International Finance Corporafion A:Member of The World Bank Group 21371 ANNUAL REPORT 1968 iw A~~~~~~~~~~~~~ P- ~ . Cotton being drawn and twisted on a speed frame in the spinning section of La Internacional, S.A., Ecuadoran textile maker. Equipment for this work was installed as part of an expansion and modernization program IFC helped to finance. "The purpose of the Corporation is to further eco- nomic development by encouraging the growth of prodlcttive private enterprise in member coun- tries, particularly in the less developed areas, thus supplementing the activities of the International Bank- for Reconstruction and Development.... In carrying out this purpose, the Corporation shall: i. in association wvith private investors, assist in financing the establishment, improvement and expansion of productive private enterprises which would contribute to the development of its member countries by making investments, without guarantee of repayment by the member government concerned, in cases 'where suffi- cient private capital is not available on reason- able terms; ii. seek to bring together investment opportuni- ties, domestic and foreign private capital, and exper-ienced management; and iii. seek to stimulate, and to help create conditions conducive to, the floaw of private capital, do- mestic and foreign, into productive investment in member countries. "The Corporation shall be guided in all its deci- sions by the provisions of this Article." Article One Articles of Agreement International Finance Corporation International Finance Corporation OFFICE OF THE PRESIDENT 1818 H Street, N.W. Washington, D.C. 20433 September 30, 1968 Dear Mr. Chairman: The Annual Report of the International Finance Cor- poration for the period July 1, 1967 to June 30, 1968 is submitted herewith to the Board of Governors by the Board of Directors in accordance with Section 8 of the By-Laws of the Corporalion. The Report describes the activities of IFC during the fiscal year, summarizes its position as of June 30, 1968 and includes a description of commitments made during the year. Appendices to the Report include financial state- ments and data on each of IFC's commitments. Sincerely, Robert S. McNamara Chairman Board of Governors International Finance Corporation Contents The Year in Summary ............................... 4 Main Facts-Fiscal 1968 .............................................. 5 Rising Association of Private Funds ................. .............. 7 The Year's Operations ............................... 9 IFC Investments in Brief-Fiscal 1968 ............................... 11 Development Finance Companies ................. .............. 12 iFC's Portfolio in Fiscal 1968 ......... ...................... 13 The Financial Record for the Year .............. ................. 13 Profit and Loss on Investments ............. .................. 14 Administration and Membership ........... .................... 15 Membership ........................ 15 Commitments Fiscal 1968 ............................... 16 The Year's Principal Investments ............. .................. 17 Ethiopia: H.V.A.-Metahara, Share Company ......... .................... 17 Korea: Korea Development Finance Corporation ...... ................... 19 Malaysia: Malayawata Steel, Berhad ......... ........................... 20 Mauritania: Societe Miniere de Mauritanie ....... ........................ 21 Mexico: Compania Fundidora de Fierro y Acero de Monterrey, S.A .......... 22 Nicaragua: Textiles Fabricato de Nicaragua, S.A ......................... 22 Venezuela: C.A. Venezolana de Desarrollo (Sociedad Financiera) .... ...... 23 't'llhe hitel lttionatl Filaniice (Crpoul-atiot I 96iS The Year in Suninmarv the International Finance Corporation made its funds in the developing countries, and to those in Tlargest investment in Fiscal 1968, a $20 million developing countries seeking investments. commitment to Societe Miniere de Mauritanie (So- FurtherhighlightsoflFC's1968fiscalyearincluded: mima), for the development of copper deposits at Akjoujt, in the Sahara Desert. IFC joined with an in- -Total commitments reached a new high of $50.7 vestment group of exceptional breadth and variety to million. The average size of principal commitments- help finance the new $60 million mining company. over $500,000 in one company-also rose, to $7.1 mil- IFC's presence in this investment group, and-also lion, compared with $5.4 million the previous year. in Fiscal 1968-in similarly large and varied invest- ment groups which financed a new development bank -Other investors associated themselves in the in Korea and a new textile producer in Nicaragua, Corporation's investments by participations in new emphasized the Corporation's favorable position as IFC commitments totaling $8.7 million, purchases a central point for consortia welding together the from IFC's portfolio of previous commitments totaling strengths of national, international and intergovern- $2.8 million, and purchases of $7.1 million of securi- mental investors, public and private, as well as finan- ties covered by IFC standby and underwriting com- cial, industrial and institutional investors. mitments, totaling $18.6 million sales to others of Given current needs for large and growing amounts portions of IFC commitments. of private funds for development investments, this feature of IFC's work can be of increasing importance -At the end of Fiscal 1968, the average annual re- to investors seeking sound bases for thie use of their turn over the present life on all investments held in .1 IFC's portfolio was 7.61 per cent, compared with 7.41 per cent a year earlier. This return included capital Main Facts-Fiscal 1968 gains and losses on investments. -The role IFC can play as an underwriter in help- During the year July 1, 1967 through June -The role ~~~~~~~~30, 1968 the International Finance Corpo- ing companies to expand, and the Corporation's con- ration: tinuing interest in the growth of companies it has ration: helped were emphasized in IFC's largest underwrit- * Made commitments of $50.7 million, in- ing operation to date: a commitment to guarantee the cluding IFC's largest investment to date- sale of half of a $14 million issue of new shares by $20 million. the Mexican steel company, Compania Fundidora de * Made two new principal commitments in Fierro y Acero de Monterrey, S.A. (Fundidora). It was Africa, two in Asia and three in Latin the fourth occasion, since 1962, when IFC has under- America, including first commitments in written a large portion of a new Fundidora issue. Korea, Mauritania and Nicaragua. * Raised total commitments to $271.8 mil- -First commitments were made in three countries lion, in 39 countries. in Fiscal 1968: Korea, Mauritania and Nicaragua. * Showed an average annual returIn, over the present life of all investments held for -In Malaysia, IFC financing helped bring into being its own account, of 7.61 per cent. a steel mill scaled in quantity and type of production * Obtained net income of $6.2 million. to the needs of a relatively small market, with a tech- * Recaptured funds, chiefly through sharply nology geared to the availability within the country increased sales of portions of IFC commit- of basic raw materials, including rubber trees to be ments to other investors, so that some $24 used in making charcoal. million of the Corporation's committed re- sources were restored for use in new -During the fiscal year, for the first time, an IFC development investment. supported project in a Central American country had * Increased the cumulative total of funds a technical sponsor from Latin America. This was available to $340 million, from $310 million IFC's commitment in the Nicaraguan textile mill in Fiscal 1967, through increases in sales Fabritex, for which the technical sponsor was the of ivestments, repayments, net income Colombian textile maker, Fabricato. and capital subscriptions. * Engaged in its biggest underwriting com- mitment . . . for the first time invested in a project in Central America in which the rC Commitments technical sponsor was from Latin America -iscal 1957-1968 . . . achieved new high commitments at a time of tight money and strong world com- petition for investment funds. vg., Fiscal 1957-61 I Increased membership to 86 countries. .vg., Fiscal 1962-66 Fiscal 1967 _ Fiscal 1968 _ Reduction of Exposure 10 D 20 30 40D 50 Fiscal 1968 Millions of Dollars Millions of Dollars 0 10 20 30 40 50 l l l l l l Commitments Sales of Commitments L & Other Reduction of Exposure Net New Exposure l l Resources Through Fiscal 1968 by Type by Source Unallocated - ~~~~Capital paid in 29% 12% / Loan (from Latin - ~~~~~~~~~~~~Africa Asia & Middle East Use of Resources Tl-rough Fiscal 1968 by Type by Area Uncom mited 24% DCrct Investments Latin America 48% Africa 22% Underwriting and Standby Commitments Commitments and Sales of Commitments Fiscal 1957 through Fiscal 1968 Millions of Dollars $60 Commnitments Fi Sales of Commitsaents 196- $40 A o $30 $20 $10 X L 1 'a Averages Averages Fiscal 1967 Fiscal 1968 Fiscal 1957-61 Fiscal 1962-66 R,isinci Association of Private F-Lnds ne of the year's highlights mentioned previously Over IFC's 12-year history some 40 financial insti- warrants separate discussion. This is the in- tutions have repeatedly bought portions of IFC com- crease in the fiscal year from July 1, 1967 through mitments. The Kuwait Investment Company, the June 30, 1968 in the amount of its commitments IFC Banca Commerciale Italiana Group and the Bank of was able to sell to other investors. America, together with its affiliate Bamerical Interna- The fact that during Fiscal 1968 other investors tional Financial Corporation, have each invested took up $18.6 million of IFC's commitments meant more than 10 times with IFC. Nine other institutions that: have associated themselves with IFC investments on five or more occasions. The Corporation did nearly $51 million of new All told, 81 investors have invested in IFC transac- business during the year but sales to others of tions on 203 occasions, 21 such investments coming portions of its investments cut new exposure by from the Middle East, 66 from Europe, 92 from North more than a third. America, 4 from Latin America, 11 from the Carib- bean, 7 from international investment institutions and Sales of commitments, together with the effects 2 from Hong Kong. of other means by which IFC revolves its funds Participations and portfolio sales contributed to the and of cancellations, freed some $24 million of international flow of capital during the year. The committed funds for re-use in new investments. majority of the funds made available by the Corpora- tion's commitments during Fiscal 1968 was for proj- Participations in IFC's investments came from a ects in Africa-$29.3 million, and Latin America-$17.2 steadily lengthening list of financial partners, and million. Assistance in financing these ventures, many financial institutions made repeated invest- through participations in new IFC commitments and ments in IFC commitments. sales from IFC's portfolio, came from a wide area. There were 42 transactions in Fiscal 1968 in which About $9 million came from firms in Europe and North financial institutions bought portions of IFC invest- America. Through two Kuwait investment companies, ments. The Kuwait Investment Company, Deutsch- the Corporation tapped Middle East funds for a fur- Sudamerikanischen Bank A.G. and Detroit Bank & ther $1.3 million in support of IFC's development Trust Co., each made four such investments in IFC investments. commitments during thefiscal year.Otherplacements Besides financial association of other investors in of private funds in IFC investments in Fiscal 1968 IFC's commitments in Fiscal 1968, five industrial came from investors in the Caribbean, Germany, companies became principal technical sponsors, as Hong Kong, Italy, Switzerland, the Middle East, North well as financial backers on their own account, of America and Sweden. projects assisted by IFC. They in turn were associated IFC Commitments, Reduction of Exposure and Net Exposure Fiscal 1957-1968 Milliors of Dollar. Maitre Moktar ould Daddah, President of Mauritania, at the signing of financing agreements May 22, 1968 forSociett Miniere de Mauritanie (Somima). Somima will develop the Akjoujt copper ore deposits in the Sahara Desert. IFC's $20 million investment in the | Net Exposure r l S l approximately $60 million project is the largest g $160 _ l _ J commitment ever made by the Corporation. Total Commitments $272 million with eight other industrial and financial sponsors. The principal industrial sponsors were: United H.V.A. of Amsterdam and H.V.A.-Ethiopia, in the H.V.A.-Meta- hara sugar plantation and refining project in Ethiopia; Fbrica de Hilados y Tejidos del Hato, S.A. de Colombia (Fabricato), in the Nicaraguan textile project Textiles Fabricato de Nicaragua, S.A. (Fabritex); J Yawata Iron and Steel Limited of Japan, in the Malayawata steel project in Malaysia, and Charter Consolidated Limited of London, in the Mauritanian copper mining project, Somima. The Korea Development Finance Corporation (KDFC) was sponsored by the Federation of Korean Industries and had financial support from nearly all of Korea's commercial banks and insurance com- panies. Nine private banks outside Korea, brought into the venture by IFC, joined in providing capital to KDFC. In Mexico, Cr6dito Bursatil, S.A. was co-under- writer with IFC in underwriting a new issue for the steel maker Fundidora. In addition to participants in IFC commitments, and to industrial and financial sponsors of projects, more than 25 public and private financial institutions pro- vided a further important source of funds to projects assisted by IFC in Fiscal 1968, making their own sepa- rate commitments of approximately $68 million in these projects. 