INTERNATIONAL BANK FOR RECONSTRUCTION AND
                             DEVELOPMENT

                                 BOARD OF GOVERNORS



                                   Resolution No. 478

                             Allocation of FY92 Net Income


RESOLVED:

1. THAT the Report of the Executive Directors dated July 28, 1992 on “Allocation of
FY92 Net Income� is hereby noted with approval.

2. THAT the addition to the General Reserve of the Bank for the fiscal year ended June
30, 1992 of $250 million in order to achieve the Bank’s reserves target, which will remain
11% for the Bank’s reserves-to-loans ratio, and to cover estimated costs of a waiver for all
payment periods commencing in the fiscal year ending June 30, 1993 of 35 basis points on
the interest rate charged to borrowers which have serviced all their loans from the Bank in
a timely manner, is hereby noted with approval;

3. THAT the Bank transfer, by way of grant, out of the net income of the Bank for the
fiscal year ended June 30, 1992, an amount equivalent to $300 million in SDRs, in the
component currencies of the SDR, as of June 30, 1992, to the International Development
Association; and

4. THAT any excess of net income over $550 million be retained as surplus, provided
that an amount equivalent to $375 million in SDRs, in the component currencies of the
SDR, as of June 30, 1992, be transferred from surplus, by way of grant, to the
International Development Association when the Tenth Replenishment of the Association
becomes effective.



                                                         (Adopted on September 24, 1992)