241 380 249 212 432 Other unrealized gains and losses on financial instruments 11 - - - - Effect of accounting change 93 - 34 - Net ncome 345 380 249 246 432 Balance sheet highlights: Total assets 26,170 38,719 33,456 31,621 28,975 Liquid assets, net of assoc ated der vat ves 13.258 12,204 10,075 9.434 7,615 Loans and equity investments 10,909 10,940 10,039 8,976 8,423 Reserve against losses on loans and equity investments (2,213) (1,973) (1,825) (1,522) (1,076) Borrowings withdrawn and outstanding 15,457 14,919 12,429 11,162 10,123 Total captal 6,095 5.733 5,344 5,084 4,737 Key financial ratios:2 Return on average assets' 0.6% 1.1% 08% 0.8%/ 1.7% Return on average net worth' 4.1% 6.9% 48% 5.0% 9.7% Cash and liquid investments as a percentage of next three years' estimated net cash requiremants 101% 103% 106% 77% 85% Debtto equity rato5 2.6.1 2.6:1 2.3:1 2.3:1 2.1:1 Capital adequacy ratio1 48% 48 % 48% 49% 48% Total reserve against losses to total disbursed portfolio7 20.3% 18.0% 18.2% 17.0% 12.8% 1 Is respect at ioaoab borrssersgsa and rereaae sse assets and ciantlea, tee baiaoce sheet tan relatec tiacsiresas ot ueiSD, 2Ut are not cimparoer:th toe calaoce toes: and reles d scsmes asofJuete3O,2000,ant proorper,odsduetothOeffectsofampementng sFASNo 133 2 Key tinancial ratias are caicuated exc ud ngthe effects af SFAS No 133 3 Retum oa average assets msdefnes as operaiog income for the fsae year as a percentage otthe average of tota assets a: the end otsuch fiscal year and the preious fiscal year 4 Return onaverage net orth s detined as operatng rcome ftr the fiscal year as a percentage of the average of tati oet 'eorth (eclud ng payments ,n account of pending subscript anst a the era of such fiscal year and the previous f scal year 5 Debt to saute rasa s defied as toe ratio of oatstane ng aorrows pius nitstaeaqng euaotees to taittrr.ed capta p Ui retaines earn ago at the end of rhe iscai veear 6. Cap tal adequacy atio sdefined as the rat oofcapita (inc udng pa d-in capita retained earn ngs. and genera lots reserve) to risk-we ghteda ssets. both r -and a ff-baiance sheet. 7 Tota reserves aea nst lisses tc total disbursed partf iO s defined as reserae age nst losses on ioans and equity Investments as a percentage of the total disbursed oar and equity portfolio at the erd of the fiscal year 111. CLIENT SERVICES BUSINESS OVERVIEW In partnership with private investors, IFC ass sts in financing the establishment, improvement, and expansion of private sector enterprises by making investments where sufficient private capital is not otherwise available on reasonable terms. IFC seeks to bring together domestc and foreign private capital and experienced management and thereby create condiions conducive to the flow of private capital, domestic and foreign, into productive investments in its developing member countries. In this way, IFC plays a catalytic ro e in mobilizing additional project funding from other investors and lenders, errher through cofinancing or through loan syndications, underwritings, and guarantees, In addition to project finance and resource mobilization, IFC offers financial and technica advisory services to private businesses in develop ng member countries. It also advises member governments on private sector development matters. IFC's investments are normally made in its developing member countries The Articles of Agreement mandate that IFC shall invest in productive prvate enterprise. The requirement for private ownership does not disqualify enterprises that are partly owned by the public sector, if such enterprises are organized under local conrmercial and corporate law, operate free of host government control in a market context and according to profitabi ity criteria, and/or are n the process of being totally or partially privatized The Corporation's main investment activity is project financing. This encompasses "greenfield" projects, expansions, and modernizations IFC also provides corporate credits to se ected compan es to finance ongoing programs of investment projects. In addition, the Corporation facilitates financing through financial internmed aries, covering project and genieral purpose lend ng anid specialized leriding prrdurls such as leasing, trade. and mnortgage finance. These firianrial intermediaries function either as IFC's borrower, on- ending to private sector companies at their own risk, or as IFCs agent, Identifying companies for direct loans from IFO The Corporaton applies stringent tests of enterprise soundness, project viability, and developmental impact in determining the eligibility of projects for its nvestments. INVESTMENT PROCESS AND PORTFOLIO SUPERVISION IFC's investment process can be divided into six main stages: CIdentification & appraisal -4 CBard approval -- CDcument negotiation -4 C ommitment -* CDibursement - CSupervision The initial four stages are carried out under the responsibility of the Vice President, Operations, while the fifth and sixth stages are overseen by the Vice President, Portfolio and Risk Management. The Corporation carefully supervises its projects to monitor project performance and compliance with contractuaI obligations and with IFC's interna policies and procedures. IFC's Board of Directors is informed of such matters and of recommended courses of action at regular intervals. INVESTMENT PROGRAM SUMMARY Investment approvals, commitments, and disbursements for FY01 and FY00 In FY01 IFC approved new investments for its own account, includ ng guarantees and client risk management facilities, totaling $3.7 billion, representing 240 projects, compared with $3.5 billion in FY00, representing 259 projects. In addition, IFC approved loan participations (B-loans) arranged to be placed with financial institutions (Participants) for loans approved by the Corpo-ation's Board of Directors totaling $1.6 billion in 31 projects in FY01, compared with $2.3 billion in 45 projects in FY00. These comprised the following: X ,OO0 --- -- -- - --- --- -- -- - ----- - -- --------- - ------------------ k 000 ---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - a 3,000 -_____- _ 2,000 --> --- --- ----------------------- -------|---- ------- 2,000 U _ A-tFC FY0 F 1,000 ----- ------ B-Participants FD 1111117 1,0-> j~~~~~ ~~~~~~C-IFC FYoo 0 --------O- -_ --- f D-Participants FYOO A B C D Guarantee & Other _ Equity r - Quasi-equity _ Loans Approvals pending commitment at June 30, 2001, including guarantees and client risk management facilities, were $3.9 billion ($4.3 billion at June 30, 2000). During FY01, the Corporation entered into new commitments totaling $2.7 billion, including $0.5 billion of signed guarantees, compared with $2.4 billion for FY00. Loan and equity investment commitments pending disbursement at June 30, 2001, were $2.6 billion ($2.6 billion at June 30, 2000). Guarantees and client risk management facilities committed but not utilized at June 30, 2001, were $0.7 billion ($0.3 billion at June 30, 2000). IFC disbursed $1.5 billion in FY01 ($2.2 billion in FYOO). The lower level of disbursements in FY01 is partly attributable to the changing product mix in FY01 from direct investment products such as loans and equity investments to off-balance sheet products such as guarantees. At June 30, 2001, IFC's disbursed and outstanding loans and equity investments for its own account (disbursed investment portfolio) were $10.9 billion, unchanged from June 30, 2000. Disbursed investment portfolio The Corporation's disbursed investment portfolio is widely diversified by sector ano geograpny. The following charts show the distribution of the portfolio as of June 30, 2001, and June 30, 2000: Distribution of disbursed portfolio by sector FYOO FYO 1 2 25 5 - - ------ --- --------- -- --- - ---- ------- ---- ---- - - -- --- - -- ----- ---- -- --I-- -- ---- ---- ------ -- -- ----- ------ ----- -- - -- -- --- ---- -- -- ----- ------- --- --- ---- ---- ----- ---- --- -- 20 _ L 10 | l, '|''S s Z Z Z S S~~~~~~~~~~~~~~~~~~~~------------------_-- A B C D E F G H I J K L M N 0 A-Finance & insurance D-Food & beverages G-Oil, gas, & mining J-lnformation M-Textiles, apparel, & leather B-Utilities E-Transportation & warehousing H-Primary metals K-Industrial & consumer products N-Paper & pulp C-Chemicals F-Nonmetallic mineral product manufacturing I-Collective Investment vehicles L-Accommodation & tourism services 0-Other Distribution of disbursed portfolio by region FY01 FYOO Latin America & the Caribbean _ i Asia & the Pacific S. _ _ _ Europe & Central Asia _ Sub-Saharan Africa Middle East & North Africa The portfolio of disbursed and outstanding B-loans (including securitized loans) at June 30, 2001, totaled $6 6 billion in 250 transactions compared with $7.3 billion in 269 transactions at June 30, 2000. Additional information on IFC's investment portfolio as of and for the years ended June 30, 2001, and 2000 can be found in Notes C, D, and E to the Corporation's FY01 financial statements. INVESTMENT PRODUCTS Loans Loans account for the major part of the financing provided by IFC, representing 75% of the Corporation's disbursed investment porttfoio as of June 30, 2001i, compared with 76% at June 30, 2000. Loans will generally have the following characterist cs: * Term: typically amortizing with final maturities of up to 12 years * Currency: primarily in major convertible currencies, principally US dollar, euro, Swiss franc, and Japanese yen * Interest rate: fixed or variable * Pricing: reflects such factors as market conditions and country and project risks; variable rate loans are generally tied to the 6-month LIBOR index in th- relevant currency. Since FY99, IFC has offered local currency loan products to certain clients, provided the Corporation is able to hedge its iocai currency exposure througri mechanisms such as cross-currency swaps or forward contracts. Fixed-rate loans and lcans in other currencies are normally transformed, using currency and/ci interest rate swaps, into US doilar variable rate loans. On June 30, 2001, total lcans disbursed and outstanding were $8.2 blion ($8.3 billion at JLne 30, 2000). At June 30, 2001,91 % of the Corporation's oans were US dollar-denominated, unchanged from June 30, 2000. The currency composition of the loan portfolio is shown on the accompanying diagram: 10- - - - ------------------- 8 .- 8 - -- - m~~ ~ ~ OB C _ A B C D A-US dollars C-Other currencies FYo0 _ FYo0 B-Euro D-Total Equity Equity investments accounted for 25% of the Corporation's disbursed investment portfolio at June 30, 2001, compared with 24% at June 30, 2030. IFC's equity investments are typically in the form of common or preferred stock and are usualiy denominated in the currency of the country in which tfe investment is made. Quasi-equity In addition to traditional equity nvestments, the Corporation provides financing through a variety of quasi-equity instruments, which constitute a small but growing portion of its investment portfolio. Quasi-equities include subordinated or convertible loans, asset-backed securities, and certain common or preferred shares with put and/or call features. Depending upon their characteristics, quasi-equities may be classified as either loans or equity investments in the Corporation's balance sheet. At June 30, 2001, the Corporation's disbursed and outstanding quasi-equity portfolio totaled $1,326 million ($1,186 million at June 30, 2000), of which $1,160 million was classified as loans ($1,060 milion at June 30, 2000) and $166 million ($126 million at June 30, 2000) was classified as equity investments in the Corporation's balance sheet. Loan participations (B-loans) IFC finances only a portion, usually not more than 25%, of the cost of any protect. All IFC-financed projects, therefore, require other financial partners. The principal direct means by which the Corporation mobilizes such private sector finance is through the sase of participations in its loans, known as the B-loan program. Through tl-e B-loan program, IFC has cooperated primarily with conmercial barks but also with nonbank financial institutions in financing projects since the early 1960s. More than 215 commercial banks and institutional investors currently participate in IFC's B-loan program. Whenever it syndicates a loan, IFC will always make a loan for its own account (an A-loan), thereby sharing the risk alongside its loan partic pants. IFC acts as the lender of record and is responsible for the administration of the entire loan, inc uding the B eoan. FC charges fees tc the borrower at prevailing market -ates to cover the cost of the syndication of the B-loan. Since it began its loan syndication program, IFC has placed participations totaling $19.8 billion. a7 Client risk management services IFC provides c.ients access to asset and liability management tools such as currency swaps and interest rate swaps, caps, and floors by acting as an intermediary between clients and market counterparties. IFC also provides risk-sharing structures and guarantees that allow its clients to transact directly with market counterparties The Corporat on requires that all transactions are for hedging purposes only Guarantees and partial risk guarantees Giarantees represent a grow ng product line for the Corporation Beginning in FY01, the Corporation began offering partial risk guarantees to clients covering, on a risk-sharing basis, client oblgations on bonds and/or loans. The Corporation's guarantee is available for debt instruments and trade obligat ons of clients and covers commercia as we as noncommercial risks IFC will provide local currency guarantees but generally only if the Corporation is able to fund its commitment in local currency terms, for example, by hedging its exposure in the swap market. Guarantee fees are charged consistent w th IFC's loan pr c ng policies. During FY01, the Corporation signed $0.5 billion of guarantees, as compared with less than $0 1 billion n FY00 Underwritings and investment banking services IFC provides underwriting and placement services for equity, quasi-equ ty, ann/or debt securities issues of private sector companies in IFC's developing member countries. It viso structures and underwnrtes country funds and pooled irvestrinent vehicles such as private investrnent funds. IFC is often a core investor in the enterprnses it underwrites. Services are priced in conformity with market standards and practices, in consultation with international securities firms and financial intermediaries. Underwnr ng and other capital markets services requiring a financal commitment from IFC are subject to the same investment criteria and limits applicable to its loans and equity investments. The Corporation does not conduct any placement activities within the United States or directed at US investors in connection with securities offerings of private sector companies or pooled investment vehicles. Advisory activities The Corporabon, on its own or through a department jointly managed with the World Bank, provides three general types of advisory services to member countries as well as to individual enterprises: * Special advisory services on project structur ng and financial packaging * Financial advisory services provided to rnember governments or to private sector clients * Policy advice to governments en capital markets development and private sector development, including privatization and foreign investment. The Corporation also assists governments with developing the legal framework for privatizing their state-owned sectors, as well as with the sale of individual enterprises Fees are charged for advisory serv ces consistent with rarket rates charged for comparable services. IFC charged fees amounting 'a $41 m I ion for FY01 ($49 milion for FY00 and $33 million for FY99). Specially targeted assistance IFC has established a number of vehicles through which it provides specially targeted assistance to areas highly n need ofdevelopment. In FY0I, the Corporation contributed $16 million to such vehicles, compared with $7 milion in FY00 and $3 milion in FY99. In FY01, such vehicles included: * The World Bank Group's Clooal SME Capacity Building Facility, launched in September 2000 to act as a special window to encourage new models for small and medium enterprise support throughout the developing world * The Frontier Prvatization Fund, aimed at providing advisory funding support to resolve privatization issues and related transactional constraints in fronter markets worldwide. The Coreoration continues to fund its Technical Assistance Trust Funds to provide resources through which it cofinances technical assistance fundng supported hy donor agencies and finances stand-alone technical assistance where donor finding cannot he arranged IV. TREASURY SERVICES LIQUID ASSETS IFC invests its surplus liquidity in highly rated fixed and floating rate instruments issued or unconditionally guaranteed by governments, government agencie~; and instrumentalities, multilateral organizations, and AAA-rated corporate issuers, including mortgage- and asset-backed securities, and in time deposits anc other unconditional obligations of banks and financial institutions. The Corporation manages the market risk associated with these investments through a variety of hedgingtechniques including derivatives, principally, currenc, and interest rate swaps and financial futures. IFC's liquid assets are invested in four separate portfolios. Portfolio Market Value' Comprising Managed by Invested in Benchmark PO $0.5bn Funds awaiting IFC's Treasury Short-term deposits US overnight Fed funds (-) disbursement or Department reinvestment P1 $9.5bn Proceeds from IFC's Treasury Principally bonds and Since January 2001, adjusted ($8.8bn) market borrowings Department mortgage- or asset-backed 3-month US dollar LIBID. securities, swapped into Prior to January 2001, 6-month US dollar LIBOR 6-month US dollar LIBOR P2 $2.5bn Primarily the IFC's Treasury US Treasuries and 3-year duration US ($2.6bn) Corporation's paid-in Department other sovereign and Treasuries** capital and accumulated agency issues earnings that have not been invested in equity and quasi-equity invest- ments or fixed-rate loans P3 $0.8bn Proceeds from market External managers Global government bonds Since January 2001, adjusted ($0.8bn) borrowings appointed by IFC and mortgage-backed 3-month US dollar LIBID. securities Prior to January 2001, 6-month US dollar LIBOP, Total $13.3bn ($12.2bn) at June 30, 2001 (une 30. 20001 ^ d-ratirn rt '2 portlir plus fied,-rate. S-ns The P3 portfolio is not permitted to exceed 12% of the total value of liquid assets at any time. The Pi and P2 portfolios were accounted for as available for sale portfolios through June 30, 2000. Effective July 1, 2000, these portfolios were redesignated as trading portfoiios to more closely reflect the management style of the portfolios as discussed in Note A to the Corporation's financial statements for the year ended June 30, 2001. The P0 and P3 portfolios are also accounted for as trading portfolios. All liquid assets are managed according to an nvestment authority approved by I FC's Board of Directors and investment guidelines approved by IFC's Finance and Risk Committee, a subcommittee of the Management Group. CAPITALIZATION The Corporation's capitalization as of June 30, 2001, and June 30, 2000 is as follows: FYO1 FYO0 Borrowings from market sources Borrowings from the World Bank ~ Paid-in capital ~ Retained earnings & other Borrowings The major source of IFC's norrowings is the international capital markets. Under the Articles of Agreement, the Corporation may borrow n the public markets of a member country only with approvals from that member and also the member in whose currency the borrowing is denominated The Corporation borrowed $3.6 billion during FY01 ($4.4 billion in FY00 and $4.5 billion in FY99). In addition. IFC's Board of Directors has authorized the repurchase and redemption of, and tender for, debt obligations issued by the Corporation. During FY01, the Corporation repurchased and retired $134 million of outstanding debt ($200 miliion in FY00). IFC diversifies ts borrowings by currency, couintry. source, and maturity to provide flexibility and cost-effectiveness. Outstanding market borrowings have remaining maturities ranging from less than one year to almost 30 years with a weighted average life of 7.2 years at J une 30, 2001 (6.7 years at June 30. 2000). Market borrowings are generally swapped into floating-rate obligations denominated in US dollars. As of June 30, 2001, the Corporation had gross payables from borrowing-related currency swaps of $10 6 billion ($11.0 billion at June 30, 2000) and from borrowing-related interest rate swaps in the notional principal amount of $6.3 billion ($5.1 billion at June 30, 2000). After considering the effect of these derivative instruments all of the Corporation's market borrowings at June 30, 2001, and June 30, 2000 were US dollar-denominated. The weighted average cost of market borrowings after currency and interest rate swap transactions was 4.3% at June 30, 2001, compared with 6.3% at June 30, 2000. Capital and retained earnings As of June 30, 2001, IFC's net worth (presented as Total Capital in the Corporation's balance sheet) amounted to $6.1 billion, up from the June 30, 2000, level of $5.7 billion. As of June 30, 2001, and 2000, IFC's authorized capital was $2.45 billion, of which $2.37 billion was subscribed at June 30, 2001, unchanged from June 30, 2000. Over 99% of this was paid in ($2 36 billion at June 30, 2001, and J.ne 30, 2000). The subscription period for the share allocations made under the 1992 capital increases (as described in Note I to the Corporation's FY01 financial statements) c osed on August 1, 1999. The Corporation agreed, however, to defer the payment dates for certain member countries until August 1, 2001. Pursuant to these arrangements, $14 million of subscribed shares remained unpaid at June 30, 2001, unchanged from June 30, 2000. V. RISK MANAGEMENT AND FINANCIAL POLICIES RISK IN IFC'S BUSINESS IFC assumes various kinds of risks in its private sector development business. The Corporation's operations and activities are princ pally subject to commercial or project nsk, credi risk, market risk, liquidity risk, and operatonal risk. Active management of these risks is an essential part of the Corporation's operations and a key determinant of its ability to maintain a stable capital and earnings base. To this end, it has adopted several key financial policies and a number of prudential pol cies. KEY FINANCIAL POLICIES IFC currently operates under the foliowing key financial policies which have been approved by its Board of Directors: 1. Disbursed equity plus quasi-equity investments (net of loss reserves) may not exceed 100% of net worth. 2. Disbursed equity investments (net of loss reserves) may not exceed 50% of IFC's net worth. 3. Minimum liquidity (including liquid assets and undrawn borrowing commitments from the World Bank) must be sufficient at all times to cover at least 65% of IFC's estimated net cash requirements for the next three years. 4. The currency, rate bas s, and maturity of loan assets must be closely matched to borrowings. 5. Capital (including paid-in capital. retained earnings, and general loss reserve) must equal at least 30% of risk-weighted assets. In addition, under IFC's Articles of Agreement, as long as PFC has outstanding borrowings from the World Bank, IFC's leverage, as measured by the ratio of IFC's debt (borrowings plus outstanding guarantees) to IFC's equity (subscribed capital plus retained earnings), may not exceed 4.0 to 1. MANAGING COMMERCIAL (PROJECT) RISK IFC is prohibited from accepting host government guarantees of repayment on its investments and therefore incurs the commercial risk of its investments. In addition to the key financial policies specified above, the Corporation's investments are subject to a number of operational or prudential I mits inciuding limitations on single project exposure, single country exposure, and segment concentration. Thus: 1. IFC does not normally finance for its own account more than 25% of a project's cost. 2. An equity investment in a company does not normally represent more than 35% of the company's total share capital, provided further that IFC is not the single largest shareholder. 3. An investment in a single project or entity may not exceed 3% of IFC's total investment portfolio. 4. Equity and quasi-equity investments in a single project or entity may not exceed 3% of the Corporation's net worth plus general reserves. 5. Total investments in a single country will not normally represent more than 12% of IFC's total investment portfolio or 25% of its net worth, whichever is lower. 6. The Corporation's total exposure to a single risk sector may not exceed 8% of the total investment portfolio. The quality of IFC's investment portfolo is monitored according to established supervision procedures. The portfolio management units of individual investment departments are responsible for the day-to-day monitoring and management of commercial risk associated with projects originated by the departments, including monitoring and evaluating credit quality of the borrowers. Managing credit risk: loss reserves policy Credit risk refers to the potential for a borrower, or a counterparty to a transaction with IFC, to default on its financial obligations to the Corporation. IFC's Credit Review Department analyzes information obtained from the investment departments and provides an independent review of the credit risk of IFC's borrowers IFC maintains its loss reserves and revenue recognition policies in accordance with US GAAP0 IFC does not recognize income on loans where collectibilit, is in doubt or payments of interest or principal are past due more than 60 days un ess management anticipates that collection of interest is expected in the near future. IFC's loss reserves po icy ref ects management's judgment in accordance with the following guidelines In the case of specific loss reserves, IFC considers a loan as impaired when, based on current information and events, it is probable that it wi I be unable to collect all amounts due accordong to the loan's contractual terms. The reserve against losses for impaired loans represents management's judgment of the present value of expected future cash flows discounted at the loan's, effective interest rate. IFC establishes a reserve against losses for equity investments when a decrease in value of the investment nas occurred, below its US dolla' equivalent cost, which is considered other than temporary. In addition to the reserve or specific investments, the reserve against losses includes an estimate of probable losses on loans and equity investments .nherent in the portfoi,o but not specificaliy dentifiable. The reserve against losses is maintained through annual charges to income in the form of a provision for losses. Investments written off, as weli as any subsequent recoveries, are recorded through the reserve. Management determines the total loss reserves by judgment tak ng into account internal guidelines and its assessment of recent portfolio quality trends anc near-term outlook. The guidelines help management in decision making; however, these guidelines cannot replace management's judgment. The guidelnes focus on the total loss reserve requirement (specific plus general loss reserves) inherent in the portfolio based on information available at the time of the rev ew. The guidelines reference portfolio impairment based on simulation tecnniques, portfoiio impairment based on country risk, and portfolio impairment based on ong-term historical portfolio experience. After determination by management of the adequate level of total loss reserves using the aforementioned techniques, and an extens ve investment-by-investment review of specific impairment, the general loss reserve is calculated as the difference between the total loss reserves and the total specific loss reserves. The amount of nonaccruing loans as a percentage of the disbursed loan portfolio, a key indicator of porrfolio performance, deteriorated to 12.9% at June 30, 2001, comDared with 11.1% at June 30, 2000. The principal amount outstanding on nonaccruing loans totaled $1,054 million at June 30, 2001, an increase of 14% from the June 30, 2000, level of $922 million. The quality of IlC's investment portfolio deteriorated in FY01, as measured by the average weighted rsk class of the portfolio. Furthermore, the impairment probabilities and severity level probabilities increased, as did the country risk ratings of a significant number of countr es and the Corporation's exposure in a number of higher risk countries. As a result, total reserves against losses on loans and equity investments at June 30, 2001, increased to $2,213 million ($1,973 million at June 30. 