8 The Year's Operations The greater size and complexity of projects in Another investment with special characteristics which IFC committed funds during the fiscal year, was the Malayawata steel mill in Malaysia. Its design and the diversity of the investment groups backing takes advantage of the availability of nearby high- these projects, help to fill current needs for more grade iron ore, and the fact that the blast furnace can advanced technology in competitive industrial opera- operate with charcoal made largely from locally tions and changes in sources and supplies of funds abundant, over-age rubber trees, in setting up a steel for development investment. Diverse sponsorship producer with ultimate capacity of 123,000 metric provides financial backing bound together with tech- tons per year-ordinarily considered too small to be nical and managerial sponsorship, both elements of economical by today's standards. a viable operation. IFC policy that its investments The year's two largest investments were in Africa. must be of economic pniority as well as being com- The first has already been cited. The second was a mercially sound helps ensure that the venture will yield both private and public profits: adequate earn- i$9 million loan equity and underwriting commitment yield~ ~ ~ ~ ~ ~~~~~ ~i theh $22va5 milio sugarc plantatio anduat milapojct ings for private capital and profits for the country H.V.A.-Metahara, Share Company in Ethiopia, produc- concerned through increased real national income, higher levels of employment, higher worker produc- ing sugar for local consumption. Participations total- tivity and increased foreign exchange savings. ing $1.15 million were sold to other investors. Operations in Fiscal 1968 also illustrated IFC's in- First investments, in Fiscal 1968, in Korea, Mauri- terest in special situations. Success of the Somima tania and Nicaragua, the spread of the year's seven copper mining project, for example, hinges on the principal commitments-two in Africa, two in Asia and capability of a technique called TORCO (Treatment three in Latin America-and the fact that over half of of Refractory Copper Ores) to process the copper the fundscommitted in Fiscal 1968 went toAfrica,con- oxide ores which constitute approximately one-half tinued geographic diversification of the Corporation's of the Mauritania deposit. While copper sulphide ores investments. In the previous year this trend had been can be treated conventionally, copper oxide ores furthered by the fact that over half of IFC's commit- have proven difficult in the past. The new process ments went to Asia and the Middle East. At the end has been successfully used on a smaller scale in the of the fiscal year, for the entire 12-year history of the Zambia copper fields. Under a program to prove out IFC, commitments in Asia and the Middle East totaled the equipment and predict the operating character- $65.4 million, or 24 per cent. Commitments in Africa istics of the TORCO process when handling the totaled $59.2 million or 22 per cent. Commitments in Akjoujt oxide ores tests confirmed the adaptability of Latin America came to $129.2 million, or 48 per cent. TORCO to the Mauritania ore and to the planned The remaining 6 per cent represented investments production rate. in Europe and Australia. .' IFC Commitments by Type of Business Fiscal 1968 Manufacturing Iron & Steel . . . ' W <1 Fertilize e rs. . .... . .I.... Paper & Paper Products . Textiles & Fibers Food Processing Machinery Cement. . ..... Other Manufacturing . . .... Other Utilities, Tourism, Storage & Agriculture M i ning . .. .......... .... . .. .. . . V S i e Development Finance Banks I I I ,1 1 1 0°) 5 1~ 0 1n5 20 25 30 35 40 o5 0 MVi ions ol Do lws The Corporation continued to pursue the objective became a shareholder in Acos Villares in 1965 when of increasing the availability of fertilizers, in view of it made its original commitment, of $5 million, as part the critical importance this can have upon food and of a $7.3 million expansion program by the company. agricultural deficiencies. The construction of a fer- The Corporation also exercised part of its option on tilizer plant in a developing country is a double-edged shares of Compania Colombiana de Tejidos, S.A. development tool, providing a major new chemical (Coltejer). industry at the same time as it adds to the nation's A commitment of $280,000 to Kenya Hotel Proper- ability to improve its agriculture. Althcough no new ties Limited, approved in the previous fiscal year, was fertilizer projects reached completion during the made in Fiscal 1968. This was additional to IFC's fiscal year an important study of fertilizer needs was commitment of $2.9 million to this project for the carried out by IFC during the fiscal year, and at the development of tourism in Kenya made in Fiscal 1967. year-end several new fertilizer commitments were The Corporation subscribed, together with other under consideration. major shareholders, to $169,292 equivalent of a new The study made an intensive examiriation of the issue of preferred shares of the Colombian steel fertilizer needs of India. Its principal purpose was to forger, Forjas de Colombia, S.A., as part of a financial ascertain India's foreign exchange requirements for plan to enable Forjas to proceed with production and the importation of fertilizers as part of a program for marketing in 1968. agricultural improvement. A report was presented at IFC assisted the Peruvian cement producer, a meeting in May, under World Bank chairmanship, Cemento Andino, S.A., in carrying out a further ex- of the Consortium on aid to India. pansion of that company's cement capacity, to In addition to new commitments to Fundidora and approximately 430,000 metric tons per year. The Cor- Cavendes among the year's principal investments, poration did not make a new investment in Cemento IFC was active during the past year in supporting Andino, but rescheduled maturities which would have other companies in which it had previously invested been payable in accordance with the investment funds. A small additional investment was made in agreement entered into in 1961, when IFC provided Agos Villares, S.A., Brazil, one of the largest tool and $2.4 million to the company. IFC deferred up to special steels producers in Latin America. The in- $500,000 of payments due to it so that Cemento vestment was made in connection with a rights offer- Andino would have adequate funds for its new ing by the company to its existing shareholders. IFC expansion. IFC Investments in Brief-Fiscal 1968 During Fiscal 1968, the Corporation made seven principal commitments. These were: Ethiopia: A loan, equity and underwriting commitment of $9 million in H.V.A.-Metahara, Share Company, a new concern establishing a $22.5 million sugar plantation and mill in Ethiopia to meet domestic needs. Korea: An equity commitment of $702,043 in the Korea Development Finance Corpo- ration, in conjunction with a $5 million equivalent loan from the World Bank and commitments of almost $17 million by domestic and foreign, private and public investors, to establish Korea's first private industrial investment institution and help sustain the nation's rapid economic growth. Malaysia: A loan and equity commitment of $3.5 million in Malayawata Steel, Berhad, a new $26.9 million integrated steel plant, to be the first major iron and steel pro- ducing unit in Malaysia and the nation's largest single industrial enterprise. Mauritania: A $20 million loan and share capital commitment-the Corporation's largest to date-in Societe Miniere de Mauritanie (Somima), a $60 million project to develop Mauritania's Akjoujt copper deposits. Mexico: An underwriting commitment of $7 million of a $14 million share offering to stockholders of Compania Fundidora de Fierro y Acero de Monterrey, S.A. (Fundidora), and, as a shareholder,a subscription to $318,886 in shares as part of financing for the continued long-term expansion program of Mexico's largest investor-owned steel producing company. Nicaragua: A loan and equity commitment of $2.1 million-IFC's first commitment in Nicaragua, its biggest in Central America and its first in conjunction with the Central American Common Market's finaneial institution, the Banco Centro- americano de Integraci6n Econ6mica-as part of the financing of Textiles Fabri- cato de Nicaragua, S.A. (Fabritex), a new $9.2 million textile mill in Managua. Venezuela: A loan of $7.5 million, with a stock option to C.A. Venezolana de Desarrollo (Sociedad Financiera), known as Cavendes. This was IFC's second commitment to this development bank. The first was an equity investment of $1.3 million in 1963. The loan was made to cover foreign exchange costs of projects financed by the Venezuelan company. (More detailed descriptions of each of IFC's principal investments in Fiscal 1968, together with names of participants and of members of investment groups, and the financial plan of each investment, are to be found in the section titled "The Year's Principal Investments".) Financing Development Banks The Corporation was instrumental in bringing to- gether an exceptionally broad investment group to provide $22.5 million to finance Korea's first private institution for the supply of long-term industrial funds, Other Korea Development Finance Corporation. The invest- Resources ment group included, besides IFC, the World Bank, 21 \ the United States Agency for International Develop- ment, a group of nine private banks outside Korea, the Korean Government, nearly all of Korea's com- Local mercial banks and insurance companies and a wide Resources representation of its industrial enterprises. Soumc,s of approximate y $5S5 mil ion nroanc el res3urces cf 17 De,lopment Firance Companies ir l-ich IFC held shares ore 30, 19368 (IC has invested in 18 develoncont banos and hla sold its koldic s n one bank.) IFC Commitments Fiscal 1957-1968 MUl ions of Do lar Development Finance Companies T GCmm tments by Years Continued support was provided during Fiscal 1968 _ to development finance companies. The 18 development finance companies which IFC has assisted add a dimension to the Corporation's work, doing in their own countries what IFC does in many countries: they assist the development of the private sector of a developing country. By raising funds domestically and abroad, and investing these funds in the local economy, development banks sub- stantially increase the effectiveness of IFC's invest- ments in them. They also sponsor within their coun- tries projects the Corporation could not itself eco- nomically undertake, and act as a conduit through which foreign capital can be channelled into produc- 50 - tive private ventures. IFC made a second commitment in the Venezuelan development bank, C.A. Venezolana de Desarrollo 40 (Sociedad Financiera), known as Cavendes, in the form of a $7.5 million loan. Cavendes has played a leading role in the development of private enterprises, 30 particularly in underwriting. The loan was made to cover foreign exchange costs of new projects and to enable Cavendes to continue to support Venezuelan 20 industrial expansion. IFC helped found Cavendes in 1963 with an equity investment of $1.3 million. I1r) I 2 '57 '8 59 '60 '61 '62 '63 '64 '65 '6 '67 88 Fisca Years IFC's Portfolio in Fiscal 1968 A the end of Fiscal 1968 IFC's portfolio consisted these operations in Fiscal 1968 was a $23.8 million of $53.4 million, or 34 per cent, in equity and increase in re-usable funds. Thus, given new commit- $104.5 million, or 66 per cent, in loans. This compared ments of $50.7 million, portfolio held by the Corpora- to 39 per cent, or $41.9 million, in equity and 61 per tion for its own account, including investments not yet cent, or $66 million, in loans at the end of Fiscal 1967. effective, increased by $26.9 million during the year, The average annual return over the present life on and was $159.4 million at the end of the year. Port- equity investments held in portfolio on June 30 was folio including only investments effective as of June 7.98 per cent, and the return on the loan portion of the 30, 1968 stood at $157.8 million compared to $107.9 portfolio was 7.43 per cent, giving an overall return million at the end of Fiscal 1967. of 7.61 per cent. These returns reflect dividends, in- A total of $78.6 million or 29 per cent of IFC's gross terest and other charges, profits and losses on sales commitments has been sold to other investors and, of portions of investments-the remaining portions of as of June 30, 1968, IFC had obtained the participa- which are still held by the Corporation-and miscel- tion of other investors in about 65 per cent of the laneous charges and credits, including the effects of individual commitments it has made. Of the Corpora- currency devaluations. tion's commitments of $34.1 million for standby or In addition to sales of parts of its commitments to underwriting of public or private securities offerings, other investors, IFC's funds also became available nearly $25 million was taken over by subunderwriters for re-use through repayments to it, and by cancella- in syndicates formed by IFC or by other institutional tions and other adjustments. The net effect of all of and individual investors. The Finaincial llecord for the Year G ross commitments of IFC in the 12 months ended The Corporation has available