International Bank for Reconstruction and Development 

                       International Development Association 

                         International Finance Corporation 

                                   FOR OFFICIAL USE ONLY 


FOR
                                                                       For consideration on
EXECUTIVE                                                              Tuesday, April 28, 1998
DIRECTORS'
MEETING

                                                                       M98-25
                                                                       IDA/M98-25
                                                                       IFC/M98-16

     FROM: The Secretary                                               Apri121, 1998


                        Minutes of Joint Meeting of the Executive Directors of
                        the Bank and IDA and the Board of Directors of IFC,
                         held in the BoardRoom on April 9, 1998 at 10:40 a.m.


     1.    There were present:

                                            CHAIRMAN

                                      J. D. Wolfensohn, President
           EXECUTIVE DIRECTOR~ AND ALTERNATES ACTING AS EXECUTIVE DIRECTORS

           K. Al-Saad                                   K. Alyahya
           O. Bourges (Alternate)                       A. Bourhane
           A. Bugrov                                    J. Cariaga
           N. Dagalp (Alternate)                        E. Del Bufalo 

           LGood                                        I. Haque (Alternate) 

           A. Kamitomai (Alternate)                     Y-H. Lee
           M. Marek (Alternate)                         M. Meyer
           1. Niemi                                     A. Olaoye (Temporary Alternate)
           F. Passacantando                             M. Portugal (Alternate) 

           H. Schaffer                                  S. Singh 

           P.Stek                                       Sun Vithespongse (Alternate) 

           M. Wickstead (Alternate)                     Zhao Xiaoyu (Alternate) 


           ALTERNATES NOT ACTING AS EXECUTIVE DIRECTORS

           S. Ahmed                                     H. Cordeiro
           C. Legg                                      F: Neergaard
           A. Slusher                                   M. Tanasescu
This document has a restricted distribution and may be used by recipients only in the
performal1ce of their official duties. Its contents may not otherwise be disclosed without
v..'orld Bank authorization.
                                                                                                  M98-25
                                              -2-                                          IDA/M98-25
                                                                                           IFC1M98-16


        OFFICERS AND STAFF PARTICIPATING

        S. Sandstrom, Managing Director                  I. Shihata, Senior Vice President
        M. Baird, Vice President, 	                        & General Counsel 

          Strategy & Resource Mgmt.                      Zhang Shengman, Secretary 

        D. Dowsett-Coirolo, Director, LCC2C              1. Fiechter, Director, SFO
        M. Koch-Weser, Director, LCSES                   K. Sierra, Director, OCSHD
        A. von Heynitz, Director, PBDDR                  B. Aghevli, IMF
        I. Bannon, LCC2C 	                               J. Khalilzadeh-Shirazi, Regional Manager, EAPVP
        B. Sheahan, CLASC, IFC 	                         H. Denton, Corporate Secretariat


Implementing the Strategic Compact: Second Semi-Annual Progress Report

2.     The Executive Directors discussed the paper entitled "Implementing the Strategic Compact:
Second Semi-Annual Progress Report" (SecM98-205).

Strategic Directions for FY99-01: Implementing the Compact in a Changing Environment

3.    The Executive Directors discussed the report entitled "Strategic Directions for FY99-0 I:
Implementing the Compact in a Changing Environment" (SecM98-214).

Nicaragua - Country Assistance Strategy

4.      The Executive Directors of the Association and the Board of Directors of IFC discussed the joint
IDAIIFC Country Assistance Strategy for Nicaragua (IDAIR98-32[IFCIR98-41] dated March 20, 1998).
(The Chairman's Concluding Remarks were subsequently distributed as IDA/SecM98-160[lFC/SecM98­
22).)

Credit to Nicaragua - Financial Sector Adjustment Credit

5.      The Executive Directors considered the President's Report and Recommendation
(IDA/R98-31 dated March 19, 1998; IDAIR98-31/1) and approved the Financial Sector
Adjustment Credit to the Republic of Nicaragua in the amount of SDR 51.8 million
(US$70 million equivalent) on the payment terms and other terms and conditions set out
in the President's Report (CREDIT APPROVAL NO. 98-12).

Loan to the Province of Buenos Aires - Argentina
 - Third Secondary Education Project

6.      The Executive Directors approved the loan to the Province of Buenos Aires, with the guarantee of
the Argentine Republic, for a Third Secondary Education Project in the amount of US$119 million on the
payment terms and other terms and conditions set out in the President's Memorandum (R98-67 dated
March 23, 1998) (STREAMLINED PROCEDURE LOAN APPROVAL NO. 98-29).


Briefing on Indonesia
                                                                                                M98-25
                                               -3-                                          TDA/M98-25
                                                                                            IFC1M98-16
7.      Mr. Khalilzadeh-Shirazi briefed the Board on the current situation in Indonesia.

Date of Next Meeting

8.      It was agreed to hold a meeting of the Executive Directors of the Bank and IDA on
April 14, 1998.

Adjournment

9.      The meeting recessed at 1:25 p.m., reconvened at 2:35 p.m. and adjourned at
3:50 p.m.




Distribution:

 Executive Directors and Alternates 

 President 

 Bank Group Senior Management 

 Vice Presidents, Bank, IFC and MIGA 

 Directors and Department Heads, Bank, IFC and MIGA