2000). This is equivalent to 20.3% of the disbursed porrfol o, up from 18.0%/ at the end of FYOC and higher than the historical high of 18.2% reached at the end of FY99. The five-year trend of loss reserves is presented below: 2 2.04 - --- --- -- --- --- -- - - ---- -- -- -- -- ---- -- -- --- - - - - - - - - - - - --- ------------------ - - -;, 17.5- ---------------- f-I r10.0- FY97 FY98 FY99 FY00 FY01 Given that IFC has had very lim ted history with guarantees, IFC is working under the assumption that the guarantee portfo io is exposed to the same idiosyncratc and systematic risks as IFC's loan portfolio, and the inherent, probable losses in the guarantee portfolio need to be covered by an allowance for loss. Beginning in FY01, the Corporation has established such an allowance totaling $13.0 million based on the year-end portfolio which is included in payables and other liabilities on the balance sheet. MANAGING LIQUIDITY RISK The Corporat on's Liquidity Policy, as approved by its Board of Directors, requires the maintenance at all times of sufficient liquidity (including liquid assets and undrawn borrowing commitments from the World Bank) to cover at least 65% of its estimated net cash requirements for the next three years. As a prudential measure, the Corporaton maintains an operating liquidity target of not less than 70% of three years' net cash requirements, includ-ig projected disbursement and debt service requirements. At June 30, 2301, the Corporation's liq uidity level stood at $13.3 billion, or 101% of its projected net cash requirements for three years ($12.2 billion, and 103% at June 30, 2000). MANAGING MARKET RISK Market risk reters to changes in values of financiaI nstruments or postons due to movements in nterest or excharge rates, or to liqudity factors. IFC manages market risk by adopting a matched-funding pDlicy and by using a variety of derivative nstruments to convert assets and iabilities into 6-month floating US dollar assets and liabi ities as detai ed below. mplementat on of the matchedofunding policy is a two-step process: funds are earmarked at Board approval stage and matched, with respect to nterest rate and currency, at disbursement. This policy limits the Corporation's exposure to unmatched interest rate and exchange risks. Liquid asset investment activities As noted above, the P1 and P3 portfolios have been generally invested, directly or synthetically, in floating-rate US dollar instruments. This reflects the Corporaton's matched-funding policy, which requires that al loans be fu.nded with liabilities bearing similar interest rate and currency characteristics, and the tact that its loans are predominantly denominated in floating-rate US dollars Beginning in FY01, the Corporation began to manage interest rate risk in the Pt portfol o on a portfolio basis by investing in fixed- or float ng-rate instruments against a standard benchmark within specified risk parameters. The P2 portfolio is invested in fixed-rate US dollar-denominated instruments. Un lke the PI portfolio, which accepts mostly credit risk, the P2 portfolio incurs mainly market risk, with addit onal flexibil ty to deviate from its duration benchmark. The PO portfolio is generally Invested in short-dated deposits reflect ng its use for short-term funding requirements. IFC uses a variety of derivative instruments in its liquid asset management activities to manage the interest rate, currency, and other market risks associated with certain of its liquid asset portfolios consistent w th the Corporation's matched-funding policy. The derivative instruments used include short-term, over the-counter fore gn exchange forwards (covered forwards), interest rate ano currency swaps. and exchange-traded interest rate futures and options Borrowing activities The Corporation issues debt securtes in various capital markets in a variety of currenc es, sometimes using com plex structures. These structures include borrowings payable in mult ple currencies, or borrow ngs with princ pal and/or interest determmed by reference ,o a specitied index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. Market risk associated with fixed-rate obl gations and structured instruments iS mitigated by using derivative instruments to convert them nto variable-rate US dollar obligations, consistent with the Corporation's matched- funding policy. Lending activities Currency and interest rate swaps are used n connection with the Corporation s lend ng activities to minimize the level oi interest rate and currency exchange risk In f xed- or floatng-rate non-US dollar or fixed rate US dol ar lending. Client risk management activities The Corporat on offers risk management products to its clients and seeks to minimize its exposure to market risk resulting from derivative asset and liabdilty management transactons with clients by entering into offsetting positions with h ghly rated market counterparties. Asset and liability management activities Wh le IFC's matched-funding policy provides a significant level of protection against currency and interest rate risk, the Corporation can be exposed to residual market risk in Its overall asset and liability management, which is monitored by the Asset-Liability Management group within the Corporation's Treasury Department. The Corporation may be exposed to residual currency risk due to events such as changes in ihe level of non-US dollar loan loss reserves which it manages by monitoring the aggregate pos tion in each lend ng currency and hedging the exposure when the net asset or liability position exceeds $5 million equivalent ($1 million at June 30, 2000) through spot sales or purchases. IFC also faces residual interest rate risk from two sources- * Assets that are fully match-tunded at inception can become mismatched over time due to wrntedowns, prepayments, or reschedulicg. * LIBOR reset dates on assets can d ffer from those on liabilities (this risk, however, iS limited by synchronizing reset dates on assets and I abil ties at a portfolio level). This residual interest rate risk is managed by measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates, with a review trigger of $50,000 on this measure. it MANAGING CREDIT RISK Loans and equity investments The risk of borrower default in connection with the Corporation's loans and equity investments is discussed above, under Managing Commercial (Project) Rise. Treasury counterparty credit risk Counterparty credit risk is the principal residual risk to the Corporation arising from its liquid assets and borrowing activities. IFC's credit policies set conservatfie eligibility criteria for counterparties and diversification caps on exposure to individual counterparties. IFC currently restricts counterparty eligibility to banks ar d financial institutions with a minimum credit rating of A by leading international credit rating agencies. In order to limit exposure to counterparties, IFC sigrs collateral agreements with counterparties that require the posting of collateral when net exposure exceeds certain predetermined thresholds, which decrease as a counterparty's credit rating deteriorates. Because counterparties can be downgraded during the life of a transaction, the agreements provide an option for IF,C to terminate all swaps if the counterparty is downgraded below investment grade. Limits are also imposed on the volume of over-the-counter derivative transactions with individual counterparties. IFC measures derivatives exposure to counterparties in terms of "worst case" potential exposure based on simulations of market variables which are updated monthly to reflect market movements. These restrictions and limits are revised annually at the beginning of each fiscal year and approved by IFC's Finance and Risk Committee. During the year institution-speciftic limits are updated monthly based on changes in counterparty size or credit status. For exchange-traded instruments, IFC limits credit risk tv restrictingtransactions toa list of authorized excnanges, contracts, and dealers, and by placing limits on the Corporation's open interest rate position in each contract. Credit risks arising in connection with IFC's treasury activities are monitored and controlled in accordance with credit risk guidelines established by the Corporation's Risk Management Group. Client risk management activities The Corporation minimizes its credit risk exposure to clients with which it transacts derivative asset and liability management business by conducting cred I appraisals of the clients. MANAGING OPERATIONAL RISK Operatonal risk is concerned with the risk to an organization's performance due to how it is operatedas opposed to how it is financed.: IFC has extended this definition of operational risk to be the potential for losses arising from internal activities or external events caused by breakdowns in information systems. communications, physical safeguards, business continuity, supervision, transaction processing, and the execution of legal, fiduciary, and agency responsibilities Like all financial institutions, IFC is exposed to many types of operational risks. It seeks to mitigate such risks by maintaining a comprehensve system or internal controls that is designed not only to identify the parameters of various risks but also to monitor and control those areas of particular concern. The Corporation has adopted the COSO' control framework and a control self-assessment methodology to evaluate the effectiveness of its internal controls, and it has an ongoing program in place to cover all significant business operations. In each of the last six fiscal years, IFC has obtained an attestation report from its externai auditors on its assertion that as of June 30 of each of the fiscal years, its system of internal control over externa financial reporting met the criteria for effective internal control described in COSO and that the Corporation's assertion is fairly stated in all material respects. During FY01 several ongoing initiatives emphasized the area of operational risk management, including those described below: 1. IFC has established an Operational Risk Management (CRM) Sounding Board, and identified a framework for the prioritized review of key ORM components as part of IFC's implementation of the COSO methodology in FYOI. 2. IFC launched its first online version of IFC's Operating Policies, Practices, and Guiding Principles integrated with a revised version of IFC's Operational Procedures so that staff can consult the latest comprehensive version easily. 3. IFC is using the COBIT9 methodology to supplement the COSO review of the information technology function-deemed a high-priority operational risk by the ORM Sounding Board. 4. IFC is reducing its dependence upon isolated information repositories by virtue of the design, development, and implementation of the Information Pyramid set of system streams, with the underlying objective of minimum redundant data and a sangle corporate repository of operational and financial data that is consistent, comprehensive, and timely. This is supplemented by a Data Stabilization initiative and other data integrity efforts. 5. IFC and other international financial institutions have established an Investments Impediments Database which is now available to all staff at IFC for use to help identify potential project risks. 6. IFC's Environmentai and Social Risk Rating framework in the Project Supervision Report (PSR) and Credit Risk Rating provides an indication of the current level of environmental and social risk associated with a portfolio project. The PSR now has an automatic link to the Legal Agreements Database managed by the Legal Department. 7. Inoependent reviews of the financial, administrative, and organizational structure of several IFC project development facilities have resulted in improved controls, information flows, and donor reporting. 8. Monthly closing procedures have been formalized across departmental lines to minimize information flow breaks and ensure timeliness of financial reporting, witn ex post exception reviews conducted as a further control. 9. The enterprisewide system has been strengthened for IFC through system enhancements, upgrading staff skills through training, and stricter recruitment criteria. This has led to improved control over financial accounting and administrative expense processing including budget, expense, travel, procurement, and leave and absence attendance administration. 10. Streamlined equity sale procedures have oeen formulated by the Portfolio Management Department and will be implemented in early FY02 by the central Equity Management Desk. i Operationa Risk: Measurement and Modeling, Jack L. King, John Wiley & Sons, LTD., 2001t 2 COSO refersto the InternalControl-lnegrated Fameworkform ulated by the comminttee ofSponsoringOrganizatins Dft te Treadway Commisson, which was convened by the us congress in response to the well-publ cized rregularities that occurred in the financ al sector during the late 1980s. 3COBIT refers to Control Objectives for Informat on and Related Techno ogy, first released in 1996 updated to the th rd edition released in July 2000, sponsored by tWe informaton Systems Audxt and Control Assoc ation (ISACA). 12 ECONOMIC AND MONETARY UNION IN EUROPE Since January 1, 1999, in the normal course of business as a muiticurrency organization, i0C has been conducting euro-denominated transactions in paying and receiving, liquid asset investments, and debt issuance and in its loan and equity investment portfolio activities. IFC adopted a gradual approach to redenominating national currency balance sheet items to the euro during the transition period and expects to complete the redenomination by December 31, 2001 The incremental cost of euro conversion is immaterial to the Corporation's financial statements and has been included in the Corporation's administrative expenses. VI. RESULTS OF OPERATIONS OVERVIEW The main elements of IFC's net income, and influences on the level and variability of operating and net income from year-to-year, are: Elements Significant influences Operating income: Spread on interest-earning assets Nonaccruals and the interest ccilection rate on loan interest income Trading gains (losses) Realized and unrealized gains and losses on the liquid asset portfolios Income from the equity investment portfolio Performance of the equity portfolio (dividends and capital gains) Provisions for losses on loans, Level of provisions for losses on loans and equity investments and, beginning in FY01, on guarantees equity investments, and guarantees Noninterest income and expense Level of technical assistance and advisory services provided by the Corporation to its cients, the level of income from the staff retirement and other benefts plans, and the approved administrative and other budgets Net income: Other unrealized gains and Principally, differences between changes in fa.r value of derivative instruments and changes in fair losses on financial instruments value of hedged items in fair value hedging relationships In addition, the Corporation's FY01 net income reflects the one-time Impact of adopting SFAS No. 133. The following paragraphs detai significant variances between FY01 and FY00, and FY00 and FY99, covering the periods included in the Corporation's FY01 financial statements. FY01 VERSUS FY00 Operating income The Corporation's operating income for FY01 was $241 million, substantially lower than FYO0's operating income of $380 million. FY01 operating income, unlike prior years, reflects unrealized gains and losses on the P1 and P2 liqu d asset portfolios due to the change in classification of these portfolios from available for sale to trading on July 1, 2000. The deciine was mainly attributable to significant provisicns for losses on loans, equity investments, and guarantees, reflecting the downturn in portfolio quality in FY01. In addition, due to the tough economic conditions in the markets in which IFC operates, realized capital gains were significantly lower in FY01 than in FY00. Offsetting these negative factors were strong realized and unrealized gains on the Corporation's liquid asset trading activities, which benefited considerably from the recent declining interest rate environment. Net interest income PFC's primary interest-earning assets are Its loan portfolio ard its liquid assets portfolios. After charges on borrowings are taken into account, net interest income improved by $28 million or 5°. from $516 million in FY00 to $544 million in FY01. Interest and financial fees for FY01 were $715 miilion, compared with $694 million for FY00, an increase of 3%. The disbursed and outstanding loan portfolio declined marginally by 1%, and the Corporation's irterest collecton rate was lower in FY01 than in FY00. Loans in nonaccrual status grew from $922 million at June 30, 2000, to $1,054 milion at June 30. 2001, an increase of 14%. Interest income from time deposits and securities for FY01 was $790 milion, $156 milion higher than the $634 million recorded in FY00. The liquid assets portfol o. net cf derivatives and securities iending activities, grew from $12.2 billion at June 30, 2000, to $13.3 bilihon, largely funded by the growth in the Corporation's borrowings program and the slower pace of loan and equity disbursements experienced in FY01. The $1.1 billion growth :n the portfol.o offset the negative effect of the declining interest rate environment experienced throughout much of FY01 on interest income from time deposits and securities. The Corporation's charges on borrowings grew by $149 milion during FY01 from $812 million to $961 million, largely reflecting the growth of the borrowings portfolio, offset by the effect of the decliring interest rate environment. After the effect of associated derivative financial instruments, the borrowings portfolio grew by $0.8 billion in FY01, from $15.8 billion at June 30, 2000, to $16.6 biliion at June 30, 2001. As previously noted, up to and including FY00, unreaiized gains and losses on the Corporation's P1 and P2 liquid assets portfolios were exciuded from net income until realized. Effective July 1, 2000, the Corporation reclassified these portfoios from avalable for sale to tradig, and now the Corporation reflects unrealized gains and losses on these pornfolios in net income. Due tc the declining interest rate environment in FY01, and the favora ble impact of this on the carrying value of the Corporation's fixed-income liquid ass-t investments. the Corporation recorded net unrealized gains on its liquid asset pontfolios of $87 mi lion. Income from equity investments Overall income from the equity investment portfolio declined by $40 mill on, or 15%, from $262 million in FY00 to $222 million in FY01. The Corporation generated capital gains for FY01 of $91 million as compared with $132 million for FY00, a deci ne of 31%. Div dend income, however, we:, substantially unchanged at $131 million for FYC1 as compared with $130 million for FY00. Consistent with FY00, the stable performance n dividend incom- in FY01 was largeiy attributable to toe continuing high level of oi. prices during much of FY01, which significantly .mproved returns on the Corporation's joir I ventures in oil, gas, and mining. Provisions for losses on loans, equity investments, and guarantees The income charge for provisions for losses of $402 million in FY01, which included $13 million in respect of guarantees, was significantly higher than the chargn in FY00 of $215 mi lion, a growth of $187 million or 87%. On June 30, 2001, the Corporation's total reserves against losses on loans and equity investmentr were 20.3% of the disbursed and outstanding portfolio (18.0% at June 30, 2000). Noninterest income Noninterest income of $121 million for FY01 was $6 million lower than in FY00 ($127 million), principally due to the sale of assets, inc ud ng assets associatec. with the Corporat on's nformation provision business in FY00 that did not recur in FY01. Service fees were also lower at $41 million for FY01 as compared with $49 million for FY00. Offseting these negative factors was an increase in net periodic pension income from the Staff Retirement Plan and from the change in the Corporation's share of net assets held for postretirement benefits. from $47 milion in FYOO to $52 million in FY01. Noninterest expense Administrative expenses (the pr ncipal component of noninterest expense) rose 16% from $267 mill on in FY00 to $309 million in FY01. Th s increase was in line with budget funding of the anticipated growth in the investment portfolio and tre continuing move into smaller investments in frontier countries within IFC's portfolio. Net income and the impact of new accounting standards As more fully disclosed in Notes A, L, and M to the Corporation's FY01 financial statements, the Corporation changed its method of accounting for derivative instruments to conform with SFAS No. 133. Pursuant to SFAS No. 133, the Corporation has designated certain hedging relatonships in its borrowing activities and its lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instrumen+s hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, differing valuation methodologies are appiied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133. The resulting ineffectiveness calculated for such relationships is recorded in other unreal zed gains on financial instruments in net income. The effects of SFAS No. 133 on net income for the year ended June 30, 2001, can be summarized as follows (US$ millions): Operating income 241 SFAS No. 133 adjustments: Other un'ealized gains on financial nstruments 11 Cumulative effect of change in accounting principle 93 Net income 345 The cumulat ve effect of the change in accounting principle (the transition adjustment) comprises the difference between the previous ba ance sheet carrying value and the fair value of all freestanding derivatives together with the offsetting gains and losses on assets and liabilities held under hedging relationships in existence prior to the adoption of SFAS No. 133. Other unrealized gains and losses on f nancial instruments argely comprise the difference between the change in fair value of derivative instruments and the change in fair vailje of the hedged item under designated hedging relationships. FYOO VERSUS FY99 Net income The Corporation's net income for FYOO was $380 million, substantially higher than FY99's net income of $249 million. Several components of net ircome varied sigriif cant y in FYOO as compared with I Y99 although the majority ot the mproved performance was a result of a more stable investment portfolio qual ty, which resulted in lower provisions for losses in FYOO ($215 mill on) compared with FY99 ($333 mill on). Net interest income IFC's primary interest-earning assets are its loan portfolio and ts liquid assets portfol os. After charges on borrowings are taken nto account, net interest income Improveo by $32 milihon or 7'%, from $484 milion In FY99 to $516 millon in FYOO Interest and financial fees for FYOO were $694 mil ion, compared with $607 mill on for FY99, an increase of 14%. The disbursed and outstand ng loan portfolio grew by 7%/C, the Corporation's interest col ection rate was margina ly higher in FYOO than in FY99. and the nterest rate envircnment in general was higher during FYOO than in FY99. Offsetting these posit ve effects on interest and financ a fees, loans in nonaccrua status grew from $857 mil ion at J.une 30, 1999, to $922 mililon at June 30, 2000, an increase of 8%. Interest income from time deposits and secur ties for FYOO was $634 million, $87 mi lion h gher than the $547 milion recorded n FY99. 1 he liquid assets portfolios, net of der vatives and securities lend ng act vities, grew from $10.1 billion to $12.2 b Ilion largely funded by the growth In the Corporation's borrowings program The $2.1 bilion growth in the I quid assets portfolios, comained with the overal higher interest rate environment, resulted n an $86 million ncrease in nterest income in the PF and P2 portfol os (classifed as availab e for sale) As part of its management of the P2 portfo io, IFO periodically buys newer issue US Treasury bonds funded through the sale of older, less liquid securit es. Due to the ris ng interest rate env ronment is FYOO arnd FY99, losses were realized on sales of securibts in tie Pt and P2 portfolios undeotaken in both years In FY00, such realized losses on fie P1 and P2 portfolios were $42 militon compared with $22 million in FY99 Income on the P3 ponrfo io (classified as trading) declined hy $2 mill on n FYO0 Thn dec line was attr huts ble to the heavy volatility of bnnd markets, the lattening of the US yield curve, and the consequent widen ng of swap spreads, which particularly h t IFC's portfolio of asset-backed securit es. The Corporation's charges on borrovwings rose by $142 mi lion during FYOO from $670 million to $812 million reflecting the growth of the borrow ngs portfolio and the rising interest rate environment After the effect of associated derivative financial instruments, the borrowings portfolio grew by $2.6 bilijon in FYOO from $13 2 bilion at June 30, 1999, to $15.8 billion Income from equity investments Overa I ncore from the equity investment portfolio declined marginal y by $3 million, or 1%, from $265 mi lion in FY99 to $262 mil ion n FYOO. The Corporation generated capital ga ns for FYOO of $132 million as compared w th $166 m Ilion for FY99, a declone of 20% During the ear y part of FY98, IFC was able to liquidate a number of ndiv dual equ ty nvestment holdings to realize capital gains due to a relatively strong environment In the emerging markets Stibseqsent to various crises in late FY93 and early FY99, this trend did not confinejp and led to the decine in reali7ed rapital gains in FY99 and into FYOO Dividend income, however, rose to $130 million for FYOO as compared with $99 m Ilion for FY99. The growth in d vidend income was largely attributable to the growfh in oil pr ces during FYOO, wh oh significantly improved returns on the Corporation's loint ventures in oil, gas, and m ning. Provisions for losses on investments The income charge for provis ons far losses of $216 millinn in FYOO was significantly lower than thn charge in FY99 af $333 mi ion, a decline of $1 13 m Ilion or 35%. On June 30, 2000, the Corporation's total reserves aga nst losses on loans and equity investments were 18.0% of the d sbursed and outstand ng portfolio (18.2% at June 30, 1999). Provisions were lower in FYOO because impairment was less severe than in FY99, reflecting a rears stable portfolio quality. Noninterest income Noninterest income of $1 97 million for FYOO was $17 milion higher than FY99 ($1 tO million), principally duje to the vale af assets, inc tiding assets assoc ated with the Corporation's Information provision business. Service fees were also higher at $49 million for FYOO as compared with $33 million for FY99. Offsett ng these factors was a decrease in net periodic pension income from the Staff Retirement Plan and from the change in the Corporat on's share of net assets he d for postretirement benef ts, from $64 million in FY99 to $47 mil on in FYOO. Noninterest expense Admin strative expenses (the pr ncipal component of noninterest expense) rose 3% from $258 million in FY99 to $267 mi lion n FYOO. This increase was in ice w th budget funding of the anticipated growth in the investment portfol o and the cont numng move into smaller investments i frontier countries within IFC's portfolio. FINANCIAL STATEMENTS REPORT OF INDEPENDENT ACCOUNTANTS FINANCIAL STATEMENTS INCLUDING NOTES DeloitteTouche Tohmatsu (International Firm) Suite 500 555 12th Street,N.W. Washington, DC 20004-1207 Tel: (202) 897 5600 Faxc (202) 879 5309 www.us.deloitte.com Deloitte Touche Tohmatsu (International Firm) President and Board of Governors International Finance Corporation We have audited the accompanying balance sheets of the International Finance Corporation, as of June 30, 2001 and 2000, including the statements of capital stock and voting power, as of June 30, 2001, and the related statements of income, comnprehensive income, changes in capital and cash flows for each of the three fiscal years in the period ended June 30, 2001. These financial statements are the responsibility of the Intemational Finance Corporation's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Intemational Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the International Finance Corporation as of June 30, 2001 and 2000, and the results of its operations and its cash flows for each of the three fiscal years in the period ended June 30, 2001 in conformity with accounting principles generally accepted in the United States of America and also as of June 30, 2000 and for each of the two fiscal years in the period ended June 30, 2000 in conformity with International Accounting Standards. As discussed in Notes A, L and M to the financial statements, the International Finance Corporation changed its method of accounting for derivative instruments to conform with Statement of Accounting Standards (SFAS) No. 133 Accountingfor Derivative Instruments and Hedging Activities, as amended by SFAS No. 137, Accountingfor Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133, and SFAS No. 138, Accountingfor Certain Derivative Instruments and Certain Hedging Activities. Accounting principles generally accepted in the United States vary in certain significant respects from International Accounting Standards. The application of the latter would have affected the determination of net income for the fiscal year ended June 30, 2001 and the deterntination of the total assets and capital at June 30, 2001 to the extent summanized in Note T. 2".1$ 6IU4db4gt) July 30, 2001 BALANCE SHEET as of June 30, 2001 and June 30, 2000 (US$ millions) 2001 2000 Assets Due from banks $ 136 $ 52 Time deposits 4,145 4,345 Securit es-Note B Trading 10.300 536 Available for sale - 8,585 Securities purchased under resale agreements - 222 Loans and equity investments disbursed and outstanding-Note C Loans 8,170 8.304 Equity investments 2,739 2,636 Total loans and equity investments 10,909 10,940 Less: Reserve against osses on loans and equity investments (2,213) (1,973) Net loans and equity investments 8,696 8,967 Dervatve assets 1,143 14,224 Receivables and other assets-Note F 1,750 1,788 Total assets $ 26,170 $38,719 Liabilities and capital Liabilities Securities sold under repurchase agreements and payable for cash collatera received $ 1,641 $ 1,739 Borrowings w thdrawn and outstanding-Note G From market sources 15,251 14,646 From International Bank for Reconstruction and Deve opment 206 273 Total borrowings 15,457 14,919 Derivative liabilit es 1,768 14,990 Payables and other liab liies-Note H 1,209 1,338 Total liabilities 20,075 32,986 Capital Capital stock, authorized 2,450,000 shares of $1,000 par value each-Note I Subscribed 2,374 2,372 Less. Portion not yet paid (14) (14) Total capital stock 2,360 2,358 Payments received on account of pending subscr pt ons - 2 Accumulated other comprehensive income 12 (5) Retained earnings 3,723 3,378 Total capital 6,095 5,733 Total liabilities and capital $ 26,170 $ 38,719 The notes to f nancial statemenrts are an ntegral part of these statements. ! ! Ls i i L . u i a for thc threc ycars ended June 30, 2001 (US$ millions) 2001 2000 1999 Interest income Interest and financial fees from loans-Note C $ 715 $ 694 $ 6071 Interest from time deposits and securities-Note B 790 634 54,7 Total interest income 1,505 1,32 1,15 Interest expense Charges on borrowings-Note G 961 812 67C Total interest expense 961 812 670 Net interest income 544 516 484 Net gains and losses on trading activities-Note B 87 (38) (15) Income from equity investments Capital gains on eq uity sales 91 132 166 Dividends and profit participations 131 130 99 Total income from equity investments 222 262 265 Provision for losses on loans, equity investments and guarantees-Note C 402 215 333 Net income from loans, equity investments and trading activities 451 525 401 Noninterest income Service fees 41 49 33 Income from Staff Retirement Plar-Note Q 51 48 64 Change in share of net assets held for postretirement henefits 1 (1) Other income-Note J 28 31 13 Total noninterest income 121 127 110 Noninterest expense Administrative expenses-Note R 309 267 258 Other expenses 2 1 4 Translation adjustments, net 4 (3) (3) Contributions to special programs-Note K 16 7 3 Total noninterest expense 331 272 262 Operating income 241 380 249 Other unrealized gains and losses