to it a first line of June 30,1968 raised the cumulative total of com- credit of $100 million from the World Bank out of the mitments to $271.8 million. Net of cancellations, ter- approximately $400 million which it is authorized to minations and write-offs, commitments rose to $259.0 borrow. Although there were no drawings during the million on a cumulative basis. Disbursements were fiscal year, commitments have been made against the $33.1 million during the year compared with $25.4 line of credit. million during the previous 12 months, and brought Funds generated during the year amounted to $30 cumulative disbursements to $173.1 million at the end million. This was a substantial increase over Fiscal of Fiscal 1968. Net income of $6.2 million compared 1967, when, exclusive of a $100 million line of credit with $6.0 million in 1966/67. from the World Bank, funds generated came to $17.5 1:I million. Funds generated included sales of portions three companies cited as in default in last year's An- of commitments, $18.6 million, repayments of $3.9 nual Report, Aevol Industrial Company of Organic million, new capital subscriptions of $1.4 million, net Fertilizers, S.A., of Greece; Fertilizantes Sint6ticos, income of $6.2 million, and profits on sales of invest- S.A. (Fertisa) of Peru, and Empresa de Curtidos Cen- ments of slightly over $.5 million, reduced by loss due tro Americana, S.A. (ECCASA) of Honduras. The de- to currency devaluations of a like amount. This raised faults involved approximately $634,000 of payments funds available to IFC for use in its operations to $340 due to IFC. million, on a cumulative basis, from $310 million at A sixth company, Berry, Selvey y Cia., S.A., of Co- the end of Fiscal 1967. lombia mentioned in the last two Annual Reports as experiencing difficulties, has been reorganized and purchased by Morfeo-Productos para el Hogar, S.A. IFC's investment is now recorded as an investment IFC closed out investments in three companies dur- in Morfeo-Productos. ing the fiscal year. These were: $500,001) in Laminas The situation of Aevol continued to deteriorate dur- del Caribe, Ltda., Colombia; $300,000 in Sherkate ing Fiscal 1968. The company had been in default Sahami Kahkashan, Iran; and $205,217 in Private De- on interest and other charges but, as a result of a velopment Corporation of the Philippines. During its failure to make loan repayments during the year, all 12 years of operations, the Corporation has closed its remaining principal payments have been declared out its interest in 27 investments in 15 countries rep- due and payable immediately, under provisions of the resenting $28.2 million. The closed-out investments loan agreement. have given an average return to IFC of 1 1.42 per cent Fertisa was in default on junior debt, and on a por- per annum. This return included dividends, interest tion of an instalment of principal of senior debt. and other charges, profits and losses on sales of The condition of ECCASA, a Honduran leather-tan- investments and miscellaneous charges and credits. ning company, improved, and IFC is currently con- Net gains on sales and other dispositions of loan sidering rescheduling of its defaulted principal and equity investments amounted to $546,650, which instalments. was credited to reserve against losses, as was net D.L.R. Plasticos do Brasil, S.A. defaulted on a prin- income. Losses from currency devaluations totaled cipal instalment to IFC and, as a result, the full princi- $553,498which was charged to reserve against losses. pal amount of its outstanding loan has been declared At year's end, reserve against losses stood at $40.9 due and payable immediately. IFC has filed suit for million compared with $34.7 million a year earlier. recovery in the Brazilian courts. At the end of the fiscal year five companies were Arewa Textiles Limited failed to pay a principal in default to IFC. These included D.L.R. F'lasticos do instalment of £8,700 and interest of £5,283 due on Brasil, S.A., Arewa Textiles Limited, of Nigeria, and June 30, 1968. Commitments, Disbursements, Funds Revolved and Allocations to Reserves n Mi lions o4 Dollars Commitments Avg. FYs 1957/61 A,- v 110.2 Avg. FYs 1962/66 r . i 24.2 Fiscali Year 1967 -n isWv2>;iSt;>-.l.d$iat&iili;3-7rb> sJfXg4rai>'t49.1 Fiscal Year 1968 . . Disbursements Avg. FYs 1957/61 t 6 6.6 Avg. FYs 1962/66 i>'116.3 Fiscal Year 1967 o...J 25.4 Fiscal Year 1968 4. ix .. i s 133.1 Funds Revolved Avg. FYs 1957/61 14A 3.2 Avg. FYs 1962/66 . . ...S A 12.3 Fiscal Year 1967 1 Fiscal Year 1968 ., l 23.8 Allocations to Reserves Avg. FYs 1957/61 .12.1 Avg. FYs 1962/66 [ a1 3.5 Fiscal Year 1967 ... '6.3 Fiscal Year 1968 . '*> 6.2 Commitments and Resources Available for Commitment In Millions of US Dollars Fiscal 1968 Total Funds available for commitment at June 30, 1967 $100.8 New commitments ... ....... ... .. $50.7 Less: Sales of investments ............. .......... .. $11.5 Acquisitions by others of securities covered by standby and underwriting commitments ....... 7.1 Repayments of investments ......... . ........... 3.9 Cancellations, terminations and write-offs ......... 1.0 Exchange adjustments ... . ....................... .3 23.8 Net increase in portfolio 26.9 New resources Capital subscriptions ............................. ..... 1.4 Net income ....................... ..................... 6.2 7.6 Reduction in funds available during the fiscal year 19.3 Funds available for commitment at June 30, 1968 $ 81.5 Admninistration and Membership X 1i r. Robert S. McNamara became President of IFC and Mr. Y. L. Chang joined the Board of the Korea v on April 1, 1968, at the same time as he as- Development Finance Corporation. sumed the Presidency of the World Bank. The annual meeting of IFC's international advisory Reflecting the importance of its program for as- panel took place on October 23, 1967. The panel re- sisting developing countries to improve their agricul- viewed the Corporation's activities and discussed tural position through increasing the availability to general policy issues. The panel members are: them of fertilizers, Mr. J. David Dodd, who had been Dr. Hermann J. Abs, Chairman, Deutsche Bank, A.G., Director of the Engineering Department, was named Frankfurt; Viscount Harcourt, Managing Director, Special Assistant to the Executive Vice President to Morgan Grenfell & Company Limited, London; work on the future fertilizer policy of IFC. Dr. Raffaele Mattioli, Chairman, Banca Commerciale He was replaced as Director of the Engineering Italiana, Milan; Mr. Andr6 Meyer, Senior Partner, Department by Mr. Hans Fuchs, who had been Deputy Lazard Freres & Company, New York; and Baron Guy Director of the Department of Investments for Latin de Rothschild, Partner, de Rothschild Freres, Paris. America, Europe and Australasia. At the end of Fiscal 1968, the staff of IFC numbered Mr. E. Waldo Mauritz was appointed Accounting 161 including nationals of 33 countries. Adviser, replacing Mr. Harry Williams, retired. Mr. William Clark was appointed Director of the Information and Public Affairs Department. Mr. Arthur Karasz became head of the European office, suc- Three countries joined IFC during the course of the ceeding Mr. John D. Miller, retired. Mr. Clark and year, raising the total membership to 86 countries. Mr. Karasz serve both the Bank and IFC. Viet-Nam, with a subscription of $166,000, became a Mr. John G. Beevor, who had served from 1956 to member in August; Mauritania joined in December 1964 as Vice President of IFC, resigned as IFC's rep- with a subscription of $55,000; and Indonesia, in April, resentative on the Board of Directors of Turkiye Sinai rejoined the Corporation with a subscription of Kalkinma Bankasi, A.S. (The Industrial Development $1,218,000. IFC's paid-in share capital rose to Bank of Turkey). $101,368,000. During the year, applications for mem- Mr. Ali Akbar Khosropur joined the Board of bership were received from China, Singapore, Uru- Banque Ivoirienne de Developpement Industriel, S.A., guay and Yugoslavia. Commitments Fiscal 1968 Loan Equity Total Brazil Acos Villares, S.A ........................ ................ $ - $ 55,454 $ 55,454 (Steel) Colombia Compania Colombiana de Tejidos, S.A ............ ........ - 22,618 22,618 (Textiles) Forjas de Colombia, S.A .......... - 169,292 169,292 (Steel forging) Morfeo-Productos para el Hogar, S.A ....................... - 5,950 5,950 (Home furniture) Ethiopia H,V.A.-Metahara, S.C. (Sugar) Standby Commitment ................................... - 2,000,000 2,000,000 Investment .............................................. 5,520,000 1,516,025 7,036,025 Kenya Kenya Hotel Properties, Ltd............................. 280,000 - 280,000 (Tourism development) Korea Korea Development Finance Corporation ................... - 702,043 702,043 (Industrial financing) Malaysia Malayawata Steel, Berhad .................................. 2,451,000 1,011,722 3,462,722 (Steel) Mauritania Soci6te Miniee de Mauritanie ............................. 18,800,000 1,206,515 20,006,515 (Copper mining and treatment) Mexico Compania Fundidora de Fierro y Acero de MIlonterrey, S.A. (Steel) Underwriting Commitment ..7,020,000 7,020,000 Investm ent ...................................... ....... 318,886 318,886 Nicaragua Textiles Fabricato de Nicaragua, S.A........... 1,000,000 1,071,428 2,071,428 (Textiles) Peru Cemento Andino, S.A... ................................... 61,500 - 61,500 (Cement) Venezuela C.A. Venezolana de Desarrollo (Sociedad Financiera) ....... 7,500,000 - 7,500,000 (Industrial financing) TOTALS ............................................ $35,612,500 $15,099,933 $50,712,433 The Year's Principal Investments $9702P3bS' # s+>~,='-'it '.-.'5M@t2[ ' Snhare Connpanr equivalent, an underwriting commitment of up to the IFC, Dutch and Ethiopian interests and the Ethio- equivalent of $2 million, and cost overrun obligations pIFC,a u Goverent jnEdhion thisinteestsmant the pvide of up to $228,000. The IFC loan is to bear interest at pian Government joined in this investment to provide 8 per cent annually, payable in US dollars, and will capital to a new company that will cultivate a sugar mature in 20 equal semi-annual instalments begin- plantation and operate a sugar mill in central Ethio- ning in 1971. Handelsfinanz, A.G., of the Banca Com- pia. The commitment was announced in July 1967. merciale Italiana Group, participated in the IFC The tract to be cultivated is located on both sides citment. of the Awash River, some 100 miles east of Addis commitment. Ababa. The project is expected to accelerate devel- IFC's underwriting commitment involves 100,000 opment ofThe prowet Awash expectedyto HVacclet rate dshares to be offered at par value of Eth$50 per share opment of the lower Awash Valley. H.V.A.-Metahara to the public in Ethiopia late in 1968. Unsold shares is expected to provide employment for over 4,000 are to be taken up equally by the Ethiopian Govern- Thercost of,thenproject is estimated at $22.5 mil- ment and IFC to a maximum of $1 million each. The The cost of the project is estimated at $22.5 mil- Government will also invest Eth$5.7 million ($2.3 mil- lion, of which IFC committed approximately $9 mil- lion equivalent) in shares of the new company. lion. Metahara's sponsors, who are providing equity The Metahara project was the first financed by IFC financing of $6.5 million, are United H.V.A. of Amster- in collaboration with De Nationale lnvesteringsbank dam, a leading Dutch company engaged in produc- (Herstelbank) N.V. which is providing a long-term tion of and international trade in agricultural com- loan of $2.2 million, denominated in Netherlands modities, and H.V.A.-Ethiopia, Share Company, 80 per guilders and having the same rate of interest and cent owned by United H.V.A. H.V.A.-Ethiopia is maturities as the IFC loan. presently the sole producer of sugar in Ethiopia. The financial plan was as follows: Consumption of sugar in Ethiopia has exceeded production and in recent years the average annual Equity (Eth$ million) rise in consumption has been high. The sugar mill is Eqnited H.V.A. and H.V.A.-Ethiopia. 16.3 scheduled to become operational in November 1969 Ethiopian Government and Government with an output in the first year of 29,000 metric tons designees .5.7 and full production of 47,400 metric tons in the sec- Ethiopian investors .5.0 ond year. The mill is designed so that an expansion IFCommecia Banko p.ia....... 3.2 Comnnercial Bank ot Ethiopia and to 65,000 metric tons can be accomplished at mar- Development Bank of Ethiopia 1.8 32.0 ginal cost. Management and technical assistance will Long-Term Debt be supplied by United H.V.A. which now manages IFC .......................... 13.8 sugar mills operated by H.V.A.-Ethiopia at Wonji and De Nationale Investeringsbank Shoa, some 60 miles west of the Metahara site. The (Herstelbank) N.V ...........y.. 5.6 19.4 sugar produced at Metahara will be marketed jointly Overdraft Facilities with H.V.A.