INTERNATIONAL BANK FOR RECONSTRUCTION AND
                             DEVELOPMENT

                                BOARD OF GOVERNORS



                                  Resolution No. 436

                            Allocation of FY89 Net Income

RESOLVED:

  1. THAT the Report of the Executive Directors dated June 29, 1989 on “Allocation of
FY89 Net Income� is hereby noted with approval;

   2. THAT the Bank transfer by way of grant the equivalent of $100 million to the Debt
Reduction Facility for IDA Only Countries, administered by the International
Development Association, out of the net income of the Bank for the fiscal year ended June
30, 1989, such transfer to be made at a time and in a manner decided by the Executive
Directors; provided, however, that the amount of such grant may at any time be changed
by agreement between the Bank and the Association into an equivalent amount in other
currencies; and

   3. THAT the addition of the balance of such net income to the General Reserve is
hereby noted with approval.



                                                       (Adopted on September 28, 1989)