on financial instruments-Notes L and M 11 - - Cumulative effect of change in accounting principle-Note L 93 - Net income $ 345 $ 380 $ 249 The notes to firancial statemersm are an ntegra part of these statements. STATEMENT OF COMPREHENSIVE INCOME for the three years ended June 30, 2001 (US$ millions) 2001 2000 1999 Net income $ 345 $ 380 $ 249 Other comprehensive income Cumulative effect of change in accounting principle-Note L 14 - - Reclassification to net income of net interest accruals on swaps in cash flow hedging relationships at June 30, 2000 (2) Transfer to net income of accumulated unrealized holding gains and losses on available for sale securities reclassified as trading securities 5 - Unrealized holding losses on available for sale securities arising during period - (41) (25) Less: Reclassification adtustment for realized losses on available for sale securities included in net income - 42 23 Total comprehensive income $ 362 $ 381 $ 247 STATEMENT OF CHANGES IN CAPITAL for the three years ended June 30, 2001 (US$ millions) Accumulated Payments received Other on account comprehensive of pending Retained eamings income Capital stock subscriptions Total capital At July 1, 1998 $ 2,749 $ (4) $ 2,337 $ 2 $ 5,084 Year ended June 30, 1999 Net income 249 249 Other comprehensive income (2) (2) Payments received for capital stock subscribed 13 13 At June 30, 1999 $ 2,998 $ (6) $ 2,350 $ 2 $ 5,344 Year ended June 30, 2000 Net income 380 380 Other comprehensive income 1 1 Payments received for capital stock subscribed _ 8 _ 8 At June 30, 2000 $ 3,378 $ (5) $ 2,358 $ 2 $ 5,733 Year ended June 30, 2001 Net income 345 345 Other comprehensive income 17 17 Payments received on account of pending subscriptions allocated to capital stock subscribed 2 (2) - At June 30, 2001 $ 3,723 $ 12 $ 2,360 $ - $ 6,095 The notes to financial statements are an integral part of these statements. ,s n gsaa *sf 0E for the three years ended June 30, 2001 (US$ millions) 2001 2000 1999 Cash flows from loans and equity investment activities Loan disbursements $ (1,200) $ (1,719) $ (1,813) Equity disbursements (335) (491) (290; Loan repayments 1,209 1,065 878 Equity redemptions 8 4 _, Sales of equity investments 257 282 276 Net cash used in investing activities (61) (859) (9461 Cash flows from financing activities Drawdown of borrowings 3,570 4,434 4,481 Repayment of borrowings (2,458) (1,618) (3,061) Capital subscriptions - 8 13 Net cash provided by financing activities 1,112 2,82 1,433 Cash flows from operating activities Net income 345 380 249 Adjustments to reconcile net income to net cash provided by operating activities: Capital gains on equity sales (91) (132) (166) Provision for losses on loans, equity investments and guarantees 402 215 333 Translation adjustments, net 4 (3) (3) Unrealized gains and losses on financial instruments (104) - - Change in accrued income on loans, time deposits and securities 8 (51) 6 Change in payables and other liabilities 217 2,467 231 Change in receivables and other assets (373) (2,546) (834) Net cash provided by (used in) operating activities 408 330 (184) Change in cash and cash equivalents 1,459 2,295 303 Effect of exchange rate changes on cash and cash equivalents (396) 52 131 Net change in cash and cash equivalents 1,063 2,347 434 Beginning cash and cash equivalents 13,518 11,171 10,737 Ending cash and cash equivalents $ 14,581 $ 13,518 $ 11,171 Composition of cash and cash equivalents Due from banks $ 136 $ 52 $ 54 Time deposits 4,145 4,345 2,423 Securities held in trading portfolio 10,300 536 670 Securities held in available for sale portfolio - 8,58 8,02 Total cash and cash equivalents $ 14,581 $ 13,518 $ 11,171 Supplemental disclosure Change in ending balances resulting from exchange rate fluctuations: Loans outstanding $ 68 $ 56 $ 17 Borrowings (869) (386) (153) The notes to f nancial statements are an integral part of these statements. STATEMENT OF CAPITAL STOCK AND VOTING POWER as of June 30, 2001 (US$ thousands) Capital Stock Voting Power Capital Stock Voting Power Amount Percent Number Percent Amount Percent Number Percent MEMBERS paid of total of votes of total MEMBERS paid of total of votes of total Afghanistan $ 111 361 0.02 Egypt, Arab Repubic of $ 12,360 052 12,610 0.52 Albania 1,302 0.06 1,552 0.06 El Salvador 29 279 0.01 Algeria 5,621 0.24 5,871 0.24 Equatorial Guinea 43 293 0.01 Angola 1,481 0.06 1,731 0.07 Eritrea 935 0.04 1,185 0.05 Antigua and Barbuda 13 * 263 0.01 Estonma 1,434 0.06 1,684 0.07 Argentina 38,129 1.62 38,379 1.60 Ethiopia 127 0.01 377 0.02 Armenia 992 0.04 1,242 0.05 Fiji 287 0.01 537 0.02 Australia 47,329 2.01 47,579 1.98 Finland 15,697 0.67 15,947 0 66 Austria 19,741 0.84 19,991 0.83 France 121,015 5.13 121,265 5.04 Azerbaijan 2,367 0.10 2,617 011 Gabon 1,268 0.05 1,518 0.06 Bahamas, The 335 0.01 585 0.02 Gambia, The 94 * 344 0.01 Bahrain 1,746 0.07 1,996 0.08 Georgia 861 0.04 1,111 0.05 Bangladesh 9,037 0.38 9,287 0.39 Germany 128,908 5.46 129,158 5.37 Barbados 361 0.02 611 0.03 Ghana 5,071 0.21 5,321 0.22 Belarus 5,162 0.22 5,412 0.23 Greece 6,898 0.29 7,148 0 30 Belgium 50,610 2.14 50,860 2.12 Grenada 74 * 324 001 Belize 101 * 351 0.01 Guatemala 1,084 0.05 1,334 0.06 Benin 119 0.01 369 0.02 Guinea 339 0.01 589 0.02 Bolivia 1,902 0.08 2,152 0.09 Guinea-Bissau 18 268 0.01 Bosnia and Herzegovina 620 0.03 870 0.04 Guyana 1,392 0.06 1,642 0.07 Botswana 113 363 0.02 Haiti 822 0.03 1,072 0.04 Brazil 39,479 1.67 39,729 1.65 Honduras 495 0.02 745 0.03 Bulgaria 4,867 0.21 5,117 0.21 Hungary 10,932 0.46 11,182 0.47 Burkina Faso 836 0.04 1,086 0.05 Iceland 42 292 0.01 Burundi 100 350 0.01 India 81,342 3.45 81,592 3.39 Cambodia 339 0.01 589 0.02 Indonesia 28,539 1.21 28,789 1 20 Cameroon 885 0.04 1,135 0.05 Iran, Islamic Republic of 1.444 0.06 1,694 0.07 Canada 81,342 3.45 81,592 3.39 Iraq 147 0.01 397 0.02 Cape Verde 15 * 265 0.01 Ireland 1,290 0.05 1,540 0.06 Central African Republic 119 0.01 369 0.02 Israel 2,135 0.09 2,385 0.10 Chad 1,364 0.06 1,614 0.07 Italy 81,342 3.45 81,592 3.39 Chile 11,710 0 50 11,960 0.50 Jamaica 4,282 0 18 4,532 0.19 China 24,500 1.04 24,750 1.03 Japan 141,174 5.98 141,424 5.88 Colombia 12,606 0.53 12,856 0.53 Jordan 941 0.04 1,191 0.05 Comoros 14 264 0.01 Kazakhstan 4,637 0.20 4,887 0.20 Congo, Dem. Rep. of 2,159 0.09 2,409 0.10 Kenya 4,041 0.17 4,291 0.18 Congo. Republic of 131 0.01 381 0.02 Kiribati 12 262 0.01 Ccsta Rica 952 0.04 1,202 0.05 Korea, Republic of 15,946 0.68 16,196 0.67 Cote d'lvoire 3,544 0.15 3,794 0.16 Kuwait 9,947 0.42 10,197 0.42 Croatia 2,882 0.12 3,132 0.13 Kyrgyz Republic 1,720 0.07 1,970 0.08 Cyprus 2,139 0.09 2,389 0.10 Lao People's Dem. Rep. 278 0.01 528 0.02 Czech Republic 8,913 0.38 9,163 0.38 Latvia 2.150 0.09 2,400 0.10 Denmark 18,554 0.79 18,804 0.78 Lebanon 135 0.01 385 0.02 Djibouti 21 271 0.01 Lesotho 71 ' 321 0.01 Dominica 42 292 0.01 Liberia 83 333 0.01 Dominican Republic 1,187 0.05 1,437 0.06 Libya 55 305 0 01 Ecuador 2,161 0.09 2,411 0.10 Lithuania $ 2,341 0.10 2,591 0.11 The notes to financ a statements are an integral part of these statements. 21 S L i L ,'i i S^sE2^ SsA D2,UL SP I , as of June 30, 2001 (uS$ thousands) Capital Stock Voting Power Capital Stock Voting Power Amount Percent Number Percent Amount Percent Number Percent MEMBERS paid of total oi votes oi total MEMBERS paid of total of votes of total Luxembourg 2,139 0.09 2,389 0.10 Senegal $ 2,299 0.10 2,549 0.11 Macedonia, FYR of 484 0.02 734 0.03 Seychelles 27 277 0.01 Madagascar 432 0.02 682 0.03 Sierra Leone 223 0.01 473 0.02 Malawi 1,822 0.08 2,072 0.09 Singapore 177 0.01 427 0.02 Malaysia 15,222 0.65 15,472 0.64 Slovak Republic 4,457 0.19 4,707 0.20 Maldives 16 266 0.01 Slovenia 1,585 0.07 1,835 0.08 Mali 451 0.02 701 0.03 Solomon Islands 37 287 0.01 Marshall Islands 663 0.03 913 0.04 Somalia 83 333 0.01 Mauritania 214 0.01 464 0.02 South Africa 15,948 0.68 16,198 0.67 Mauritius 1,665 0.07 1,915 0.08 Spain 37,026 1.57 37,276 1.55 Mexico 27,589 1.17 27,839 1.16 Sri Lanka 7,135 0.30 7,385 0.31 Micronesia, Fed. States of 744 0.03 994 0.04 Sudan 111 * 361 0.02 Moldova 744 0.03 994 0.04 Swaziland 684 0.03 934 0.04 Mongolia 144 0.01 394 0.02 Sweden 26,876 1.14 27,126 1.13 Morocco 9,037 0.38 9,287 0.39 Switzerland 41,580 1.76 41,830 1.74 Mozambique 322 0.01 572 0.02 Syrian Arab Republic 194 0.01 444 0.02 Myanmar 666 0.03 916 0.04 Tajikistan 1,212 0.05 1,462 0.06 Namibia 404 0.02 654 0.03 Tanzania 1,003 0.04 1,253 0.05 Nepal 822 0.03 1,072 0.04 Thailand 10,941 0.46 11,191 0.47 Netherlands 56,131 2.38 56,381 2.35 Togo 808 0.03 1,058 0.04 New Zealand 3,583 0.15 3,833 0.16 Tonga 34 284 0.01 Nicaragua 715 0.03 965 0.04 Trinidad and Tobago 4,112 0.17 4,362 0.18 Niger 147 0.01 397 0.02 Tunisia 3,566 0.15 3,816 0.16 Nigeria 21,643 0.92 21,893 0.91 Turkey 14,545 0.62 14,795 0.62 Norway 17,599 0.75 17,849 0.74 Turkmenistan 810 0.03 1,060 0.04 Oman 1,187 0.05 1,437 0.06 Uganda 735 0.03 985 0.04 Pakistan 19,380 0.82 19,630 0.82 Ukraine 8,907 0.38 9,157 0.38 Palau 25 275 0.01 United Arab Emirates 4,033 0.17 4,283 0.18 Panama 1,007 0.04 1,257 0.05 United Kingdom 121,015 5.13 121,265 5.04 Papua New Guinea 1,147 0.05 1,397 0.06 United States 569,379 24.13 569,629 23.70 Paraguay 436 0.02 686 0.03 Uruguay 3,569 0.15 3,819 0.16 Peru 6,898 0.29 7,148 0.30 Uzbekistan 3,873 0.16 4,123 0.17 Philippines 12,606 0.53 12,856 0.53 Vanuatu 55 305 0.01 Poland 7,236 0.31 7,486 0.31 Venezuela, Rep. Boliv. de 27,588 1.17 27,838 1.16 Portugal 8,324 0.35 8,574 0.36 Vietnam 446 0.02 696 0.03 Romania 2.661 0.11 2,911 0.12 Yemen, Republic of 715 0.03 965 0.04 Russian Federation 81,342 3.45 81,592 3.39 Yugoslavia, Fed. Rep. of 1,803 0.08 2,053 0.09 Rwanda 306 0.01 556 0.02 Zambia 1,286 0.05 1,536 0.06 Saint Kitts and Nevis 638 0.03 888 0.04 Zimbabwe 2,12 0.09 2,370 0.10 St. Lucia 74 324 0.01 Samoa 35 * 285 0.01 Total June 30, 2001 $2,360,089 100.00+ 2,403,839 100.00+ Saudi Arabia 30,062 1.27 30,312 1.26 Total June 30, 2000 $2,357,552 100.00+ 2,401,052 100.00+ baLss toan .uos percent. May dher tfram the sa, a the ndie duaa percentages shown because Of ronding. The notes to financial statements are an integral part of these statements. NOTES TO FINANCIAL STATEMENTS Purpose The International Finance Corporation (the Corporation), an international organization, was established in 1956 to further economic development in its member countries by encouraging the growth of private enterprise. The Corporation is a memberof the World Bank Group, which also includes the International Bank for Reconstruction and Development (IBRD), the International Development Association, and the Multilateral Investment Guarantee Agency (MIGA). The Corporation's activities are closely coordinated with and complement the overall development objectives of the other World Bank Group institutions. The Corporation, together with private investors, assists in financing the establishment, improvement and expansion of private sector enterprises by making loans and equity investments where sufficient private capital :s notothenwise available on reasonable terms. The Corporaton's share capital is provided by its member countries. It raises most of the funds for its investment activities through the issuance of notes, bonds and other debt securities in the international capital markets. The Corporation also plays a catalytic role in mobilizing additional project finding from other investors and lenders, either through cofinancing or through loan syndications, underwritings and guarantees. In addition to project finance and resource mobilization, the Corporation offers an array of financial and technical advisory services to private businesses in the developing world to increase their chances of success. It also advises governments on how to create an environment hospitable to the growth of private enterprise and foreign investment. Note A-Summary of significant accounting and related policies The accounting and reporting policies of the Corporation conform with generally accepted accounting principles in the United States (US GAAP). The Corporation has traditionally prepared one set of financial statements and footnotes, complying with both US GAAP and International Accounting Standards (IAS). However, due to the promulgation of US Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and HedgingAcftivties, as amended by SFAS No. 138, Accounting for Certain Derivatives and Certain Hedging Relationships (collectively SFAS No. 133), it is no longer possible for the Corporation to satisfy the requirements of both US GAAP and IAS via one set of financial statements. The Corporation presents in note T a balance sheet and income statement conforming with IAS, together with a reconciliation between US GAAP and IAS. Financial statements presentation-Certain amounts in the prior year have been reclassified to conform to the current year's presentation. As a result of the adoption of SFAS No. 133 on July 1, 2000. in respect of loans, borrowings and derivative assets and liabilities, the balance sheet and related footnote disclosures as of June 30. 2001 are not comparable with the balance sheet and related footnote disclosures as of June 30, 2000. Use of estimates-The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense duringthe reporting period. Actual results could differfrom these estimates. Asignificant degree of judgment has been used in the determination of: the adequacy of the reserve against losses on loans and equity investments; estimated fair values of all derivative instruments and related financial instruments in qualifying hedging relationships: and net periodic pension income. There are inherent risks and uncertaint es related to the Corporation's operations. The possibility exists that changing economic conditions could have an adverse effect on the financial position of the Corporation. Translation of currencies-Assets and liabilities not denominated in United States dollars (US dollars or $), other than disbursed equity investments, are expressed in US dollars at the exchange rates prevailing at June 30, 2001 and June 30, 2000. Disbursed equity investments are expressed in US dollars at the prevailing exchange rates at the time of disbursement. Income and expenses are translated at the rates of exchange prevaiiing at the time of the transaction. Translation gains and losses are credited or charged to income. Loans and equity investments-Loans and equity investments are recorded as assets when disbursed Loans are carred at the principal amounts outstanding. In addition, beginning July 1,2000, where loans are part of a designated hedging relationship employing derivative instruments, the carrying value is adjusted for changes in fair value attnibutable to the risk being hedged. These adjustments are reported in other unrealized gains and losses on financial instruments in net income. It is the Corporation's practice to obtain collateral security such as. but not limited to, mortgages and third-party guarantees. Equity investments are carried at cost. On occasion the Corporation enters into put and call option agreements in connection with equity investments Reserve against losses for loans and equity investments-The Corporation considers a loan as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the loan's contractual terms. The reserve against losses for impaired loans represents management's judgment of the present value of expected future cash flows discounted at the loan's effective interest rate. The Corporation establishes a reserve against losses for equity investments when a decrease in value of the investments has occurred which is considered other than temporary. The reserve against losses for boans and equity Investments includes an estimate of probable losses on loans and equity investments inherent in the portfolio but not specifically identifiable. The reserve is established through annual charges to income in the form of a provision for osses on loans and equity investments. Investments written off, as well as any subsequent recoveres, are recorded through the reserve. Revenue recognition on loans and equity investments-Interest income and commitment fees on loans are recorded as income on an accrual basis. All other fees are recorded as income when received in freely convertible currencies. The Corporation does not recognize income on loans where collectibility is n doubt or payments of interest or principal are past due more than 60 days unless management anticipates that collection of interest will occur in the near future. Any interest accrued on a loan placed n nonaccrual status is reversed out of income and Is thereafter recognized as tncome only when the actual payment is received. Interest not previously recognized but capitalized as part of a debt restructuring is recorded as deferred income and credited to income only when the related principal is received. Dividends and profit participations are recorded as income when received in freely convertible currencies. Capital gains on the sale of equity investments are measured against the average cost of the investments sold and are recorded as income when received in freely convertible currencies. Guarantees-The Corporation extends guarantee facilities to its clients to provide credit enhancement for their debt securities and trade obigations Under the terms of the guarantees, the Corporation agrees to assume responsibility for the client's financial obligations in the event of default by the client. Guarantees are regarded as outstanding when the underlying financial obligation of the client is incurred, and called when the Corporation's obligaton under the guarantee has been invoked. Guarantees remain off-balance sheet while outstanding; when called, the amount disbursed is recorded as a new loan A contingent liability s established for probable losses on outstanding guarantees and is included in payables and other liabilities on the balance sheet. Specific reserves are established on called guarantees and are incuded in the reserve against losses on loans and equity investments on the balance sheet. Liquid asset portfolio-The Corporation's liquid funds are invested in government and agency obligations, time deposits and asset-backed securities. Government and agency obligations include highly rated fixed rate bonds, notes, bills and other obligations issued or unconditionally guaranteed by governments of countries or other official entities including government agencies and instrumentalities or by multilateral organizations. The liquid asset porttolio, as defined by the Corporation and as detailed in note B, comprises: these time deposits and securities; related derivative instruments; securities purchased under resale agreements, securities sold under repurchase agreements and payable for cash collateral received; receivables from sales of securities and payables for purchases of securities; and related accrued income and charges. On July 1, 2000, the Corporation reclassified all of its available for sale securities as trading securities. This resulted in a transfer of accumulated net unrealized holding losses on available for sale securities of $5 million from other comprehensive income to net income in the year ended June30, 2001. Beginning with the year ended June 30, 2001, realized and unrealized gains and losses on trading securities are reported separately in the income statement. Trading securities are carried at fair value with any changes in fair value reported in net gains and losses on trading activities. Interest on securities and amortization of premiums and accretion of discounts are reported in interest from time deposits and securities. The Corporation classifies due from banks, time deposits and securities (collectively, cash and cash equivalents) as an element of liquidity in the statement of cash flows because of their nature and the Corporation's policies governing the level and use of such investments. Repurchase and resale agreements-Repurchase agreements are contracts under which a party sells securities and simultaneously agrees to repurchase the same securities at a specified future date at a fixed price. Resale agreements are contracts under which a party purchases securities and simultaneously agrees to resell the same securities at a specified future date at a fixed price. It is the Corporation's policy to take possession of securities purchased under resale agreements, which are primarily liquid government securities. The market va ue of these securities is monitored and, within parameters defined in the agreements, additional collateral is obtained when their value declines. The Corporation also monitors its exposure with respect to securities sold under repurchase agreements and, in accordance with the terms of the agreements, requests the return of excess securities held by the counterparty when their value increases. Repurchase and resale agreements are accounted for as collateralized financing transactions and recorded at the amount at which the securities were acquired or sold plus accrued interest. Securities purchased under resale agreements, securities sold under agreements to repurchase and securities payable for cash collateral received are recorded at fair value. Borrowings-To diversify its access to funding and reduce its borrowing costs, the Corporation borrows in a variety of currencies and uses a number of borrowing structures, including foreign exchange rate-linked, inverse floating rate and zero coupon notes. Generally, the Corporation simultaneously converts such borrowings into variable rate US dollar borrowings through the use of currency and interest rate swap transactions. Under certain outstanding borrowing agreements, the Corporation is not permitted to mortgage or allow a lien to be placed on its assets (other than purchase money security interests) without extending equivalent security to the holders of such borrowings. Borrowings are recorded at the amount repayabe at maturity, adjusted for unamortized premium and unaccreted discount. In addition, beginning July 1, 2000, where borrowings are part of a designated hedging relationship employing derivative instruments, the carrying amount is adjusted for changes in fair value attributable to the risk being hedged. Adjustments for changes in fair value attributable to hedged risks are reported in other unrealized gains and losses on financial instruments. Interest on borrowings and amortization of premiums and accretion of discounts are reported in charges on borrowings. Risk management, derivative instruments and hedge accounting-The Corporation enters into transactions in various derivative instruments for risk management purposes in connection with its principal business activities, including lending, client risk management, borrowing, liquid asset portfolio management and asset and liability management. The Corporation does not use derivatives for speculative, marketing or merchandising purposes. Beginning July 1, 2000, all derivative instruments are recorded on the balance sheet at fair value as derivative assets or derivative liabilities. Derivative instruments embedded in market borrowing transactions entered into on or after January 1, 1999 are bifurcated from the host contract and recorded at fair value as derivative assets and liabilities. The value at inception of these embedded derivatives is excluded from the carrying value of market borrowings on the balance sheet. Changes in fair values of derivative instruments used in liquid asset portfolio management activities are recorded in net gains and losses on tradingactivities. Changes in fair values of derivative instruments otherthan those used in liquid asset portfolio management activities are recorded in other unrealized gains and losses on financial instruments. Prior to July 1, 2000, changes in fair values of derivative instruments associated with the liquid asset portfolio classified as available for sale were included in other comprehensive income until realized, and those associated with the liquid asset portfolio classified as trading were included in net income; other derivative instruments were recorded on the balance sheet at amortized cost. Subject to certain specific qualifying conditions in SFAS No. 133, a derivative instrument may be designated either as a hedge of the fair value of an asset or liability (fair value hedge), or as a hedge of the variability of cash flows of an asset or liability or forecasted transaction (cash flow hedge). For a derivative instrument qualifying as a fair value hedge, fair value gains or losses on the derivative instrument are reported in net income, together with offsetting fair value gains or losses on the hedged item that are attributable to the risk being hedged. For a derivative instrument qualifying as a cash flow hedge, fair value gains or losses associated with the risk being hedged are reported in other comprehensive income and released to net income in the period(s) in which the effect on net income of the hedged item is recorded. Fair value gains and losses on a derivative instrument not qualifying as a hedge are reported in net income. The Corporation has designated certain hedging relationships in its borrowing and lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates and other features. However, the valuation methodologies applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133, may differ The resulting ineffectiveness calculated for such relationships is recorded in other unrealized gains and losses on financial instruments in the income statement. The Corporation, has not designated any hedging relationships as cash flow hedges. Consequently, the change in fair value of the derivatives in cash flow-like hedges recorded in net income is not offset by changes in fair value of the related asset or liability. The risk management policy for each of the Corporation's principal business activities, and the accounting policies particular to them, are described below. Lending activities: To minimize the level of interest rate and currency exchange risk associated with fixed rate US dollar or non-US dollar lending, derivative instruments with generally matching terms are used to convert the cash flows from those loans into variable rate US dollars, consistent with the Corporation's matched funding policy. The impact on net income of changes in fair value of interest rate swaps qualifying for the short cut method under SFAS No. 133 is exactly offset by a corresponding adjustment to the fair value of the related loans. The Corporation has elected not to designate hedging relationships for all other lending-related derivatives that do not qualify for the short cut method. NOTES TO FINANCIAL STATEMENTS (continued) Client risk management activities: The Corporation enters into derivatives transactions with its clients to help them hedge their own currency, interest rate or commodity risk, which, in turn, improves the overall quality of the Corporation's loan portfolio. To hedge the market risks that arise from these transactions with clients, the Corporation enters into offsetting derivative transactions with matching terms with authorized market counterparties. Changes in fair value of all derivatives associated with these activities are reflected currently in net income. Though hedge accounting is not applicable to these activities, the matching of terms between the offsetting transactions minimizes the impact on net income. Borrowingactivities: The Corporation issues debt securities in various capital markets with the objectives of minimizing its borrowing costs, diversifying funding sources, and developing member countries' capital markets, sometimes using complex structures. These structures include borrowings payable in multiple currencies, or borrowings with principal and/or interest determined by reference to a specified index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. The Corporation uses derivative instruments with matching terms, primarily currency and interest rate swaps, to convert such borrowings Into variable rate US dollar obligations, consistent with the Corporation's matched funding policy. The Corporation has designated the majority of derivatives associated with borrowing activities as fair value hedges of the underlying borrowings. There are a small number of cash flow-like hedging transactions for which no hedge relationship has been designated. Liquid asset porfYolio management activities: 1 he Corooration manages the interest rate, currency and other market risks associated with certam of the time deposits and securities in its liquid asset portfolio by entering into derivative transactions to convert the cash flows from those instruments into variable rate US dollars, consistent with the Corporation's matched fund ng policy. The derivative instruments used include short-term, over-the-counter foreign exchange forwards (covered forwards), interest rate and currency swaps, and exchange-traded interest rate futures and options. As the entire liquid asset portfolio is classified as a trading portfolio, all securities (including derivatives) are carried at fair value, and no hedging relationships have been designated. Asset and liability management: In addition to the risk managed in the context of its business activities detailed above, the Corporation faces residual market risk in its overall asset and liability management. Residual currency risk is managed by monitoring the aggregate position in each lending currency and eliminating the net excess asset or liability position through spot sales or purchases. Interest rate risk due to reset date mismatches is reduced by synchronizing the reset dates on assets and liabilities and managing overall interest rate risk on an aggregate basis. Interest rate risk arising from mismatches due to writedowns, prepayments and reschedulings, and res dual reset date mismatches, is monitored by measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates. The Corporation monitors the credit risk associated with these activities by careful assessment and monitoring of prospective and actual clients and counterparties. In respect of liquid assets and derivatives transactions, credit risk is managed by establishing exposure limits based on the credit rating and size of the indivedual counterparty. In addition, the Corporation has entered into master agreements governing derivative transactions thatcontain close-out and netting provisions and collateral arrangements. Under these agreements, if the Corporation's credit exposure to a counterparty, on a mark-to-market basis, exceeds a specified level, the counterparty must post collateral to cover the excess, generally in the form of liquid government securities. Resource mobilization -The Corporation mobilizes funds from commercial banks and other financial institutions (Participants) through loan participations which are sold by the Corporation, without recourse, to Participants. These loan participations are administered and serviced by the Corporation on behalf of the Participants. The disbursed and outstanding balances of the loan participations are not included in the Corporation's balance sheet. Staff Retirement Plan-The World Bank Group has a defined benefit retirement plan (the Plan) covering substantially all of the Corporation's staff. The Plan also covers substantially all the staff of IBRD and MIGA. Under the Plan, benefits are based on the years of contnrbutory service and the highest three-year average of pensionable remuneration as defined in the Plan, with the staff contributing a fixed percentage of pensionable remuneration and the World Bank Group contributing the remainder of the actuarially determined cost of future Plan benefits. The actuarial present values of Plan obligations throughout the fiscal year are determined at the beginning of the fiscal year by the Plan's actuary. The Corporation's total contribution to the Plan is based upon the aggregate funding method. All contributions to the Plan and all other assets and income held for purposes of the Plan are held separately from the other assets and income of the World Bank Group and can be used only for the benefit of the participants in the Plan and their beneficiaries, until all liabilities to them have been paid or provided for. Plan assets consist primarily of equity and fixed income securities, with small holdings of cash, real estate and other investments. The net periodic pension income or expense al ocated to the Corporation is included in income from (contributions to) Staff Retirement Plan in the income statement. Other postretirement benefits-Other postretirement benefits are provided for eligible active and retired World Bank Group staff, including those of the Corporation, through a Retired Staff Benefits Plan and a Post Employment Benefits Plan. Some ofthe assets designated for other postretirerrent benefits meetthe requirements for plan assets prescribed under SFAS No. 106, Employer'sAccounting for Postretirement Benefits Other Than Pensions. Other plan assets and liabilties that do not qualify for off-balance sheet accounting are recorded on IBRD's balance sheet. The Corporation includes a receivable from IBRD in receivables and other assets relating to its share of these postretirement benefits net assets, representing prepaid postretirement benefits costs. Any increase or decrease in the Corporation's share of these net assets is recognized in increase (decrease) in share of net assets held for postretirement benefits in the income statement. Introduction of the Euro-Effective January 1, 1999 certain member states of the European Union adopted the Euro as their common currency and the European Currency Unit was automatically redenominated into the Euro. Amounts stated in Euros appearing herein for both the current and prior periods have been recast from the legacy currencies regardless of the timing of the redenomination of the instruments concerned. Recasting has had no impact on the US dollar equivalents reported in these financial statements except insofar as, in the footnotes that disclose currency analyses of balance sheet amounts, legacy currency items have been aggregated and single Euro amounts are disclosed in their place. Accounting and financial reporting developments-The Corporation adopted SFAS No. 133 on July 1, 2000. The effect of adoption is detailed in note L. In March 1999, the International Accounting Standards Committee issued IAS No. 39, Financial Instruments Recognition and Measurement. Further details are given in note T. In September 2000, the Financial Accounting Standards Board issued SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities SFAS No. 140, which replaces SFAS No. 125, Accountng for Transfers and Servicing of FinancialAssets and Extinguishments of Liabilities, provides accounting and reporting standards for securitizations and other transfers of financial assets. The accounting requirements of the Standard are effective for transfers and servicing of financial assets and extinguishments of liabilities after March 31, 2001, and must be applied prospectively. The Corporation applied the provisions of SFAS No. 140 beginning April 1, 2001. SFAS No. 140 also requires certain disclosures related to securitization transactions, collateral arrangements and repurchase agreements for fiscal years ending after December 15, 2000. These disclosures are given in note B, "Liquid asset portfolio." The adoption of SFAS No, 140 did not have a material Impact on the Corporation's financial position or results of operations for the period. ,5 Note B-Liquid asset portfolio The composition of the Corporation's liquid asset portfolio is as follows (US$ millions): June 30, 2001 June 30, 2000 Trading Trading Available ior portfolio portfolio sale portfolio Total Assets Due from banks $ 19 $ - $ 31 $ 31 Time deposits 4,145 183 4,162 4,34r Securities 10,300 536 8,585 9,121 Securities purchased under resale agreements - 4 218 222 Receivables and other assets: Receivables from sales of securities 312 301 63 364 Accrued interest income on time deposits and securities 154 5 138 143 Accrued income on derivative instruments 70 - 94 94 Derivative assets 501 92 3,392 3,484 Total assets $ 15,501 $ 1,121 $ 16,683 $17,804 Liabilities Payables and other liabilities: Payables for purchases of securities $ 299 $ 220 $ 114 $ 334 Accrued charges on derivative instruments 91 - 83 83 Securities sold under repurchase agreements and payable for cash collateral received 1,641 - 1,739 1,739 Derivative liabilities 212 91 3,353 3,444 Total liabilities $ 2,243 $ 311 $ 5,289 $ 5,600 Total net liquid asset portfolio $ 13,258 $ 810 $ 11,394 $12,204 The liquid asset portfolio is denominated primarily in US dollars; investments in other currencies, net of the effect of associated derivative instruments that convert non-US dollar securities into US dollar securities, represent less than 1% of the portfolio at June 30, 2001 (less than 1%-June 30, 2000). The annualized rate of return on the trading portfolio during the year ended June 30, 2001, was 7.1% (5.1%-year ended June 30, 2000; 5.6%-year ended June 30, 1999). After the effect of associated derivative instruments, the liquid asset portfolio generally reprices within one year. TRADING SECURITIES The composition of trading securities is as follows: Year ended June 30, 2001 At June 30, 2001 Fair value average daily balance Fair value Average maturity Average yield (US$ millions) (US$ millions) (years) M%t Government and agency obligations $ 4,518 $ 4,931 4.6 5.3 Asset-backed securities 2,341 2,448 8.9 4.7 Corporate securities 2,815 2,921 3.2 5.4 Total trading securities $ 9,674 $ 10,300 Year ended June 30, 2000 At June 30, 2000 Fair value average daily balance Fair value Average maturity Average yield (US$ millions) (US$ millions) tyears) (so Government and agency obligations $ 106 $ 113 2.7 3.6 Asset-backed securities 207 242 23.3 7.4 Corporate securities 291 181 1.3 6.5 Total trading securities $ 604 $ 536 The expected maturity of the asset-backed securities will differ from the contractual maturity, as reported above, due to prepayment features. sv NOTES TO FINANCIAL STATEMENTS (continued) AVAILABLE FOR SALE SECURITIES On July 1, 2000 the Corporation reclassified all of its available for sale securities as trading securities. As of June 30, 2000 the amortized cost, gross unrealized gains and losses, fair value and average yield of securities classified as available for sale were as follows: June 30, 2000 (US$ millions) Amortized Gross Gross Average cost unrealized gains unrealized losses Fair value yield (%) Government and agency obligations $ 4,164 $ 125 $ (34) $ 4,255 5.7 Asset-backed securities 2,116 6 (2) 2,120 6.8 Corporate securties 2,164 67 (21) 2,210 5.8 Associated derivative Instruments, net 191 45 (191) 45 Total available for sale securities $ 8,635 $ 243 $ (248) $8,630 INCOME FROM LIQUID ASSET PORTFOLIO Income from liquid asset portfolio for the years ended June 30, 2001, 2000 and 1999 comprises (US$ millions): 2001 2000 1999 Interest income Trading portfolio $ 790 $ 32 $ 30 Available for sale portfolio - 602 517 Total interest from time deposits and securities 790 634 547 Net gains and losses on trading activities: Realized- TradinE portfolio 61 9 (6) Available for sale portfolio - (42) (23) Unrealized- Trading portfolio 26 (5) 14 Total net gains and losses on trading activities 87 (38) (15) Total income from liquid asset investments $ 877 $ 596 $ 532 Collateral The estimated fair value of securities held by the Corporation at June 30, 2001 as colateral, in connection with derivatives transacticns and purchase and resale agreements, that may be sold or repledged was $113 million. Note C-Loans and equity investments and reserve against losses The distribution of the disbursed portfolio by sector s as follows (US$ m Ilions): June 30, 2001 June 30, 2000 Equity Equity Loans investments Total Loans investments Total Finance and insurance $ 1,570 $ 601 $ 2,171 $ 1,656 $ 479 $ 2,135 Utilities 884 109 993 843 113 956 Chemicals 740 101 841 740 117 857 Food and beverages 680 156 836 783 173 956 Transportation and warehousing 534 177 711 497 160 657 Nonmetallic mineral product manufacturing 576 114 690 649 136 785 Oil, gas and mining 455 179 634 482 196 678 Primary metals 515 101 616 539 109 648 Collective investment vehicles - 579 579 - 555 555 Information 409 156 565 349 118 467 Industrial and consumer products 403 100 503 378 113 491 Accommodation and tourism services 314 72 386 334 72 406 Textiles, apparel and leather 292 83 375 337 114 451 Paper and pulp 227 102 329 272 105 377 Wholesale and retail trade 193 17 210 151 16 167 Agriculture and silviculture 161 26 187 148 19 167 Plastics and rubber 81 35 116 68 20 88 Health care 75 17 92 57 17 74 Other 42 14 56 21 4 25 Total disbursed portfolio 8,151 2,739 10,890 8,304 2,636 10,940 Fair value adjustments 19 - 19 - - - Carrying value of loans and equity investments $ 8,170 $ 2,739 $ 10,909 $ 8,304 $ 2,636 $ 10,940 -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2 June 30, 2001 June 30, 2000 Equity Equity Loans investmients Total Loans investments Total Latin America and Caribbean $ 3,495 $ 861 $ 4,356 $ 3,463 $ 855 $ 4,318 Asia 2,132 894 3,026 2,405 847 3,252 Europe and Central Asia 1,570 500 2,070 1,578 458 2,036 Sub-Saharan Africa 576 276 852 527 269 796 Middle East and North Africa 378 158 536 331 162 493 Other - 50 50 - 45 45 Total disbursed portfolio 8,151 2,739 10,890 8,304 2,636 10,940 Fair value adjustments 19 - 19 - - - Carrying value of loans and equity investments $ 8,170 $ 2,73 $ 10,909 $ 8,304 $ 2,636 $ 10,940 At June 30, 2001, 23% (24%-June 30, 2000) of the disbursed loan portfolio consisted of fixed rate loans, while the remainder was at variable rates. The currency composition and average yield of loans disbursed and outstanding are summarized below (US$ millions): June 30, 2001 June 30, 2001 Average Average Amount yield (%) Amount yield 1%) US dollar $ 7,390 7.7 $ 7,565 9.3 Euro 552 7.6 583 7.4 Other currencies 209 8.0 156 7.1 Total loans disbursed and outstanding 8,151 7.7 8,304 9.1 Fair value adjustments 19 Carrying value of loans $ 8,170 $ 8,304 After the effect of interest rate and currency swaps, the Corporation's loans are principally denominated in US dollars. Loans disbursed and outstanding in all currencies are repayable during the years ending June 30, 2002 through June 30, 2006, and thereafter, as follows (US$ m llions): 2002 2003 2004 2005 2006 Thereafter Total Fixed rate loans $ 483 $ 283 $ 233 $ 239 $ 177 $ 422 $ 1,837 Variable rate loans 1,209 934 902 857 776 1,636 6,31 Total loans disbursed and outstanding $ 1,692 $ 1,217 $ 1,135 $ 1,096 $ 953 $ 2,058 8,151 Fair value adjustments 19 Carrying value of loans $ 8,170 The Corporation's variable rate loans disbursed and outstanding generally reprice within one year. Loans on which the accrual of interest has been discontinued amounted to $1,054 million at June 30, 2001 ($922 million-June 30, 2000). Interest income not recognized on nonaccruing loans during the year ended June 30, 2001 totaled $100 million ($84 million-year ended June 30, 2000; $73 million- year ended June 30, 1999). Interest collected on loans in nonaccrual status, related to current and prior years, during the year ended June 30, 2001 was $27 million ($28 million-year ended June 30, 2000; $17 million-year ended June 30, 1999). Tne average recorded investment in impaired loans during the year ended June 30, 2001, was $1,534 million ($1,331 million-year ended June 30, 2000). The recorded investment in impaired loans at June 30, 2001 was $1,918 mi lion ($1,150 million-June 30, 2000). 2e NOTES TO FINANCIAL STATEMENTS (continued) Changes in the reserve against losses for the years ended June 30, 2001, 2000 and 1999 are summarized below (US$ millions): 2001 2000 1999 Equity Equity Equity Loans investments Total Loans investments Total Loans investments Total Beginning balance $ 1.228 $ 745 $ 1,973 $ 1,118 $ 707 $ 1,825 $ 977 $ 545 $ 1,522 Investments written off (45) (91) (136) (20) (37) (57) (12) (14) (26) Investments recovered - - - 1 - 1 - - - Translation adjustments (13) - (13) (11) - (11) (4) - (4) Provision for losses 193 196 389 140 75 215 157 176 333 Ending balance $ 1,363 $ 850 $ 2,213 $ 1,228 $ 745 $ 1,973 $ 1,118 $ 707 $ 1,825 The translation gain of $13 million ($11 million gain-year ended June 30, 2000; $4 million gain-year ended June 30, 1999) has been offset by an equ valent translation loss (loss-years ended June 30, 2000 and 1999) on currency hedges. Both amounts have been recorded in translation adjustments in the income statement. Provision for losses on loans, equity investments and guarantees in the income statement for the year ended June 30, 2001 includes $13 million in respect of guarantees ($nil-years ended June 30, 2000 and 1999). At June 30, 2001 the accumulated reserve for losses on guarantees, included in the balance sheet in payables and other liabilities. was $13 million ($nil-June 30, 2000 and 1999). Interest and financial tees from oans and equity investments for the years ended June 30, 2001, 2000 and 1999 comprise the following (US$ millions): 2001 2000 1999 Interest income $ 687 $ 656 $ 570 Commitment fees 7 8 9 Other financial fees 21 30 28 Total interest and financial fees $ 715 $ 694 $ 607 Note D-Projects approved and committed but not disbursed or utilized Projects approved by the Board of Directors but not committed, loan and equity commitments signed but not yet disbursed, and guarantee and client risk management facilities signed but not yet utilized are summarized below (US$ millions): June 30, 2001 June 30, 2000 Projects approved but not committed: Loans $ 2,621 $ 3,283 Equity investments 609 556 Guarantees 474 429 Client risk management facilites 179 70 Total projects approved but not committed 3,88 4,338 Projects committed but not disbursed: Loans 1,731 1,748 Equity investments 896 839 Projects committed but not utilized: Guarantees 511 164 Client risk management fac,lities 174 131 Total projects committed but not disbursed or utilized 3,31 2,88 Total projects approved but not disbursed or utilized $ 7,195 $ 7,220 Note E-Resource mobilization Loan participations arranged to be placed with Participants in respect of loans approved by the Board of Directors, loan participations signed as commitments for which disbursement has not yet been made, and loan participations disbursed and outstanding and serviced by the Corporation for the Participants are as follows (US$ millions): June 30, 2001 June 30, 2000 Loan participations arranged to be placed with Participants approved but not committed $ 2,021 $ 3,308 Loan participations signed as commitments but not disbursed 979 876 Loan participations arranged to be placed with Participants approved but not disbursed $ 3,000 $ 4,184 Loan participations disbursed and outstanding which are serviced by the Corporation $ 6,551 $ 7,330 Duringthe year ended June 30,2001 the Corporation called and disbursed $835 ml on ($1,097 million-year ended June 30, 2000) of Participants' funds. The Corporation has securitized and sold variable rate US dollar loan participations to a trust (the Trust). Concurrently, the Corporation provided a $20 million liquidity facility to the Trust and acquired $20 million of the Trust's Class C certificates. The outstanding balance of the Trust's Class C certificates held by the Corporation was $10 million at June 30, 2001 ($10 million-June 30, 2000) and is included in equity investments. The liquidity facility is inciuded in receivables and other assets and totaled $nil at June 30, 2001 ($5 million-June 30, 2000). The Corporation has provided reserves for losses against these instruments of $3 million at June 30, 2001 ($4 million-June 30, 2000). Certain of the securitized loan participations are secured by security interests ir personal and real property. The principal balance outstanding of total loans securitized at June 30, 2001 was $46 million ($65 million-June 30, 20001. Note F-Receivables and other assets Receivables and other assets are summarized below (US$ millions): June 30, 2001 June 30, 2000 Receivables from sales of securities $ 312 $ 364 Accrued interest income on time deposits and securities 154 143 Accrued income on derivative instruments 469 520 Accrued interest income on loans 136 158 Prepaid pension costs 232 181 Receivable from IBRD representing prepaid postretirement benefits costs 18 17 Headquarters buiding: Land 89 89 Building 184 185 Less: Building depreciation (20) (15) Headquarters building, net 253 259 Deferred charges and other assets 176 146 Total receivables and other assets $ 1,750 $ 1,788 Note G-Borrowings The Corporation's borrowings outstanding from market sources and currency and interest rate swaps, net of unamortized issue premiums and discounts, are summarized below: June 30, 2001 Currency swaps payable Interest rate swaps notional Market borrowings (receivable) pfincipal payable (receivable) Net currency obligation Amount Weighted Amount Weighted Notional amount Weighted Amount Weighted 1US$ millins) average cost t%) 1US$ millions) average cost (%) (US$ millions) average cost (%) (US$ millions) average costt US dollar $ 6,263 6.1 $10,059 (4.2) $ 5,827 4.3 $ 16,313 4.3 (5,836) (5.9) Pound sterling 2,776 5.7 (2,776) (5.6) 425 5.3 - - (425) (5.8) Japanese yen 2,171 4.9 (2,171) (4.9) - - - - Euro 1,928 5.0 (1,928) (5.0) Hong Kong dollar 949 7.7 (949) (7.7) South African rand 393 14.0 (393) (14.0) - - Singapore dollar 230 4.4 (230) (4.4) Greek drachma 219 5.7 (219) (5.7) New Zealand dollar 104 6.8 (104) (6.8) Netherland guilder 78 3.3 (78) (3.3) - Swiss franc 57 3.8 (57) (2.7) 57 2.7 (57) (3.8) Philippine peso 50 10.3 (50) (10.3) - Slovak koruna 41 15.8 (41) (15.8) Estonian kroon 5 10.0 (5) (10.0) - - Principal at face value 15,264 $ 1,058 $ (9) $16,313 Less: Unamortized discounts, net (280) Total market borrowings 14,984 Fair value adjustments 267 Carrying value of market borrowings $15,251 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2000 Currency swaps payable Interest rate swaps notional Market borrowings (receivable) principal payable (receivable) Net currency obligation Amount Weighted Amount Weighted Notional amount Weighted Amount Weighted (US$ millions) average cost (%) (US$ millions) average cost (%) (US$ millions) average cost (%) (US$ millions) average cost(%) US dolar $ 4,686 6.1 $10,825 (6.1) $ 4,576 6.5 $15,502 6.3 (4,585) (5.8) Euro 2,702 5.2 (2,702) (5 2) - - Pound sterling 2,408 5.8 (2,408) (5.9) 451 6.1 (451) (5.8) Japanese yen 2,212 4.9 (2,212) (4.9) - Hong Kong do lar 1,311 8.5 (1.311) (8.5) South African rand 464 14.0 (464) (14.0) Greek drachma 268 7.3 (268) (7.3) Singapore dollar 242 4.4 (242) (4.4) Australian dollar 180 - (180) - - Swiss franc 152 4.8 (152) (4.1) 61 3.2 (61) (4.8) Canadian dollar 128 - (128) - New Zealand dollar 117 6.8 (117) (6.8) Philippine peso 60 10.3 (60) (10.3) Slovak koruna 44 15.8 (44) (15.8) Polish new zloty 23 10.8 (23) (10.8) Estonian kroon 6 10.0 (6) (10.0) - Principal at face value 15,003 $ 508 $ (9) $15,502 Less:Unamortized discounts, net (357) Total market borrowings 14,646 The weighted average cost of the Corporation's borrowings outstanding from market sources after currency and interest rate swap transactions was 4.3% at June 30, 2001 (6.3%-June 30, 2000). The weighted average remaining maturity of the Corporation's borrowings from market sources was 7.2 years at June 30, 2001 (6.7 years-June 30. 2000). Fair value adjustments to the carrying value of market borrowings comprises $286 million representing adjustments to the carrying value of trarsactions in designated fair value hedging relationships, less $19 million in respect of the value at inception of derivative instruments embedded in trarsactions entered into on or after January 1, 1999. The net nominal amount payable from currency swaps of $1,058 million and the net notional amount receivable from interest rate swaps of $9 million at June 30, 2001, shown In the above table, are represented by currency and interest rate swap assets at fair value of $362 million and currency and interest rate swap liabilities at fair value of $1,448 million, included in derivative assets and derivative liabilities, respectively, on the balance sheet. The net nominal amount payable from currency swaps at June 30, 2000 of $508 million, shown in the above table, cons sted of currency swap receivables of $10,520 million and currency swap payables of $11,028 million, which were ncluded in receivables from currency and interest rate swaps and payables for currency and interest rate swaps, respectively, on the balance sheet. The notional amounts of interest rate swaps are recorded off-balance sheet. Borrowings outstanding from IBRD are summarized below: June 30, 2001 June 30, 2000 Principal amount Weighted Principal amount Weighted (US$ millions) average cost 1%) (US$ millions) average cost 1% US dollar $ 145 6.5 $ 167 6.5 Euro 31 7.5 57 7.2 Japanese yen 15 5.9 29 5.7 Swiss franc 14 5.8 19 5.7 Pound sterling 1 7.5 1 7.6 Total borrowings outstanding from IBRD $ 206 $ 273 The weighted average remaining maturity of borrowings from IBRD was 5.2 years at June 30, 2001 (5.6 years-June 30, 2000). There were no undrawn balances on committed borrowings from IBRD at June 30, 2001 ($nil-June 30, 2000). Charges on borrowings for the year ended June 30, 2001 includes $16 million ($21 million-year ended June 30, 2000; $28 million-year ended June 30, 1999) in respect of IBRD borrowings -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3 . . A A I * W . The principal amounts repayable on borrowings outstanding in ail currencies, gross of any premiums or d scounts, during the years ending June 30, 2002 through June 30, 2006 and thereafter are summarized below (US$ millions): 2002 2003 2004 2005 2006 Thereafter Total Borrowings from market sources $ 2,136 $ 2,937 $ 2,232 $ 1,601 $ 1,251 $ 5,107 $ 15,26-- Borrowings from IBRD 42 37 35 38 24 30 206 Total borrowings, gross $ 2,178 $ 2,974 $ 2,267 $ 1,639 $ 1,275 $ 5,137 15,470 Less: Unamortized discounts, net (28(C Fair value adjustments 26, Carrying value of borrowings- $ 15,457 After the effect of interest rate and currency swaps, the Corporation's borrowings generally reprice within one year. Note H-Payables and other liabilities Payables and other liabilities are summarized below (US$ millions): June 30, 2001 June 30, 2000 Accrued charges on borrowings $ 357 $ 360 Accrued charges on derivatives instruments 343 419 Payables for purchases of securities 299 334 Accounts payable, accrued expenses and other liabilities 143 173 Deferred income 67 52 Total payables and other liabilities $ 1,209 $ 1,338 Note I-Capital stock The Corporation's authorized share capital was increased to $2,450 million through two capital increases in 1992. The subscription and payment period for shares then allocated ended on August 1, 1999. The Corporation agreed, however, to defer the payment date for certain member countries until August 1, 2001. Pursuant to these arrangements, $14 million of sulhscroed shares remained unpaid at June 30, 2001 ($14 million-june 30, 2000). During the year ended June 30, 2001, 624 shares were subscribed by member countries at a par value of $1,000 each (7,773-year ended June 30, 2000). A total of less than $1 million was paid in on account of subscriptions ($8 million-year ended June 30, 2000). Note J-Other income Other income predominantly comprises fees collected from clients for expenses incurred by the Corporation on their behalf, included in administrative expenses. In the year ended June 30, 2000, other income also included revenues from the sale of assets, including assets associated with the Corporation's information provision business. Note K-Contributions to special programs From time to time, the Board of Directors approves recommendations under which the Corporation contributes to special programs, which presently are the Africa Project Development Facility, the South Pacific Project Facility, the Foreign Investment Advisory Service, the Enterpr se Support Service for Africa, and the Mekong Project Development Facility. During the year ended June 30, 2001, the Corporation contributed $16 million to these facilities ($7 million-year ended June 30, 2000; $3 million-year ended June 30, 1999). NOTES TO FINANCIAL STATEMENTS (continued) Note L-lmplementation of Statement of Financial Accounting Standards No.133 The Corporation adopted SFAS No. 133 on July 1, 2000. The Standard requires all freestanding derivative instruments, and certain derivatives embedded in other financia instruments, to be recognized as either assets or liabilities on the balance sheet, at fair value. The Standard is effective for all contracts outstanding at June 30, 2000. However, the Standard contains a grandfathering election, under which derivatives embedded in other instruments executed prior to January 1, 1999 need not be bifurcated. In prior periods, the Corporation separately reported the gross receivable and gross payable amounts of certain freestanding dervatves as assets and liabilities, respectively. At the date of initial application of SFAS No. 133, certain items were recorded as a transition adjustment, denoted as the cumulative effec: of a change in accounting principle in the income statement The transition adjustment included, f rst, the difference between the prev ous carrying value and the fair value of all freestanding derivative instruments. Secondly, it included the offsetting gains and losses on assets and liabilites held under fair value-like hedging relationships in existence prior to the adoption of SFAS No. 133 that are also recognized by adjusting their carrying value to fair value. Finally, the adjustment included the fair value of derivatives embedded in hybrid financal instruments entered into on or after January 1, 1999, where they are required to be separated from the r respective host contracts, and also recorded on the balance sheet at fair value. The total amount of the transition adjustment. recorded on July 1, 2000, was $93 million. Upon adoption of SFAS No. 133, the Corporation also recorded a gain of $15 mi lion to accumulated other comprehensive income to adjust the book value to fair value of cross currency interest rate swaps in cash flow-like hedges. The Corporation elected not to seek hedge accounting for these transactions under the Standard and, accordingly, records the cross currency interest rate swaps at fair value, with the change in fair value included in quarterly earnings. The gain recorded in accumulated other comprehensive income upon adoption of the Standard is released into earnings over the remaining onginai hedge term. The amount released for the year ended June 30, 2001 was $3 million; the expected release for the year ending June 30, 2002 is $3 million. Note M-Other unrealized gains and losses on financial instruments Other unrealized gains on financial nstruments for the year ended June 30, 2001 comprises (US$ millions): 2001 Difference between change in fair value of derivative instruments designated as a fair value hedge and change in fair value of hedged items attributable to risks being hedged $ 16 Change in fair value of derivative instruments, other than those associated with liquid asset investments, not designated as a hedge (5) Amortization of difference between fair value and carrying value of hedged items at July 1, 2000 not designated for hedge accounting under SFAS No. 133 (3) Release from accumulated other comprehensive income of transition gain on cash flow-like hedges 3 Total other unrealized gains and losses on financial instruments $ 11 Of the total other unrealized gains and losses on financial instruments, unrealized gains of $22 million are attributable to borrowings and related derivatives transactions, unrealized losses of $7 million are attributable to loans and related derivatives transactions and unrealized losses of $4 mil ion are attributable to client risk management activities. Note N-Derivative and other financial instruments Many of the Corporation's financial instruments lack a trading market, characterized as exchanges between willing buyers and sellers. Accordingly, estimates and present value calculations of future cash flows were used to estimate the fair values. Determining future cash flows for fair value estimation is subjective and imprecise, and minor changes in assumptons or methodologies may materially affect the estimated values. The excess or deficit resulting from the difference between the carrying amounts and the fair values presented does not necessarily reflect the reaiizable values since the Corporation generally holds loans, borrowings and other financial instruments to maturity with the aim of realizing their recorded values. The estimated fair values reflect the interest rate environments as of June 30, 2001 and June 30, 2000. In different interest rate environments, fair value results can differ significantly, especially for certain fixed rate financial instruments. Reasonable comparability of fair values among financial institutons is not I kely, because of the wide range of permitted valuation techniques and numerous estimates that must be made in the absence of secondary market prices. This lack of objective pricing standards introduces a greater degree of subjectivity and volatility to these derived or estimated fair values. Therefore, while disclosure of