-Ethiopia. Commercial Bank of Ethiopia 3.3 IFC's commitment consists of a loan of $5.52 mil- Cash Generation 1.6 lion, a subscription to shares totaling $1,288,025 TOTAL ....56.3 '7 I~~~MI Casting of ingots at Malayawata Steel, Berhad, Malaysia's first integrated steel facility and the largest industrial installation in the country. The IFC assisted project uses charcoal made fromt o ver-age trees from Malaysia's rubber platntations as a pri~ncipal raw material. KOREA $702.043-Korea Development Finance Korea to obtain managerial and technical services. Corporation IFC's investment of $702,043 equivalent is in the The World Bank and IFC agreed to help sustain the form of 38,500 common shares of KDFC, or 14 per momentum of Korea's rapid industrial growth by cent of total paid-in capital stock. IFC's commitment providing loan and share capital to the Korea Devel- was a key factor in the decision of foreign investors opmentiFingloan ace Corporecatitl t the first pivtel to contribute to KDFC's initial capital resources. The opment Finance Corporation (KDFC), the first private foreign shareholders who came into the transaction institutional source of long-term industrial finance in Korea. The Corporation was instrumental in bringing are the Bank of America, First National City together for this venture an exceptionally broad in- Overseas Investment Corporation, Irving International vestment base. KDFC was sponsored by the Fed- Financing Corporation and United California Bank eration of Korean Industries and most of Korea's International in the United States; three European banks-Banca Commerciale Italiana (Italy), The Char- commrcia baks ad isurace cmpaies on- tered Bank (United Kingdom), and Deutsche Bank tributed to its financing. It was established with the A. (any and twomJapanesb s-he In- backing, in addition to IFC and the World Bank, of d. Gstria Bank o an, Limitedand The B nk nine private foreign banks brought into the venture Tokyo, Limited. These banks have taken up 67,500 by IFC. The investment group also included the shares, or 25 per cent of KDFC's authorized capital United States Agency for International Development s2ns z and the Korean Government. A broad segment of stock. Korea's private sector representing nearly all of the Some 140 Korean shareholders representing, country's major industrial enterprises in addition to among others, nearly all of Korea's commercial banks commercial banks and insurance companies led the and insurance companies subscribed and paid for way in committing funds to KDFC. This was the first 164,000 shares, or 61 per cent, of the authorized time that the World Bank and the IFC, either sepa- capital, at a cost of $3.04 million equivalent. ratey ojoinly,provdedfinacefr a rojct i Koea. In addition to the loan of $5 million equivalent from rately or jointly, provided finance for aproject in Korea. the World Bank, loan capital has also been provided KDFC was established at Seoul under the sponsor- thWolBaklancpalaslobenrvid KDipofC was esalsederan at Sreou unde srithesnso w by the Korean Government ($7.5 million equivalent) ship of the Federation of Korean Industries with anbyteUidSaesAncfoItrainl advice from IFC. Two government banks had been the Development ($5 million). main institutional sources of industrial finance in The cpit structureois Korea, but demand for such funds had outgrown their The capital structure is: lending capacity. The Korean economy has expanded Share Capitai (Won million) rapidly, with industrial production growing in recent Korean Industries and other years at an annual rate close to 20 per cent. This has private Korean investors . 420.0 been accompanied by a rapid rise in exports of man- Foreign shareholders .. . 337.5 ufactured goods, pointing to a continuing demand for Korean banks ............... 200.0 resources to expand the capacity of private industry. Korean insurance companies 200.0 With initial resources of some $22.5 million equiva- Loa Capital lent, KDFC will help meet this need. Loan Capital ' ~~~~~~~~~~~~~~Long-term subordinated loan from KDFC will assist primarily the manufacturing and the Korean Government ...... ..... 2,025.0 processing industries, through medium and long-term World Bank, foreign exchange loans, equity participation, and guarantee and under- equivalent to approximately. 1,350.0 U.S. Agency for International writing of corporate securities. It will give priority to Development, foreign exchange investments in the export and import-substitution equivalent to approximately ......... 1,350.0 4,725 industries. It will also help private enterprises in TOTAL .. 6,075 19 MA LAY S.A S~3..46,7222e1T..Mav-3q.,.lta -zteeX U.<.^ : ~other Japanese companies-Mitsui & Company Lim- With this commitment, undertaken in August 1967, ited, Mitsubishi Shoji Kaisha Limited, Nittetsu Mining IFC helped to complete financing for Malaysia's Company Limited, and Irimaru Company Limited. largest single industrial enterprise and its first inte- This commitment consists of M$18.29 million in equity grated iron and steel producing unit, located at Prai and M$34.35 million in long-term loans. To help in- in North-Western Malaysia. crease Malaysian ownership in local industry, Yawata The plant's output is geared to the domestic mar- made available M$6.16 million ($2.01 million equiv- ket for rods, bars and small shapes. It was designed alent) of its shares for sale to local private investors. by Japan's largest steel company, Yawata Iron & Malaysian Industrial Development Finance, Berhad Steel Company Limited, the principal sponsor and (MIDF) and another leading Malaysian financial in- technical partner of the project. A distinctive feature stitution, Amanah Saham Mara, Berhad (Mara), un- is the use of charcoal instead of coke in its blast fur- derwrote a M$4.23 million ($1.38 million equivalent) share offering to the Malaysian public. MIDF also nace, with the charcoal produced from the wood of g yso rubber trees cut down in the course of the rubber supplied M$4.42 million ($1.45 million equivalent) plantations' regular replanting schedules. in loan and share capital, including funds obtained The plant, being constructed in two phases, will from a World Bank line of credit. The Malaysian Gov- have an ultimate annual capacity of 112,000 metric ement has subscribed to M$3.45 million ($1.13 mil- tons of bars, rods and small angles and 11,000 metric lion equivalent) of shares. tons of merchant pig iron. The financial plan was as follows: tons~~~~~~~~~~~~~~~~~~~~~~~~~~~~M thousand)pg Ion The total cost of the project is estimated at M$82.18 Share Capital(M$ thousand) million ($26.86 million equivalent), of which M$31.10 Yawata and other Japanese million has been financed by share capital and investors .18,292 M$44.24 million by long-term debt. Short-term bor- Public issue underwritten by MIDF and Mara......... 4,227 rowings and cash generation account for the re- Malaysian Government ............. 3,450 mainder of the financing. IFC ..... .................... 3,110 IFC's commitment consists of a 12-year loan of MIDF ......................... 2,021 31,100 $2.45 million and a share subscription of M$3.11 mil- Loan Capital lion ($1.01 million equivalent). Participating in IFC's Yawata and other Japanese portion of the investment are the Bank of America; investors ...................... 34,345 The Bank of Tokyo Trust Company, New York; Kuwait IFC ........... 7,500 Commercial banks and creditors ... 6,118 Investment Company (S.A.K.) and Philadelphia Inter- MIDF ....................... .. 2,400 50,363 national Investment Corporation. Cash Generation 717 Associated with Yawata's commitment of up to T. . . M$52.64 million ($17.20 million equivalent) are four TA L__ Mr. L6opold Sen ghor, Pr esident of the Republic of Senegal, spoke at ceremonies May 16, 1968 inaugurating the Soew6te Industrielle d'Engrais au Sne6gal (SIES) fertilizer plant. IFC made the largest comm'itment to the financing of SIES. At left, workers bag fertilizer in the SIES plant. profits. Supporting infrastructure facilities to be con- So m m aa structed by Somima will augment Mauritania's de- velopment. Among these are a tarred road between The largest single commitment made so far by oFC Akjoujt and Nouakchott, over which the copper con- was announced in M\,ay 1968. It was a commitment of centrate will be transported for shipment overseas: $20 million in loan and share capital in Societe Mi- centrate watrasported for a overseas: niere de Mauritanie (Somima), which is to develop a ship on the Sahara near the mine site. copper ore deposit and operate a treatment and flota- Somima's financing consists of $23 million in equity tion plant to produce copper concentrate at Akjoujt and shareholders' loans and $36.8 million in loans. in Mauritania. IFC's commitment includes a participation of 15 per Somima assembled an exceptionally large and di- cent in the equity capital; a shareholder's loan verse group of backers: sponsors from the United amounting to 15 per cent of total shareholders' loans. Kingdom and France; the Government of Mauritania; represented by bonds; an unsecured long-term loan; the European Investment Bank (EIB) which is the and a guaranteed long-term loan. Participating in investment organ of the European Economic Con- IFC's portion of the investment are Handelsfinanz, munity; European private banks, and the Banque A.G. of Switzerland, a member of the Banca Commer- lnternationale pour l'Afrique Occidentale. The lFC ciale Italiana Group, and the Kuwait Foreign Trading commitment drew the participation of investors in C tacina Invetme Comany The Govern- Switzerland and the Middle East including the largest Centrof ani Issulng som ewhat overna particpatio in ay IFCcommiment.ment of Mauritania Is supplying somewhat over a participation in any IFC commitment. fifth of the share capital, and part of the shareholders' Somima was formed in 1967 by a consortium led by advances. Additional loan capital is being provided Charter Consolidated Limited, a British company with by the European Investment Bank, Credit Lyonnais, extensive mining interests. Joining Charter as spon- and the Banque Internationale pour l'Afrique sors of the project are four French institutions - nccidentaleB Societ6 Miniere et Metallurgique de Penarroya, S.A. The financial plan was as follows: (Penarroya), Bureau de Recherches G6ologiques et (CFAF million) Minieres (BRGM), Banque de Paris et des Pays-Bas Share Capital (BPPB), and Compagnie Financibre pour l'Outre-Mer, Charter Consolidated Group ... 892.0 S.A. (Cofimer). Government of Mauritania 440.0 The Akjoujt deposits consist of an upper part of Penarroy. . . 131.4 refractory copper oxide, overlying copper sulphide BRGM 122.6 ores. The latter can be treated by conventional meth- BPPB 75.4 ods but the oxide ores require the use of segregation Cofimer ......... 38.6 2,000 procedures. The sponsors proposed the use of a Subordinated Shareholders' Loans . 3,750 newly developed segregation process, TORCO (Treat- Loan Capital ment of Refractory Copper Ores), proven by trial IFC unsecured loan .... .. 3,062.5 operations carried out in Zambia and in a pilot plant EIB ................ 2,750.0 in Milan, Italy. Others Somima will produce an average of about 29,000 Credit Lyonnais Banque Internationale pour metric tons of copper a year. The Government of l'Afrique Occidentale . 2,312.5 Mauritania will derive substantial income from taxes, IFC guaranteed loan 1.. 1075.0 9,200 duties, and its share as an equity investor in Somima's TOTAL 14,950 MEX100'O $:.338.886-- ACompania Fundidora d.. Fierro V writing were Kuhn, Loeb & Co., Banca Commerciale Acero de M9lon errey. S>b.. ¶Fundidor<: ) Italiana and Morgan Guaranty International Finance Corporation. IFC assisted Compania Fundidora de Fierro y Acero Since its first underwriting of Fundidora shares in de Monterrey, S.A. the largest investor-owned fully 1962, IFC has underwritten almost $22 million out integrated steel producer in Mexico to expand its of underwritings totaling $44 million. IFC's equity facilities by helping to underwrite a $14 million stock holding in Fundidora now totals $1,419,534. As a offering. IFC and Credito Bursatil, S.A. of Mexico stockholder, IFC acquired $318,886 in shares from shared the underwriting. the offering it helped underwrite in the most recent The underwriting was IFC's largest. It emphasized underwriting. IFC's continuing interest in the growth of companies Fundidora, which was founded in 1900 and has a it assists by being the fourth occasion on which the record of profitable operations going back more than Corporation has helped Fundidora add to its capital half a century, manufactures a wide variety of steels, by a new share issue. including flat-rolled products, structurals, wire rods, The underwriting was successful, with stockholders bars, etc. Its shares have established a strong posi- taking up nearly all of the 1.5 million shares offered tion in the Mexican stock exchanges, where they are to them. Participating in IFC's portion of the under- actively traded. NICARAGUA $2.071,428--Textiles Fabricato de Nicaragua, million yards a year using Nicaraguan cotton in cotton S.A. (Fabritex) and polyester blend fabrics. .. participated in an international group-includ- The Corporation's commitment consisted of a loan IEC artiipaed i an ntenatinal rou-incud- of $1 million and $1,071,428 equivalent in equity. The ing, for the first time, a technical sponsor from a ' m developing nation-to finance a new $9.2 million tex- balance of approximately $7.1 million in financing deeoig. aint fiac a ne $.2 milio tex-d yCrorco icrgesed n tile mill in Managua which will benefit Nicaragua and was provided by Corporacion Nicaraguense de In- versiones (CNI), a private investment bank in Ma- the other member nations of the Central American Common Market. nagua; Instituto de Fomento Nacional (Infonac), the A principal feature of the new enterprise is the development bank of the Nicaraguan Government; fact that one of Latin America's most experienced and BCIE. Nicaraguan commercial banks are provid- factthatone f Lain Aeric's mst eperinced ing short-term credits. textile makers-Fabrica de Hilados y Tejidos del Hato, Bamerm credits. ' Bamerical International Financial Corporation, in- S.A. de Colombia (Fabricato)-will provide a sub- fL stanial art f te eqity nd wll ct a thenew vestment affiliate of Bank of America, Bank of London stantial part of the equity and will act as the new and Montreal Limited and Philadelphia International company's technical sponsor and manager. The anMotelLmedndPidlpaItrainl compny' tecnicl spnso andmanger.The Investment Corporation participated in the IFC commitment is IFC's largest in Central America and investmentC the first it has made in Nicaragua. In this commitment, investment. also, IFC for the first time joined the Banco Centro- The financial plan was as follows: americano de Integraci6n Econ6mica (BCIE) in a Share Capital ($thousand) financing group. IFC .. .......... . . ........ 1,071 The Fabritex plant is designed to produce finer CNI ........................... 1,071 fabrics, such as those imported into lhe Central Infonac ........................... 1,071 American Common Market free trade area. This sub- Fabricato ........................... 1,071 4,284 stitution for textile imports will make possible foreign Loan Capital exchange savings for Nicaragua and permit that BCIE ... . . 3,550 nation to participate more fully in the region's Com- IFC . ........... . 1,000 mon Market. The fully-integrated mill will have 20,160 Nicaraguan banks . 323 4,873 spindles and 370 looms, capable of prodJucing 10.2 TOTAL .. . ....... 9,157 .> b) Under the glare of a suspended floodlight a lf'orker is lowvered into at silo of Almacenes Generales de Dep6sito Santa F6, S.A. "Almaviva" in Colombia to take grain samples. IFC invested in the wnarehousing company's expansion program, which included construction of this grain elevator. VENEZUELA $7,500,000-C.A. Venezolana de Desarrollo (Sociedad Financiera) IFC's second commitment, a 17-year loan of $7.5 mil- lion with a stock option, in C.A. Venezolana de Desa- rrollo (Sociedad Financiera), known as Cavendes, made available to the private development finance company funds to help meet demand for industrial credit in Venezuela. The IFC loan to Cavendes has a stock option fea- ture providing that up to February 1, 1984 IFC may purchase up to 112,500 common shares, with a par value of 100 bolivares per share. At the current rate of exchange this is equivalent to about $2.5 million, or a third of the loan. IFC's first commitment to Cavendes was made in 1963 when the Corporation helped found the com- - -- pany by making an equity commitment of $1,336,183 equivalent. Among more than 100 shareholders in Cavendes are C.A. Inversiones Shell de Venezuela, Corporaci6n Venezolana de Fomento, a development agency of the Venezuelan Government and, in addi- tion to Shell and IFC, 19 foreign enterprises, chiefly commercial banks and oil companies of Germany, Italy, the Netherlands and the United States. Cavendes was established to assist in the creation, expansion and modernization of private enterprises in Venezuela. It has played a significant and pioneer- ing role in underwriting in the nation. It has been successful in opening up a market for its bonds. Cavendes has also pushed ahead in the field of term lending, its principal activity, and built a sound, con- servative loan portfolio in the process. It approved 187 loans for an aggregate amount of Bs192.1 million from the company's inception through May 1968. Participations in the loan to Cavendes were made by First National City Bank, and French American Banking Corporation, of New York. fi~~~~1K 7s 0 Newu processing e(uipment is monitored at the Packages, Ltd. board and papet mill at Lah ore, Pakistan. The plant has been nmodernized andl expanded ilith the help of an investment by IFC and with funds from Pakistan Indutstrial Credit and Investment Corpor ation, Wh.ich both IFC and the World Bank have helped finance. Appendices Financial Statements A Balance Sheet .. 26 B Comparative Statement of Income and Expenses ......... 27 B Comparative Statement of Changes in Reserve Against Losses. ......... 27 C Statement of Operational Investments and Standby and Underwriting Commitments ......... 28 D Notes to Financial Statements........ . 38 Opinion of Independent Auditor..... .... 39 Other Appendices E Statement of Subscriptions to Capital Stock and Voting Power ......... 40 F Governors and Alternates. ......... 41 G Directors and Alternates and their Voting Power ......... 43 H Principal Officers ......... 44 Balance Sheet Appendix A June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D June 30 June 30 1968 1967 Assets DUE FROM BANKS ............................................ $ 884,321 $ 219,877 INVESTMENTS Obligations of United States Government and its Instrumentalities (At cost or amortized cost) Face amounts $27,300,000-1968, $39,018,000-1967 .......................... ................. $ 26,336,273 38,265,155 Time deposits maturing within six months-United States dollars 4,500,000 8,000,000 Accrued interest ... ........ ................... 530,982 761,004 31 ,367,255 47,026,159 EFFECTIVE LOANS AND EQUITY INVESTMENTS IELD BY CORPORATION (At cost) (See Appendix C)--Note B (Including undisbursed balance of $49,398,568-1968, $21,510,307-1967) Loans. . ........... ... $1 04,455,938 66,051,159 Equity ........... . .................................. ......... . 53,384,312 41,857,333 157,840,250 107,908,492 ACCRUED INCOME ON LOANS, EQUITY INVESTMENTS AND UNDERWRITING COMMITMENTS-Note B . . ... 1,344,353 1,044,969 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENTV E L O PT.. ..... 100,000,000 100,000,000 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AND EQUITY INVESTMENTS AGREED TO BE SOLD (Including undisbursed balance of $8,523,086-1968, $3,118,710-1967) . . 8,930,040 3,118,710 OTHER ASSETS ........ 715,386 232,417 TOTAL ASSETS $301,081,605 $259,550,624 Liabilities, Reserve and Capital LIABILITIES Accrued charges on borrowings .$ 93,750 $ - Accounts payable and other liabilities ......................... 170,835 124,471 Undisbursed balance of effective loans and equity investment agreements (See Appendix C) Held by Corporation ........................................ $ 49,398,568 21,510,307 Agreed to be sold . ........................................ 8,523,086 3,118,710 57,921,654 24,629,017 Loan from International Bank for Reconstruction and Development (Not yet drawn) 100,000,000 100,000,000 RESERVE AGAINST LOSSES (See Appendix B)---Notes C and D... 40,936,366 34,702,136 CAPITAL Capital stock Authorized 110,000 shares of $1,000 par value each Subscribed 101,368 shares-1968, 99,929 shares-1967 101,368,000 99,929,000 Payment on account of pending subscription ................ . 591,000 166,000 OUTSTANDING UNDERWRITING COMMITMENTS Note E... $1,395,608-1968, Nil-1967 _ TOTAL LIABILITIES, RESERVE AND CAIPITAL $301,081,605 $25,550,624 Cotiparative Statemen-it of Income Append ix B and Expenses For the Fiscal Years Ended June 30, 1968 and June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1967/68 1966/67 Income Income from obligations of United States Government and its Instrumentalities and time deposits .. .......................... .............. ........ $ 2,015,287 $2,439,025 Income from loans, equity investments and standby and underwriting commitments: Fixed interest ... ............................... .......................... 3,978,610 3,391,085 Additional interest .......................................... ........... .. 318,051 154,034 Commitment charges ....3.......9... ......................2............... 394,884 248,621 Dividends ............................................................... ... 3,349,977 2,829,141 Commissions ............................ ........... .................. 63,000 159,458 Other income ........................................................... . 12,606 3,177 GROSS INCOME .. ........ ............ ...................... $10,132,415 $9,224,541 Expenses Administrative expenses: Personal services ................... ........................ ........ $ 1,880,027 $1,790,537 Contributions to staff benefits .......... ........ ........... ...... 413,035 252,938 Fees and compensation ......................I................ 189,632 166,716 Representation .....3 40........... ..........................I...... 36,492 4 0,905 Travel .. ............... ........... .. 514,062 4 41,622 Supplies and material . ............ .... . ................... 28,587 27,927 Office occupancy ........................... ................................ 203,474 205,021 Communication services ........ ...... ......................... 98,997 97,958 Furniture and equipment ......... ... ........... ............... .... 48,761 68,747 Books and library services ..... ............ ................................ 32,911 29,023 Printing .. .......... I... . ........51.. .......I ..................... . 51,864 46,727 Insurance, ......................... ... ....... .. ............. 14,616 14,850 Other expenses ....... ... ............................................. 3,879 13,627 Total administrative expenses .................. ...... ............. ........ $ 3,516,337 $3,196,598 Charges on borrowings .................. ..................................... 375,000 GROSS EXPENSES . ......... ...................... .................. ....... $ 3,891,337 $3,196,598 Net Income-Allocated to Reserve Against Losses-Note C. ................. $ 6,241,078 $6,027,943 Comparative Statement of Changes in Reserve Against Losses For the Fiscal Years Ended June 30, 1968 and June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1967/68 1966/67 Balance Beginning of Period ......................................... ......... $34,702,136 $28,367,887 Additions and Deductions Net income-Note C ......... ... ............... ......................... 6,241,078 6,027,943 Net gains on sales and other dispositions of loans and equity investments .... .... 546,650 306,306 Net other losses-Note D ............................. (553,498) - Balance End of Period ............................ ............................. $40,936,366 $34,702,136 Statement of Operational Investments and Standby ar June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisi Original principal amount and by other net of exchange adjustments standby and securi - - underwriting Outstanding coverec Standby and commitments standby and standby COUNTRY Operational underwriting not yet underwriting underwri and Obligor investments commitments effectivet) commitments commitm( Argentina I Acindar Industria Argentina de Aceros, S.A $ 3,660,000 $ - $ - $ - $ 2 Papelera Rio Parana, S.A. 3,000,000 - - - 3 Fabrica Argentina de Engranajes, S.A.I.C 1,500,000 - - - 4 Pasa, Petroquimica Argentina, S.A.I.C 3,050,000 - - - 5 Celulosa Argentina, S .A .2,500,000 - - - 6 TOTAL .13,710,000 Australia 7 Duncan's Holdings, Ltd .660,000 8 Rubbertex (Australia) Proprietary, Ltd.(4) .315,000 _ 30 9 TOTAL .975,000 Brazil 10 Siemens do Brasil Cia. de Eletricidade .2,000,000 - - - 11 Olinkraft, S.A. Celulose e Papel .1,200,000 - - 12 D.L.R. Plasticos do Brasil, S.A .450,000 - - - 13 Willys-Overland do Brasil, S.A., Industria e Comrcio .2,450,000 - - - 14 Companhia Mineira de Cimento Portland, S.A. 1,200,000 15 Champion Celulose, S.A .4,000,000 - - - 16 Acos Villares, S.A .(4) .4,959,026 - - - 17 Papel e Celulose Catarinense, S.A .6,132,881 - - - 18 Ultrafertil, S.A.-Industria e Comercio de Fertilizantes ........................... 10,658,000 - - - 19 TOTAL .......................................... 33,049,907 - Chile 20 Empresa Minera de Mantos Blancos, S.A.t4 .4,337,500 - - 21 Fideos y Alimentos Carozzi, S.A.() .1,653,846 - - 22 Cementos Bio-Bio, S.A.(4) .1,300,000 - - 23 CompaiMa Manufacturera de Papeles y Cartones, S.A .3,000,000 - - 24 TOTAL ..10,291,346 - - - Colombia 25 Laminas del Caribe, Ltda .500,000 26 Industrias Alimenticias Noel, S.A.(4) .2,038,040 27 Envases Colombianos, S.A .700,000 - - 28 Morfeo-Productos Para el Hogar, S.A.(4) 175,950 - - - 29 Electromanufacturas, S.A .500,000 - - - 30 Corporaci6n Financiera Colombiana(4) .2,023,730 - - - 31 Corporaci6n Financiera Nacional4. .2,042,000 - - - 32 Compania Colombiana de Tejidos, S.A.(4) .2,044,768 - - - 33 Corporaci6n Financiera de Caldas .701,403 - - - 34 Forjas de Colombia, S .A .(4) 918,920 352,109 169,292 - 175 35 Almacenes Generales de Dep6sito Santa Fe. '.A. "Almaviva .1,000,000 - - - 36 Industria Ganadera Colombiana, S.A .1,614,262 37 Enka de Colombia, S.A .923,988 - - 38 TOTAL... 15,183,061 352,109 169,292 - 175 Costa Rica 39 Productos de Concreto, S.A .