estimated fair values of financial instruments is required, readers are cautioned in using these data for ourposes of evaluating the financial condition of the Corporation. The fair values of the individual financial instruments do not represent the fair value of the Corporation taken as a whole. The methodologies used and key assumptions made to estimate fair values as of June 30, 2001 and June 30, 2000 are summarized below. Liquid assets-The estimated fair value of time deposits and the trading securities portfolio are based on quoted market prices and the present value of estimated future cash fiows using appropriate discount rates. Derivative instruments-Fair values for interest rate and currency swaps were derived by determining the present value of estimated future cash flows using appropriate discount rates. Fair values for covered forwards were derived by using quoted market forward exchange rates. Fair values for commodity-indexed contracts and call options were based on pricing models. Fair value for put warrants was based on quoted market prices. Loans and loan commitments-The Corporation, which extends loans to entities operating in the private sector in its developing member countres genera Iy has not sold its loans from the portfolio and there is no comparable secondary market. Fair values for fixed rate loans and loan commitments were determ ned using a discounted cash flow model based on a discount rate comprising the fixed rate loan spread plus the year-end estimated cost of funds. Since rates on variable rate loans and loan commitments are generally reset on a quarterly or semiannual basis, the carrying value adjusted for credit risk was determined to be the best estimate of fair value. The Corporation also holds options to convert loans into equity of certain of its investee companies. Fa r values of these conversion options are based on quoted market prices or other calculated values of the underlying equity investment. Equity investments-Fair values were determined using market prices where available, put option prces, book values or cost, certain of which were discounted based upon management's estimate of net realizable value. Where market prices were not available or alternate valuation techniques were not practical, cost was determined to be the best estimate of fair value, Management's estimate of fair value takes into consideration the relative illiquidity and volatility, as well as the overall business constraints, in the emerging markets in which the Corporation invests. Borrowings-Fair values were derived by determining the present value of estimated future cash flows using appropriate discount rates. Estimated fair values of the Corporation's financial assets and liabilities and off-balance sheet financial instruments are summarized below (US$ milions). The Corporation's credit exposure is represented by the estimated fair values of its financial assets. June 30, 2001 June 30, 2000 Carrying Fair value amount adjustments Fair value Fair value Financial assets Due from banks, time deposits, securities and securities purchase under resale agreements $ 14,581 $ - $ 14,581 $ 13,740 Loans 8,170 366 8,536 8,617 Equity investments 2,739 465 3,204 3,098 Total loans and equity investments 10,909 831 11,740 11,715 Reserve against losses (2,213) - (2,213) (1,97 Net loans and equity investments 8,696 831 9,527 9,742 Derivative assets: Liquid asset potfolio-related 501 - 501 3,484 Loans-related 110 - 110 717 Borrowings-related 505 505 10,719 Client risk management-related 27 - 27 71 Other _ - - 15 Total derivative assets 1,143 - 1,14 15,00 Nonfinanc a assets 1,750 - 1,750 1,788 Total assets $ 26,170 $ 831 $ 27,001 $ 40,276 Financial liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 1,641 $ - $ 1,641 $ 1,739 Market and IBRD borrow ngs outstanding 15,457 22 15,479 15,482 Derivative liabilities: Liquid asset portfolio-related 212 - 212 3,438 Loans-related 13 13 626 Borrowings-related 1,518 - 1,518 11,076 Client risk management-related 25 - 25 64 Other - - - 8 Total derivative liabilities 1,768 1,76 15,212 Nonfinancial liablities 1,209 1,20 1,338 Total liabilities $ 20,075 $ 22 $ 20,097 $ 33,771 Off-balance sheet financial instruments Loan commitments $ 1,731 $ 8 $ 1,739 $ 1,755 Guarantees Signed 589 - 589 259 Outstanding 78 - 78 95 NOTES TO FINANCIAL STATEMENTS (continued) Note O-Currency position The Corporation conducts its operations for its loans, time deposits and securities and borrowings in multiple currencies. The Corporation's policy is to minimize the level of currency risk by closely matching the currency of its assets (other than equity investments and quasi-equity investments) and liabilities by using hedging instruments. The Corporation's equity investments in enterprises located in its develop ng member countries are typically made in the local currency of the country. As a matter of policy, the Corporation carries the currency risk of equity investments and quasi-equity investments and funds these investments from Its capital and retained earnings. The following table summarizes the Corporation's exposure in major currencies at June 30, 2001 and June 30, 2000 (US$ milions): June 30, 2001 Japanese Other Fair value US dollar Euro yen currencies adjustments Total Assets Cash and cash equivalents $ 10,813 $ 1,193 $ 1,483 $ 292 $ - $ 14,581 Loans disbursed and outstanding 7.930 552 38 171 19 8,170 Equity investments disbursed and outstandong - - - 2,73 - 2,739 Total investments 7,390 552 38 2,910 19 10,909 Reserve against losses (2,062) (127) (5) (19) - (2,213) Net investments 5,32 425 33 2,891 19 8,696 Derivative assets 5,269 1,999 2,180 4,567 (12,872) 1,143 Receivables and other assets 1,39 138 53 161 - 1,75 Total assets $ 22,808 $ 4,555 $ 3,749 $ 7,911 $(12,853) $ 26,170 Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 1,641 $ - $ - $ - $ - $ 1,641 Borrowings 6,396 2,023 2,189 4,582 267 15,457 Derivative liabilities 10,699 2,402 1,499 404 (13,236) 1,768 Payables and other liabilities 872 121 63 153 -1,2 Total liabilities $ 19,608 $ 4,546 $ 3,751 $ 5,13 $(12,969) $ 20,075 June 30, 2000 Japanese Other US dollar Euro yen currencies Total Assets Liquid assets $ 10,107 $ 1,352 $ 1,320 $ 739 $ 13,518 Securities purchased under resale agreements 150 72 - - 222 Loans disbursed and outstanding 7,566 583 66 89 8,304 Equity investments disbursed and outstanding - - - 2,636 2,63 Total investments 7,566 583 66 2,725 10.940 Reserve against losses (1,825) (127) (8) (13) (1,973) Net investments 5,741 456 58 2,712 8,967 Derivative assets 4,237 2,716 2,210 5,061 14,224 Receivables and other assets 1,40 157 45 179 1,788 Total assets $ 21,642 $ 4,753 $ 3,633 $8,691 $ 38,719 Liabilities Borrowings 4,840 2.737 2,244 5,098 14,919 Derivative liabilities 11,108 1.784 1,354 744 14,990 Other liabilities 1,111 141 36 50 1,338 Securities sold under repurchase agreements and payable for cash collateral received 1,66 75 - - 1,739 Total liabilities $ 18,723 $ 4,737 $ 3,63 $ 5,892 $ 32,986 li. S I ! .. L Ii 1 . Note P-Segment reporting For management purposes, the Corporation's business comprises two segments: client services and treasury services. The client services segment primarily consists of lending and equity investment activities. The treasury services segment consists of the borrowing, lquid asset management, asset and liability management and client risk management activities. The assessment of segment performance by senior management includes net income for each segment, return on assets, and return on capital employed. The Corporation's management reporting system and policies are used to determine revenues and expenses attributable to each segment. Consistentwith internal reporting, administrative expenses are allocated to each segment based largely upon personnel costs and segment head counts. Transactions between segments are immaterial and, thus, are not a tactor in reconciling to the consolidated data. The accounting policies of the Corporation's segments are, in all material respects, consistent with those described in note A, "Summary of significant accounting and related policies." An analysis of the Corporation's major components of income and expense by business segment for the years ended June 30, 2001, 2000 and 1999 is given below (US$ millions): 2001 2000 1999 Client Treasury Client Treasury Client Treasury services services Total services services Total services services Total Interest income $ 715 $ 790 $ 1,505 $ 694 $ 634 $ 1,328 $ 606 $ 547 $ 1,153 Charges on borrowings (390) (571) (961) (371) (441) (812) (295) (375) (670) Net gains and losses on trading activities - 87 87 - (38) (38) - (15) (15) Income from equity investments 222 - 222 262 - 262 265 - 265 Provision for losses (402) (402) (215) - (215) (333) - (333) Service fees 41 - 41 49 - 49 33 - 33 Administrative expenses (300) (9) (309) (258) (9) (267) (255) (3) (258) Other noninterest income and expense 58 - 58 73 - 73 74 - 74 Unrealized gains and losses on financial instruments 12 92 104 Net income $ (44) $ 389 $ 345 $ 234 $ 146 $ 380 $ 95 $ 154 $ 249 During the year ended June 30, 2001, the Corporation changed its method of allocating certain costs amongst business units within the Corporation. Segment disclosures for the years ended June 30, 2000 and 1999 have been restated to be consistent with the new allocation method. Geographical segment data in respect of client services are disclosed in note C, and are not relevant in respect of treasury services. Note Q-Staff Retirement Plan The following table summarizes the benefit costs associated with the Staff Retirement P,an 'SRP) allocated to the Corporation. ncluded in income from Staff Retirement Plan, for the years ended June 30, 2001, 2000 and 1999 (US$ millions): 2001 2000 1999 Benefit cost Service cost $ (42) $ (39) $ (29) Interest cost (83) (67) (50) Expected return on plan assets 154 132 115 Amortization of prior service costs (1) (1) (1) Amortization of unrecognized net gain/loss 21 21 27 Amortization of transition asset 2 2 2 Net periodic pension income $ 51 $ 48 $ 64 vei NOTES TO FINANCIAL STATEMENTS (continued) The fol)owing table summarizes the benefit ob igations, plan assets, and funded status associated with the SRP for the World Bank Group at June 30,2001 and 2000 (US$ millions): June 30, 2001 June 30, 2000 Benefit obligation Beginning of year $ 6,951 $ 6,483 Service cost 271 271 Interest cost 536 461 Employee contributions 64 64 Benefits paid (312) (244) Actuarial (gain)/loss (233) (84) End of year 7,277 6,951 Fair value of plan assets Beginning of year 11,562 10,226 Employee contributions 64 64 Actual return on assets (950) 1,516 Benefits paid (312) (244) End of year 10,364 11,562 Funded status Plan assets in excess of benefit obligation 3,087 4,611 Unrecognized net gain from past exper ence different from that assumed and from changes in assumptons (1,415) (3,258) Unrecognized prior service cost 33 41 Remaining unrecognized net transition asset (26) (39) Prepaid (accrued) pension cost $ 1,679 $ 1,355 The underlying actuarial assumptions used are based on financial market interest rates, past experience and management's best estimate of future benefit changes and economic conditions. Changes n these assumptions will impact future benefit costs and obligations. The weighted average assumptions used in determining expense and benefit obi gations are as follows t%): June 30, 2001 June 30, 2000 Discount rate 7.00 7.75 Expected return on plan assets 9.00 9.00 Rate of compensation increase 5.00-1 1.50 5.75-12.25 The effect of projected compensation levels was calculated based on a scale that provides for a decreasing rate of salary increase depending on age, beginning with 11.50% (12.25%-June 30, 2000) at age 20 and decreasing to 5 00% (5.75%-June 30, 2000) at age 64. Note R-Service and support payments The Corporation obtans certain administrative and overhead services from IBRD in those areas where common services can be efficently provided by IBRD. This includes shared costs of the Boards of Governors and Directors, and other services such as communications. internal auditing, admnimstrative support, supplies and insurance. Payments for these services are made by the Corporation to IBRD based on negotiated fees, chargebacks and allocated charges, where chargeback is not feasible. Expenses allocated to the Corporation for the year ended June 30, 2001, were $19 million ($16 million-year ended June 30, 2000; $17 million-year ended June 30, 1999). Note S-Trust funds The Corporation uses the services of IBRD to administer funds on behalf of donors which are restricted for specific uses, including technical assistance, feasibility studies and project preparation, global and regional programs and research and training programs. These funds are placed in trust and are not included in the Corporation's assets. The responsibilities of the Corporation are to arrange for serv ces generally not otherwise provided by it including full project impiementation and procurement of goods and services. The distribution of Trust Fund assets by executing agent is as follows (US$ millions): June 30, 2001 June 30, 200 Total fiduciary Number of Total fiduciary Number of assets active funds assets active funds Executed by the Corporation $ 99 474 $ 89 464 Executed by the recipient 5 4 - 3 Total $ 104 478 $ 89 467 Note T-Financial statements conforming with International Accounting Standards The balance sheet as of June 30, 2001 and income statement for the year ended June 30, 2001, prepared in accordance with IAS, are presented be ow (US$ m llions). BALANCE SHEET 2001 2000 Assets Due from banks $ 136 $ 52 Time deposits 4,145 4,345 Securities Trading 10,300 536 Available for sale - 8,585 Securities purchased under resale agreements - 222 Loans and equity nvestments disbursed and outstanding Loans 8,151 8,304 Equity investments 2,739 2,636 Total loans and equity investments 10,890 10,940 Less: Reserve against losses on [cans and equity nvestments (2,213) (1,973 Net loans and equity investments 8,677 8,967 Derivative assets 14,015 14,224 Receivables and other assets 1,750 1,788 Total assets $ 39,023 $ 38,719 Liabilities and capital Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 1,641 $ 1,739 Borrowings withdrawn and outstanding From market sources 14,984 14,646 From International Bank for Reconstruction and Development 206 273 Total borrowings 15,190 14,919 Derivative liabilities 15,004 14,990 Payables and other liabilities 1,209 1,338 Total labilities 33,044 32,986 Capitai Capital stock, authorized 2,450,000 shares of $1,000 par value each Subscribed 2,374 2,372 Less: Portion not yet paid (14) (14) Total capital stock 2,360 2,358 Payments received on account of pending subscriptions - 2 Accumulated other comprehensive income - (5) Retained earnings 3,619 3,378 Total capital 5,979 5,733 Total liabilities and capital $39,023 $ 38,719 35N NOTES TO FINANCIAL STATEMENTS (continued) INCOME STATEMENT 2001 2000 1999 Interest income Interest and financial fees from loans $ 715 $ 694 $ 607 Interest from time deposits and securities 790 634 547 Total interest income 1,505 1,328 1,154 Interest expense Charges on borrowings 961 812 670 Total interest expense 961 812 670 Net interest income 544 516 484 Net gains and losses on trad ng activities 87 (38) (15) Income from equity investments Capital gains on equity sales 91 132 166 Dividends and profit partcipations 131 130 99 Total income from equity investments 222 262 265 Provision for osses on loans, equity investments and guarantees 402 215 333 Net income from loans, equity investments and trading activities 451 525 401 Noninterest income Service fees 41 49 33 Income from Staff Retirement Plan 51 48 64 (Decrease)/increase in share of net assets held for postretirement benefits 1 11) Other income 28 31 13 Total noninterest income 121 127 110 Noninterest expense Administrative expenses 309 267 258 Other expenses 2 1 4 Translation adjustments, net 4 (3) (3) Contributions to special programs 16 7 3 Total noninterest expense 331 272 262 Net income $ 241 $ 380 $ 249 Accounting and financial reporting developments-In March 1999, the International Account ng Standards Committee issued IAS No. 39, Financial Instruments Recognition and Measurement. The Standard prescribes balance sheet recognition of all financial assets and financial liabilities, including derivatives. It requires financiai assets and financial liabilities to be initially measured at cost, and to be carried at fair value on the balance sheet thereafter. The Standard is effective for the Corporation for the year ending June 30, 2002. Reconciliation from US GAAP to IAS-A reconciliation between net income for the yearended June30, 2001, and total assets and total capital as of June 30, 2001, as measured in accordance with US GAAP, and the equivalent amounts measured n accordance with IAS, is presented below (US$ millions). Net income Total assets Total capital As measured in accordance with US GAAP $ 345 $ 26,170 $ 6,095 Derivatives and hedging transactions (104) 12,853 (116) As measured in accordance with IAS $ 241 $ 39,023 $ 5,979 Net income-Net other unrealized gains on financial instruments and the cumulative effect cf change in accounting principle have been eliminated from net income measured in accordance with US GAAP. Total assets-Under IAS. both the gross receivable leg and the gross payable leg of currency swaps are recorded on the balance sheet Under US GAAP, after the implementation of SFAS No. 133, only the fair value of these instruments is recorded on the balance sheet. In addition, in accordance with SFAS No. 133, the carrying value of certain hedged items has been adjusted and amortized through net income. This adjustment is eliminated to arrive at net income under IAS. Total capital-The adjustment to total capital reflects the overall mpact of the reconcil ng items described above. - ~ - 1-- --4 I NVESTM ENT PORTFOLIO 40L STATEMENT OF CUMULATIVE GROSS COMMITMENTS at June 30, 2001 Cumulative commitments' Cumulative commitments' (US$ thousands) (US$ thousands) Country, region, Number of Country, region, Number of or other area enterprises IFC Syndications' Total or other area enterprises IFC Syndications' Total Afghanistan 1 322 0 322 Guinea 9 31,681 0 31,681 Albania 6 47,930 0 47,930 Guinea-Bissau 4 7,168 0 7,168 Algeria 5 21,039 5,177 26,216 Guyana 4 4,862 0 4,862 Angola 2 2,110 0 2,110 Haiti 2 1,900 0 1,900 Argentina 161 2,617,912 2,373,586 4,991,498 Honduras 7 63,333 79,401 142,734 Armenia 1 3,567 0 3,567 Hungary 26 312,412 71,420 383,832 Australia 4 975 0 975 India 142 1,899,964 475,007 2,374,971 Azerbaijan 11 132,595 100,000 232,595 Indonesia 74 1,043,687 1,167,622 2,211,309 Bangladesh 13 94,637 45,584 140,221 Iran 7 34,342 8,192 42,534 Barbados 3 8,625 0 8,625 Israe 1 10,500 0 10.500 Belarus 1 2,250 0 2,250 Italy 1 960 0 960 Belize 3 21,500 11.000 32.500 Jamaica 14 97,907 48,926 146,833 Benin 8 2,240 0 2,240 Jordan 22 185,175 70,250 255,425 Bolivia 18 219,283 46,000 265,283 Kazakhstan 15 222,486 117,917 340,403 Bosnia and Herzegovina 18 66,864 7,366 74,230 Kenya 57 268,907 59,200 328,107 Botswana 5 4,663 0 4,663 Korea, Repub ic of 46 649,995 195,738 845,733 Brazil 134 2,841,096 2,290,232 5,131,328 Kyrgyz Republic 4 42,150 0 42,150 Bulgaria 13 135,548 21,397 156,945 Lao People's Democratic Burkina Faso 6 2,555 0 2,555 Republic 4 3,247 0 3,247 Burundi 2 6,335 0 6,335 Latvia 4 48,987 0 48,987 Cote d'lvoire 44 245,230 73,779 319,009 Lebanon 24 305,879 230,430 536,309 Cambodia 1 490 0 490 Lesotho 2 454 0 454 Cameroon 22 264,616 460.100 724,716 Liberia 3 12,703 0 12,703 Cape Verde 3 3,194 0 3,194 Lithuania 6 70,697 0 70,697 Chad 1 13,900 13,900 27,800 Macedonia 10 80,048 25,000 105,048 Chile 36 800,097 463,733 1,263,830 Madagascar 11 47,602 0 47,602 China 45 568,876 513,983 1,082,859 Malawi 14 36,631 0 36,631 Colombia 52 565,584 343,193 908,777 Malaysia 11 54,903 5,389 60,292 Congo, Democratic Maldives 1 6,000 0 6,000 Republic of 8 49,248 0 49,248 Mali 18 88,506 40,000 128,506 Congo, Republic of 6 115,168 25,000 140,168 Mauritania 9 41,655 9,558 51,213 Costa Rica 13 138,581 99,709 238,290 Mauritius 10 38,425 98 38,523 Croatia 9 164,262 84,592 248,854 Mexico 104 2,297,286 1,876,908 4,174,194 Cyprus 5 14,307 597 14,904 Moldova 4 27,927 25,000 52,927 Czech Republic 16 380,918 241,465 622,383 Mongolia 1 1,750 0 1,750 Dominica 1 701 0 701 Morocco 28 412,127 502,931 915,058 Dominican Republic 13 114,999 76,100 191,099 Mozambique 19 186,556 0 186,556 Ecuador 15 117,861 24,236 142,097 Namibia 4 15,131 0 15,131 Egypt 42 629,669 476,367 1,106,036 Nepal 6 69.651 36,000 105,651 El Salvador 9 63,821 38,500 102,321 Nicaragua 7 19,643 929 20,572 Eritrea 1 940 0 940 Niger 1 2.267 0 2,267 Estonia 11 82,469 10,078 92,547 Nigeria 47 329,467 99,016 428,483 Eth opia 4 21,850 1,719 23,569 Oman 3 28,864 57,000 85,864 Fiji 7 26,663 2,500 29,163 Pacific Islands 1 3,000 0 3,000 Finland 4 1,233 1,915 3,148 Pakistan 78 983,061 555,634 1,538,695 Gabon 4 105,249 110,000 215,249 Panama 10 220,100 138,000 358,100 Gambia, The 8 6,280 0 6,280 Papua New Guinea 2 13,300 0 13,300 Georgia 8 58,331 0 58,331 Paraguay 4 15,008 0 15,008 Ghana 37 251,410 272,000 523,410 Peru 34 356,858 290,621 647,479 Greece 7 26,007 41,107 67,114 Philippines 66 902,039 645,879 1.547,918 Grenada 1 6,000 0 6,000 Poland 41 360,284 118,029 478,313 Guatemala 12 163,375 98,000 261,375 Portugal 8 51.889 11,000 62,889 413 at Juno 30, 2001 Cumulative commitments' Cumulative commitments' (US$ thousands) (US$ thousands) Country, region, Numher of Country, region, Numher of or other area enterprises IFC Syndications' Total or other area enterprises IFC Syndications' Total Romania 15 163,088 193,885 356,973 REGIONAL INVESTMENTS Russian Federation 37 506,510 93,000 599,510 Africa 14 176,586 1,940 178,526 Rwanda 2 2,307 0 2,307 Asia 11 378,265 0 378,265 Saint Lucia 2 9,940 0 9,940 Europe 23 231,471 25,000 256,471 Samoa 4 1,074 0 1,074 Latin America 34 414,772 65,000 479,772 Saudi Arabia 1 1,600 0 1,600 Other' 23 102,926 96,273 199,199 Senegal 19 89,884 11,782 101,666 Worldwide Investments 23 418,682 133,000 551,682 Seychelles 6 29,519 2,500 32,019 Sierra Leone 3 25,186 0 25,186 Total 2,636 31,221,588 20,413,750 51,635,338 Slovak Republic 5 113,866 0 113,866 Slovenia 11 226,654 54,026 280,680 Somalia 2 1,351 0 1,351 South Africa 32 182,105 15,000 197,105 Spain 5 19,048 1,685 20,733 Sri Lanka 23 111,235 23,672 134,907 Sudan 6 26,510 6,489 32,999 Swaziland 9 40,833 0 40,833 Syrian Arab Republic 1 1,000 0 1,000 Tajikistan 5 17,246 0 17,246 Tanzania 36 85,863 13,386 99,249 Thailand 52 962,195 1,701,374 2,663,569 Togo 7 18,157 0 18,157 Trinidad and Tobago 7 91,759 235,000 326,759 Tunis a 19 87,364 2,324 89,688 Turkey 106 1,720,706 1,288,646 3,009,352 Uganda 37 76,671 1,588 78,259 Ukraine 4 13,989 0 13,989 Uruguay 10 74,919 20,000 94,919 Uzbekistan 14 57,464 16,250 73,714 Vanuatu 1 5,478 0 5,478 Venezuela, Reptblica Bolivariana de 33 678,170 703,791 1,381,961 Vietnam 15 180,287 203,375 383,662 Yemen, Republic of 7 38,352 1,099 39,451 1 Cumatuve comitmets are composed cf disbursed af nd sbursed ba ances The und;sursed Yugolavia, porton is reva ued at current exchange rates, while the disbursed portion represents the cost of Yugoslavia, comm inert at the t me of disbursement Extcdes risk management and guarantee faci ties. Federal Republic of 6 166,554 46,610 213,164 2 ReflectsB-oani amo-ets ette too oesigsng of e tmvestmnenoamreeet. Zambia 26 143,524 24,045 167.569 3 Of this amout, 59.8 m I ion represe-ts invesorments made at a tfie when the authonties on Taiwan represented Chm. in interatbora -ioance Ccroroation. The balance represen-s inoestmeets r West Zimbabwe 50 285,729 99,000 384,729 BankandGaza. {D2 INVESTMENT PORTFOLIO SUMMARY at Jjne 30, 2001 June 30, 2001 June 30, 2000 Equity Total loans Equity Total loans Loans (at cost) and equity Loans (at cost) and equity IFC portfolio Tota 9,882 3,635 13,517 10,052 3,475 13,527 Undisbursed balances 1,731 896 2,627 1,748 839 2,587 Disbursed ba ances 8,151 2,739 10,890 8,304 2,636 10,940 Loans and equity held by IFC for participants Total 7,530 - 7,530 8,206 - 8,206 Und sbursed balances 979 - 979 876 - 876 Disbursed balances 6,551 - 6,551 7,330 - 7,330 IFC portfolio and loans and equity held for participants Total 17,412 3,635 21,047 18,258 3,475 21,733 Undisbursed ba ances 2,710 896 3,606 2,624 839 3,463 Disoursed balances 14,702 2.739 17,442 15,634 2,636 18,270 SUB-SAHARAN AFRICA as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity ANGOLA Fabrica de Bleach Corasol Limitada Chem ca s 99 0.6 - 0.6 0.6 0.6 0.6 BENIN Bank of Africa Benin (BOAB) Finance' 93, 94, 95 0.3 - - 0.3 0 3 Equipbail S.A. Finance' 95 0.5 - - 0.1 0.1 Finadev Microfinance Finance' 01 0.3 - 0.3 0.3 Unon B6ninoise dAssurances Finance' 96 0.1 - - 0.1 0.1 0.8 0.8 BOTSWANA Abercrombie & Kent Botswana Tourism- 92, 00 2.8 - 2.7 - 2.7 (Propretary) Limited Africa Banking Corp Holdings Finance' 92 - - 1.8 1.8 2.7 1.8 4 5 BURKINA FASO Ecobank-Burkina Finance' 98 0.3 - 0.3 0.3 Socete des Mines du Faso, Fasomine Oil. Gas, & Mining 99 1.4 - 1.0 0.4 1.4 Societe Generale de Banques au Finance' 98 0.4 - - 0.4 0.4 Burkina 1 0 1.0 2.0 BURUNDI Investment Banking and Trust Agriculture' 01 0.5 0.4 - 0.4 Company Ltd 0.4 0.4 R a ii *; as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (uss millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity CAMEROON Banque International du Finance 92 0.7 - - 0.6 0.6 Cameroun Pour LEpargne et le Cr6d t Cameroon 0 Transportation 0 , Gas, & Mining 01 86.1 86.1 86.1 - 86.1 Company Complexe Avicole Mvog-Betsi Agrculture3 96 0.3 - 0.2 0.2 Cotonniere Industrielle du Textiles4 86 6.5 3.9 3.9 Cameroun (CICAM) Horzon B ngua Education Education Servces 01 0.3 - 0.3 - 0.3 Comp ex Nouvelle Tannerie du Cameroon Text es4 97 0.9 - 0.6 - 0.6 Pecten Cameroon Company Oi, Gas, & Mining 92, 96, 97, 98 95.0 241.8 19.6 19.6 Societe Agro-Industrielle et Agrculture3 00 0.4 - 0.3 - 0.3 Commerciale du Cameroun (SAICAM) Soc eta de Production, de Agriculture3 94,97 1.5 - Collecte. de Transformation et de Conditionnement de Legumes United Transport Afrca (UTA) Transportation' 94,97 2.1 - 01 - 0.1 111.2 0.6 111.9 CAPE VERDE Central de Britagem de Cabo Verde Oil, Gas, & Min ng 00 1.2 1.2 - 1.2 Growela Cabo Verde, Limitada Textiles' 94 1.0 - 0.1 - 0.1 1.4 1.4 CHAD Tchad O l Transportation Oil, Gas, & Mining 01 13.9 13.9 13.9 13.9 Company S.A. (TOTC0) 13.9 13.9 CONGO, DEMOCRATIC REPUBLIC OF Grands Hotels du Zaire, S.Z.A.R.L. Tourism2 85 15.0 - 2.0 - 2.0 Societe Textile de Ksangani, S.Z.A.R.L Textiles4 85 8.9 - 5.1 - 5.1 Utexafrica, S.P.R.L. and Textiles4 88 13.5 - 7.3 - 7.3 Usines Textiles Cotonni6res de Kinsha 14.3 14.3 CONGO, REPUBLIC OF Congolaise des Bois Impr6gn6s, S.A. Indus/Cons Products' 87 2.1 - 1.9 - 1.9 Energy Africa Haute Mer Limited Oil, Gas, & Mining 96 54.8 23.0 7.5 - 7.5 9.4 9.4 SUB-SAHARAN AFRICA (continued) as of June 30, 2001 Original commitments Investments held for IFC Fiscal years (Us$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity COTE D'IVOIRE Africa ne De Bourse Finance' 00 t Bank of Africa (COte d'lvo re) Finance' 99 0.2 - - 0.2 0 2 Banque Atlantique-C8te d' voire Finance' 94, 98, 99 9.6 3.5 3.9 - 3.9 Bereby-F nances S.A. Agr culturc' 96 3.0 - 3.0 3.0 Cinergy, SA Utilties 99 40.5 30 3 38 3 - 38 3 Compagnie Ivoirienne de Utilties 95 19.1 - 6.2 1.0 7.2 Producton dtlectrcit6 S.A. Drop Ivoire Food"' 99 1 2 - 1 0 - 1.0 Etabiissements R. Gonfreville, S.A. Textiles' 77, 87 12.0 - - 0.4 0.4 FTG-Filature et Tssage Gonfreville Textiles' 96 - - 0.2 - 0.2 Industrial Promotion Services Funds' 88 0 8 0 8 0.8 (C6te d'lvoire) Multi-Produits S.A. Trade' 94, 97 0.8 - 0.1 0.4 0.5 Ocean Energy, Inc. Oil, Gas, & M.ning 93,95,97,98 48.7 48.7 48.7 Omnium Chimique et Cosmebque Food'0 87, 94,97 9.2 - 1.3 2.4 3.7 (COSMIVOIR') Prtro Ivoire S.A. Utilities 96, 99 1 1 - 0 1 - 0.1 Societe Agro-lndustrie e du Neka Food'0 00 1.0 - 0.8 0.2 0.9 Societe des Caoutchoucs de Agr culture' 00 6.0 - 6.0 - 6.0 Grand-Bereby Societe H6teliere de a Lagune Tourism' 00 2.0 1.5 0.4 2.0 Societe des Industries Food", 88, 90 4.9 1.6 0.4 2.0 A mentaires et Laitieres (SIALIM) Societe Medicalo de Moyens et Health Care 01 11 - 1 1 - 1 1 d'Equipments - SIMMEQ, S.A. Societe Pour le Developpement Agriculture' 97 1.4 1.3 13 Industriel de a Regon d'Odienn6 Texicodi S.A. Textiles- 96 - 0.2 - 0.2 Tropical Rubber Agriculture' 99 3.2 - 24 - 2.4 Union Africaine-IARD Finance' 97 0.3 - - 0.3 0.3 66.1 58.3 124.4 ERITREA Tes nma Share Company Indus/Cons Products' 98 0.6 - 04 0.2 0 6 0.4 0.2 0.6 GAMBIA, THE Kerr Konde Farms Ld. Agriculture' 98 0.1 - 0.1 - 0.1 Kombo Beach Hotel Limited ourism' 84, 90 2,8 - 4.8 n 4.8 Lyefish Company Limited Food"' 95 0.4 - 0.4 - 04 Ndebaan Medi-Servces Company Health Care 94 3.2 - 0.2 - 0.2 Limited 5 4 5 4 as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity GHANA Afariwaa Farms and Livestock Agriculture' 94 0.4 0.2 0.2 Products Limited Antelope Company Limited Chemicals 97 0.3 - 0.3 - 0.3 Billiton Bogosi Gold Limited Oil, Gas, & Mining 88, 90, 91,95 21.2 29.0 t - t CAL Merchant Bank Limited Finance' 90, 91, 93 8.9 - 0.9 0.9 Combined Farmers Limited Agriculture3 93 0.4 - 0.3 - 0.3 Enterprise Life Assurance Finance' 01 0.1 - 0.1 0.1 Company Ltd. (ELAC) Ghana Aiuminium Products Metals' 92 0.4 - 0.4 0.4 Ghana Leasing Company Limited Finance' 93, 94 5.8 - - 1.5 1.5 Ghana Telecommunications Information 01 40.0 60.0 40.0 - 40.0 Company L mited Ghana an Australian Goldfields Oil, Gas, & Mining 90,92,96,97 27.2 18.5 10.5 2.5 13.0 Limited Network Computer Systems (NCS) Information 98 0.7 - 0.6 - 0.6 NIIT Computer Training School Education Services 01 0.2 0.2 - 0.2 Packrite Cartons and Packaging Pulp & Paper 92 0.6 - -t Industries Ltd. Pharmacare Industries Limited Chemicals 00 0.4 - 0.4 0.4 Professional Techn cal Indus/Cons Products' 98 0.3 - 0.3 0.3 Services Limited Shangri-la Hotel Tourism2 95 0.4 - 0.9 - 0.9 Tacks Farms Limited Agriculture' 97 0.4 - 0.4 - 0.4 Wahome SteeJ Limited Metals' 90, 93 5.2 - 0.9 0.4 1.3 55.0 5.9 60.9 GUINEA Agro Investment Company S.A. Agriculture' 98 0.2 0.1 - 0.1 Societe Aurifere de Guinee S.A. Oil, Gas, & Mining 88 8.3 - t - t Soc ete Guineenne d'H6tellerie Tourism2 95, 99 4.5 2.5 0.6 3.0 et d'Investissements 2.6 0.6 3.1 GUINEA-BISSAU Agribissau, S.A.R.L. Agriculture' 95 0.8 0.3 - 0.3 Banco de Africa Occidental, S.A.R.L. Finance' 00 0.3 - - 0.3 0.3 0.3 0.3 0.6 KENYA AAA Growers Limited (Kenya) Agriculture' 00 0.5 - 0.5 - 0.5 AAR Health Services Limited Health Care 98 0.5 - - 0.5 0.5 Alipack Industries Limited Pulp & Paper 92, 93 0.4 - - 0.4 0.4 Anspar Beverages Limited and Food"' 00 2.7 - 2.0 0.7 2.7 Anspar Distributors Limited Bawan Roses Limited Agriculture3 95 0.5 - 0.1 - 0.1 Capital Fish Kenya Limited Food" 95 0.6 - 0.1 - 0.1 Ceres Estates Lim ted Food" 97 0.9 - 0.9 0.9 CFC Bank Limited Finance' 97 10.0 - 10.0 - 10.0 Deras Limited Textiles' 99 1.0 - 1.0 - 1.0 Development Bank of Kenya F nance' 80, 84, 98 16.4 - 9.4 1.3 10.7 Limited (46) 5 SUB-SAHARAN AFRICA (continued) as of June 30, 2001 Original commitments' I-netments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity DIamond Trust of Kenya Limited Finance' 82 0.8 - - 0.8 0.8 East Africa Reinsurance Finance' 94, 99 0.9 - 0.9 0 9 Company Limited Equitea EPZ Company Ltd. Food' 98 0.4 0.2 0.1 0.3 Frigoken Ltd. Transportation, 90 0.1 - 0.1 0.1 Future Hotes L mited Tourism' 93 0.5 - 0.3 - 0.3 Grain Bulk Handlers Limited Transportation' 98 10.0 - 9.1 - 91 Industrial Promotion Serv[ces Funds' 82 0 5 - - 0.5 0.5 (Kenya) Limited International Hotels (Kenya) Tounsm2 95 6.0 4.3 - 4.3 Limited Kep-Rep Bank L mited Finance' 97, 99 1.4 - - 1.4 1.4 Landmark Hotel Limited Tourism2 96 0.5 0.3 - 0.3 Leather ndustries of Kenya Limited Textiles' 84, 92 1.9 - - 0.6 0.6 Lesiolo Grain Handlers Limited Transportation' 01 2 5 2.5 - 2 5 Locland Limited Agr culture' 98 0.6 - 0.4 - 0.4 Mabafb Ro ng Mills Limted Indus/Cons Products6 00 11.5 - 11.5 11.5 The Magado Soda Company Limited Chemicals 96 9.0 - 3 4 3.4 Magana Flowers (K) Limited Agriculturel 00 11 1.1 - 11 Makini School Limited Education Services 97 0.5 - 0 5 - 0.5 Multiple Haulers Limited Transportaton' 99 1.0 - 0 5 - 0.5 Panafrican Paper Mills (E.A ) Ltd. Pulp & Paper 70, 74. 