(4) .278,751 310,801 - - 82 nderwriting Commitments Appendix C Undisbursed balance of effective Held by Corporation Principal Loans and Loans loans ncellations, repayments equity sold converted Principal and equity Total loans erminations to or agreed into amount investment and equity id write-offs Corporation to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) - $ 1,830,000 $ 200,000 $ - $ 3,660,000 $ - $ 1,630,000 $ - $ 1,630,000 1 3,000,000 - - - - - 2 - - - - 1,500,000 - 1,500,000 - 1,500,000 3 2,745,000 - 305,000 - 305,000 - - - - 4 - 250,000 250,000 - 2,500,000 - 2,000,000 - 2,000,000 5 5,745,000 2,080,000 755,000 - 7,965,000 - 5,130,000 - 5,130,000 6 - 660,000 - - 660,000 - - - - 7 - 42,750 272,250 - 315,000 - - - - 8 - 702,750 272,250 - 975,000 - - - - 9 1,000,000 140,000 860,000 - 1,000,000 - - - - 10 243,000 - 957,000 - 957,000 - - - - 11 - 250,000 - - 450,000 - 200,000 - 200,000 12 - 2,450,000 - - 2,450,000 - - - - 13 - - 1,200,000 - 1,200,000 - - - - 14 - 577,500 3,175,000 - 4,000,000 - 247,500 - 247,500 15 - - - - 4,959,026 - 4,000,000 959,026 4,959,026 16 75,000 - 1,392,500 - 3,413,030 2,644,851 1,532,500 3,132,881 4,665,381 17 - - 100,000 - 8,580,323 2,077,677 7,557,000 3,001,000 10,558,000 18 1,318,000 3,417,500 7,684,500 - 27,009,379 4,722,528 13,537,000 7,092,907 20,629,907 19 - 867,339 2,232,661 - 4,337,500 - - 1,237,500 1,237,500 20 - 999,720 - - 1,653,846 - 500,280 153,846 654,126 21 - 480,000 - - 1,300,000 - 720,000 100,000 820,000 22 - 1,022,000 900,000 - 3,000,000 - 1,078,000 - 1,078,000 23 - 3,369,059 3,132,661 - 10,291,346 - 2,298,280 1,491,346 3,789,626 24 - 500,000 - - 500,000 - - - - 25 - 812,560 412,416 - 2,038,040 - 777,440 35,524 813,064 26 400,000 203,571 96,429 - 300,000 - - - - 27 - 39,000 - 86,000 175,950 - 45,000 91,950 136,950 28 289,625 - 210,375 - 210,375 - - - - 29 514 - - 1,999,486 2,023,216 - - 2,023,216 2,023,216 30 34 - 843,807 1,999,966 2,041,966 - - 1,198,159 1,198,159 31 - 190,000 1,760,630 21,402 2,044,768 - 63,598 30,540 94,138 32 - - - - 701,403 - - 701,403 701,403 33 - - - - 926,176 - - 926,176 926,176 34 - - 376,600 - 1,000,000 - 623,400 - 623,400 35 - - - - 406,570 1,207,692 1,000,000 614,262 1,614,262 36 - - - - 923,988 - - 923,988 923,988 37 690,173 1,745,131 3,700,257 4,106,854 13,292,452 1,207,692 2,509,438 6,545,318 9,054,756 38 - 104,500 134,821 - 507,363 - 171,833 96,209 268,042 39 (continued) Statement of Operational Investments and Standby an( June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisitic Original principal amount and by others ( net of exchange adjustments standby and securitie - - - - underwriting Outstanding covered t Standby and commitments standby and standby ar COUNTRY Operational underwriting not yet underwriting underwritir and Obligor investments commitments effective(') commitments commitmen Ecuador 40 La Internacional, S.A ................... ............. $ 1,963,309 $ - $ - $ - $ El Salvador 41 Industrias Textiles, S.A ............................. 140,000 Ethiopia 42 Cotton Company of Ethiopia, S.C ..................... 2,507,557 - - - 43 Ethiopian Pulp and Paper, S.C ........................ 200,000 1,708,501 - - 575,0( 44 H.V.A.-Metahara, S.C .......... . .................... 7,036,025 2,000,000 - 1,000,000 1,000,0( 45 TOTAL .............. . .......................... 9,743,582 3,708,501 - 1,000,000 1,575,0( Finland 46 Oy Kutomotuote Ab, Tricol Oy, Toli Oy ............... 156,000 - - 47 Rauma-Repola Oy .............................. ..... 1,875,000 - 48 Teollistamisrahasto Oy ............................ 158,644 158,644 - - 158,0 49 Huhtamaki-Yhtyma Oy ....... ....................... 799,357 - 50 TOTAL ............................................ 2,989,001 158,644 - - 158,0 Greece 51 Aevol Industrial Company of Organic Fertilizers, S.A .......................... 600,000 - 52 "Titan" Cement Company, S.A.4) ............ 1,525,920 - 53 National Investment Bank for Industrial Development, S.A ......................... 719,082 - 54 General Cement Company, S.A . ............ 3,500,000 - 55 TOTAL ............................................. 6,345,002 - Guatemala 56 Industria Harinera Guatemalteca, S.A . . 200,000 - Honduras 57 Empresa de Curtidos Centro Americana, S.A.(4) . . . . . 377,500 - India 58 Republic Forge Company, Ltd . ............. 1,500,000 - 59 Kirloskar Oil Engines, Ltd . .............. 850,000 - 60 Assam Sillimanite, Ltd . ................ 1,365,000 - - - 61 K.S.B. Pumps, Ltd .................. 210,000 - - - 62 Precision Bearings India, Ltd.(41 . ............ 1,030,197 - - - 63 Fort Gloster Industries, Ltd . .............. 1,211,047 - - - 64 Mahindra Ugine Steel Company, Ltd . .......... 3,296,654 - - - 65 Lakshmi Machine Works, Ltd . ............. 1,312,718 - - - 66 Jayshree Chemicals, Ltd . ............................ 1,154,816 - - - 67 Indian Explosives, Ltd . ................. 11,465,236 - - - 68 TOTAL ............................................ 23,395,668 - - - Iran 69 Sherkate Sahami Kahkashan . ............ 300,000 - - - Italy 70 Magrini Meridionale, S.p.A . ............. 960,000 - - - Ivory Coast 71 Banque Ivoirienne de D6veloppement Industriel, S.A . .204,081 Jamaica 72 Jamaica Pre-Mix, Ltd ................................. 224,000 nderwriting Commitments (continued) Appendix C Undisbursed balance of effective Held by Corporation Principal Loans and Loans loans .ellations, repayments equity sold converted Principal and equity Total loans ninations to or agreed into amount investment and equity write-offs Corporation to be sold(') equity disbursed agreements(ff Loans Equity (at cost) - $ 53,500 $ 568,229 $ - $ 1,963,309 $ - $ 1,144,500 $ 197,080 $ 1,341,580 40 - 140,000 - - 140,000 - - - - 41 - 530,000 - 2,507,557 - 970,000 1,007,557 1,977,557 42 - 124,695 - 1,133,501 200,000 - 1,208,806 1,208,806 43 - - 150,000 - 3,104,025 3,932,000 5,370,000 1,516,025 6,886,025 44 - - 804,695 - 6,745,083 4,132,000 6,340,000 3,732,388 10,072,388 45 - 48,000 108,000 - 156,000 - - - 46 - 585,000 1,290,000 - 1,875,000 - - - - 47 - - - - 159,279 - - 159,279 159,279 48 - 104,000 624,514 - 799,357 - - 70,843 70,843 49 - 737,000 2,022,514 - 2,989,636 - - 230,122 230,122 50 120,000 - - 600,000 - 480,000 Note 7 480,000 51 - 975,836 - 1,525,920 - 275,000 275,084 550,084 52 - - 719,082 - - 719,082 719,082 53 - 975,000 - 3,500,000 2,525,000 - 2,525,000 54 120,000 1,950,836 - 6,345,002 - 3,280,000 994,166 4,274,166 55 66,000 134,000 - 200,000 - - - - 56 21,000 100,750 - 377,500 - 189,000 66,750 255,750 57 ,500,000 - - - - - - - - 58 850,000 - - - - - - - - 59 478,724 348,000 - - 886,276 - 538,276 - 538,276 60 - 105,000 - - 210,000 - 105,000 - 105,000 61 _ - 260,000 - 935,639 94,558 391,250 378,947 770,197 62 - 152,250 151,380 - 1,211,047 - 558,250 349,167 907,417 63 - - 142,341 - 2,888,154 408,500 2,200,275 954,038 3,154,313 64 - 141,774 - 1,082,718 230,000 856,320 314,624 1,170,944 65 - - 905,816 249,000 1,050,000 104,816 1,154,816 66 - - 928,400 - 3,860,303 7,604,933 7,671,600 2,865,236 10,536,836 67 ,828,724 605,250 1,623,895 - 11,979,953 8,586,991 13,370,971 4,966,828 18,337,799 68 - 300,000 - - 300,000 - - - - 69 - - 960,000 - 960,000 - - - - 70 - - - 204,081 - - 204,081 204,081 71 111,000 - - 224,000 - 113,000 - 113,000 72 (continued) Statement of Operational Investments and Standby ar June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisi Original principal amount and by other net of exchange adjustments standby and securi underwriting Outstanding covere Standby and commitments standby and standby COUNTRY Operational underwriting not yet underwriting underwri and Obligor investments commitments effective(1) commitments commitm Kenya 73 Kenya Hotel Properties, Ltd.............. ........... $ 3,073,816 $ $ 280,000 $ $ Korea 74 Korea Development Finance Corporation .702,043 - - - Liberia 75 Liberian Bank for Industrial Development and Investment ................- 250,000 - -, Malaysia 76 Malaysian Industrial Development Finance, Berhad. . 817,500 490,000 - - 490, 77 Tasek Cement, Berhad ............................... 1,559,381 - 78 Malayawata Steel, Berhad ............................ 3,462,722 - - - 79 TOTAL . .......................... 5,839,603 490,000 - 490, Mauritania 80 Societ6 Miniere de Mauritanie ................... ... 20,006,515 - - Mexico 81 Industrias Perfect Circle, S.A.(4 . 800,000 - - 82 Bristol de Mexico, S.A ............................... 520,000 - - 83 Acero Solar, S.A .................................... 280,000 - - - 84 Compania Fundidora de Fierro y Acero de Monterrey, S.A(4) .1,951,945 21,789,159 - 395,608 17,660 85 Tubos de Acero de Mexico, S.A .250,000 750,000 - - 600. 86 Quimica del Rey, S.A .750,000 - - 87 Industria del Hierro, S.A .(4) 1,961,569 - - - 88 TOTAL .................. = . .............. 6,513,514 22,539,159 - 395,608 18,260. Morocco 89 Banque Nationale pour le D6veloppement Economique ................. ...... 11,495,774 90 Compania Industrial del Lukus, S.A .1,388,486 91 TOTAL ............................................ 2,884,260 - - - Nicaragua 92 Textiles Fabricato de Nicaragua, S.A .2,071,428 - 2,071,428 Nigeria 93 Nigerian Industrial Development Bank, Ltd . - 1,400,000 94 Arewa Textiles, Ltd.4) .1,571,031 - 95 TOTAL ............................................ 1,571,031 1,400,000 = - Pakistan 96 Steel Corporation of Pakistan, Ltd .630,000 - - - 97 Adamjee Industries, Ltd.............. ............. 750,000 - - - 98 Ismail Cement Industries, Ltd.(4) .5,668,408 - - - 99 Pakistan Industrial Credit and Investment Corporation, Ltd ............ ........................ 449,400 - - - 100 Crescent Jute Products, Ltd .1,950,000 - - - 101 Packages, Ltd .3,151,662 - - - 102 Pakistan Paper Corporation, Ltd. 5,219,088 - - - 103 TOTAL ..................... 17,818,558 - - - 32 inderwriting Commitments (continued) Appendix C Undisbursed balance of effective Held by Corporation Principal Loans and Loans loans --- ~ellations, repayments equity sold converted Principal and equity Total loans minations to or agreed into amount investment and equity write-offs Corporation to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) - $ - $ 893,180 $ - $ 349,643 $ 2,444,173 $ 1,339,000 $ 561,636 $ 1,900,636 73 - - - - 702,043 - - 702,043 702,043 74 310 - 248,950 - - 248,640 248,640 75 - - - - 817,500 - - 817,500 817,500 76 - - 687,506 - 1,559,381 - 871,875 - 871,875 77 - - 736,002 - 2,972,722 490,000 1,751,000 975,720 2,726,720 78 - - 1,423,508 - 5,349,603 490,000 2,622,875 1,793,220 4,416,095 79 _ _ i6,001,955 - 1,356,515 18,650,000 13,160,000 844,560 14,004,560 80 200,000 600,000 - - 600,000 - - - - 81 - 520,000 - - 520,000 - - - - 82 - - 280,000 - 280,000 - - - - 83 324,321 - 2,642,417 - 4,977,798 382,953 1,298,800 1,419,534 2,718,334 84 - - 309,000 121,000 400,000 - 91,000 - 91,000 85 * 73,998 676,002 - 750,000 - - - - 86 - - 160,128 - 1,961,569 - - 1,801,441 1,801,441 87 524,321 1,193,998 4,067,547 121,000 9,489,367 382,953 1,389,800 3,220,975 4,610,775 88 - - - - 1,495,774 - - 1,495,774 1,495,774 89 - - 240,000 - 1,288,486 100,000 650,000 498,486 1,148,486 90 - - 240,000 - 2,784,260 100,000 650,000 1,994,260 2,644,260 91 - - Note 8 - - - - - - 92 - - - - 1,399,516 - - 1,399,516 1,399,516 93 250,000 - 728,036 - 1,321,031 - 74,160 506,692 580,852 94 12,143(61 262,143 - 728,036 - 2,720,547 - 74,160 1,906,208 1,980,368 95 - 567,000 - - 630,000 - 63,000 - 63,000 96 295 749,705 - - 749,705 - - - - 97 153,609 579,576 389,079 - 5,302,457 212,342 4,128,816 417,328 4,546,144 98 - - - - 449,400 - - 449,400 449,400 99 - - 121,800 - 1,936,379 13,621 1,828,200 - 1,828,200 100 - - 762,000 - 3,131,220 20,442 1,548,000 841,662 2,389,662 101 - - 327,457 - 2,315,283 2,903,805 2,872,543 2,019,088 4,891,631 102 153,904 1,896,281 1,600,336 - 14,514,444 3,150,210 10,440,559 3,727,478 14,168,037 103 (continued) 33 Statement of Operational Investments and Standby an June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisit Original principal amount and by other, net of exchange adjustments standby and securi underwriting Outstanding coverer Standby and commitments standby and standby COUNTRY Operational underwriting not yet underwriting underwril and Obligor investments commitments effective(') commitments commitme Peru 104 Industrias Reunidas, S.A ................ ............ $ 250,000 $ - $ - $ 105 Luren, S.A. and Ladrillos CalcAreos, S.A . .280,000 - - 106 Durisol del Peru, S.A . .300,000 107 Fertilizantes Sinteticos, S.A.11 . .4,083,290 108 Cemento Andino, S.A.(1 . .2,461,500 109 Compania de Cemento Pacasmayo, S.A.(4 ) .1,605,151 110 TOTAL .8,979,941 - - Philippines 111 Private Development Corporation of the Philippines ................................... - 4,359,063 - - 4,153, 112 Manila Electric Company .12,000,000 - - - 113 TOTAL .12,000,000 4,359,063 - = 4,153 Senegal 114 Societ6 Industrielle d'Engrais au Senegal .3,459,766 - - Spain 115 Fabrica Espaniola Magnetos, S.A. . .. .3,362,288 - 116 Banco del Desarrollo Econ6mico Espaniol, S.A.M 585,351 - 117 TOTAL . .3,947,639 - - Sudan 118 Khartoum Spinning and Weaving Company, Ltd 688,893 - = Tanzania 119 Kilombero Sugar Company, Ltd.(4 . 4,657,485 Thailand 120 Concrete Products and Aggregate Company, Ltd 300,000 121 Industrial Finance Corporation of Thailand 193,108 122 TOTAL 493,108 - - Tunisia 123 NPK-Engrais, S.A.T 3,500,000 124 Soci6t6 Nationale d'investissemett 575,926 - - - 125 TOTAL .....:.............. 4,075,926 - - - Turkey 126 Turkiye Sinai Kalkinma Bankasi, A.S. (4) .1,254,167 - - - 127 Sentetik Iplik Fabrikalari, A.S.. 1,368,889 - - - 128 TOTAL ........................................... .23.056 - - - Uganda 129 Mulco Textiles, Ltd .3,508,436 - - - Venezuela 130 Siderurgica Venezolana "Sivensa', S.A.(4 ) .3,140,529 - - - 131 Diablitos Venezolanos, C .A .500,000 - - - 132 C.A. Venezolana de Desarrollo (Sociedad Financiera)(4) .8,836,183 - - - 133 Dominguez y Cia.-Caracas, S.A .- 514,541 - - 8,. 134 TOTAL .... ... 12,476,712 514,541 - - 8, 135 GRAND TOTAL .$237,721,938 $34,082,818 $2,520,720 $1,395,608 $24,98' $271,804,756 Inderwriting Commitments (continued) Appendix C Undisbursed balance of effective Held by Corporation Principal Loans and Loans loans cellations, repayments equity sold converted Principal and equity Total loans -minations to or agreed into amount investment and equity 'write-offs Corporation to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) - $ 250,000 $ - $ - $ 250,000$ - $ - $ - $ - 104 _ 190,000 - - 280,000 - 90,000 - 90,000 105 300,0005) _ - - 300,000 - - - 106 - 912,599 2,264,000 - 4,083,290 - 906,691 - 906,691 107 - 200,000 - 200,000 2,461,500 - 2,061,500 200,000 2,261,500 108 - - 1,357,200 164,849 1,605,151 - 77,951 170,000 247,951 109 300,000 1,552,599 3,621,200 364,849 8,979,941 - 3,136,142 370,000 3,506,142 110 - - 205,217 - 205,217 - - - - 111 - 2,218,000 - 6,300,000 5,700,000 6,143,000 3,639,000 9,782,000 112 - - 2,423,217 - 6,505,217 5,700,000 6,143,000 3,639,000 9,782,000 113 - X - 2,759,766 700,000 2,450,000 1,009,766 3,459,766 114 - - 1,910,999 - 3,362,288 - 865,000 586,289 1,451,289 115 _ _ - - 585,351 - - 585,351 585,351 116 - - 1,910,999 - 3,947,639 - 865,000 1,171,640 2,036,640 117 12,110(6) 18,200 225,846 - 688,893 - 160,100 272,637 432,737 118 301,485(6) 149,040 - 700,000 4,364,925 292,560 3,506,960 700,000 4,206,960 119 - - 300,000 - 300,000 - - - - 120 - - - - 193,108 - - 193,108 193,108 121 - - 300,000 - 493,108 - - 193,108 193,108 122 11,498 - 1,157,173 - 3,488,502 - 1,182,400 1,148,929 2,331,329 123 - - - - 575,926 - - 575,926 575,926 124 11,498 - 1,157,173 - 4,064,428 - 1,182,400 1,724,855 2,907,255 125 - - 273,777 - 1,254,167 - - 980,390 980,390 126 - - - - 1,302,972 65,917 900,000 468,889 1,368,889 127 - - 273,777 - 2,557,139 65,917 900,000 1,449,279 2,349,279 128 70,000 95,291 1,292,200 - 3,438,436 - 1,351,920 471,429 1,823,349 129 227,596(6) - 1,087,500 2,053,029 300,000 3,140,529 - - - - 130 324,000 - 176,000 - 176,000 - - - - 131 - - 500,000 - 1,539,553 7,296,630 7,000,000 1,336,183 8,336,183 132 - - - - 430,200 - - 430,200 430,200 133 324,000 1,087,500 2,729,029 300,000 5,286,282 7,296,630 7,000,000 1,766,383 8,766,383 134 2,768,954 $19,565,599 $52,732,721 $5,592,703 $173,070,250 $57,921,654 $104,455,938 $53,384,312 $157,840,250 135 (continued) Statement of Operational Investments and Standby anc Summary of Currencies in Which Effective Loans and Equity Investments Held by Corporation are Denominated Expressed in United States Currency Note 1-In these cases, certain legal formalities must be completed Currency Loans Equity and other conditions fulfilled before funds may be withdrawn on account of the investments or before disbursements are required New Brazilian cruzeiros . $ - $ 7,092,90 for commitments underwritten. Chilean escud os - 153,84f Note 2-Amounts sold represent respective book values and any Colombian pesos - 6,545,31f profits or losses on these sales have been entered directly to the Costa Rican colones . - 96,20r reserve against losses. To date, such profits have totaled $3,435,766 Ecuadoran sucres ............... - 197,08( and losses $158,247 resulting in net profits of $3,277,519. This Ethiopian dollars ................. - 3,732,38f column does not include$928,571 of a commitment not yet effective Finnish markkas ................. - 230,12, which the Corporation has agreed to sell as shown below in Note 8. Greek drachmas . .. ............... - 994,16f Note 3-This includes $8,523,086 of effective investments which the Honduran lempiras ....... ........ - 66,75( Corporation has agreed to sell. Indian rupees ......... .......... - 4,966,82t Note 4-The Corporation has made more than one commitment to Kenya shillings .................. - 561,63f this company. Korean won ...................... - 702,04. Note 5-Write-off-Investment $300,000 Malaysian dollars ................. - 1,793,22( Note 6-Write-off-Currency devaluation $553,334 Mexican pesos ................... - 3,220,97, Note ~~~~~~~~~~~~~~~~~~~ ~~Moroccan dirhams .........- 1 ,994,26( Note 7-The Corporation has received shares in this company at Nigerian pounds ....... .......... - 1,906,20t no cost. Pakistan rupees ..... ......... - 3,727,471 Note 8-The Corporation has agreed to sell $928,571 of this Philippine pesos ................. - 3,639,00( commitment. Pounds sterling 3,600,240 Spanish pesetas - 1,171,64( Sudanese pounds - 272,63- Tanzania shillings - 700,00' Thai baht - 193,10( Tunisian dinars - 1,724,85t Turkish liras - 1,449,27' Uganda shillings - 471,42' United States dollars . .100,855,698 1,956,14. Venezuelan bolivares - 1,766,38' TOTAL $104,455,938 $53,384,31' :36 Jnderwriting Comnniitmeents (continued) Appendix C Summary of Standby and Underwriting Commitments Expressed in United States Currency Original standby and underwriting Amount acquired by the commitments Corporation and its net of subunderwriters COUNTRY exchange Participation by Acquisition and Obligor adjustments subunderwriters by others Subunderwriters Corporation Colombia Forjas de Colombia, S.A.. $ 352,109 $ - $ 175,561 $ - $ 176,548 Costa Rica Productos de Concreto, S.A.. . 310,801 - 82,189 - 228,612 Ethiopia Ethiopian Pulp and Paper, S.C.... 1,708,501 124,695 575,000 124,695 1,008,806 H.V.A.-Metahara, S.C ........... 2,000,000 1,000,000 1,000,000 - - Finland Teollistamisrahasto Oy ......... 158,644 - 158,009 - 635 Liberia Liberian Bank for Industrial Development and Investment .... 250,000 - 1,050 - 248,950 Malaysia Malaysian Industrial Development Finance, Berhad.. . 490,000 - 490,000 - - Mexico Compania Fundidora de Fierro y Acero de Monterrey, S.A. (1962) 2,944,856 1,040,513 1,782,206 410,797 751,853 Compahiia Fundidora de Fierro y Acero de Monterrey, S.A. (1964) 6,100,000(1) 5,298,545 6,010,144 9,620 1,310 Compahia Fundidora de Fierro y Acero de Monterrey, S.A. (1966) 5,724,303 3,020,426 3,745,047 10,520 1,968,736 Compahia Fundidora de Fierro y Acero de Monterrey, S.A. (1968) 7,020,000(2) 6,040,852 6,033,027(3) 383,657 52,313 Tubos de Acero de Mexico, S.A. 750,000 - 600,000 - 150,000 Nigeria Nigerian Industrial Development Bank, Ltd ......... 1,400,000 - 484 - 1,399,516 Philippines Private Development Corporation of the Philippines .. 4,359,063 - 4,153,846 - 205,217 Venezuela Dominguez y Cia.-Caracas, S.A... 514,541 - 84,341 - 430,200 TOTAL ....................... $34,082,818 $16,525,031 $24,890,904 $939,289 $6,622,696 Note 1-Includes $78,926 which was canceled as an underwriting commitment when the Corporation decided to exercise stock rights on its original shareholding. Note 2-Includes $155,395 which was canceled as an underwriting commitment when the Corporation decided to exercise stock rights on its shareholding. Note 3-Excludes $395,608 representing the remaining instalment due on shares acquired by others, payment of which is guaranteed by the Corporation. 37 Notes to Financial Statemients Appendix I) June 30, 1968 Note A Note C The undisbursed balances of investment commitments made Pursuant to action of the Directors, the net income of the in currencies other than United States dollars have been Corporation has been allocated to a reserve against losses translated into United States dollars at the par values as and the future net income of the Corporation will, until further specified in the "Scheduie of Par Values", published by the action by the Directors or the Board of Governors, be allo- International Monetary Fund, or in the case of Colombian cated to this reserve. pesos at the rate of 16.25 to 1 United States dollar. Aevol Industrial Company of Organic Fertilizers, S.A. has not Amounts disbursed and held by the Corporatio i in currencies paid principal instalments of $30,000due on December 15,1967 other than United States dollars have been translated into and $30,000 due on June 15, 1968. Interest and other charges United States dollars at the following average eKchange rates, have not been paid since June 15,1966 and the total of charges adjusted in the case of loans by amounts w-itten off as a now overdue is $71,393. The Corporation has declared the result of a currency devaluation: principal amount of its loan to be due and payable immediately. Currency Unit D.L.R. Plasticos do Brasil, S.A. has not paid a principal Currency per US dollar instalment of $50,000 and interest of $7,003 due on June 1, New Brazilian cruzeiros ............... 2.913 1968. The Corporation has declared the principal amount of CFA francs.ili ....uz .ros.. . . 247.707 its loan to be due and payable immediately. Chilean escudos .... .................... 2.340 Empresa de Curtidos Centro Americana, S.A. has not paid Colombian pesos . ...................... 11.498 principal instalments in the amount of $29,500 each due on Costa Rican colones . .......... ......... . 6.620 June 1 and December 1, 1967 and June 1, 1968. The Corpora- Ecuadoran sujcres ......... ........... 20.550 tionhasunderconsiderationareschedulingofthesematurities. Ethiopian dollars .................... ..... 2.481 Fertilizantes Sinteticos, S.A. has not paid $225,000 of the Finnish markkas ......... .......... . . 3.216 principal instalment due on May 1, 1968 and interest of $32,850 Greek drachmas ... .. ..... 29.900 due on convertible subordinated debentures on each of the Honduran lempiras . ........................ 2.000 dates; June 30, 1966, June 30, 1967 and June 30, 1968. Of the Indian rupees ................. ......... 6.396 unpaid amounts $122,599 of the principal and $21,000 of the Kenya shillings ................... ......... 7.150 interest is for the account of participants. Maorean won. .l.l.a...rs ..............3....... 274.200 Arewa Textiles, Ltd. has not paid a principal instalment of Malaysian dollars 12....... ....... 3.067 £8,700 and interest of £5,283 due on June 30, 1968. M:/exican pesos. . ~ ......... ............... 1 2.490 Moroccan dirhams . ........... ........ 5.015 Note D Nigerian pounds. . ......... ........ 0.357 The reserve against losses has been charged with the amount Pakistan rupees ............... . 4.733 of $553 498 representing a loss to the Corporation from Philippine pesos . ............... ... 3.903 currency devaluations in November 1967. Pounds sterling ... 0.417 Spanish pesetas .......................... 60.599 Note E Sudanese pounds. ....... ................ 0.348 The Corporation, in consideration of certain commissions, Tanzania shillings ................ 7.143 has agreed to underwrite 100,000 shares of a public offering Thai baht .. . . ............. ... ... . 20.714 by H.V.A.-Metahara, Share Company. A subunderwriter has Tunisian dinars ............................. 0.457 agreed with the Corporation to purchase, at the par value of Turkish liras ................................. 9.000 Eth$50 each, 50% of the underwritten shares not sold by the Uganda shillings .. ......................... 7.148 issuer during the offering period, which begins Octoberl, 1968 Venezuelan bolivares .............. .. 4.485 and ends January 31, 1969. Accrued interest, commitment charges and other income In March 1968, the Corporation agreed to underwrite 50%. of receivable in currencies other than United S-ates dollars, a new stock issue of 1,500,000 shares by Compahia Fundidora have been translated into United States dollars at the approxi- de Fierro y Acero de Monterrey, S.A. (Mexico), to the extent mate market rates. that such shares remained unsubscribed by shareholders. No representation is made that any currenc- held by the Subunderwriters agreed to take 88% of the Corporation's Corporation is convertible into any other currency at any share underwriting. Fundidora intormed the Corporation that rate or rates. 93.7896%~ of the new share issue had been subscribed. As a result, the Corporation and the subunderwriters had to sub- scribe for 46,578 shares. The Corporation remains committed Note B to purchase, for the balance of Mex$60 per share, 50% The principal disbursed and outstanding on elfective loans o purchase, forite balane ofsuexnot per shar 50 and equity investments and the accruals for interest, commit- of any shares comprised in the issue riot paid in full as at ment charges and other income on such loans and equity September 30, 1968. investments and on underwriting commitments are denomi- General nated in United States dollars except the following amounts The operational investments are represented by both loans for which the dollar equivalent is shown: and equity. In addition, in certain investments, the Corporation Principal outstanding .......................... $46,719,248 has the right to acquire shares and/or participate in the Accrued interest, commitment charges profits of the enterprise. and other income ............................. 83,759 Yugoslavia paid $591,000 on account of its subscription prior TOTAL ....................... ............. $46,803,007 to June 30, 1968 and became a member on July 5, 1968. Opinioln of Financial Statem-iients Independent Auiditor Covered bv the Fore(,oing Opiniion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 AUGUST 1, 1968 To INTERNATIONAL FINANCE CORPORATION WASHINGTON, D.C. In our opinion, the accompanying financial statements present Balance Sheet ................................. Appendix A fairly, interms of United States currency thefinancial position of International Finance Corporation at June 30,1968, and the Comparative Statement of Income and Expenses.Appendix B results of its operations for the year then ended, in conformity Comparative Statement of Changes in Reserve with generally accepted accounting principles applied on a Against Losses ........... Appendix B basis consistent with that of the preceding year. Our exami- nation of these statements was made in accordance with Statement of Operational Investments and generally accepted auditing standards, and accordingly in- Standby and Underwriting Commitments ...... Appendix C cluded such tests of the accounting records and such other Notes to Financial Statements .................. Appendix D auditing procedures as we considered necessary in the circumstances. PRICE WATERHOUSE & CO. Statenient of Skubscrip tions to Appendix E Capital Stock and Voting Power June 30, 1968 Subscriptions Voting Power Subscriptions Voting Power Amo unt Amount (in thousands Percent Number Percent (in thousands Percent Number Percent Memnber of dollars) of total ol votes of total Member of dollars) of total of votes of total Afghanistan . . .... $ ill .1 1 361 .29 Liberia.........