77. 79. 68.5 4 0 23.2 4.5 27.7 81.88.90,94.96 Premier Foods Industries Ud Food0 89 0.1 - - 0.1 0.1 Redhill Flowers (Kenya) Limited Agriculture' 97 0.3 - 0.2 - 02 TPS Holdings Limited Tourism- 72 1.6 0.8 F t Transenergy (Kenya) Lmited Transportation' 99 1.0 - 0.6 06 Tsavo Power Company Ltd. Utilities 92,00,01 17.6 23.5 16.5 1.1 176 98.6 13 0 111.6 LIBERIA Liberian Agricultural Company Agriculture' 00 3.5 - 3.1 - 3 1 Liberian Bank for Development F,nance- 66, 77, 84 0.7 - 0.1 0 1 and Investment 3.1 0.1 3.2 MADAGASCAR Aquacuiture de la Mahajamba Agriculture' 92. 93. 96 6.4 - 1.4 0.6 2.0 (AQUALMA) Bank of Africa Madagascar Finance' 00 1 3 0.5 0.8 1.3 BNI-Cr6dit Lyonnais Finance' 92 2 6 - 2 6 2.6 Madagascar, S.A Financikre d'lnvestissement ARC Funds 90, 91 0.5 - 0.5 C 5 Grands Hotels de Madagascar Tourism' 98 1.1 - 0.6 - C.6 Les P6cheries de Nossi Be, S.A Agriculture, 84, 90 6.3 - 0 2 C.2 Soc,dte dcExploitation Tounsm2 95 0.4 0.2 - C.2 Hotel ere et Tourist que Soc 6t6 Texef ade Mahalunga S.A. Textiles' 77,87 15.0 1.7 - 1.7 4.4 4.7 9.1 * L ; A i & i S 9S as of June 30, 2001 Original commitments& Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity MALAWI City Lodge Limited Tourism' 00 0.6 0.6 - 0.6 Ivy League Developments Ltd. Tourism2 98 0.3 0.2 - 0.2 T/A Ufulu Gardens The Leasing and F nance Finance' 86, 90 0.2 0.2 0.2 Company of Malawi L mited Maravi Flowers Ltd. Agriculture' 97 0.6 0.4 - 0.4 Mwaiwathu Private Hospital Ltd. Health Care 97 0.8 0.8 0.8 National Insurance Company Limited Finance' 00 1.0 - 1.0 1.0 1.3 2.0 3.3 MALI Grand Hotel de Bamako Tourism2 94 1.0 0.2 - 0.2 Grand Hotel 11 Tourism2 98 1.7 - 1.1 - 1.1 Graphique Industrie SA. Pulp & Paper 99 - - 1.3 - 1.3 Groupement des Grands Garages ndus/Cons Products6 97 0.7 - 0.5 - 0.5 de Bamako Hotel Le Rabelais Tourism2 92 - 0.2 - 0.2 Randgold Resources Limited Oil, Gas, & Mining 92, 99 2.0 - - 17.2 17.2 SEF Fibromat-Mali Minerasls 01 0.1 - 0.1 - 0.1 Societe d'Exploitationdes Oil, Gas, & Min ng 95 39.8 25.0 7.0 4.8 11.8 M nes d'Or de Sadiola S.A. Societe Des Mines de Syama S.A. Oil, Gas, & Mining 93, 98 40.0 15.0 10.6 0.5 11.0 Timbuktu Trading and Transport Transportation' 98 0.1 - 0.1 - 0.1 21.2 22.5 43.7 MAURITANIA Banque Mauritanienne pour le Finance' 98 14.0 7.0 - 7.0 Commerce International (BMCI) Codipal S.A. Agriculture' 97 0.5 - 0.5 - 0.5 Complexe Touristique Lemhar S.A. Tourism2 01 0.4 - 0.4 - 0.4 Generale de Banque de Finance' 98, 00 11.2 - 9.0 0.2 9.2 Mauritanie pour l'lnvestissement et le Commerce Mayo Fish S.A. Food" 97 0.3 0.2 - 0.2 Societe pour le Traitement et Food:' 98 0.7 0.6 - 0.6 I'Exportation du Poisson 17.6 0.2 17.8 MAURITIUS Consolidated Steel Limited Metals' 92 0.7 - - 0.2 0.2 Mauritius Fund Limited Funds7 93 4.0 - - 4.0 4.0 Maurit us Venture Capital Fund Funds7 96 1.4 - - 1.4 1.4 Limited Socota Textile M .ls Limited Textiles4 87 6.0 - - 5.6 5.6 MOZAMBIQUE Ausmoz Farm Holdings, Lda. Agrculture' 01 1.0 1.0 - 1.0 Bance de Microfinancas de Finance ' 01 0.2 0.2 0.2 Mocambique (BMF) Banco Internacional De Finance' 98, 00 7.5 7.5 7.5 Mcnambique, Investimentos-SARL BIM - Investimento Finance' 99 0.3 - - 0.3 0.3 Bonar Fisheries Holdings Lda Food" 96 0.3 0.3 - 0.3 Cabo Caju, LDA Food" 00 0.6 - 0.6 - 0.6 Cahora Bassa F sheries Lda Food" 96 0.2 - 0.2 - 0.2 Companhia Agro Pecuar a De Agriculture' 97 2.0 1.6 - 1.6 Mocambique, Lda SUB-SAHARAN AFRICA (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Companhia De Pescas Da Food'" 98 1 0 - 1.0 - 1.0 Zambezia Lda Complexo Turistico Oasis de Tourism> 98 0.7 - 0.7 - 0.7 Xai-Xai Lim tada Hoteis Polana Lim tada Tourism' 93 3.5 - 0.9 - 0.9 Maragra Acucar SARL Food'0 00 10.3 10.3 - 10.3 Mozal S.A.R.L. Meta s9 98, 01 133 0 - 133.0 - 133.0 Rodovi6ria da Be ra Lda Transportation' 99 0 2 - 0 2 - 0.2 149.6 8.0 157.6 NAMIBIA Life Office of Namibia Limited Finance' 92. 98 1 6 - - 1.6 1.6 Nedcor Investment Bank Holding Finance' 01 0.7 - 0.5 0.2 0.7 Pandu Ondangwa Properties Tourism' 99 1.1 - 0.9 - 09 (Pty) Limited Pescanova Holdings of Namibia Food-" 95, 97, 98 11.5 - 6.0 - 6.0 Lim ted 7.3 1.8 9.2 NIGERIA Abuja nternational Health Care 97 2.5 - 1.8 0.7 2.5 Diagnostic Center Andchriste Company Limited Information 97 0.2 - 0.1 - 01 Ansby Nigeria Limited Chemicals 99 0.1 - 0.1 - 0.1 Arewa Text les PLC Textles' 64, 67, 92 6 6 0.7 - 0.6 0 6 Bailey Bridges (Nigeria) L mited Transportation' 96, 99 0.8 - 0.6 - 0.6 Canplas Limited Indus/Cons Products' 93 0.6 - - 02 0.2 Capital A liance Private Equ ty Fund Funds7 00 7 5 - 7 5 7 5 Cit bank Nigeria Finance 01 40.0 - 40.0 - 40.0 Courdeau Catering Nigeria Limited Tourism' 97 0 7 0.2 - 0.2 Diamond Bank Nigeria Finance' 01 20.0 20.0 - 20.0 E. Ekesons Brothers Nigeria Limited Transportation' 97 0.4 0.1 - 0.1 First Securities Discount House Finance' 93 0.9 - - 0.9 0.9 FSB International Bank Finance' 01 22.5 - 22 5 - 22.5 Global Fabrics Manufacturers Limited Textiles' 00 0.3 - 0.3 - 0.3 Guaranty Trust Bank Plc Finance' 01 20.0 - 20 0 20.0 Hercules Manufactunng Nigeria Plastics & Rubber 00 1.3 - 1.3 1 3 Limited Hygeia Nigeria Limited Health Care 00 0.6 - 0.4 0.2 0.5 Ikela Hotel PLC Tourism' 81, 85, 88 12.3 - 1.5 1.5 Investment Banking and Trust Finance' 01 20.0 - 20.0 - 20.0 Company Limited Mid-East Nigeria Limited Minerals 96 0 1 - 0.1 - 0.1 The Moorhouse Company L mited Tourismn 98 1.4 1 3 1.3 Oha Motors (Nigeria) Limited Transportation' 01 0 9 0.9 - 0.9 Radmed D agnostic Center Limited Health Care 98 0 3 - 0.3 - 0.3 Safety Center International L mited Education Services 01 0.5 - 0.5 - 0.5 Tourist Company of Nigeria L mited TourSm2 94 2.5 - t t Vinfesen Industries Nigeria Limited Plastics & Rubber 96 1.0 - 1.0 - 1.0 131.4 11.4 142.9 SENEGAL Banque de l'Habitat du Senegal, S.A. Finance' 80 0.5 - - 0.5 0.5 Ciments du Sahel S A. Minerals 00 16.6 - 14.2 2.1 16.3 Groupe Scolaire Fana cha Education Services 99 t - t - GT Dakar Utilities 98 14 2 11.0 10.9 1 6 12.5 Socidtd d Excpiotation des Food" 96, 97, 99 1.3 - 0.4 0.4 0.9 Ressources Thonieres (SERT) Societe Financiere d'Equipement Finance' 94, 96.97 0.3 - - 03 0.3 Senegal Tanneries S.A Textiles' 98 0.4 - 0.2 - 0.2 25.7 49 30.6 49 i W-1 E =S1 * * as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years tUS$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other ama, and obligor Sector were made IFC cations Loans (at cost) equity SEYCHELLES Acajoux Hotel Limited Tourism' 95 1.0 0.5 - 0.r Beau Vallon Properties Ltd. Tourism' 96 3.3 - 1.8 - 1.8 Sea Harvest (Pty) Limited Food" 97 1.0 - 0.5 - 0.5 Seychelles International Mercantile Finance' 99 10.0 - 7.1 - 7.1 Banking Corporation Limited 9.9 9.9 SIERRA LEONE Sierra Rutle Limited Oil, Gas, & Mining 92 10.5 1.2 - 1.2 1.2 1.2 SOUTH AFRICA AEF-Darge Timbers Indus/Cons Products' 99 0.6 0.3 - 0.3 (Proprietary) Limited African Life Assurance Company F nance' 95, 96, 99 20.7 - 18.1 18.1 Limited Carosa Farm (Proprietary) Limiteo Agriculture' 97 0.6 - 0.1 0.1 0.2 Credit and Savings Help Bank Finance' 97, 99 16.9 - 10.4 3.4 13.8 Dargle Timber (Pty) Limited indus/Cons Products6 92 - - - 0.2 0.2 DBS Consult 'Pty) Ltd Services' 00 0.8 - 0.8 0.8 Eerste River Medical Center Health Care 98 1.0 - 1.0 1.0 Energy Afrca Limited Oil, Gas, & Mining 92 - - 38.0 38.0 First Rand Bank Ltd Finance' 92 30.0 - 30.0 - 30.0 Foxtrot Meat Processors Foodi" 99 0.4 - 0.3 - 0.3 (Proprietary) Limited IHS Technologies IPty) Ltd. Services" 00 1.3 - 0.4 0.6 1.1 Kiwane Capital Holdings Limited Finance' 01 9.2 - 8.7 - 8.7 Lesedi Private Hospital ITD Health Care 98 0.2 0.1 - 0.1 Printabilty Pulp & Paper 01 6.9 - 3.1 3.9 6.9 Roodepoon Hotel Limited Tourism' 99 0.4 0.3 - 0.3 Rubico (Pty) Ltd. Information 01 5.0 - 5.0 5.0 Sordale (Proprietary) Limited Food' 98 0.4 - 0.3 0.3 tYa Hydrotec South Africa Capital Growth Fund Funds' 96 20.0 - 2.6 2.6 South Africa Franchise Equ ty Funds7 95 2.1 1.6 1.6 Fund Limited South Africa Franchise Funds' 95 T -t Management Company Limited South Afrca Home Loans Finance' 00 2.4 - 2.4 2.4 South Africa Home Loans - Finance' 01 6.6 6.6 6.6 Loan Facility South Africa Private Equity Fund Funds' 99 35.0 35.0 35.0 Tusk Construction Support Services" 01 1.7 1.6 0.1 1.7 Services of South Africa 62.3 112.7 175.0 SWAZILAND Natex Swaziland Linmited Textiles' 85, 88, 93 13.6 4.2 f 4.2 Swaz Paper M s L mited Pulp & Paper 95 5.0 1.3 - 1.3 Swazi Wattle Industries (Pty) Ltd Chemicals 01 0.9 0.7 0.2 0.9 Swaziland Industrial Finance' 87, 93 3.3 0.2 1.0 1.3 Development Company Limited The Royal Swaziland Sugar Food" 78, 86 10.0 - 0.5 0.5 Corporation Limited 6.4 1.8 8.2 51 SUB-SAHARAN AFRICA (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity TANZANIA Abercrombie & Kent Tanzania Tourism' 96, 00 0 8 - 0.2 - 0.2 Limited Aqva Ginners Tanzania Ltd. Agriculture' 97 0.8 - 0.7 - 0.7 Blue Bay Company Limited Tourism' 99 1 5 - 1.5 - 1.5 Boundary Hill Lodge Ltd Toursm' 01 0.2 - 0.2 - 0.2 Continental Flowers L mited Agriculture3 97 0.4 - 0.3 - 0.3 Datel Tanzan a Limited Information 97 2.8 - 0.9 0.5 1.4 Drop of Zanzifar Ltd Food" 98 0.4 - 0.3 - 0.3 Eurafrican Bank (Tanzania) Finance' 96 0.7 - - 0.7 0.7 Limited Horiculture Farms Limited Agriculture3 97 0.8 - 0 3 - 0.3 Indian Ocean Hotel Limited Tourism' 00 2.5 - 2.5 - 2.5 International House Property Construction & 97 2.3 - 1.1 0.6 1.7 Limited Real Estate Jubilee Insurance Company of Finance- 98 0.3 - - 0 3 0.3 Tanzania Maji Masafi Limited Food' 98 1.1 - 0.3 - 0.3 Milcafe Limited Agricu ture3 97 0.3 - 0.2 - 0.2 Mostii Leather Irdustries Limited Textiles' 95 0.2 - 0.2 0 2 Musoma Fish Processors Ltd Agriculture, 99 1.5 1.5 - 1.5 National Bank of Commerce Finance' 01 10.0 - - 10.0 10.0 Pallsons Consumer Industries Agriculture' 97, 99 1.0 0.6 - 0 6 Limited Tanzania Breeders and Food'& 95 1.0 0.7 - 0.7 Feedmills Limited Tanzania Breweries Inmited Food" 95 60 - - 6.0 6.0 Tourism Promotion Services Tourism' 94 8.9 7.6 0.9 8.5 (Tanzania) Limited Tourism Promotion Services Toursm2 95, 99 1.4 - 09 0.2 1.1 (Zanzibar) Limited ULC (Tanzania) Limited Finance' 97 4.0 - 0.4 0.9 1.3 Zainab Grain Millers Limited Food'" 96 1.0 - 0.8 - 0.8 Zanzibar Safari Club Limited Tourism' 00 0.7 - 0.7 - 0.7 21.6 20.3 41.9 TOGO West African Cement S.A. Minerals" 00 5.7 - 4.5 1.2 5.7 4.5 1.2 5.7 UGANDA Agro Management (Uganda) Limited Chemicals 96 1 0 0 6 0.4 1.0 CelTel Limited (Uganda) Information 95, 01 10.3 3.5 1.3 4.8 Clovergem Fish and Foods Limited Food-' 93 1.0 - 0.8 - 0.8 Conrad Plaza Limted Construction & 97 1.5 1.0 - 10 Real Estate Development Finance Company of Finance' 92, 85, 93 1.0 - - 1.3 1.3 Uganda Limited Executive Investments Ltd. Construction & 98 1.0 - 0.9 - 0.9 Real Estate Gomba Fishing Industries Ltd Agriculture' 99 1.4 - 1.4 - 1.4 Jubilee Insurance Company Finance' 93 0.1 - - 0.1 0.1 Uganda Limited Kabofja Junior School Ltd. Education Services 01 0.4 - 0.4 - 0.4 Kampala Flower Growers Limited Agriculture' 98 0.5 - 0.5 0.5 Kasambya Coffee Gross Ltd. Food"' 00 1.0 - 1.0 - 1.0 Kasese Cobalt Company Limited Oil. Gas, & Mining 98 19.6 10./ 3.6 143 Kiwa Industries Limited Minerals" 98 0.3 0.1 - 0 1 * :. .& i. s !. * .;: as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millions) (uS$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other ama, and obligor Sector were made IFC cations Loans (at cost) equity Ladoto Ginners L mited Agriculture' 00 0.8 - 0.8 0.8 Long Freighters Limited Transportation' 01 0.8 - 0.8 - 0.8 Mosa Court Apartments Limited Construction & 98 0.8 - 0.6 - 0.6 Rea Estate Nile Roses Ltd. Agriculture' 93 0.3 - 0.2 - 0.2 Rainbow International Schoo Education Services 95 0.8 - 0.8 - 0.8 Kampala Limited Rwenzori Properties Limited Construction & 94 1.0 - 0.3 - 0.3 Real Estate Skay Lectronics Mfg (U) Indus/Cons Products6 99 0.2 - 0.2 - 0.2 Limited Skyblue Apart-Hotel Tourism2 94 0.5 - 0.5 0.5 Sugar Corporation of Uganda Food'3 84 10.4 - 4.0 - 4.0 Limited Tilda (Uganda) Lim ted Agriculture' 99 2.4 2.2 - 2.2 Uganda Leasing Company Limited Finance' 95, 97 2.3 - 1.0 - 1.0 Western Highlands Creameries Ltd. Food-' 00 0.5 - 0.5 - 0.5 Wite Nile Dairies (U) Limited Food" 99 0.3 - 0.3 - 0.3 33.0 6.7 39.7 ZAMBIA AEF Esquire Agriculture3 00 0.5 0.3 - 0.3 Africa Plantations Company Agriculture' 00 2.5 2.5 - 2.5 Limited and African Highlands Plantations Company Limited Amaka Cotton Ginneries Limited Agriculture3 99 1.3 - 1.3 - 1.3 Big Fve Car H re Zambia Limited Finance' 94 0.6 - 0.5 - 0.5 Drilltech Engineering Limited Oil, Gas, & Mining 99 0.1 - 0.1 0.1 0.3 Finance Bank Zambia L mited Finance' 97 2.5 - 0.8 - 0.8 Intermarket Discount House Finance' 97 0.5 - - 0.5 0.5 (Zambia) Limited JY Estates Limited Agriculture' 98 0.9 - 0.9 - 0.9 Kafue Textile of Zambia Limited Textiles' 80, 85 10.5 - 5.7 - 5.7 Kaila Lodge Limited Tourism2 95 0.2 - 0.1 - 0.1 Konkoa Copper Mines Plc Oil, Gas, & Mining 00 30.4 - 25.1 5.3 30.4 Marasa Holdings Limited Tourism' 01 4.6 - 4.6 - 4.6 National Insurance Company Finance' 99 0.3 - 0.3 0.3 (Zambia) Limited Pentire Investments Limited Tourism2 98 0.7 - 0.5 - 0.5 Zambia Bata Shoe Company Textiles' 72, 73 1.1 1.1 - 0.2 0.2 L mited Zamcell Zambia Ltd. Information 99, 00 8.8 - 7.8 1.0 8.8 50.3 7.5 57.8 ZIMBABWE Agflora (PVT) Limited Agriculture3 97 0.2 - 0.2 - 0.2 Bell Med cal Centers Limited Health Care 92 0.8 - - 0.8 0.8 Belvedere Maternity Home (PVT) Ltd. Health Care 99 0.2 - 0.2 0.2 Bitumen Construction Seivices Construction & 95 1.1 - 0.1 - 0.1 (Pvt) Ltd. Real Estate Chiparawe (Private) Limited Agriculture' 94 0.8 - 0.1 - 0.1 Commercial Bank of Zimbabwe Finance' 98 27.0 - 20.0 7.0 27.0 Limited Deraswiss Zimbabwe (Pvt) Ltd. Textiles2 00 0.9 - 0.8 - 0.8 First Merchant Bank of Finance' 91, 98 30.6 15.0 9.2 - 9.2 Zimbabwe Limited Hy-Veio Holdings (Pvt) Ltd Food'l 99 1.3 - 1.3 - 1.3 Interfresh (Private) Limited Food2 94, 96 3.9 - 0.7 0.7 Isfar (Pvt) Limited Text es' 97 0.1 0.1 - 0.1 SUB-SAHARAN AFRICA (continued) as of June 30, 2001 Original commitments Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Itachi Plastics (Pvt) Limited Plastics & Rubber 96 0.4 - 03 0.1 0.3 Lowveld Leather (PVT) L mited Textiles' 97 0.5 - 0.3 0.2 0.5 National Merchant Bank of Finance' 94 5.5 - 0.2 0.2 Zimbabwe Ltd. Shagelok Chemicals (PVT) Limited Chemicals 97 1.0 0.9 0.2 1 0 Stone Holdings (Pty) Ltd. Oil, Gas, & Mining 96 1.5 1.4 - 1.4 Trinidad Industries (Private) Limited Chemicals 97 1 4 - 0.7 0.6 1.3 UDC Limited Finance' 85, 87, 88, 96 17.4 - 5.0 - 5.0 Venture Capital Company of Funs7s 91 0.5 - - 0 5 0.5 Zimbabwe, Ltd. Victoria Falls Safari Lodge Tourism' 94 2.8 - 0.6 0.4 1.0 Hotel (Private) Ltd. Zambezi Fund Management Funds' 97 - - t (Private) Limited The Zambezi Fund Mauritius Funds7 97 2.5 - 2.5 2.5 (Private) Limited Zambezi Safa i Lodges Tourism' 96 1.3 10 - 1.0 (Private) Limited 42.0 13.3 55.3 REGIONAL INVESTMENTS The Africa Emerging Markets Fund Funds' 94 7.5 - 7.5 7.5 African Infrastructure Fund Funds' 00 74.8 - 74.8 74.8 AIG African Infrastructure Funds7 00 0 2 - 0.2 0.2 Management AIG East Africa Mutual Fund Funds- 99 7.5 - 7 5 7.5 AIG Global Investment Company Funds' 99, 01 0.3 - 0.3 0.3 (East Africa) Limited Ecobank Transnational Incorporated Finance' 99 7.5 - 3.8 3.8 7.5 Framlington Asset Management Funds' 99 5 - - West Africa SA Mining and Contracting Services C , Gas, & Mining 01 34.0 40 0 30.0 4.0 340 Mobile Systems International Information 00 13 3 - - 13 3 13.3 Cellular Investments Holdings, B.V. Societe de Promotion et de Finance' 99 19.9 19.1 - 19.1 Participabon pour la Cooperation Economique S.A. West Afrca Growth Fund Funds' 97 6.3 - - 6.3 6.3 52.9 127.7 170.6 Total for Sub-Saharan Africa 1,029.2 425.2 1,454.4 I *I as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity BANGLADESH Delta BRAC Hous ng Finance Finance' 98 3.2 - 2.5 0.7 3.2 Corporation Ltd. Dynamic Textile Industries Limited Textiles' 92 2.5 2.0 1.9 - 1.9 GrameenPhone Limited Information 00 18.2 - 16.7 1.6 18.2 Industrial Development Leas ng Finance' 85,96 3.2 - - 0.1 0.1 Company of Bangladesh Limited Industrial Promotion and Finance' 82, 99 11.1 - 9.4 1.1 10.4 Development Company of Bangladesh Limited Khu na Power Company Limited Utilities 99 22.5 29.4 19.1 - 19.1 Scancement International Ltd. Minerals"' 01 10.0 - 10.0 - 10.0 59.5 3.4 62.9 CAMBODIA ACLEDA Bank Finance' 00 0.5 - - 0.5 0.5 0.5 0.5 CHINA Bank of Shangha Finance' 00 25.6 - - 25.6 25.6 Beijing Hormel Foods Company Food 97 5.5 5.5 3.2 0.5 3.7 Limited Caltex Ocean Gas & Energy Limited Chemicals 99 21.0 45.0 21.0 - 21.0 Chengdu Huarong Chemical Chemicals 99 10.6 8.6 7.4 3.2 10.6 Company Limited Chengxin International Credit Finance' 99 0.4 - - 0.4 0.4 Ratings Limited China Dynamic Growth Fund L.P Funds7 94 12.4 - - 10.0 10.0 China Infrastructure Group Transportation, 99, 00 4.5 - 4.5 4.5 Holdings PLC. China Walden Management Limited Funds' 94 * China Walden Venture Funds7 94 7.5 - - 3.9 3.9 Investments Limited Dalian Float Glass Company Limi:ed Minerals" 95 32.9 30.5 - 2.4 2.4 Dupont Suzhou Polyester Co. Ltd. Textiles4 96 29.1 52.0 15.6 4.1 19.7 Elkem Carbon China (ECC) Chemicals 00 8.0 6.0 6.3 1.7 8.0 Hansom Investment Limited Transportation' 99 16.1 - - 16.1 16.1 Jingyang Cement Co. Ltd. Minerals"l 97 40.0 100.0 37.5 - 37.5 Lafarge Dujiangyan Cement Minerals" 00 25.6 30.0 25.6 - 25.6 Company Limited Leshan Zhen Jing Leather Textiles' 99 2.0 - - 2.0 2.0 Product Company Limited Nanjing Kumho Tre Co. Ltd. Plastics & Rubber 96 17.4 38.8 8.8 3.8 12.6 New China Life Insurance Co., Ltd Finance' 92 30.7 - - 30.7 30.7 Newbridge Investment Partners, L.P. Funds7 95 6.7 - 2.1 2.1 Ningbo Tanang Agricultural Agriculture' 98 2.0 - - 2.0 2.0 Products Co. Ltd. Orient Finance Company, Ltd. Finance 97 10.0 20.0 11.4 - 11.4 Pacific Ports Company Limited Transportation' 92 - - - 2.5 2.5 Plantation Timber Products Indus/Cons Products' 99 12.6 25.4 12.6 - 12.6 (Hube ) L mited Plantation limber Products Indus/Cons Products' 00 1.5 - - 2.5 2.5 Holdings Limited Scana Leshan Machinery Co.,Ltd. Metals' 99 7.4 - 6.1 1.4 7.4 Shangha Hormel Foods Co. Ltd.* Food" 98 (0.5) (0.5) 1.4 - 1.4 Shanghai Krupp Stainless Metals' 00 30.0 68.8 30.0 - 30.0 Company Limited ASIA AND THE PACIFIC (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in Which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Shanxi Interntional Cast ng Co., Ltd. Indus/Cons Products' 00 19.0 19.0 - 19.0 Shenzhen China Bicycles Indus/Cons Products' 88, 92, 94 20.9 - 8.5 - 8.5 Company (Holdings) LUmited Shenzhen Tai-Yang PCCP Company Minerals'- 93 5.0 - 3.8 1.0 4.7 Limited Sichuan SME Investment Fund Funds' 92 6.0 - 6.0 6.0 Suzhou Huasu Plastics Co., Ltd. Chemicals 97 24.5 22.2 16.5 2.5 19.0 Weihai Weidongr. Comprehensive Food" 96 4.5 5.1 2 5 - 2.5 Foodstuff Co., Ltd. Wuhan International Container Transportation' 99 5.0 5.0 5.0 - 5.0 Transshipment Company Limnted Yantai Mitsubishi Cement M nerals' 93 30.7 - 9.3 2.0 11.3 Compary Limited 251.4 130.9 382.3 FIJI Hillview Limited Toursmn 99 3 9 - 3.3 - 3.3 Solander (Pac fic) Ltd. Food' 97 0.3 - 0.1 - 0.1 3.4 3.4 INDIA The Ahmedabad Electricity Ut ties 89 20.8 - 4.8 - 48 Company Limited Ambuja Cement Rajashtan Ltd. Minerals-' 94 19.4 17.0 1.6 4.9 6.5 The Arvind Mils Limited Textiles' 92, 93 20 9 - - 8.5 8.5 Asian Electronics Ltd. (AEL) Indus/Cons Products' 98 5.5 - - 5.5 5.5 Basix Ltd. Finance' 01 1.0 - 1.0 1.0 Bihar Sponge Iron Ltd. Metals' 85,91 15.9 9.9 0.7 10.6 CEAT Financial Services Ltd. Finance' 97 20.0 - 19.6 - 19.6 Centurion Bank Lim;ted Finance' 95, 97 18.9 - 5 5 4.7 10.2 CESC Lumited ULtilites 91, 93 54.7 67.0 29.7 - 29.7 Chinai Chemicals Lim ted Indus/Cons Products' 00 1.0 - 1.0 - 1.0 Chowgule Steamships Ltd. Transportation' 95 19.2 26.4 10.8 4.6 15.4 City Mills (Provate) Ltd. Textiles' 87 0.7 - 0.5 . 0.5 Continentals Carbon India Limited Chemicals 01 9.0 11.5 9.0 - 9.0 Duncan Gleneagles Hospitals Limited Health Care 98 7.0 - 7.0 7 0 Eurolight Electricals Pvt. Ltd. Indus/Cons Products' 98 t - - t Export-Import Bank of Ind a F nance' 95 25.0 9.1 - 9.1 GE Capital Transportation Finance' 95 19 4 5 0 4.4 9.4 Financial Services Ltd. GKN Invel Transmissions Limited lndus/Cons Products' 88, 95 1.4 - - 1.4 1.4 Global Trade Finance (Pvt.) Lim ted Finance' 01 2.4 - - 2.4 2.4 Global Trust Bank Finance' 91, 94,98, 00 38.2 - 25.0 12.1 37 1 The Great Eastern Sh pping Transportation' 87,93,94 28.9 11.3 10.6 10.6 Company Limited Gujarat Ambuja Cements Ltd. Minerals" 94 25.8 - - 7.3 7.3 GVK Industnes Ltd. Utilities 92, 96 37.5 38.8 20.0 7.5 27.4 Henkel SPIC India Ltd. Chemicals 91, 95, 00 4.7 - - 4.7 4.7 Herdillia Oxides and Chemicals 91 0 3 - - 0.3 0.3 Electronics Limited IFGL Refractories Limited Mineralsl' 92, 94 1.1 - 0.3 0 3 IL&FS Venture Corporation L mited Funds' 93, 95 1.0 - 1.0 1.0 IndAsia Fund Advisors Pvt. Ltd. Funds' 01 15.0 - 15.0 15.0 The India Auto Ancillary Fund Funds' 99 2.3 - 2.3 2.3 The India Direct Fund, L.R Funds' 96 7.5 7.5 7,5 A A . . 9 **'i i! al as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity India Lease Development Lim ted Finance' 86, 91, 95 4.6 - - 0.9 0.9 Indian Seamless Metals' 01 11.2 - 10.5 0.7 11.2 Indo Rama Synthetics Ltd. Textiles' 92, 94, 96 56.8 - 18.8 12.0 30.7 lndus Insestments Mauitius L.mited Funds7 96 t - - X X Indus Venture Capital Fund I Funds' 92 1.0 - - 0.9 0.9 Indus Venture Investments Limited Funds' 96 5.0 - - 5.0 5.0 Indus Venture Management Limited Funds' 92 t - I t Information Technology Fund Funds' 94 0.6 - 0.6 0.6 Infrastructure and Development Finance' 98 15.5 - 15.5 15_5 Finance Company Limited Infrastructure Leasing & Finance' 91, 93, 95, 99 48.0 - 9.8 8.0 17.8 Financial Services Lirnited Ispat Industries Limited Metals' 92, 95, 97 62.9 30.4 15.4 45.8 ITW Signode India Limited Indus/Cons Products6 82, 86, 87, 91, 4.5 - 1.0 1.0 93, 96 J. M. Share & Stock Brokers Limited Finance' 90. 95 2.4 - 1.2 1.2 Jet Airways (P) Ltd. Transportation' 01 15.0 - 15.0 15.C Learn ng Universe Pvt. Lirn ted Education Services 01 0.3 - - 0.3 0.3 Mahindra & Mahindra Limited Induis/Cons Products' 81, 90, 93 28.8 - - 4.6 4.6 Mahindra Infrastructure Utilities 01 10.0 - - 10.0 10.0 DeveJopers Limited Moser Baer India Lim ted Indus/Cons Products' 96, 99, 00 59.1 - 36.0 24.9 61.0 Nicco Uco All ance Credit Limited Finance' 93,96,97,98 8.5 5.0 5.1 0.5 5.6 NSL Limited Metals' 82 1.4 - 0.1 0.1 Orchid Chemicals & Chemicals 01 30.0 - 30.0 - 30.0 Pharmaceut cals Limited OutreachNet.com, Inc. Information 01 2.0 - 2.0 2.0 Owens-Cornng (India) Ltd. Minerals" 97 25.0 - 25.0 - 25.0 Prism Cement Limited Minerals' 95 20.0 15.0 13.1 5.0 18.1 Rain Calcining Limited Chemicals 96 24.7 - 16.3 5.5 21.8 RPG Communications Hodings Ltd Information 96, 98 11.2 - 11.2 11.2 South Asian Regional Apex Fund Funds7 96 5.9 - 5.9 5.9 SREI Internationa Finance Limited Finance' 98, 00 33.0 - 28.9 3.0 31.9 SteuerungAnlage Pvt. Ltd. Indus/Cons Products' 98 0.1 - 0.1 0.1 Sundaram Finance Ltd. Finance' 86, 93, 94, 95 3.8 - 0.2 - 0.2 Sundaram Home Finance Limited Finance' 00 2.2 - - 2.2 2.2 Switching Tecnnologies Gonther Ltd. Indus/Cons Products6 87 1.0 - 0.3 - 0.3 Tanflora Infrastructure Park L mited Agriculture' 00 0.5 - 0.5 0.5 Tata Electric Companies Utilities 90, 91, 94 130.6 - 17.0 - 17.0 The Tata Iron and Steel Metals9 81, 86, 89, 98.4 16.7 - 7.7 7.7 Company Limited 93, 94 Taurus The Starshare Funds' 94 7.2 - - 2.5 2.5 TCW/ICICI India Private Equity Funds7 98 10.0 - - 8.1 8.1 Fund, L.L.C. Technology Development and Funds7 91 2.1 - - 0.5 0.5 Information Company of India Limited Ttan Industries Limited Indus/Cons Products' 87, 89,90,93 20.9 1.0 1.0 UCAL Fuel Systems Limited Indus/Cons Products' 90 0.6 - - 0.5 0.5 United Riceland Limited Food" 96 10.0 - 10.0 - 10.0 Varun Shipping Company Limited Transportat on 91,96,01 22.8 6.0 0.4 1.3 1.7 Vysya Bank Finance' 01 7.3 - - 7.3 7.3 Walden-Nikko Holdings Co. Funds7 98 t - I t Walden-Nikko India Ventures Co. LDC Funds7 98 5.0 - - 5.0 5.0 410.1 292.8 702.9 ASIA AND THE PACIFIC (continued) as of June 30, 2001 Original comritmentos I-eetmentn held for IFC Fiscal years ZUS$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity INDONESIA RT ABS Finance Indonesa Finanice' 95 1.3 - - 1.3 13 PT. AdeS Alfindo Putrasetia Tbk. Foodt 98 13.8 19.7 7.0 7.0 PT Agro Muko Food' 91 12 7 - - 2 2 2.2 RT Alum ndo Light Metal Industry Metals' 97 150 20.0 15.2 - 15.2 P.T. Asia Wisata Promosindo2' Tourism2 94 - - 2.0 - 2.0 P.T. Astra Graphia Servwces 97 2.5 - - 2.0 2.0 PT. Astra International, Tbk. Indus/Cons Products' 90, 91, 94 33 3 - 12.2 12.2 PT. Astra Otoparts Tbk Indus/Cons Products' 97 - - - 1.1 1.1 PT. Asuransi Jiwa Dharmala Finance' 88 0.3 - - 0.3 0.3 Manulife PT. Bakrie P pe Industries Metals' 95 29.5 26,6 - 26.6 P.T. Bank NISP Finance' 98, 01 15.0 - 5.5 5.0 10.5 P.T. BBL Dharmala Finance Finance' 93, 96 20.0 35.0 11.4 - 11.4 PT Berlian Laju Tanker tbk Transportation' 98 28.2 25.2 7.9 20.0 27.9 PT. Bunas Finance Indonesia Tbk. Finance' 95 10.0 6.0 4.5 - 4.5 Ciluluk Village Texti es' 01 t - t - F PT. Dharmala Agrifood Food" 96 20.0 10.0 20.0 20.0 PT. Danlia Setyamukti Oil, Gas, & Mining 01 5.0 - 5.0 - 5.0 PT. Grahawita Santka Tounsm- 96 11.8 - 8.8 - 8.8 PT. Indonesa Asahi Chemical Textiles' 92 5.4 - - 1.4 1.4 Industry PT Indorama Synthetics Textiles' 92, 90,91,95,99 98.8 67.5 31.3 11.8 43.1 PT. Kalimantan Sanggar Pusaka Food' 97 35.0 6.0 20.0 15.0 35 0 (KSP) and Subsidiaries PT. KDLC BancBali F nance Finance' 94 16.1 - - 1.7 1.7 PT. KIA Keramik Mas Minerals" 92, 94, 96 30.9 63.5 17.2 9.0 26.2 PT. KIA Serpih Mas Minerals" 95 21.2 55 0 15 0 6.2 21.2 PT Makro Indonesia Trade 97, 00 1 3 - - 3.8 3.8 PT. Megaplast Jayacitra Indus/Cons Products' 99 11.3 - 8.8 2.5 11.3 PT. Nusantara Tropical Fruit Agricultureu 93 8.6 6.7 3.2 - 3.2 P.T. Pama Ventura Indonesia Funds 94 0.7 - - 0.7 0.7 PT. Panca Overseas Fnance Tbk Finance' 96 7.9 8.0 5.1 1.9 7.1 PT Pramindo Ikat Nusantara Information 97 58.2 70.0 50.0 8.2 58.2 Prudential Asia Indonesia Trust Funds' 94 4.2 - - 2.2 2.2 PT. Rimba Partikel Indonesa Indus/Cons Products6 92 10.5 10.0 - 0.6 0.6 P.T. Samudera Indonesa Transportation' 93 17.0 3.0 - 5.0 5.0 PT. Sayap Mas Utama Chemicals 98 10.0 20.0 9.2 - 9.2 SEAV Indonesia Aruba A V.V Funds7 93 1.5 - - 1.4 1.4 PT. Semen Andalas Indonesia Minerals" 80, 88 33.5 28.5 5.3 t 5.3 PT Sigma Cipta Caraka Services"2 01 3.0 - - 3.0 3.0 RT South Pacific Viscose Chemicals 93, 96 45 0 60.0 27 7 - 27 7 PT. Wings Surya Chemicals 98 8.7 21 3 8.0 - 8.0 307.7 125.6 433.3 * * ' i1 as of June 30, 2001 Original commitments Investments held for IFC Fiscal years (US$ millions) (us$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity KOREA, REPUBLIC OF Cheil Jedang Investment Trust Finance' 01 44.6 - 15.4 28.5 43.9 & Securities Dae Chang Industrial Co. Ltd. Metals' 99 22.4 9.8 15.3 7.1 22.4 Good Morning Securities Co. Ltd. Finance' 99 20.3 - 20.3 - 20.3 Hlalim & Co., Lt. Food 0 99 20.0 - 14.0 5.1 19.1 Hana Bank Finance' 71, 74, 76, 79, 93.5 65.0 30.0 16.6 46.6 80, 82, 85, 89, 91,94.97,98,99 llj n Electric Co., Ltd. Indus/Cons Products6 99 15.0 - 9.0 1.2 10.2 Kookmin Bank Finance' 68, 74, 76, 77, 66.0 8.9 12.5 12.5 25.0 78, 80, 90, 94, 98, 00 Korea Asset Capital Management Funds' 99 0.6 - - 0.6 0.6 Co., Ltd. Korea Development Leasing Finance' 77, 79, 87, 24.8 10.0 15.4 - 15.4 Corporation 90, 00 Korea Growth and Restructuring Funds' 00 35.0 - 35.0 35.0 Fund, L.P Korea Mortgage Corporation Finance' 01 55.1 - 41.6 8.8 50.4 Sam Kwang Chemical Company Ltd. Chemicals 85 0.1 - - 0.1 0.1 Shinmoor m Paper Manufacturing Pulp & Paper 99, 00 41.4 8.0 25.0 16.4 41.4 Co., Ltd. SOGEKO Finance' 00 20.0 61.0 4.6 - 4.6 203.1 132.0 335.0 LAO PEOPLE'S DEMOCRATIC REPUBLIC Belmont Hotel Investments Tourism2 98, 01 1.2 - 1.2 - 1.2 (Laos) Limited Burapaha Agro-Forestry Co. Ltd. Indus/Cons Products6 99 0.8 - 0.8 0.8 Endeavour Embroidery Co. Ltd. Textiles4 99 0.1 - 0.1 - 0.1 Villa Santi Tourism2 01 1.1 - 1.1 - 1.1 3.2 3.2 MALAYSIA Maiaysian Ventures (Two) Sdn Bhd. Funds 92 1.0 - 0.3 0.3 Malaysian Ventures Management Funds' 92 - Incorporated Sdn. Bhd. 11 0.3 0.3 MALDIVES Villa Shipping and Trading Tourism2 96 6.0 - 2.4 - 2.4 Company (Pvt) Ltd. 2.4 2.4 MONGOLIA G&M Industral Ltd. Textiles' 97 1.3 - 1.1 0.2 1.3 1.1 0.2 1.3 ASIA AND THE PACIFIC (continued) as of June 30, 2001 Original commitments Investments held for IFC Fiscal years (uS$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity NEPAL Bhote Koshi Power Company Ut ites 98 24.0 36.0 20.2 3.0 23.2 Private Limited H mal Power Limited Utilifies 96 32.5 - 31.8 - 31 8 ILFC - Nepal Finance' 01 0.3 - - 0.3 0.3 Jomsom Mountain Resort (P) Ltd. Toursm' 98 4.0 - 4.0 - 4.0 Soaltee Hotel Limited Tourism' 75, 93 3.9 - - 0 4 0.4 56.0 3.7 59.7 PACIFIC ISLANDS Kula Fund Limited Funds' 98 3.0 - 3.0 3.0 3.0 3.0 PAKISTAN AES Lalpir Limited Utilities 95 49.5 - 33 8 9.5 43.3 AES Pak Gen (Private) Company Ufilities 96 29.5 48.3 16.8 9.5 26.3 Atlas Investment Bank F nance- 96 5.0 - 3.1 - 3.1 Atlas Lease Limited F nance- 94 10.0 2.2 3.0 0.4 3.4 BRR International Modaraba Finance' 92. 94, 96 15.8 3.8 15.0 0.8 158 BRR lnvestments (Pvt) Lim ted Funds' 92 - - 0.2 0.2 BSJS-AIM Asset Management Funds' 95 0.3 0.3 0.3 Company The BSJS Balanced Fund (BBF) Funds' 96 0.5 0.5 0.5 Central Depository Company of Finance' 93 0.2 - - 0.2 0.2 Pakistan Limited Crescent Greenwood Ltd. Textiles' 94,97 21 2 10.0 11.8 5.1 169 Crescent Investment Bank Finance' 96 12.0 5.0 7.5 - 7.5 D.G. Khan Cement Company Minerals" 92, 95, 96 30.6 40.2 22.6 5.5 28.1 Limited Engro Asahi Polymer and Chemicals 98 8.0 - 8.0 - 8.0 Chemicals (Prvate) Limited Engro Chemical Pakistan Limited Chemicals 91, 95. 