$ 83 .08 333 .27 Argentina ....... 1,662 1.64 1,912 1.56 Libya ..... ... 55 .06 305 .25 Australia ..... 2,215 2.1 9 2,465 2.01 Luxembourg ......1l .11 361 .29 Austria ........ 554 .55 804 .66 Malagasy Republic. 111l .11 361 .29 Belgium ....... 2,492 2.46 2,742 2.23 Malawi .... .....83 .08 333 .27 Bolivia.... 78 .08 328 .27 Malaysia .... .. 277 .27 527 .43 Brazil . ... ... 1,163 1.15 1,413 1.1 5 Mauritania ......55 .06 305 .25 Burma... 166 .16 416 .34 Mexico ....... . 720 .71 970 .79 Canada. ... 3,600 3.55 3,850 3.13 Morocco . . .... 388 .38 638 .52 Ceylon ... ... 166 .16 416 .34 Nepal ..... .....55 .06 305 .25 Chile....... 388 .38 638 .52 Netherlands... . . 3,046 3.01 3,296 2.68 Colombia. ....388 .38 638 .52 New Zealand. 923 .91 1,173 .96 Costa Rica. ....... 22 .02 272 .22 Nicaragua ......9 .01 259 .21 Cyprus . ... . 83 .08 333 .27 Nigeria .... .... 369 .36 619 .50 Denmark. . .... 753 .74 1,003 .82 Norway .... ...554 .55 804 .66 Dominican Republic. 22 .02 272 .22 Pakistan . . _. . 1,108 1.09 1,358 1.11 Ecuador. ...... 35 .04 285 .23 Panama .... ....2 252 .21 El Salvador .. .. 11 .01 261 .21 Paraguay ...... 16 .02 266 .22 Ethiopia ......33 .03 283 .23 Perui..... . . 194 .19 444 .36 Finland .. .... 421 .42 671 .55 Philippines .....166 .16 416 .34 France. ...... 5,815 5.74 5,065 4.94 Portugal . ... ..... 443 .44 693 .56 Germany .. ...... 3,655 3.61 3,905 3.18 Saudi Arabia ....1l .11 361 .29 Ghana .. .,..... 166 .16 416 .34 Senegal.... ..... 184 .18 434 .35 Greece ....277 .27 527 .43 Sierra Leone.. . 83 .08 333 .27 Guatemala, .... 22 .02 272 .22 Somalia. ......83 .08 333 .27 Guyana.. .... 89 .09 339 .28 South Africa. . .... 1,108 1.09 1,358 1.11 Haiti ......... 22 .02 272 .22 Spain. .~~.~ ...... 1,108 1.09 1,358 1.11 Honduras .... .. 11 .01 261 .21 Sudan .... ..111il .11 361 .29 Iceland.... . 11 .01 261 .21 Sweden. . ...._ 1,108 1.09 1,358 1.11 India....... 4,431 4.37 4,681 3.81 Syrian Arab Republic 72 .07 322 .26 Indonesia ...., 1,218 1.20 1,468 1.19 Tanzania.... ....184 .18 434 .35 Iran ..... .. 372 .37 622 .51 Thailand .... .... 139 .14 389 .32 Iraq I 67 .07 317 .26 Togo ..... .....83 .08 333 .27 Ireland . .... 332 .33 582 .47 Tunisia ... ..133 .13 383 .31 Israel... ...... 50 .05 300 .24 Turkey..... . 476 .47 726 .59 Italy ......... 1,994 1.97 2,244 1.83 Uganda. ...... 184 .18 434 .35 Ivory Coast...111.il .11 361 .29 United Arab Republic 590 .58 840 .68 Jamaica. . .. 148 .15 398 .32 United Kingdom .... 14,400 14.21 14,650 11.92 Japan .... 2,769 2.73 3,019 2.46 United States ..... 35,168 34.69 35,418 28.83 Jordan ....... 33 .03 283 .23 Venezuela ....... 116 .12 366 .30 Kenya... .... 184 .18 434 .35 Viet-Nam . ...... 166 .16 416 .34 Korea . ...... 139 .14 389 .32 Zambia ........ 295 .29 545 .44 Kuwait ........ 369 .36 619 .50 Lebanon ....... 50 .05 300 .24 TOTAL ....... $101,368 100.00 122,868 100.00 'Less than .005 percent. 10 Goverinors aniid Alternates Appendix F June 30, 1968 Member Governor Alternate Afghanistan .Mohammed Enwer Ziyaie ...... ... Abdul Aziz Atayee Argentina. .. .... Pedro Eduardo Real . . Ernesto Malaccorto Australia ... . .... .. . ..... William McMahon . .Sir Roland Wilson Austria. ..... Stephan Koren . . Walter Neudorter Belgium . ... ................. R. Henrion . .....H.... ...... , Hubert Ansiaux Bolivia . ... Jorge Jordan Ferrufino . . Enrique Vargas Guzman Brazil .. , . Antonio Delfim Netto . ....... .... Ernane Galveas Burma ... ........ Kyaw Nyein . . Chit Moung Canada .... Edgar John Benson.. . ... .... A. B. Hockin Ceylon ... ....... .... U. B. Wanninayake .......... ........ H. Jinadasa Samarakkody Chile . , . Carlos Massad Abud .... ..... ...... Jorge Marshall Silva Colombia . ......... Abdon Espinosa Valderrama Costa Rica ....... Omar Dengo O . ..... .. ..... Alvaro Vargas E. Cyprus... .. ....... A. C. Patsalides Denmark ...... Otto M oller. ...... ...., ,. Karl Otto Bredahl Domirnican Republic .. .. .... Diogenes H. Fernandez ....... . .... Luis M. Guerrero G6mez Ecuador .... .... ...., Manuel Correa Arroyo . . Guillermo Perez Chiriboga El Salvador. . ... .- Edgardo Suarez C. _ .. .... Armadno Interiano Ethiopia .... ................ . Yilma Deressa. ............ Bulcha Demeksa Finland . ........ . ... Mauno Koivisto.. . ..Jussi Linnamo France ...... ... Minister of Finance . .. Bernard Clappier Germany ............ .... Karl Schiller . .......... ... Franz Josef Strauss Ghana ...... . A. A. Atrifa ..E. N. Omaboe(l) Greece. John Rodinos-Orlandos . . Achilles Cominos Guatemala ....... ..... Mario Fuentes Pieruccini ... .... Jose Luis Bouscayrol Guyana .... P. A. Reid . ...... . H. 0. E. Barker Haiti ...... , Clovis Desinor . ...........-. Antonio Andrd Honduras .. ........ Manuel Acosta Bonilla . . Ricardo Zuniga Augustinus Iceland ... ....... ... Gylfi Gislason . . Magnus Jonsson India ... . .... .... Morarji R. Desai . .. 1. G. Patel Indonesia ...... .... .. Ali Wardhana(1) . ...... Djoeana Koesoemohardla Iran . .... Jamshid Amouzegar. . Jahangir Amuzegar Iraq . Sa eh Kubba(l). . Sa'adi Ibrahim Ireland ..... Charles J. Haughey .. T. K. Whitaker Israel ... David Horowitz . . .... Jacob Arnon Italy. ... . Guido Carli . ........ ... .... Paolo Baffi Ivory Coast ... Konan Bedie ....... .. . .... Mohamed Diawara Jamaica. .......... ... .. Edward Seaga . ..... .... ........ G. Arthur Brown Japan ..... , , Mikio Mizuta. . . .............. Makoto Usami Jordan ... Hatim S. Zu'bi ... ...Adel Shamayleh Kenya . .. J. S. Gichuru . . John Njoroge Michuki Korea .. .. Jong Ryul Whang . .. .... Chin Soo Suh Kuwait.. ...... .... Abdul Rahman Salim Al-Ateeqi.. . Abdlatif Y. Al-Hamad Lebanon, . . . ... Khalil Salem . , , ................ Raja Himadeh Liberia ... , ,, ... .. J. Milton Weeks . ............. Cyril Bright Libya . .._ . ....... Giuma Saleh El-Turki . ..... Ali A. Attiga Luxembourg . Pierre Werner .. Albert Dondelinger Malagasy Republic .Rakotovao Ralison Malawi ............. J. Z. U. Tembo . ..... ....... K. J. Barnes Malaysia ..... Tan Siew Sin ........... ..... . .. Mohamed Sharif bin Abdul Samad (continued) I t Governors and Alternates (continued) Appendix F June 30, 1968 Member Governor Alternate Mauritania . . ....... Moktar Ould Haiba. ................. Ahmed Ould Daddah Mexico ... ........ ..... . Antonio Ortiz Meniu . ..... Jos6 Hernandez Delgado Morocco .. . ...... ..... Mamoun Tahiri ... .... .............. Mohamed Benkirane Nepal ......... , Kirti Nidhi Bista. ............ . Bhekh Bahadur Thapa Netherlands H........... , H. J. Witteveen .J. H. 0. graaf van den Bosch New Zealand ......... N. R. Davis. . .... ............... . . N. V. Lough Nicaragua. . ........ .......... Guillermo Sevilla-Sacasa ............. Arnoldo Ramirez-Eva Nigeria ....... 0 . Awolowo ..... ............... Abdul Aziz Atta Norway ........... . Kare Willoch. .............. Christian Brinch Pakistan ......... ... N. M. Uquaili ..........,......... Ghulam Ishaq Panama . ................. Alfredo Aleman, Jr... .................. Oscar Ucros Paraguay . .. ........ ......... Cesar Romeo Aco!:ta ................. Oscar Stark Rivarola Peru .... .......... Celso Pastor ....................... Tulio De Andrea Philippines . . ........... Eduardo Z. Romua dez. , Roberto S. Benedicto Portugal . . . .......... Ulisses Cortes .... .... ............ Luis M. Teixeira Pinto Saudi Arabia ........ , Ahmed Zaki Saad Senegal ...... Abdou Diouf ...................... Hamet Diop Sierra Leone. .... ..... ... . .M. S. Forna Elkanah Laurence Coker(l) Somalia . . ... ........ Abdullahi Jirreh Du-ialeh ............ Giuseppe Morasca South Africa ......... Nicolaas Diederich: ................ Theunis Willem de Jongh Spain ........ .... ........ Juan Jos6 Espinosa . ............. Mariano Navarro Rubio Sudan . ....................... Sayed El Sherif Hussein El Hindi . . Sayed Abdalla Siddig Ghandour Sweden . . .......... _ G. E. Strang . Krister Wickman Syrian Arab Republic . .. Mouaffaq Shourbaji .Ahmad Nizar Al-Jabi Tanzania .. . ........... P. Bomani . ........ ...... J. D. Namfua Thailand . ..... . . Serm Vinicchayakul ................. Bisudhi Nimmanahaeminda Togo . . . . Boukari Djobo ............... ..... Jean Tevi Tunisia Ahmed Ben Salah . . Ali Zouaoui Turkey ... . ............ , Cihat Bilgehan .... ....... ........ _ Kemal Canto rk(l) Uganda .. . . . Laurence Kalule-Seltala . A. J. P. M. Ssentongo United Arab Republic ... Hassan Abbas Zaki ........ ......... Hamed Abdel Latif El Sayeh United Kingdom ........... Sir Leslie O'Brien ............... Sir Douglas Allen United States ... . . Henry H. Fowler .Eugene V. Rostow Venezuela , . , ........ ... Rafael Alfonzo Ra vard . ......... .... Francisco Mendoza Viet-Nam . . . Nguyen-Huu-Hanh ................. Nguyen Van Dong Yugoslavia(2) . ....,... Janko Smole . . .................. Vladimir Ceric Zambia . .. .... . E. H. K. Mudenda . ....... E. Kasonde i1) Appointment effective after June 30, 1968. (2) Became a member on July 5, 1968. Directors and Alteriiates of IFC Appendix (T an-d their Voting Power June 30, 1968 Director Alternate Casting votes of Total votes Appointed Livingston T. Merchant . ... Emmett J. Rice .......... United States . ...................................... ... . 35,418 E. W. Maude ........ M. P. J. Lynch. .._United Kingdom ........... 14,650 Georges Plescoff . . ..... .. Jean Malaplate. . ..-France 66.. .5 ................ ............... ......... . 6,065 S. Jagannathan .......... S. Guhan ................I ndia . ............................................. ... 4,681 Ernst vom Hofe . ........... J6rg Jaeckel ............ Germany .. ................. ......................... 3,905 Elected L. Denis Hudon ... Patrick M. Reid . .Canada, Guyana, ireland, Jamaica .5,169 (Canada) (Canada) S. Osman Ali(') ..... ......... Abdol Ali Jahanshahi .... Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, Saudi Arabia, (Pakistan) (Iran) Syrian Arab Republic, United Arab Republic 5,022 J. 0. Stone .................. T. J. Bartley . .......... Australia, New Zealand, South Africa 4,996 (Australia) (Australia) Joaquin Gutierrez Cano ....... Felice Gianani . ... Greece, Italy, Portugal, Spain ... ...................... 4,822 (Spain) (Italy) Pieter Lieftinck. . . .... Zoran Zagar ............ Cyprus, Israel, Netherlands, Yugoslavia2). 4,770 (Netherlands) (Yugoslavia) Andre van Campenhout .. Othmar Haushofer Austria, Belgium, Luxembourg, Turkey. .. 4,633 (Belgium) (Austria) Hideo Suzuki .. . . Maung Gyi . ..... Burma, Ceylon, Japan, Nepal, Thailand .. ........... ....... 4,545 (Japan) (Burma) S. Othello Coleman .... ...... Christopher Kahangi . . Ethiopia, Kenya, Liberia, Malawi, Nigeria, Sierra Leone, (Liberia) (Tanzania) Sudan, Tanzania, Uganda, Zambia. 4,109 Karl Skjerdal . .VilhjAlmur Th6r .... . Denmark, Finland, Iceland, Norway, Sweden. 4,097 (Norway) (Iceland) Luis Machado . . Alfredo Valencia ....... Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Mexico, (Cuba) (Peru) Nicaragua, Panama, Peru, Venezuela .3,629 Luis Escobar . ..... ... Daniel Fernandez .. ..... Argentina, Bolivia, Chile, Paraguay ................ 3,144 (Chile) (Argentina) Jorge Mejia-Palacio .......... Jose Camacho .Brazil, Colombia, Dominican Republic, Ecuador, Philippines. . 3,024 (Colombia) (Colombia) Abderrahman Tazi ........... Taoufik Smida .......... Afghanistan, Ghana, Libya, Malaysia, Morocco, Tunisia 2,630 (Morocco) (Tunisia) Mohamed Nassim Kochman .... Michel Bako ......I vory Coast, Malagasy Republic, Mauritania, Senegal, (Mauritania) (Chad) Somalia, Togo 2,127 Reignson C. Chen ........... Chung Pum Song ........ Korea, Viet-Nam .. ......................................... 805 (China) (Korea) In addition to the Directors and Alternates shown in the foregoing list, the following also served as Director or Alternate after June 30, 1967: Director End of period of service Alternate Director End of period of service J. M. Stevens . ........ August 8, 1967 Robert E. Radford ... ............... ............ November 15, 1967 (United Kingdom) (United Kingdom) Rene Larre . . .... August 31, 1967 Iddi Simba ... ................. ............. January 31, 1968 (France) (Tanzania) K. S. Sundara Rajan. ...... March 28, 1968 (India) Otto Donner . ...... ...... April 30, 1968 (Germany) Muhammad Ayub . .... __ ... June 25, 1968 (Pakistan) (deceased) Note: Indonesia (1,468 votes) not yet formally represented by a Director 0) As from July 30,1968. (2) Became a member on July 5, 1968. Principal Officers Appendix H Robert S. McNamara* .... President Martin M. Rosen ......... Executive Vice Prssident James S. Raj ............ Vice President William Diamond ........ Director, Develop nent Finance Companies Department J. David Dodd ........... Special Assistant to the Executive Vice President Hans Fuchs . ........... Director of Engine.ering Department E. Waldo Mauritz ......... Accounting Adviser Naokado Nishihara ....... Special Representative in the Far East Neil J. Paterson .......... Director of Investments, Latin America, Europe and Australasia R. B. J. Richards ......... General Counsel Virgil C. Sullivan ......... Special Adviser Ladislaus von Hoffmann. . Director of Investrnents, Africa, Asia and Middle East John H. Adler*.......Associate Director, Programming and Budgeting Department Robert W. Cavanaugh*. . .Treasurer William Clark* ......... Director of Information and Public Affairs Arthur Karasz* ........... Director, European Office M. M. Mendels* .......... Secretary Hugh B. Ripman* ........ Director of Administration J. H. Williams* .......... Director, Programming and Budgeting Department *These officers hold the same position in the Internartional Bank for Reconstruction and Development [ 11 JI Wedr f''brica