97 55.1 14.0 9.2 3.9 13.1 Fngro Vopak Terminal Limited Transportaton' 97 10.9 4.5 8.1 - 8.1 Fauji Cement Ltd. Minera 5"' 94 29.0 20.0 22.4 5 0 27.4 First Crescent Modaraba Finance' 96 5.0 3.8 5.0 - 5.0 First International Investment Finance' 90, 92, 96 4.6 - 1.7 1.5 3.2 Bank Limited First Leasing Corporation Limited Finance' 94,97 5.7 - 1.3 1.7 2.9 First UDL Modaraba Finance' 96 10.0 7.5 10.0 - 10.0 Gul Ahmed Energy Limited Utilities 96 311 35.0 21.6 4.1 25.7 Hala Spinning Lim ted Textiles' 89 3.9 - 3.5 - 3.5 International Housing Finance Finance' 92, 95 7.4 - 1.7 0.9 2.6 Limited Jahangir Siddiqui & Co. L mited Finance- 93, 96 1.1 - - 1.1 1.1 Kohincor Energy Limited Utilities 95 31.3 36.6 18.8 6.3 25.1 Maple Leaf Cement Factory Limited Minerals-' 94, 95, 97 35.7 35.0 27.7 5.7 33.4 Mari Gas Company Limited Oil, Gas. & Mining 86, 92 25.5 6.7 1.4 - 1.4 Muslim Commercial Bank Limited Finance' 93 7.5 - 1.9 - 1.9 National Development Leasing Finance' 85, 94 12.9 3.3 3.5 1.3 4.8 Corporation Limited (D X;A *A * .gm as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity ORIX Investment Finance Finance' 96 0.6 - - 0.6 0.1- Company Pakistan Limited Orix Leasing Pakistan Limited F nance 94 12.5 3.3 3.5 1.3 4.E. Packages Limited Pulp & Paper 65, 81, 82, 87, 44.8 20.1 6.8 3.5 10.- 92, 94, 95 Pakistan Credit Rating Agency Finance 94 0.1 - - 0.1 0.1 Pakistan Industria & Finance' 94 5.0 1.9 - 1.c Commercial Leasing Limited Pakistan Industrial Leasing F nance' 91, 94, 95 15.5 2.2 3.1 1.0 4.2 Corporation Limited Pakistan Petroeum Limited Ol, Gas, & Mining 83, 85, 95 42.9 85.4 - 1.6 1.6 Pakistan Services Limited Tourism' 93 15.0 - 3.2 3.0 6.2 Prudential Discount and Finance' 91 0.4 - 0.4 0.C Guarantee House Limited Regent Knitwear Limited Textiles' 94 9.2 2.8 5.9 - 5.9 Rupafab L mited Textiles' 96 11.0 - 4.6 - 4.6 Sarah Textiles Limited Textiles4 93, 96 7.7 - 3.8 - 3.8 Uch Power Limited Utilities 96 40.0 75.0 40.0 - 40.0 The Unit Trust of Pakistan (UTP) Funds' 98 1.5 - - 1.5 1.5 332.3 76.2 408.5 PHILIPPINES All Asia Capital Growth Funds' 96 4.0 - 4.0 4.0 Ventures BVI - I, Ltd. All Asia Capital Managers, Inc. Funds7 96 4 t F All Asia Capital Trust Corporation Finance' 80, 83, 89, 90, 95 32.3 5.0 16.4 2.7 19.1 Asian Hospital Inc. Health Care 92 14.0 - 14.0 - 14.0 Asian Ventures Ltd. Funds7 96 t - Bataan Polyethylene Corporation Chemica s 00 40.0 122.4 39.8 - 39.8 ePlanters Information 00 0.2 - - 0.2 0.2 General Milling Corporation Agriculture7 79, 90 5.7 - 1.7 1.7 Hambrecht & Quist Philippine Funds7 89 2.3 - - 1.2 1.2 Ventures Hambrecht & Quist Philippine Funds7 94 2.4 - - 1.4 1.4 Ventures 11 Hambrecht & Quist Philippine Funds7 99 7.5 - 7.5 7. 5 Ventures III Mariwasa Manufacturing, Inc. Minerals" 70, 72, 00 15.0 0.5 13.1 - 13.1 Marsman-Drysdale Agribusiness Food'° 99 15.0 10.0 15.0 - 15.0 Holdings, Inc. Micro Enterprise Bank of Phillipines Finance' 01 0.1 - - 0.1 0.1 Northern Mindanao Power Corporation Utilities 92, 93 16.8 21.0 - 4.3 4.3 Pangasinan Electric Corporation Utilites 96 47.5 196.0 28.7 17.5 46.2 Pilipinas Shell Petroleum Corporation Chemicals 93 40.3 65.9 1.6 1.6 PlantersBank Finance' 01 23.7 - 15.0 8.7 23.7 Pryce Gases Incorporated Services" 99 13.0 5.0 13.0 13.C Southern Energy Quezon, Utilities 93 70.0 11.0 36.0 10.0 46.C Inc.(formerly Hopewell Power (Philippines), Corporation) STRADCOM Corporation Transportation' 01 20.0 - 12.0 8.0 20.0 60 ASIA AND THE PACIFIC (continued) as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millions) 1US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Union Cement Corporaton Minerals' 93 23.6 - 0.7 5.6 6.3 United Pulp and Paper Pulp & Paper 99 30.0 - 30.0 - 30.0 Company, Inc. Walden AB Ayala Funds7 95 0 1 - 0.1 0.1 Management Co., Inc. Walden AB Ayala Ventures Co., Inc. Funds7 95 3.8 - - 3.8 3.8 233.7 78.4 312.1 SAMOA MedCen Samoa Ltd Health Care 98 0.5 - 04 - 0.4 National Bank of Samoa Finance, 00 01 0.1 - 0.1 Wilex Cocoa and Coconut Food" 97 0.3 - 0.3 - 0.3 Products Limited 0.8 0.8 SRI LANKA Aitken Spence & Co., Ltd Tourism2 99 2.7 - - 2.7 2.7 Asia Power (Prvate) Limited Utilities 97 11.0 8.8 8.3 2.3 10.6 Fitch Ratings Lanka Limited Finance' 00 0.1 - - 0.1 0.1 Lanka Hospital Corporation Health Care 01 11 - - 1.1 1.1 Private Limited Lanka Orix Factors Ltd. Finance' 99 1.8 - 13 0 3 1.6 Lanka Orix Leasing Company Finance! 97 2.0 - 0 7 - 0.7 Limited Mercantile Leasing Limited F nance 99 1.8 - 1.0 - 1.0 National Development Bank Finance' 00 1.1 - - 1 1 1 1 Housing Corp. Nations Trust Bank Finance, 99 1.1 - 1.1 1.1 Packages Lanka (Private) Pulp & Paper 97 1.1 1.1 1.1 L mited Pyram d Unit Trust Funds7 92 0.3 - - 0.3 0.3 South Asia Gateway Terminals Transportation5 00 42.3 35.0 7.3 42.3 (Prinvate Limited) Suntel Limited Informaton 01 7.5 - - 7.5 7.5 Taj Lanka Hotels Limited Tourism' 81 8.4 10 2 - 0.6 0.6 Union Assurance Lim ted Finance' 88, 95 1.0 - - 1.0 1.0 46.4 26.4 72.8 THAILAND Advance Agro Plantation Agriculture' 94 10.0 - 10.0 - 10.0 Company Limiled Ayudhya Development Leasing Finance' 92. 93. 96, 98 12 4 7.3 2.4 9.7 Co. Ltd. Bangkok Mass Transt System Transportation5 97.99 997 - 89.8 9.8 99.7 Public Company Limited Bumrungrad Medical Center Limited Health Care 94 27.2 35.0 25.0 1 1 26.1 Central Plaza Hotel Company Tourism2 93 13.9 - 13.9 13.9 Chao Khun Agro Products Food'0 94 0.4 - - 0 4 0 4 Company Limited Dhana Siam Finance and Finance' 94 30.0 - 13 0 - 13.0 Securties Public Company L mited 51 L. ii: * *,1 iil* as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) fus$ millions) in which Total Total Country, reglon commitments Total syndi- Equity loans and or othe;area, and obligor Sector were made IFC cations Loans (at cost) equity Finance One Public Company Finance' 95 30.0 147.9 30.0 - 30C Limited HMC Polymers Company Limited Chemicals 88, 96 18.9 11.0 - 3.9 3.'. Krung Thai IBJ Leasing Company Finance' 92 0.4 - - 0.4 0.1 Limited Ladprao General Hospital Health Care 90 0.3 - - 0.3 0.3 Company Ltd. Peroxythai Lmited Chemicals 89 10.7 - 2.0 - 2.C Saha Farms Company Ltd. Food'" 96 44.9 25.0 32.5 9.9 42.4 SEAVI Thailand Aruba Co. A.V.V. Funds' 85, 91 1.5 - - 1.5 1.5 SEAVI Thailand Venture Funds7 91 - Management Ltd. Siam Asahi Technoglass Co. Ltd. Indus/Cons Products6 90 6.4 - 6.4 64 Star Petroleum Refining Chemicals 94 100.0 350.0 68.7 - 68.7 Company, Limited Thai Baroda Industries Limited Textiles' 93 0.8 - - 0.8 08 Thai Petrochemical Industry Chemicals 97 96.7 383.3 96.7 96.7 Public Company Limited Thailand International Rating Agency Finance' 01 0.1 - - 0.1 0.1 Top Easy Company Ltd. Indus/Cons Products' 90 0.2 - - 0.2 0.2 Tuntex Petrochemicals Chemicals 94 24.9 137.5 11.3 4.9 16.2 (Thailand) Public Company Limted United Palm Oil Industry Food'° 95 - - - 1.1 1.1 Public Company Limited 386.3 57.1 443.4 VANUATU South West Pacific Investments Tourism2 96 5.5 1.9 - 1.9 Limited 1.9 1.9 VIETNAM Baria Fertilzer and Transportation' 95 3.0 2.0 2.0 - 2.0 Agricultural Forestry Products Import-Export Services Company Morning Star Cement Limited Minerals" 96 30.0 66.6 24.9 - 24.9 Nghe An Tate and Lyle Sugar Foodc 00 20.0 20.0 20.0 20.0 Company Limited Nghi Son Cement Corporation Minerals-' 99 21.2 18.8 21.2 - 21.2 San Miguel Haiphong Glass Minerals" 97 10.0 4.5 8.3 - 8. Company Societe dEconomie Mixte Thong Tourism' 94 8.5 17.5 7.2 - 7.2 Nhat Hotel Metropole Vietnam International Leasing Finance' 97 0.8 - - 0.8 0.8 Company Limited Vimaflour Company Limited Food" 97 8.0 3.0 5.0 - 5.0 Vina Kyoei Steel Limited Metals' 96 15.0 - 9.6 - 9.E Vinh Phat Company Limited Textiles' 99 0.3 0.3 - 0.1 98.5 0.8 99.3 62 ASIA AND THE PACIFIC (continued) as of June 30, 2001 Original commitmentsv Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity REGIONAL INVESTMENTS Asia Opportunity Fund L P. Funds' 99 100.0 1000 100.0 Asia Paper Markets Pulp & Paper 01 1.0 - - 1.0 1.0 Asian Co-Investment Equ ty Funds' 99 50 0 - 50.0 50.0 Facility (ACEF) Asian Debt Fac lity Funds' 99 100.0 - 100.0 - 100.0 The Asian Infrastructure Fund Funds' 95 50.0 - - 44.1 44 1 Asian Infrastructure Fund Funds7 95, 98 0 1 - 0.1 0.1 Management Company Ltd Asian Mezzanine Infrastructure Funds 97 4.3 - - 4.3 4.3 Fund Ltd. Asian Mezzanine nfrastructure Fund7 97 0.1 - - 0.1 0 1 Fund Management Company Chase Asia Equity Adv sors, L.D.C. Funds7 99 0.1 - 01 0.1 Chase Asia Equity Partners, L. P Funds7 99 I _ - South East Asia Venture Funds' 94 10.0 - - 8.8 8.8 Investment Company IlIl South East Asia Venture Funds' 85 0.1 - - 0.1 0.1 Investment Management Ltd. 100.0 208.6 308.6 Total for Asia and the Pacific 2,497.7 1,139.9 3,637.6 . iS.i *M S = , . ,- & as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (USS millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equiq loans and or other area, and obligor Sector wem made IFC cations Loans (at cost) equity ALBANIA Anglo Albania Petroleum Limited Oil, Gas, & Mining 98 28.5 - 28.5 28.5 Eurotechr Cement, Shpk. Minerals" 99 1.2 - 1.0 - 1.0 FEFAD Bank Sh.A. Finance' 00 1.0 - - 1.0 1.0 National Commnerc al Bank Sh.A. Finance' 00 2.0 - 2.0 2.0 Seament Minerals" 01 15.0 - 15.0 - 15.0 16.0 31.5 47.5 ARMENIA Armenia Hote C osed Jo nt Tourism' 01 3.6 - - 3.6 3.6 Stock Company 3.6 3.6 AZERBAIJAN Amoco Caspian Sea Finance Limited Ol, Gas, & Mining 99 32.8 32.8 28.6 - 28.6 Azerdemiryolbank Finance' 98 0.1 - I - f Azerigazbank Finance' 98 0.4 - 0.2 - 0.2 Baku Coca-Cola Bottlers Limited Food0° 98 12.8 5.1 2.3 7.4 Baku Hotel Company Tourism' 00 17.5 - 16.0 - 16.0 Eary Oil Finance Company Oil, Gas, & Mining 99 15.4 15.4 13.5 - 13.5 Kolbank Azerbaijan Limited Finance' 99 1.0 - - 1.0 1.0 Lukoil Overseas Chirag Finance Ltd. Oil, Gas, & M ning 99 19.3 19.3 16.8 - 16.8 Rabitabank Finance' 98 0.4 0.2 - 0.2 Turkish Petroleum Early Oil 01, Gas, & Mining 99 13.0 13.0 11.4 - 11.4 Finance Company Ltd. Unocal Chirag Finance Ltd. Oil, Gas, & Mining 99 19.4 19.4 16.9 - 16.9 108.8 3.3 112.0 BOSNIA AND HERZEGOVINA Akova Impex, d.o.o. Food'0 99 2.1 - 1.5 - 1.5 Bosnalijek, d.d. Sarajevo Chemicals 99, 01 4.6 - 4.0 - 4.0 Horizonte Bosnia-Herzegovina Funds7 98 1.7 - 1.7 1.7 Enterprise Fund INGA O.D.P Indus/Cons Products6 98 (0.3) - 1.4 - 1.4 Konjuh Preduzece za Indus/Cons Products0 92 (0.1) 2.0 - 2.0 Proizvodnju i Promet Namjestaja D.D. se PA. Kopex-Sarajlic d.j.l Srebrenik Trade' 99 2.6 - 1.4 - 1.4 Lignosper ODP Indus/Cons Prnducts' 98 2.3 - 1.8 - 1.8 Lijanovici d.o o. Food'3 99 2.5 - 2.0 - 2.0 Microenterprise Bank d.d. Finance' 98, 99,01 1.2 - - 1.2 1.2 Sarajevo O.D. Dnvno lndustrijsko Indus/Cons Products2 92 (01) - 1.4 - 1.4 Preduzece KOZARA' ODP Drvna Industrija Podgradci Indus/Cons Products0 92 (0.1) 1.0 1.0 Sarajevska Pivara, D. D. Food" 98 4.0 - 2.0 - 2.0 Sour Energoinvest Indus/Cons Products6 85 15.2 - 7.1 - 7.1 Tvornica Kartona I Ambalaze Cazin Pulp & Paper 77 10.8 7.4 2.9 - 2.9 Vrbas M.D.P. ondus/Cons Products0 98 (0.3) 1.4 - 1.4 Wood Agency Credit Line* Finance' 98 12.8 - 3.9 - 3.9 33.8 2.9 36.7 EUROPE AND CENTRAL ASIA (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years 1US$ millions) (US$ millions) in which Total Total country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity BULGARIA Bulbank AD Finance' 01 17.5 - 17.5 17.5 Bulgaran - American Credit Bank, AD Finance' 99 5.0 - 5.0 - 5.0 Ce hart Stambolijski A.D. Pulp & Paper 99 15.4 - 13.9 1.5 15.4 Compagnie des Hotels de Luxe S A Tourism' 98 12.8 9.5 12.8 - 12.8 Desnya Cement A.D Minerals" 99 28.6 - 25.6 25.6 Dovere Brico Trade' 01 4.3 - 4.2 - 4.2 EPIQ Group Indus/Cons Products' 01 7.9 - 7.8 - 7.8 EuroMerchant Balkan Fund SICAV Funds' 95 5.0 - - 50 5.0 Flonna Bulgaria S A Food" 0l 3.7 - 36 - 3.6 InterLease A.D. Finance' 98 3.8 - 2.4 0.3 2.7 Kronospan Bulgaria EOOD Indus/Cons Products' 00, 01 19.1 11.9 16.8 - 16.8 ProCredit Bank AD Finance' 01 1.0 - - 1.0 1.0 Sofia Med Metals' 01 11.8 11.6 - 11.6 103.7 25.3 129.0 CROATIA Alpe sadran Banka D. D. Finance' 98 3.0 - 2.2 - 2.2 Belisce D.D. Pu p & Paper 73, 81, 98 51.1 51.2 10.2 6 0 16.2 Brodograd iste "Viktor Lenac" d.d. Indus/Cons Products6 00 12.1 9.0 6.0 61 12.1 The Croat a Capital Partnership L P. Funds' 99 5.0 - - 5.0 5.0 Erste & Steiermarkische Bank D.D Finance' 00 14.9 - 13.8 - 13.8 Pliva d.d. Chemicals 01 35 0 12.5 35.0 - 35.0 Trscanska Stedionica - Bank D.D. Financel 98, 99 2.6 - - 2.6 2.6 67.2 19.7 86.9 CYPRUS Leptos Calypso Hote s Limited Tourism' 91 9.0 - 1.9 - 1.9 1.9 1.9 CZECH REPUBLIC Cekoslovensks Obchodni Banka a.s. Finance' 99 77.7 - 77.7 77.7 Cembrit Bohemia, a.s. Oil. Gas, & Mining 95 5.0 - 2.0 - 2.0 Cembrit Moravia, a.s. Oil. Gas, & Mining 95 5.6 - 1.9 1.9 Energy Center Kladno Utilities 97 58.3 24.2 46.3 46.3 Generatng s r.o. (ECKG) Hayes Lemmerz Autokola, a.s. Indus/Cons Products6 94 16 4 22.1 5.2 - 5.2 Konsolidacni Banka Finance' 01 17.6 - 17.6 17.6 Nova Hut, a.s. Metals' 97, 98 84.0 159.6 75.8 - 75.8 Plzensky Prazdrop, a s Food" 96 38.5 19.2 6.6 - 6.6 137.9 95.3 233.2 ESTON IA Aktsiasets Eesti Ohispank Finance' 97. 99 22 6 - 16.2 - 16.2 AS Schlossie Hote Group Tourism' 00 51 - 4.3 - 4.3 Elcoteq Tallinn, A.S Indus/Cons Products' 97 7.7 2.3 - 2.3 Horizon Tselluloosi Ja Paberi Pulp & Paper 98. 00 14.1 - 10 8 1 5 12.3 Aktsiaselts Kreenholmi Valduse A.S. Text es' 01 7.2 10.1 6.9 - 6.9 Reval Hotelligrupi A.S Tourism' 00 9.1 - 6.6 2 0 8.5 47.3 3.5 50.8 as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millions) 1US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and ohligor Sector were made IFC cations Loans lat cost) equity GEORGIA AES Telasi JSC Utilities 00 30.0 - 30.0 - 30.C Bank of Georgia Finance' 00 3.0 - 3.0 - 3.0 Georgian Glass and Mineral Food" 97, 00 3.2 - - 3.2 3.2 Water Company NV. Microfinance Bank of Georgia Finance' 99 0.5 - 0.5 0.i Saaktsio Sazogadoeba M na Minerals" 99 8.8 - 6.3 2.5 8.8 TBC Bank Finance' 98 3.9 1.9 0.9 2.8 Tbilcombank Finance' 99 1.0 0.7 0.7 42.0 7.0 49.C HUNGARY Albadomu Malatatermelo Es Food'" 94 7.3 0.7 1.9 2.6 Kereskedelmi BT Axon Vagyonkezelo Organizacios Finance' 99 0.9 - 0.9 0.9 es Befektetesi Dexter Mold Making Company Plastics & Rubber 90 3.7 - I Limited ERU Hungaria Sajtgyarto KFT Food" 97 2.5 2.0 2.3 - 2.3 Euroventures Hungary B.V Funds' 92 2.4 - - 0.6 0.6 The First Hungary Fund Limited Funds' 90 7.5 - 2.6 2.6 Honeywell ESCO Hungary Util ties 00 3.0 - - 3.0 3.0 Hungarian Telecommunications Information 94, 96 44.5 50.0 - 10.4 10.4 Company Limited Hungarian Telecommunicatons Information 92 - - 0.3 0.3 Company Limited (Matav) The Hungary Private Equity Funds' 96 2.5 - 1.4 1.4 Fund Limited Partnership Inter-Europa Bank Rt. Finance' 96 10.0 5.0 5.0 5.0 Mirelite Budapest Frozen Food Food" 94 9.0 - 3.2 3.0 6.2 Company Inc. 11.1 24.1 35.2 KAZAKHSTAN ABN-AMRO (Kazakhstan) Finance' 94, 96, 98 5.3 1.0 - 4.6 4.6 CASPI Limited Tourism2 01 2.5 - 2.5 2.5 F rst International Oil Oil, Gas, & Mining 01 - t t Corporation Joint Stock Company Ispat Karmet Metals' 98, 99 30.7 25.0 - 25.0 Kazakhstan Construction Minerals" 99 1.1 0.9 0.3 1.1 Company CJSC Kazgermunai Oil, Gas, & Mining 98 38.1 27.8 0.7 28.5 LP-Gaz Limited Liability Partnersh p Utilities 00 2.0 - 2.0 - 2.0 OJSC Neftebank Finance' 01 2.5 - 2.5 - 2.5 Open Joint Stock Company "Bank Finance' 00 15.0 15.0 15.0 Turanalemr" Open Joint Stock Company F nance: 97, 00 12.5 20.0 7.9 1.0 8.9 Kazkommertsbank Rambutya LLP Trade' 00 11.0 11.0 - 11.0 Sazankurak Joint Stock Company Oi, Gas, & Mining 01 20.0 - 20.0 - 20.0 114.6 6.5 121.1 EUROPE AND CENTRAL ASIA (continued) as of June 30, 2001 Original commitmente Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equit loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity KYRGYZ REPUBLIC Demir Kyrgyz International Bank Finance' 98 0.5 - 0.5 0.5 Kumtor Gold Company Oil, Gas, & Min ng 95 40.0 - 25.0 - 25.0 Kyrgyz Investment & Finance' 01 1.4 - 1 4 1.4 Commercial Bank Kyrgyz-Chinese Joint Venture Pulp & Paper 00 0.3 - 0.3 - 0.3 Altyn-Ajyda r 25.3 18 27 1 LATVIA Tlits Communicat ons A/S Information 92,96 16.4 2.9 13.5 16.4 Vika Wood Ltd. Indus/Cons Products' 97 4.0 - 1.6 - 1.6 4.5 13.5 18 0 LITHUANIA AB `Klalpedos Medienas ndus/Cons Products6 00 2.8 - 2.8 - 2.8 AB Drobe Woo Text eS4 00 6.6 6.1 0.5 6.6 AB Ekranas Indus/Cons Products' 99 12.4 12.1 - 12.1 NCC Fegda UAB- O, Gas, & Mining 99 - - 1.0 - 10 Vilniaus Bankas AB Finance' 99, 01 18.3 - 19.0 19.0 Vilniaus Margarino Gamykla Food" 92 - 0.3 - 0.3 41.3 0.5 41.8 MACEDONIA A.D. Makedonski Information 98 25.0 25.0 11.4 11.3 22 7 Telekomunikacii-Skopje Alkalo d AD Skopje Chemicals 00 7.9 7.5 - 7.5 Enterprise for Produc-ion, Metals' 98 3.8 - 3.8 - 3.8 Trade, and Services 'Nikol-Fert' Export-Import, D.O.O. Komercijalna Banka A.D. Skopje Finance' 01 4.4 - 4.3 - 4.3 MakedonijaturistA.D. Toursm' 99 4.0 26 - 2.6 Masinomont lndus/Cors Products, 98 0 8 - 0.6 - 0.6 SEAF-Macedonia LLC Funds' 00 2.5 - 2.5 2.5 Stopanska Banka a.d Skople Finance' 98. 00 8.2 - 8.0 8 0 Teteks A.D. Textiles' 98 1.5 - 0.7 - 0.7 31.0 21.8 52.8 MOLDOVA Incon JSC, Cupchin JSC, Food'° 97 6.9 - 3.7 2 0 5.7 Ungheni JSC. Floresti JSC Micro Enterprise Credit (MEC) Finance' 00 1.0 0 9 0.1 1.0 din Mo dova S A Moldinconbank S A. F nance- 01 1 5 - 1 5 - 1.5 Voxtel S.A. Information 99, 00, 01 16.6 25 0 15.0 1.6 16.6 21.1 3 7 24.8 POLAND Baltic Malt Sp. zo.o Food 97 8.4 - 2.6 1.9 4.6 Bank Wlasnosci Pracowniczet (BWP) Finance' 99 1.7 - - 1.7 1.7 Central Poland Fund, L.L.C. Funds7 98 1.6 - - 1.6 1.6 Gaspol S.A. Transportation' 96, 97 6.0 - - 6.0 6.0 Global Hotels Development Tourism2 99 9.9 - 6.2 3.6 9.8 Group Poland S.A. Honeywell ESCO Polska Utb ties 00 0.2 - 0.2 0.2 Huta L.W. Sp. z o.o. Metals9 93 22.8 - 6.0 3.7 9.7 Intercell Spolka z o.o. Pu p & Paper 95, 97, 98, 01 13 6 - - 13.6 13.6 Norg.ps Opole SP z o.o. Oil, Gas, & Mining 97 11.4 21.4 7.5 - 7.5 Paroc Poeska Sp zo.o. Minerals"i 99 9.0 - 6.9 t 6.9 Peters A.G./GMT-Poland S.A. Food'0 94 6.6 - 5.6 1.0 6.6 Pilkington Sandoglass SP z o.o. M nera s' 93 44.7 25 3 7 3 - 7.3 Poland Investment Fuend L.P Funds7 95 2.5 - - 1.9 1.9 42.1 35.3 77.4 as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years IUS$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector weoe made IFC cations Loans (at cost) equity PORTUGAL Banco Finantia S.A. Finance' 88, 90,91, 94 10.1 - 7.0 7.0 7.0 7.0 ROMANIA Ambro S.A. Pulp & Paper 00 8.5 7.8 - 7.8 Banc Post S.A. Finance 99 10.0 - 10.0 - 10.0 Banca Romaneasca S.A. Finance 01 5.9 - 5.9 - 5.9 The Danube Fund Funds' 97 2.0 - - 2.0 2.0 Demir Romlease S.A. Finance' 95, 98, 01 9.8 - 6.0 1.8 7.7 Demirbank (Romania) S.A. Finance' 99 8.2 - 3.6 3.2 6.8 Dunapack Rambox Prodimpex S.R.L. Pulp & Paper 99 4.1 - 1.2 2.0 3.2 Foreign & Colonial Romanian Funds7 98 10.0 - - 10.0 13.0 Investment Company plc. Interbrew Efes Brewery Food" 98 16.2 8.0 6.8 - 6.8 Krupp Bilstein Compa S.A. Indus/Cons Products' 98 2.8 2.8 1.5 - 1.5 Krupp Compa Arcur S.A. Indus/Cons Products' 99 7.3 3.1 5.7 - 5.7 Mobil Rom S.A. Information 92, 98 56.4 168.6 56.4 - 56.4 Ro-Am Small Business Lenders Finance' 98 3.0 - - Limited Societatci Comerciala de Finance' 99 0.6 - - 0.6 0.6 Asegurare Reasigurare Eleno- Romana Garanta S.A. 104.9 19.6 124.4 RUSSIAN FEDERATION Alpha Cement Open Joint Stock Minerals" 96, 98 15.6 - - 13.5 13.5 Company Aminex Plc Oil, Gas, & Mining 97, 99 23.2 - 17.0 6.2 23.2 AO Mosenergo Util ties 98 20.0 - 19.1 - 19.1 Bitech Petroleum Corporation Oil, Gas, & Mining 99 25.0 - 17.5 7.5 25.0 Campina 000 Food" 00 8.8 - 8.1 - 8.1 Closed Joint Stock Company Finance' 00 0.1 - 0.1 0.1 "Depository Clearing Company" Depsona Z.A.O. Food" 96 3.0 - 1.5 1.5 First NIS Regional Fund Funds7 95 15.0 - - 6.3 6.3 Framlington Russian Investment Fund Funds' 94 8.0 - - 8.0 8.0 IKEA MOS (Retail and Property) Trade' 00 15.0 - 15.0 - 15.0 000 Joint Stock Bank Toribank Finance' 98 12.2 - 12.2 12.2 New Medical Center Health Care 01 2.1 - 2.1 - 2.1 OAO Borsky Stekolny Zavod Minerals-l 98 15.0 - 15.0 15.0 OAO DreVo Agriculture' 99 0.9 - - 0.9 0.9 Omsukchansk Mining and Oil, Gas, & Mining 01 10.0 10.0 - 10.0 Geological Company Pan Amer can Silver Oil, Gas, & Mining 00 9.0 - 9.0 9.0 Corporation Pioneer First Russia, Inc. Funds7 97 4.0 - - 4.0 4.0 Polar Lights Company Oil, Gas, & Min ng 94 60.0 - 4.5 - 4.5 Ramenka 000 Trade' 99, 01 60.5 - 58.3 - 58.3 RTDC Holdings, Inc. Information 95 7.5 - - 7.5 7.5 Russian Sector Development Funds7 96 4.5 - 1.1 1.1 Corporation (Fund) The Russian Technoogy Fund L.P. Funds' 96 1.0 - - 1.0 1.0 United Export Import (Unexim) Bank Finance' 97 7.5 - 5.3 - 5.3 ZAO Deutsche Leasing Vostok Finance' 00 0.6 - - 0.6 0.6 ZAO Stora Enso Packaging Pulp & Paper 00 7.5 - 6.0 1.5 7.5 ZAO The National Registry Finance' 95 1.5 - - 1.5 1.5 Company 162.9 97.4 260.3 EUROPE AND CENTRAL ASIA (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity SLOVAK REPUBLIC Scametatra a.s. Plastics & Rubber 98. 00 3.6 - 2.2 - 2.2 Vseobecna Uverova Banka, a.s. Finance' 01 50 0 - - 50.0 50.0 West Export Import Company v.o.s. Chemicals 99 2.1 - 1.4 - 1.4 3.7 50.0 53.7 SLOVENIA Slovenian Deve opment Capital Funds' 95 4.6 - - 4 6 4.6 Fund L mited 4.6 4.6 TAJIKISTAN Holland-Taik Joint Venture M & P Trade' 00 0.4 0.4 - 0.4 Nelson Resources Limited Oil. Gas, & Mining 98 2.0 - - 1.9 1.9 Tajiklistan Finconsult Company Services"- 01 t - - t t TAMO Joint Stock Company Oil, Gas, & Mining 01 0.5 0 5 - 0.5 Zeravshan Gold Company 01, Gas, & Mining 97, 98 13.3 - 9.1 1.2 10.3 10.0 3.2 13.2 TURKEY Adana 9 mento Sanayi TOrk A.$. Minerals" 99 15.0 10.0 15.0 - 15.0 Alternatif Finansal Kiralama A.S. Finance' 92 - - 3.3 3.3 Alternatifbank A.S. Finance 92, 99 15.0 15.0 13.3 - 13.3 Arcelik-LG Klima Sanayi ve Indus/Cons Products' 00 14.4 9.6 12.4 - 12.4 TRcaret A. S. Arcelik, A.S. Indus/Cons Products' 96, 01 78.2 90.1 67.6 - 67.6 Assan Demir ve Sac Sanayi A.9. Metals' 94, 97 29.7 10.0 10.6 - 10.6 Aytac Dis Tcare- Yatirim FDod" 94 10.0 10.0 3.3 - 3.3 Sanayi A.S. Banvit Bandirma Vtaminli Yem Agrculture' 01 25.0 - 200 5.0 25.0 Sanayi A.$. Borge kCelik Sanayii TcaretA Metals' 92,95,96,97 47.1 - 11.0 12.1 231 9ayeli Bak r Isletmeleri A S. Oil, Gas, & M n ng 93 30.0 45.0 12.6 - 12.6 CBS Boya Kimya Sanayii ve Chemica s 95, 96 0.7 - - 3.7 3.7 Tcaret A. S. CBS Holding A.S. Chemicals 94 15.5 - 4.0 - 40 CBS Printas Bask Murekkepleri Chemicals 96, 01 - - 0.6 0.6 ve Gerecler A. S. Cerrahogullarn T.A.S. Transportation' 94 8.8 - 0.5 - 0.5 Demir Finansal Kiralama A.9. Fnancel 97,98 15.0 - 6.7 6.7 Demirbank T.A S. Finance' 92, 94, 97 300 60.0 18.0 - 18.0 Ed rne Giyim Sanay' A.$. Textiles' 89 6.4 - 0.8 - 0.8 Edor Elektronik Sanay ve Indus/Cons Products' 93, 97 6.0 23 - 2.3 Tcaret A.$. Elginkan Hod ng A.$. Indus/Cons Productsi 88, 93, 97 47.8 1.9 6 6 - 6.6 Entek Elektrik Oret mi Utilities 98 25 0 26.5 23.5 - 23.5 Otoproddktor Grubu A S. F nans Finansal Kiralama Finance' 97, 98 11.0 5.3 - 5.3 Anonim Sirketi Finansbank, A.S. Finance' 92, 00 20.0 55.6 10.0 - 10.0 Garanti Finansa Kiralama A.S. Finance' 95, 98, 00 19.3 43.4 4.6 - 4.6 Global Securites Inc. Finance 94, 95, 96 2.8 - - t Gomossuyu Hali ve Yer Textiles' 99 7.0 - 6.4 - 6.4 Kaplamalari Sanay ve Tbcaret A.$. IBAR/Duff & Phelps Credit Finance' 97 0 1 - - 0.1 0.1 Raring Co. Indorama lp k Sanayii ve Textiles, Apparel & 99 10.7 - 9.4 0.7 10.0 Tcaret A. S. Leather Ipek Kagit Sanayii ve Ticaret A.$. Pulp & Paper 98, 00 31.9 33.0 29.2 - 29.2 Is klar Ambalaj A S Pulp & Paper 00 10.3 - 10.3 - 103 Istanbul Bilgi University Educaton Services 0l 12.0 - 12.0 - 12.0 Kepez Elektr k TA.S. Utilities 91 20.2 - 10.1 - 10.1 .g.i!i. . ! ! * -i..* 2 .: as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Kiris Otelcilik ve Turizm A. Tour sm' 89, 90 23.4 - 19.0 - 19.0 Koc Finansal Kralama A.. Finance' 97 15.0 - 4.3 - 4.3 Ko,bank A.S Finance' 97 10.0 60.0 4.3 - 4.3 Koy-Tur Holding A.?. Food" 91, 92 12.7 - - t Kula Mensucat Fabrkas A.?. Textiles4 91 19.8 - 4.4 - 4.4 Korfezbank A.S. Finance' 92, 97 23.0 51.4 7.5 - 7.5 Medya Holding A.?. Information 93, 96 28.6 - 7.2 - 7.2 Modern Kartcn Sanayii ve Ticaret A.S. Pulp & Paper 98 20.0 10.0 20.0 - 20.0 NASCO Nasreddin Holding A.S. Textiles' 92 17.5 5.0 10.2 - 10.2 Osmanli Bankasi A.?. Finance' 98 20.0 80.0 16.4 16.4 Oyak Bank A. . Finance' 98 15.0 25.0 6.7 6.7 Pasabalice Eskisehir Can) Sanayi M nerals"' 99 16.7 16.7 9.1 9.1 ve Ticaret A.?. Pinar Entegre Et Ve Yem Sanayi A.?. Food" 84, 94, 98 21.9 - 9.4 9.4 Pinar Sut Mamulleri Sanayii A.?. Food" 94, 00 21.5 - 14.0 - 14.0 Rant Finansa Kiralama A.?. Finance' 92, 98 4.8 - 1.2 - 1.2 Sakosa Sabanci-Kosa Textiles' 99 24.3 23.8 20.3 - 20.3 Enduistriyel Iplik ve Kord Bezi Sanayi ve Ticaret A.?. Si kar Turizm Yatirim ve Tourism2 86, 90 19.3 9.8 3.1 0.3 3.3 Isletmeler A.?. Sbktas Pamuk ve Tarim Textiles4 98 13.0 - 9.2 9.2 Orunlerini Degerlendirme Tcaret ve Sanayi A.?. TEB Finansal Kiralama A.?. Finance' 99 5.0 - 4.4 - 4.4 Toprak Finansal Kiralama A.?. Finance' 97 8.0 - 0.9 - 0.9 Trakya Cam Sanayri A.?. Minerals" 79, 83, 84, 89, 66.7 31.4 - 3.4 3.4 91,96,99 Tork Dem r Dokom Fabriklari A.?. Indus/Cons Products' 96 2.0 - 0.4 0.4 Turk Ekonom Bankasi Finance' 95,99 27.5 37.5 13.3 - 13.3 Turkiye Garanti Bankas A.?. Finance' 93,98 40.0 175.0 12.7 - 12.7 Turkiye Sise ve Cam M nerals' 93,97 41.0 50.2 2.9 2.9 Fabrikalari A.? Unye Cimento Sanayi ve Ticaret A.?. Minerals" 00 21.4 - 18.3 - 18.3 Uzel Makina Sanayii A. . Indus/Cons Products' 99 20.0 15.0 20.0 - 20.0 Viking Kagit ve Seluloz, A.?. Pulp & Paper 70, 71,82, 83,98 15.2 - 9.8 - 9.8 Yalosa Dyaf ves pkk A.?. Textiles' 96 15.0 8.0 2.5 2.5 Yapi Kred Finansal Kirkalama A.O Finance' 97,98 12.9 - 3.6 - 3.6 Yeditepe Beynelm el Otecilik Tourism' 90,94 28.3 27.5 10.7 t 10.7 Turizm ve Tcaret A.?. 594.7 25.8 620.4 UKRAINE "Bank Austra Creditanstalt" Ukraine Finance' 98 2.3 - 2.3 2.3 First Ukrainian International Bank Finance' 98 5.0 - 5.0 5.0 Microfinance Bank of Ukraine Finance' 01 1.7 - 1.7 1.7 Ukraine Fund Funds' 94, 97 3.5 - - 3.3 3.3 12.3 12.3 UZBEKISTAN ABN-AMRO Bank NB Uzbekistan A.C. Financeo 96 1.0 - 1.0 1.0 Core Pharmsanoat Chemicals 98 3.9 3.4 2.7 0.5 3.2 Fayz Holding Joint Stock Indus/Cons Products' 98 2.4 - 1.5 0.5 2.0 Company of the Open Type National Bank for Foreign F nance 00 15.0 15.0 - 15.0 Economic Activity of the Republic of Uzbekistan Open Joint-Stock Commercial Finance' 01 1.0 1.0 - 1.0 Bank 'Hamkorbank Osiyo Granite Id. Minerals" 01 1.6 1.6 1.6 EUROPE AND CENTRAL ASIA (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans tat cost) equity Private Closed Joint-Stock Finance' 01 1.0 - 1.0 - 1.0 Commercia Bank 'Parv na Bank" State Joint-Stock Commercial Finance' 00 10.0 - 10.0 - 10.0 Bank "Asaka" The Uzbek-Dutch Joint Venture Food" 00 0.6 06 0.6 Uzdutch Cheese Ltd. L mited Lability Company Uzbek Leasing nternational A 0. Finance' 96, 01 0.9 - 0.9 0.9 33.4 2.9 36.3 YUGOSLAVIA, FEDERAL REPUBLIC OF Institut Za Fizikalnu Med cinu Health Care 82, 88 19.1 - 7.5 - 7.5 I Rehabilitaciju 'Dr. S mo M osevic". Igalo Jugobanka A.D. Beograd Finance' 86 25.4 10.4 3.8 - 3 8 Loan to Eight Banks for Sma - Finance' 80 26.0 4.2 1.1 - 1.1 Scale Enterprises Montenegro A.D. Podgorca Tourism- 80 21.0 - 2.0 2 0 Radoje Dakic nduslCons Products' 80 18.7 - 1 2 - 1.2 Vojvodjanska Banka- Financel 87, 89 56.0 31.2 35.3 353 Udruzena Banka 50 8 50.8 REGIONAL INVESTMENTS ABC Medicover Holdings B.V Health Care 99 7.0 - 7.0 - 7.0 Advent Central and Eastern Funds7 98 15.0 - - 14.2 14.2 Europe II Advent Centrai Europe Funds' 95 f - n Management L.P. Advent Private Equity Fund- Funds7 98 10.0 - - 5.8 5.8 Central Europe L.P. AIG Emerging Europe Funds' 00 30.0 - - 30.0 30.0 Infrastructure Fund Alliance ScanEast Fund, L.P. Funds' 94 4.9 - - 4 0 4 0 Baring Vostok Frivate Equity Funds' 01 15.0 - - 15.0 15.0 Fund, L.P B ack Sea Fund L P. Funds' 99 10 0 - - 10.0 10.0 Centra Europe Telecom Funds' 94 9 7 - - 5 8 5 8 Investments, L.P. Czech and Slovak Private Funds' 95 2 5 - 2.5 2.5 Equity Fund L.P. First NIS Restructur ng Funds' 00 10.0 - 10.0 10.0 Facility, L.P. Intra-Regonal Trade Finance' 96, 99 0.9 - 0.2 - 0.2 Enhancement Facility New Europe-East Investment Fund Funds' 93 10.0 - - t Renaissance Capital Funds7 94 5.0 - - 4.7 4.7 The Romania & Moldova D rect Funds' 99 4 0 4.0 4 0 Fund, LP SEAF Central and Eastern Funds' 01 3.3 3.3 3.3 Europe Growth Fund LLC SEAF Trans-Balkan Fund LLC Funds0 01 4.8 - 4.8 4.8 7.2 114.1 121.3 Total for Europe and Central Asia 1,816.9 636.2 2,453.1 < ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7 as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years 1US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity ARGENTINA Aceitera Chabas S.A. Food" 95 - - - 3.1 3.1 Aceitera General Deheza S.A. Food" 95 25.0 - 5.0 6.9 11.9 Acindar Industria Argentina de Metals9 60,95.97,99 119.4 90.7 86.0 16.4 102.4 Aceros, S.A. Aguas Argentinas S.A. Utilities 95, 96 85.0 307.5 50.0 7.0 56.9 Aguas Provinciales de Santa Fe Utilities 01 20.0 30.0 20.0 - 20.0 Alpargatas S.A.I.C. Textiles' 77, 84 86, 88, 76.3 117.0 24.2 7.4 31.6 94, 97 American Plast, S.A. Plastics & Rubber 99 10.0 - 9.0 - 9.0 Argentina Equity Investments I Ltd Funds7 94 4.0 - 2.8 2.8 Asociacidn Civil Universidad Education Services 01 10.0 - 10.0 - 10.0 del Salvador Asociacion Unibn Tamberos Food" 99 6.0 - 5.3 - 5.3 Cooperativa Limitada (AUCTL) Banco Corporaci6n Financiera Finance' 00 62.5 - 50.0 12.5 62.5 Hipotecaria S.A. Banco de Galicia y Buenos Aires S.A. Finance. 92, 97, 99 80.0 245.0 68.0 - 68.0 Banco del Suquia S.A. F nance 98, 99 45.0 30.0 45.0 - 45.0 Banco Frances del Rio de la Plata S.A Finance: 89, 91, 97 29.3 - 3.2 - 3.2 Banco General de Negocios S.A. F nance: 94, 99 48.0 - 48.0 - 48.0 Banco H potecario S.A. Finance: 00 25.0 102.5 25.0 - 25.0 Banco Roberts S.A. Finance: 95, 98 50.0 - 48.0 - 48.0 Bansud S.A. Finance' 97 4.9 - 2.6 - 2.6 CCBA S.A. Food"° 96 18.5 33.0 13.5 - 13.5 Cefas S.A. Oil, Gas, & Mining 00 15.0 - 15.0 15.0 Cerveceria y Malteria Quilmes S.A. Food"° 94 15.0 15.0 5.6 - 5.6 Ceramica Zan6n S.A.C.I. y M. Minerals" 96 20.0 - 17.7 - 17.7 Compania Elaboradora de Food" 95 15.0 6.0 9.7 - 9.7 Productos Alimenticios S.A. Companas Asociadas Petroleras SA. Oil, Gas, & Mining 97 17.0 33.0 12.6 - 12.6 Concesiones y Construcciones Transportation' 00 40.0 - 20.0 20.0 40.0 de Infraestructura S.A. Correo Argentino S.A. Transportation' 99 75.0 54.0 68.2 6.8 75.0 Empresa Distribuidora Norte Utilities 94, 96 45.0 128.0 21.5 21.5 Sociedad Andnima SA. FAPLAC, S.A. Indus/Cons Products' 00 15.0 - 15.0 - 15.0 Ferroexpreso Pampeano, S.A.C. Transportation' 93 10.8 17.6 3.6 - 3.6 Fondo Agricola de Inversion Funds' 98 2.8 - 2.8 2.8 Directa 2003 y Unifund S.A. Funds7 Frigorifico Regional Food: 98 12.5 7.0 12.5 - 12.5 Industrias Alimenticias Reconquista (Friar) (S.A.) Frigorifico Rioplatense S.A.I.C.I.F. Food" 92 13.0 4.0 5.3 1.0 6.3 Fundacidn Universidad Torcuato Education Sera ces 01 9.0 - 9.0 - 9.0 Di Te la FV S.A. Indus/Cons Products' 99 16.0 - 13.8 13.8 Grunbaum, Rcoy Daucourt Textiles' 96 10.0 5.0 8.0 - 8.0 S.A.I.C. y F. Guipeba-Ceval S.A. Food" 97 20.0 20.0 16.8 - 16.8 Hospital Privado Centro Medico Health Care 99 9.6 - 9.6 - 9.6 De C6rdoba S.A. Juan Minetti S.A. Minerals'! 78, 81,86,87, 101.8 197.5 59.8 - 59.8 93,94,99 Kleppe S.A. y El Caldero S.A. Agricu ture' 95, 98 12.0 - 10.2 - 10.2 Malteria Pampa S.A. Food" 93,96 19.0 12.0 7.1 - 7.1 Merchant Bankers Asociados S.A. Finance' 96 0.2 - 0.2 0.2 Milkaut S.A. Food" 92,97 20.0 5.0 16.3 5.0 21.3 Molinos Rio de la Plata S.A. Food" 93,94 2.3 - 5.5 5.5 Nahuelsat S.A. Information 95 35.0 - 12.5 5.0 17.5 Nuevo Banco de Santa Fe Finance' 01 20.0 - 20.0 - 20.0 Nuevo Central Argentino S.A. Transportation' 93 13.0 15.0 1.9 3.0 4.9 Oleaginosa Oeste, S.A. Food" 92 20.0 15.0 2.0 - 2.0 LATIN AMERICA AND THE CARIBBEAN (continued) as of June 30. 2001 Original -omitmentsO In-estnents held fon IPC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IC cations Loans (at cost) equity Pan American Energy LLC Oil. Gas, & Mining 93, 96 800 100.0 9.9 - 9.9 Patagon[a Fund, L.P. Funds' 98 25.0 - - 20.0 20.0 Patagonia Mint S.A. Food" 98 6.0 5.0 6.0 - 6.0 Pecom Energia S A. Chemicals 97 20.0 30.0 10.9 - 10.9 Petroken Petroquimica Ensenada S.A. Chemicals 90,95 40.0 11.0 17.1 - 17.1 Petrolera Argentina San Jorge S.A. Oil, Gas, & Mining 92, 93 42.0 35.0 - 27.0 27 0 Petrolera Argent na San Jorge S.A. Oil, Gas, & Mining 97,99 31.4 - - 31.4 31.4 (Neuquen) S.A. San Miguel A.G.I.C.I. y F Agriculture3 99 12.0 - 8.7 - 8.7 Sancor Cooperativas Unidas Limitada Food 0 95 40.0 30.0 30.0 30.0 Sideco Americana S A. Transportation' 95 - - - 15.0 15.0 Socma Americana S.A. Transportation' 95 40.0 60.0 6.3 - 6.3 T6 Industrial S.A Food'" 98 15 0 30.0 13.9 13.9 Term nal 6, S.A. Transportation' 87, 90, 91, 33.0 19.5 13.5 - 13.5 96, 98 Terminales Portuarias Argent nas S.A. Transportation, 96 12.0 - 5.5 - 5.5 The Tower Fund, L.P. Funds' 95 25.0 - - 20.7 20.7 The Tower Investment Funds' 95 0.1 - 0.1 0.1 Management Company Transportadora De Gas Del Transportation5 97 45.0 210.0 40.0 - 40.0 Norte S.A. Vicentin S.A.I.C. Food-° 97 25.0 10.0 19.4 - 19.4 Yacylec S.A. Utilities 94 20.0 45.0 4.4 5.0 9.4 1,092.0 224.7 1,316 7 BARBADOS Almond Resorts, Inc. Tournsm 95 7.1 - 11 1.1 1.1 1.1 BELIZE Nova Companies (Belize) Ltd. Agricu ture3 98 5.5 - 5.5 - 5.5 and Ambergris Aquaculture Ltd. 5.5 55 BOLIVIA Aguas del Illiman, S.A Utilities 00 16.0 - 15.0 1.0 16.0 Banco Bisa, S.A. Finance' 76, 88, 91,92. 28.7 5.5 7.0 3.2 10.2 95, 98 Banon Mercantil S.A. Finance' 96 10.0 - 7.1 - 7 1 Caja Los Andes S.A. Finance, 92,99 2.0 - 1.4 - 1.4 Central Aguirre Portuaria S.A. Transportation0 92 2.5 - 0.1 0.3 0.4 Compahia Boliviana de Gas Chemicals 93 2.3 - 0.4 - 0.4 Natural Comprimido Genex S.A. Compania Minera del Sur, S.A. Oil, Gas, & Mining 92, 90, 94, 96,00 40.6 5.0 14.5 14.5 Electricidad de la Paz S.A. Ut ..ties 00 25.0 - 25.0 - 25.0 Minera S.A. 01, Gas, & Mining 92 - - - 3.4 3.4 Telefonica Celular de Bolivia Information 97, 01 26.7 23.3 23.3 - 23.3 S.A. ('Telecel S.A.") 93.9 7.9 101.8 as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years ZuS$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity BRAZIL Bahia Sul Celulose S.A. Pulp & Paper 90, 91, 93 61.0 60.0 - 21.0 21.0 Bahia Sul Celulose, S.A.i Pulp & Paper 94 - 0.8 - 0.8 Banco BBA Creditanstalt S.A, Finance' 92 40.0 - 40.0 - 40.0 Banco Bradesco, S.A. Finance' 97 16.8 25.2 11.7 - 11.7 BIompreco S.A. Supermercados do Trade' 98 30.0 - 23.8 - 23.8 Nordeste Bulk Servces Corporation Transportaton' 98 14.0 7.5 10.7 - 10.7 Cambuhy M.C. Industrial Ltda. Food" 95 30.0 - 9.4 - 9.4 Ceramica Portobello S.A. Minerals" 95, 00 38.0 - 24.5 5.0 29.5 Ceva A mentos S.A. Food' 93, 96 90.0 130.0 16.1 16.1 Chapeco Companhia Industrial FoDd03 94, 96 31.9 5.0 25.0 - 25.0 de Alimentos CIA Tecinos Norte de Minas - Textiles' 97, 98, 00 25.5 20.0 12.2 4.5 16.7 Coteminas Companhia Brasileira de Bebidas Food0' 95 35.0 123.0 15.0 - 15.0 Companhia Petroquimica do Sul S.A. Chemica s 98 40.0 180.0 27.5 - 27.5 Concessionaria do Sistema Transportation9 01 35.0 31.0 35.0 - 35.0 Anhanguera Bandeirantes S.A. Concessionaria Da Rodovia Transportation' 98 35.0 79.5 29.2 - 29.2 Presidente Dutra S.A. CRP-Caderi Capital de Risco S.A. Funds7 95 0.8 - 0.7 0.7 Dende do Para S/A-DENPASA Food'° 80, 94 5.3 - - 1.1 1.1 -Agricultura, Industria e Comercio de Olea D ste Holding S.A. Information 95, 97, 98 63.0 118.0 20.4 27.5 48.0 Dixie Toga S.A. Past cs & Rubber 98 15.0 - - 15.0 15.0 Duratex S.A. Indus/Cons Products' 88, 97 29.4 78.0 17.9 - 17.9 Eliane S.A. Minera s" 00 45.0 - 45.0 - 45.0 Empesca S.A. ConstrucBes Food0 98 15.0 - 15.0 - 15.0 Nava s, Pesca e Exportecao Empresa de Desenvolvimento de Oil, Gas, & Mining 73, 78, 83 9.3 54.0 - 4.3 4.3 Recursos Minerais (CODEMIN) S.A. Escolk24Horas.com Education Serv ces 01 3.3 - - 3.3 3.3 Eucatex do Sul S.A." Pulp & Paper 95 - - 5.0 - 5.0 Fertilizantes Fosfatado S.A. Chemicals 99 20.0 45.0 20.0 - 20.0 Fras-le, S.. Indus/Cons Products6 99 20.0 - 10.0 10.0 20.0 Gavea Hotelaria e Turismo S.A. Tourism2 94 16.8 7.5 12.4 - 12.4 GP Capital Partners, L.P. Funds7 94 20.4 - 9.5 9.5 Hering Textile S.A.- Textiles' 95 - - 7.5 - 7.5 lcaf. Equity Partners. L.P. Funds7 98 30.0 - - 30.0 30.0 lndustrias Arteb S.A. Indus/Cons Products' 98 27.0 20.0 20.0 7.0 27.0 Industrias Romi S.A.A Indus/Cons Products' 93 - - - 0.4 0.4 Innova S.A. Chemicals 00 25.0 60.0 20.0 5.0 25.0 Ipiranga Petroquimica S.A. Chemicals 80, 87, 98 61.3 178.0 34.7 6.3 41.0 Itaberaba Part cipacoes S.A. Health Care 00 5.3 - - 5.3 5.3 J. Macedo Alimentos S.A. Food'° 93 24.0 10.0 12 3 - 12.3 Joaquim Oliveira S.A. Part cipacBes Agriculture' 92 15.0 - 15.0 - 15.0 Klabir Bacel S.A. Pulp & Paper 94 24.7 36.0 6.0 15.7 21.7 Labrat6rio de Analises e Health Care 00 15.0 - 15.0 - 15.0 Pesquises ClInicas Gastao Fleury S/C Ltda Latas de Aluminio S.A. Indus/Cons Products0 95 21.0 5.0 7.7 - 7.7 Lightel S.A. de Tecnologia da Information 97 43.2 - 25.0 18.2 43.2 I nformacqo (0 LATIN AMERICA AND THE CARIBBEAN (continued) as of June 30, 2001 Original commitmente Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Lo]as Americanas S.A. Trade' 96 33.0 20 0 21.0 - 21.0 Mallory Limitada Indus/Cons Products' 96 12.0 - 4.4 4.4 Mineracoes Brasile ras Reunidas S.A. 0 1, Gas, & Mining 92, 88, 93, 01 75 0 27.0 31.1 - 31.1 Oxiteno Nordeste S.A Chemicals 75, 96 44.6 - 12 5 5.0 17.5 Industria e Com6rcio Para F[gmentos S.A. Oil, Gas, & M ning 95 39 0 33.5 23.6 9.0 32.6 Perdigko S A. and PerdigAo Food" 88, 96 57.9 20.0 19.7 10.0 29.7 Agroindustria S.A Petroflex Indostna e Comercio S.A.- Plastics & Rubber 96 - - 7.5 - 7.5 PISA Papel de Imprensa S.A. Pulp & Paper 83, 85, 88 55.9 31.7 3.9 3.9 Politeno Industria e Comercio S.A. Chem cals 89, 96 42.6 - 7.3 - 7.3 Puras do Brasi S.A. Tourisr,2 00 5.0 5.0 5.0 Randon S.A. Indus/Cons Products' 99 10.0 - 10.0 - 100 Rhodia-Ster S.A Chemicals 92 25.9 - 6.0 6.0 Rhodiaco Industras Quimicas Ltda. Chemicals 96 30 0 30.0 10.0 - 10.0 Ripasa S.A. Pulp & Paper 91 25 0 - - 5.0 5.0 S.A. Industria e Comercio Chapeo6 Food"o 94, 96 7 9 - 6.9 7.9 14.7 Sadia Concordia S A Industria Food'° 94, 95, 97 80.0 222 0 38 0 10.0 48 0 e Comdrcio Samarco Mineracao S.A. Oil, Gas, & Mining 97 18 0 16.0 12 6 - 12.6 Sao Paulo Alpargatas S.A. Textles' 87, 97 60.0 - 23.3 - 23.3 Saraiva S.A. Trade' 98 18.0 - 11.5 3.0 14.5 Seara A mentos S.A. Agriculture3 92 - - 3.9 3.9 Sociecade Hospital Samaritano Health Care 00 20 0 20.0 20.0 Sucorrico S.A. Food" 97 15 0 - 9.0 - 9.0 Tecon Rio Grande S.A. Transportation' 99 12.1 16.0 12.1 - 12.1 Tecon Salvador S.A. Transportation' 01 4.5 5.0 3.5 1.0 4.5 Trikem S.A. Chemicals 92, 95 12.9 - - t Tubos e Conexsoes Tgre Ltda. Plastics & Rubber 97 30.0 23.5 20.4 - 20.4 Usina Hidreletrica Gu Iman- Amorim Utilities 98 30.0 91.0 27.1 - 27.1 Votorantim Celulose e Papel S.A Pulp & Paper 93 24.0 15 0 3.6 - 3.6 Vu cabras do Nordeste S.A. Textiles' 99 20.0 - 18 3 - 18.3 Weist S.A. Indus/Cons Products, 99 8.0 - 8.0 - 8.0 Wembley S.A. Textles' 92 - - - 10.0 10.0 940.0 280 5 1,220.5 CHILE Bosques y Maderas S.A. Indus/Cons Products' 92, 94 103 6.0 1.0 4.8 5 8 (BOMASA) CB Transporte e Transportation 99 2.0 - 1.7 - 1.7 Infraestructura S.A. CB Transportes S.A. Transportaton' 99 9 9 - 15.9 15 9 Empresa Electrca Pangue S.A. Utilites 94 64.8 88.0 28 2.8 Ferrocarril del Pacifico S.A. Transportation' 97 20.5 6.0 13.8 - 13.8 Hidroelectrica Aconcagua S.A. Utilities 92, 93 14.4 6.0 - 6.5 6.5 Minera Escondida Limitada Oil, Gas, & Min ng 89, 91, 99 87.6 - 18.3 7 5 25.8 Moneda Asset Management S.A. Funds' 94, 96, 97 0.5 - - 0.5 0.5 Nature's Farm Products (Chile) S.A." Food"0 91 - 1.2 - 1.2 Pionero Fondo de Inversion Mobiliaria Funds' 94 10.0 - 9.3 93 Proa Fondo de Inversibn de Funds7 96 8.3 - 7.3 7 3 Desarrollo de Empresas San Antonio Terminal Transportation' 01 38.7 65.0 35 0 3.7 38.7 Internacional S.A. 71.0 58.3 129.3 as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millions) (us$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other amea, and obligor Sector were made IFC cations Loans (at cost) equity COLOMBIA Cales y Cementos de Toluviejo, SA. Minerals': 01 3.3 10.7 3.3 - 3.3 Cementos del Caribe, SA. Minera s" 75, 01 17.6 13.0 4.0 10.0 14.0 ComDanfa Suramericana de Finance' 99 5.1 - - 5.1 5.1 Arrendamiento Operativo S.A. Compahia Colombiana de Tejidos Textiles4 63, 91 22.9 1.7 6.0 - 6.0 Corporaci6n Financiera del Valle Finance' 69,85,88,93,95 51.1 60.0 7.4 7.4 Corporacidn Financiera Finance' 94, 95 6.4 - 1.4 1.4 Santander S.A. Corporaci6n Nacional y Finance' 96,00 88.8 - 38.1 25.0 63.1 Suramericana S.A. Leas ng Suramericana Compahia Finance' 98 14.7 - 24.6 - 24.6 de Financiamiento Comercial S.A. Productora de Derivados de la Chemicals 87 7.2 - 0.6 0.6 Sal, S.A. (PRODESAL) Promigas S.A. E.S.P. Transportation' 77, 89, 93, 94, 97 38.3 69.5 7.7 1.1 8.9 Proyectos de Infraestructura S.A. Transportation' 97 9.5 - - 5.0 5.0 83.8 55.7 139.4 COSTA RICA Aeropuerto IJS Transportation' 01 35.0 85.0 35.0 - 35.0 Banco Interfin S.A. Finance' 93,01 20.0 - 16.1 - 16.1 Consorcio Hosptalario Health Care 99 1.2 - - 1.2 1.2 Internacional, S.A. Corporaci6n Supermercados Trade' 99 40.0 - 28.9 10.0 38.9 Un dos S.A. Hidroelectrica Aguas Zarcas S.A. Utilities 94 4.0 6.1 2.1 - 2.1 82.1 11.2 93.3 DOMINICAN REPUBLIC Cranberry Dominicana S.A. y Tourism' 93 6.8 - 1.4 - 1.4 Tlantimar S.A. Inversora Internacional Tourism' 99 14.0 21.7 13.2 13.2 Hotelera, S.A. Pasteurizadora R ca C. por A. Food" 00 15.0 - 15.0 - 15.0 Red Sanitaria Hospiten Health Care 00 2.0 2.0 2.0 2.0 Smith/Enron Cogenerat on Utilities 95, 96 32.3 50.0 23.2 - 23.2 Limited Partnership 54.9 54.9 ECUADOR Agrocapital, S.A. Agriculture' 97 3.5 3.5 - 3.5 Compania Financiera Finance' 69, 73, 77, 81, 3.0 - - 0.3 0.3 Ecuadoriana de Desarrollo, S.A. 82, 88 Concessionaria DHM, S.A. Transportation' 99 12.8 15.0 11.5 1.3 12.8 Ecuacobre-FV S.A. Minerals' 00 9.0 - 9.0 - 9.0 Favorita Fruit Company, Ltd. Agriculture' 99 15.0 - 9.4 5.0 14.4 Rey Banano de Pacifico C.A. Agriculture' 94 10.0 5.0 4.1 - 4.1 La Universal S.A. Agriculture, 99 13.2 3.0 8.2 5.0 13.2 45.8 11.6 57.4 EL SALVADOR AFP Crecer, S.A. Finance' 99 - - - 1.2 1.2 Banco Cuscatlan, S.A. Finance' 99 25.0 - 25.0 - 25.0 Baterias de El Salvador, S.A. IndusiCons Products' 99 2.0 - 2.0 - 2.0 Cemento de El Salvador, S.A. Minerals" 97, 00 19.6 20.6 14.0 2.2 16.2 Implementos Agricolas IndusiCons Products' 98, 99 2.2 - - 0.2 0.2 Centroamericanos, S.A. Telemovil El Salvador, S.A. Information 94, 96 9.9 14.5 4.0 - 4.0 45.0 3.6 48 6 LATIN AMERICA AND THE CARIBBEAN (continued) as of June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millionsl (us$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity GUATEMALA Fabrigas S.A. Utilities 95 7.0 3.3 - 3.3 Frutera del Pacifico, S.A. Agriculture3 00 7.0 - 7.0 - 7.0 Operadora de Tiendas, S.A. Trade' 99 20.0 - 20.0 - 20.0 (La Fragua S A.) Orzunl. I de Electricada Lim tada Utilities 92,98 14 3 15.0 12.5 1.2 13 7 Pantalen S.A. Food" 97 200 - 11.3 - 11.3 Sider6rgica de Guatemala, S.A. Metals' 98 18.0 140 12.4 - 12.4 Vidriera Guatemalteca, S.A. Minerals" 93 11.0 - 3.4 - 3.4 69.8 1.2 71.0 GUYANA Guyana Americas Merchant Bank Finance' 00 1.0 - - 1.0 1.0 Heritage L mited (Cara Lodge) Tourism: 00 0.7 - 0.7 - 0.7 IDS Holdings Limited Plastics & Rubber 99 1.2 - 1.2 - 1.2 1.9 1.0 2.9 HAITI Micro Credit National S.A F nance- 00 0.4 - 0.4 0.4 0.4 0.4 HONDURAS Electricidad de Cortes, S. de R.L. de C V. Utilities 95, 98 16.6 36.3 9.7 2.6 12 3 Grupo Granjas Marinas S.A. de Agriculture, 87, 99 6 6 - 5.5 - 5.5 C.V., Granjas Marinas San Bernardo S.A. de C.V, Sea Farms I Multiplaza de Tegucigalpa S.A. Tourismr 99 10.0 - 10.0 - 10.0 25 2 2.6 27 8 JAMAICA Jamaica Energy Partners Utilities 97 23.9 480 15.6 - 15.6 Mossel (Jamaica) Limited Informaton 01 30.0 16.0 30.0 30.0 45.6 45.6 MEXICO AES Mendia ll,S. de R.L de C.V. Utilities 98 30.0 74.0 300 30.0 Agropecuaria Sanfandila S.A. de C.V. Agriculture' 99 10.0 5.0 8.7 - 8.7 Alimentos Naturales Sabroza, Food'° 94 - - 0.8 - 0.8 S.A. de C.V. " American British Cowcray Health Care 01 30.0 14 0 30.0 30.0 Med ca Center l.A P. Apasco, S A de C.V. Minerals:" 88, 91, 92, 176.4 120.0 12.6 - 12.6 93, 96 Banco Bilbao Vizcaya-Mdxico, S.A. Fnance 97 1100 - 91.2 - 91.2 Banco Nacional de Mexico, S.N.C. Finance- 92, 90.98 157.6 94.7 86.6 - 86.6 Barng Mexico Private Equity Funds' 95.99 11.8 - - 11.8 118 Fund, L.P. Banng Private Equity Partners Funds' 95, 96 0.2 - t (MWxico), S.A. Centra Anahuac S.A. de C.V. Utilities 00 50.0 59 5 50.0 - 50.0 Central Saltillo S.A. de C.V Plastics & Rubber 00 350 43.0 35.0 - 35.0 Comercial zadora La Junta S-A. de C.V. Transportation' 98 6.0 7.5 4.5 - 4.5 Compahia Tratadora de Aguas Utilities 95 7.5 5.1 5.1 Negras de Puerto Vallarta, SA deC.V. * * , W. M as ou June 30, 2001 Original commitments, Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector wem made IFC cations Loans (at cost) equity Consorcio International Health Care 99 4.8 - - 4.8 4.8 Hospital, S.A. de C.V. Financiera Compartamos, S.A. Finance' 01 1.7 - 1.0 0.7 1.7 de C.V. Fomento Economico Mexicano, Food'3 89, 92 107.6 - 9.4 9.4 S.A. de C.V. Fondo Chiapas, S.A. de C.V. Funds' 98 5.0 4.2 4.2 Forja De Monterrey, S.A. De C.V. Indus/Cons Products' 99 16.0 13.0 13.0 3.0 16.0 General Hipotecaria, S.A. de C.V. Finance' 99 3.3 - - 3.3 3.3 Girsa S.A. de C.V. Chemica s 97, 00 85.0 175.0 70.1 70.1 Grupo Aceros Corsa. S.A. de C.V. Metals' 00 16.0 - 13.0 3.0 16.0 Grupo Bimbo, SA. de C.V. Food" 92, 96 65.0 175.0 28.9 - 28.9 Grupo Calidra, S.A. de C.V. Oil, Gas, & Min ng 98 18.0 10.0 11.3 6.0 17.3 Grupo Financiero BBVA F nance 92 - - 2.7 2.7 Bancomer, S.A. (formerly Grupo Probursa) Grupo Idesa, S.A. de C.V. Chemicals 94 23.0 42.5 3.8 I 3.8 Grupo Industrial Ayvi S.A. de C.V. Agriculture' 99 10.0 - 10.0 - 10.0 Grupo Minsa, S.A. de C.V. Food° 97 30.0 30.0 14.0 10.0 24.0 Grupo Operador de Terminales Transportation' 94 1.8 2.6 0.7 - 0.7 Maritimas S.A. de C.V. Grupo Posadas, S.A. de C.V Tourismz 92, 93. 95, 96, 83.7 68.5 55.7 5.0 60.7 00 Heller Financial (Mexico), Finance' 94, 96, 98, 00 3.1 - - 3.1 3.1 S.A. de C.V. Hipotecaria Su Casita, SA. de Finance' 01 10.9 - - 11.1 11.1 C.V. - SOFOL Industrias Innopack S.A. de C.V. Past cs & Rubber 01 15.0 - - 15.0 15.0 Internacional de Ceramica, Mineralsa 94 21.0 17.5 10.0 - 10.0 S.A. de C.V. Invercap S.A. de C.V. Funds7 00, 01 1.1 - - 1.1 1.1 Medicus, S.A. de C.V. Health Care 99 7.0 - 7.0 - 7.0 Mexplus Puertos S.A. de C.V. Transportation, 93, 95, 99 4.5 - - 4.5 4.5 Promotora de Centros Education Servces 01 6.5 6.5 - 6.5 Educatinos S.A. de C.V. Propalma Fondo Chiapas Equity Foodo 92 - - - 0.8 0.8 Agency Servicios S.A. de CV. Transportation9 01 12.4 10.0 10.5 1.9 12.4 Sudamerca en Fiesta, S.A. Tourism' 00 15.0 - 15.0 15.0 Tenedora Nemak S.A. de C.V. Indus/Cons Products' 96, 00, 01 33.0 35.0 9.0 - 9.0 Terminal de Cruceros Punta Transportation' 98 3.8 4.8 1.8 1.0 2.8 Langosta, Cozumel, S.A. de C.V. Terminal Marit ma de Altamira Transportation5 97 5.1 10.4 4.8 - 4.8 S.A. de C.V. Toluca Toll Road Transportation' 92 13.8 5.7 - 5.7 Turborreactores S.A. de C.V. Indus/Cons Products' 00 14.0 4.0 14.0 - 14.0 Vitro Flotado, S.A. de C.V. Minerals" 91 25.0 101.0 1.7 - 1.7 Vitro, S.A. Mnerals` 91,92 18.2 - - 10.2 10.2 ZN Mexico Capita Growth Fund Ltd. Funds' 00 25.3 - 25.3 25.3 646.9 152.8 799.7 NICARAGUA Casa Mantica S.A. and Trade' 99 4.5 - 4.4 - 4.4 Inmuebles Diano Marina, S.A. Distribuidora Cesar Guerrero S.A. Trade' 99 1.0 - 0.9 0.9 Financiera Arrendadora Centroamericana S.A. Finance' 00 2.6 - 18 0.6 2.4 Fruta es del San Juan, S.A. Agriculture' 99 3.0 - 2.0 1.0 3.0 9.1 1.6 10.7 LATIN AMERICA AND THE CARIBBEAN (continued) as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity PANAMA Banco Del Istmo, S.A. Finance' 00 20.0 38.0 20.0 200 Banco General S.A. Finance' 98, 00 40.0 - 40.0 - 40.0 ICA Panama, S.A. Transportation5 00 35.0 35.0 35.0 35.0 Manzanillo Internatonal Transportation' 95, 00 40.0 35.0 31.5 - 31 5 Term nal - Panama, S.A. Panama Canal Railway Company Transponation' 00 20.0 30.0 15.0 5.0 20 0 Suleasing Internacional S.A. Finance' 00 5.0 - - 5.0 5.0 141.5 10.0 151.5 PERU Agraria El Escoral S.A. Food'0 00 7 0 7 0 - 7.0 Agro Industral Paramonga S.A. Food" 98 14.2 14.8 21.8 - 21.8 Agro-Guayabito S.A. Food'U 99, 01 10.0 - 9.0 1.0 10.0 Alicorp S.A. Food'° 00 40.0 20 0 40 0 - 40.0 Banco Internacional del Peru F nance' 98 20.0 100.0 16.0 - 16.0 Comparia de Minas 0 1, Gas, & Mining 79, 83, 90, 93 8.4 - - 1 7 1 7 Buenaventura, S.A. Empresa Agroindustria Laredo S.A. Food" 00 15.0 - 15.0 - 15 0 Inka Terra, Peru S.A.C. Tourism' 01 5.0 5.0 - 5.0 Latino Leasing, S.A. Finance' 98 12 5 - 10.0 2.5 12.5 Minera Quel aveco S.A. Oil, Gas, & Mining 93, 96, 00, 01 12 9 - - 12.9 12.9 Minera Yanacocha S A 0 1, Gas, & Mining 93, 95, 00 42.7 99.0 20.0 0.3 20.3 Peru OEH S.A. Tourism' 01 10.0 - 100 - 10.0 The Peru Privatization Fund Limited Funds' 95 13.9 - 131 13 1 PPF Cayman Ltd Funds' 95 t - t Ransa Comercial S.A. Transportation, 00 10.0 10.0 - 10.0 S.A. Minera Regina Oil, Gas, & M nmng 85 3.0 - 11 - 1.1 Sociedad Agricola Drokasa S.A. Agriculture' 00 6.0 60 - 6.0 Un versidad Peruana de Education Services 01 7.0 - 7.0 7.0 Ciencias Aplicadas, S.A. Wiese Leasing S.A. Finance' 82, 92, 96 19 5 25.0 3.6 - 3 6 181.5 31.5 213.0 TRINIDAD AND TOBAGO Caribbean Ispat Ltd. Metals' 96 27.4 55.0 17.1 - 17.1 Messer Trinidad & Tobago Limited Chemicals 00 21.0 30.0 20.0 - 20.0 37.2 372 URUGUAY Azucitrus S.A. Food" 85, 93 13.9 - 1.0 3.4 4.4 Consorcio Aeropuertos Transportation' 96 8.0 10.0 6.1 - 6.1 Internacionales S.A. Granja Moro, S.A. Food'" 92 3.8 - 1.8 0.8 2 5 Surinvest Internatona Lmited Finance' 80,89,97 15.9 10.0 2.2 1.8 4.0 Universidad de Montevideo Educaton Services 01 5.0 - 5.0 - 50 16.1 6.0 22.0 VENEZUELA, REPUBLICA BOLIVARIANA DE C.A. la Electricidad de Caracas Uilit es 92, 00, 01 70.0 35.0 67.8 - 67.8 Compauta An6nima Nacional Informaton 96 43.4 131.6 25.0 - 25.0 Tel6fonos de Venezuela (CANTV) Complejo Siderorgico de Metals' 97, 98 45.0 121.0 30.3 10.0 40.3 Guayana, C.A. Corporaci6n de Cemento Andino, C A Minerals' 01 7.6 24.4 7.6 - 7 6 Corporaci6n Industria Chemicals 91, 92 21.1 - - 11.0 11.0 Montana, C.A., S.A. as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity Forestal Trillium de Indus/Cons Products' 00 22.8 100 16.8 6.0 22.8 Venezuela, C.A. Grupo Zuliano, S.A. C.A Chemicals 92, 94 14.1 - - 14.1 14.1 Metanol de Oriente, Metor, S.A. Chemicals 93 37.9 93.3 12.0 6.8 18.8 Minera Loma de Niquel, C.A. Oil, Gas, & Mining 98, 00 75.2 50.0 71.0 4.4 75.4 Productora de Alcoholes Chemicals 91 38.4 2.0 7.2 7.5 14.7 Hidratados, C.A. Propileno De Falcon Profaica, C.A. Chemicals 00 24.0 23.0 23.6 - 23.6 Telecomunicaciones Movilnet, C.A. Information 98 35.0 60.0 28.4 - 28.4 289.8 59.8 349.6 REGIONAL INVESTMENTS Bank of Nova Scotia Finance' 01 25.0 25 0 25.0 - 25.0 Certifica.com Information 01 1.5 - 1.5 1.5 Convergence Communications, Inc. Information 00, 01 7.1 - 7.1 7.1 Eastern Caribbean Home Finance' 97 0.4 - 0.4 0.4 Mortgage Bank Energia Global International, Limited Utilities 00 5.0 - -t HSBC Private Equity (South Funds' 92 - - - 0.3 0.3 America) Ltd. HSBC Tower Equity Partners, L.P. Funds' 01 20.0 - 19.7 19.7 The Latin America Enterprise Funds' 95 20.0 - - 19.4 19.4 Find, L.P The Latin America Enterprse Funds' 98 23.1 - - 23.1 23.1 Find 11, L.P. Latin American Corporate Bond Fund Funds' 94 15.0 - - I Medical Systems Finance Finance' 98, 01 17.0 25.0 15.0 2.0 17.0 Holding Limited (MH) PriceSmart, Inc. Trade' 01 32.0 - 32.0 - 32.0 Profund Internacional, S.A. Finance' 99 3.0 - - 3.0 3.0 Scudder Latin American Power Funds7 92, 93 25.0 - 25.0 25.0 Fund I Scudder Latin American Power Funds' 92, 98 10.0 - - 9.4 9.4 Fund 11 Softbank Latin America Information 01 15.0 - 15.0 15.0 Ventures TCW/Latin America Partners LLC Funds7 00 70.0 - - 70.0 70.0 Terra Capital Advisors Funds7 99 5.0 - - 5.0 5.0 72.0 200.9 272.9 Total for Latin America and the Caribbean 4,050.3 1,122.3 5,172.5 MIDDLE EAST AND NORTH AFRICA as of June 30, 2001 Original commitments' Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity ALGERIA Aldaph SPA Chemicals 00 7.8 5.3 6 0 1.7 7 7 Algiers Investment Partnership Finance- 00 0.3 - - 0.3 0 3 Arab Banking Corporation Algeria Finance' 98 1.9 - - 1.9 1.9 Helios S.PA. Chemicals 93 10.0 2.0 - 2.0 Societe Generale d'Algerie Finance' 99 1.0 - - 1.0 1.0 8.0 4.9 12.9 EGYPT Abu Soma Development Company Tour sm' 94,97,99 1.1 - - 11 1.1 Alexandria Carbon Black Chemicals 93, 97, 99 22.5 - 13.0 3.0 16.0 Company, S.A.E. Alexandria National Iron & Metals' 84, 91, 93, 94, 42.6 - 8.6 22.6 31.2 Steel Company S.A.E. 96, 99 Club Ras Soma Hotel Company Tourism2 94 7.4 2.9 2.4 2.4 4.7 Commercial International Bank Finance' 00 1.7 - - 1.7 1.7 Legal & General Life Insurance Company Commercial International Bank Finance 94 15.6 - - 15.6 15.6 S.A.E. of Egypt E D.F. Port Said Fast Power Utilities 01 45.0 152.5 45.0 - 45.0 S.A.E. E.D.F. Suez Gulf Power S.A.E. Utilities 01 45.0 152.5 45.0 - 45 0 EFG - Hermes Holding SAE Fnance- 01 30.0 - 30.0 - 30.0 The Egypt Trust Funds' 97 5.0 - 5.0 5.0 HC Securities & Investment S.A.E. Finance' 00 1.4 - - 1.4 1.4 IT Worx L+D Services' 01 2.5 - - 2.5 2.5 Meleiha Oil Development and Oil, Gas. & Mining 87, 88, 93 41.7 - - 30.8 30.8 Exploration Protect Messer Gases Dikheila Company, Chemicals 97 1.5 - - 1.5 1.5 S.A.E. Misr Compressor Manufactur ng Indus/Cons Products' 92 13 5 - 9.7 3.8 13.5 Company (MCMC), S.A.E. Orascom Projects and Touristic Tourism' 97, 99 21.8 - 16.0 4.8 20.8 Development S.A.E. Orix Leasing Egypt Finance' 97,01 6.9 - - 0.9 0.9 Unipak Nile Limited Pulp & Paper 98,01 80 - 7.1 - 7.1 176.7 97.0 273.7 JORDAN Arab Internationa Hotels Company Tourism2 00 3.6 - - 3.6 3.6 Business Tourism Company Limited Tourism2 98 5.0 - 3.8 1.0 4 8 El-Zay Ready Wear Manufacturing Co. Textiles' 98 5.0 - 3.6 - 3.6 Hikma Investment Company Ltd. Chemicals 87, 91, 93, 95 9.6 - 2.4 2.4 Indo-Jordan Chemicals Company Chemicals 95 30 0 - 20.0 - 20.0 Limited International Luggage Manufacturing Textiles' 01 8.0 - 8.0 - 8.0 Company Jordan Gateway Projects Co. Construction & 01 10.0 - 10.0 10.0 Real Estate Jordan Inter-Continental Hotel Tourism' 98 10.0 - 9.3 - 9.3 Project Jordan Investment Trust Plc Finance' 98 1.4 - - 1.4 1.4 Jordan Valley Co., Ltd. Agriculture' 99 - - 5.0 - 5.0 Middle East Investment Bank Finance 01 2.1 - 2.1 - 2.1 Modern Agricultural Investment Transportation' 99 1.0 - - 1.0 1.0 Company Zara Investment (Holding) Tourism2 97 18.0 - 14.3 3.0 17.3 Cumpariy Lirriited 76.1 12.3 88.4 e, ! 1, ! *i * . ! a as of June 30, 2001 Original commitments, Investments held for tFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity LEBANON Agricultural Development Co. S.A.L. Food'" 98 5.0 3.7 - 3.7 Bankof Beirut and the Arab Finance' 93,97 11.0 10.G 3.1 - 3.1 Countries, S.A.L. Bank of Beirut S.A.L. Finance' 98 17.1 - 16.1 - 16.1 Banque Audi S.A.L. Finance' 93, 97, 98 16.0 3.0 9.8 - 9.8 Banque Libano-Francaise S.A.L. Finance' 94,97 16.0 21.0 6.3 - 6.3 Banque Saradar S.A.L. Finance' 98,99 21.0 - 6.9 11.0 17.9 Byblos Bank S.A.L. Finance' 93, 97, 00 51.0 52.0 41.3 - 41.3 Cimenterie Nationale Minerals" 95 20.0 30.C 6.3 - 6.3 Fransabank S.A.L. Finance 93, 94, 97 16.5 15.4 3.0 3.0 FTML S AL. Informaton 98 30.0 45.0 17.5 - 17.5 Idarat Investment Corporation, S.A.L. Tourism' 99 0.5 - 5.0 1.5 6.5 The Lebanese Credit Insurer Finance' 01 0.5 - - 0.5 0.5 Lebanese Leasing Company Finance' 95, 99, 01 20.2 10.8 11.5 0.7 12.2 Societe 1-oteliere "De Vinci" S.A.L. Tourism' 99 3.0 - 3.0 - 3.0 Societe Generale Libano- Finance' 94,97 13.5 17.5 4.7 - 4.7 Europeenne de Banque S.A.L. Uniceramic S.A.L. Minerals" 93 4.0 2.C - 0.8 0.8 138.2 14.5 152.8 MOROCCO Attijari Factoring Maroc Finance' 96 0.5 - 0.5 0.5 Maghreb Invest Management Ltd Funds' 00 t - t t Maghreb Invest Private Equity Fund Funds' 00 5.0 - - 5.0 5.0 Medi Telecom S.A. Information 01 88.5 296.7 88.5 - 88.5 Mediafinance S.A. Finance' 94,96 1.2 - - 1.2 1.2 Settavex S.A. Textiles' 99 14.4 - - 9.0 9.0 Societe ENNASR de Pgche Agricuoture3 91 2.5 0.4 - 0.4 88.9 15.7 104.5 OMAN Oman ORIX Leasing Company SAOG Finance' 93,99 6.4 - 1.9 1.3 3.2 United Power Company S.A.O.G. Utilities 95, 00 20.5 57.0 9.4 5.5 14.9 11.3 6.8 18.0 SAUDI ARABIA Saudi Orix Leasing Company (SOLC) Finance' 00 1.6 - 1.6 1.6 1.6 1.6 SYRIAN ARAB REPUBLIC Arab Drip Irrigation Plastics & Rubber 01 1.0 - 1.0 1.0 Technology Company L mited (Adritec) 1.0 1.0 TUNISIA Banque Internationale Arabe de Finance' 98, 00 8.3 - - 2.5 2.5 Tunisie Interrational Maghreb Merchant Finance' 95 0.3 - 0.3 0.3 Bank S.A. Societe Industrielle des Textiles' 86, 92, 98 14.0 - 2.9 2.9 Textiles (SITEX) Societe Monastirienne Textiles' 91 5.6 - 0.5 (0.8) (0.3) Internationale des Textiles Societes d'Etudes et de Touhrsm2 73. 75 3.2 - - 0.6 0.6 D6veloppement de Sousse-Nord Tuninvest Private Equity Fund Funds' 98 4.6 - 4.6 4.6 0.5 10.2 10.7 MIDDLE EAST AND NORTH AFRICA (continued) as of June 30, 2001 Original commitmentf Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity WEST BANK AND GAZA Al-Ayyam Fress, Printing, Information 99 1.8 1.6 - 1.6 Pubi'shing and Distribution Company Ltd. Arab Bank PLC Finance' 97 - - 3.0 - 3.0 Arab Concrete Products Company Minerals" 98 0 8 - 0 8 - 0 8 Arab Palestine Investment Bank Finance- 96 3.7 - 3.7 3.7 Arab Palestinian Storage and Transportation' 99 0.2 - 0.2 - 0.2 Cooling Co Ltd Commercial Bank of Palestine Finance' 97 7.5 - 1.5 - 1.5 Jericho Motel Tourism2 99 1.2 - 11 - 1.1 Jordan National Bank Finance' 97 - - 3.0 - 3.0 Palestine Industnal Estates Construction & 98 9.0 7 0 8.0 1.0 9.0 Development and Real Estate Management Company Palesatne Mortgage Housing Finance' 99 4.0 - - 40 4.0 Corporation Palestine Tourism Investment Co. Tourism2 99 9.3 - 8.0 1.4 9.3 Peace Technoiogy Fund Funds' Co 12.6 12 6 12.6 Peace Technology Management Ltd Funds' 98 0.2 - 0.2 0.2 27.2 22.9 50.1 YEMEN, REPUBLIC OF Aden Company for Silos and Food" 99 120 12.0 - 12.0 Mills Radfan Ceramics and Porcela n Minerals' 98 3.8 3.2 - 3.2 Manufacturing Company L[mited 15.2 15.2 REGIONAL INVESTMENTS Arab Insurance Group Finance' 98 6.2 - - 6.0 6 0 First ANZ International Funds' 97 5.0 5.0 5.0 Modaraba Limited Framlington Maghreb Fund Funds7 00 7 4 - - 3.2 3.2 Framlington Maghreb, S.A. Funds 95 t - - t t Inter Arab Rating Company Finance' 96 0.3 - - 0.3 0 3 Middle East Capital Group Finance: 96 3.0 - - 3.0 3.0 17 4 17.4 Total for Middle East and North Africa 542.1 204.3 746.4 - 1i. I M an of June 30, 2001 Original commitments Investments held for IFC Fiscal years (US$ millions) (US$ millions) in which Total Total Country, region commitments Total syndi- Equity loans and or other area, and obligor Sector were made IFC cations Loans (at cost) equity WORLD REGION Emerging Markets Fixed Income Funds' 98 10.0 - 10.0 10.0 Fund Emerging Markets Gold Fund Funds' 94 9.4 - - X Emerging Markets Local Funds7 97 10.0 - 10.0 10.0 Currency Debt Fund Gerling Credit Insurance Group Finance' 01 8.7 - - 8.6 8.6 IFC Latin America and Asia Finance' 96 20.0 - 9.8 9.8 Trust 1995-A InfrastructureWorld.com Information 01 5.0 - - 5.0 5.0 Internationale Micro Investtionen F nance' 01 1.7 - - 1.7 1.,7 Aktiergesellschaft Renewable Energy and Funds' 00 15.0 - - 15.0 15.0 Efficiency Fund for Emerging Markets, Ltd. Round 1 Funds' 01 1.5 - - 1.5 1.5 Softbank Emerging Markets Information 00 50.0 - - 50.0 50.0 Solar Development Capital Limited Funds' 01 5.5 - 5.5 5.5 State Street Bank & Trust Funds7 94 10.0 - - 9.0 9.0 Company IFC Emerging Markets Index Common Trust Fund 126.1 126.1 Total for Worldwide 126.1 126.1 Total for the International Finance Corporation 9,936.2 3,654.0 13,590.2 Total for the International Finance Corporation (Net of Write-Off Adjustments)' 9,882.0 3,635.3 13,517.3 Fnancial intermediary through which IFC makes loans to, and equity investments in, various small-scale companies. SubprDject under an agency line or a multicountry loan facility The corresponding commitment is shown for the agent. t Less than $ 50,000. 1Finance & Insurance 7 Collective Investment Vehicles 2 Accommodation & Tourism 8 Wnolesale & Retail Trade 3 Agriculture & Forestry 9 Primary Metals 4 Textiles, Apparel, & Leather 10 Food & Beverages 5 Transportation & Warehousing 11 Nonmetallic Mineral Product Manufacturing 6 Industrial & Consumer Products 12 Professional, Scientific, & Technical Services a. Comm tments 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 funds to be prov ded by other financial institutions in association with IFC, where IFC has rendered material assistance in mobilizing those funds. Original commitments are composed of disburi sed and undisbursed balances. The undisbursed portion is revalued at the current exchange rate, while the disbursed portion represents the cost of the commitment at the time of disbhirse- ment. Loans held for the Corpsration are revalued at the current exchange rates. Amounts shown are for commitments outstanding at June 30, 2001, net oa cancellations. b. Commitments and investnments held for FC do not include guarantees and risk management products. At June 30,2001, IFC's comm tted portfolio of these products was $803,930 .394. cOf the total $136,213,269 in write-offs for FY01. write-off adjustments are $54,237,300 in oans and $18,683,714 in equity (at -ost) for atotal of $72,921,014. NOTE: The operational investments are represented by loans and equity, as stated. In addition, in certain nvestments, the Corporation has the right to acquire shares and/or partic: pate in the profits of the enterprise. In some tables, totals may differ from the sum of individual figures because of rounding. a. Our Mission: We promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. -4MIFC INTERNATIONAL FINANCE CORPORATION 2121 Pennsylvania Avenue, NW, Wash ngtor. DC 20433 USA Telephone 202-473-7711 Facsimile 202-974-4384 www. fc.Drg www.ifc org/ar2001 SBN 0-8213-5012-9 Q Pr nted on recy- ed paper