Archived - Report on Operations Under the Bretton Woods and Related Agreements Act 2004 : 2

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The World Bank’s Business Plan and Administrative Budget

Recognizing that its corporate planning needs to be more closely aligned with efforts to achieve the Millennium Development Goals, the Bank has moved to a three-year budgetary and corporate-planning cycle. In June 2004 Executive Directors approved a net FY 2005 administrative budget of US$1,497.6 million, representing a nominal increase of some 4.1 per cent over the approved budget for FY 2004. Given growing resource pressures and the need for the Bank to prioritize its operations, Executive Directors recently have increased their focus on the Bank’s strategic planning and budgetary processes. Executive Directors’ offices are now involved in the budget formulation process much earlier than they have been in the past. Going forward, the Bank will work with the Executive Directors to make the budget process more results-based and linked to well-defined key performance indicators within a multi-year framework. Aside from being consistent with its shareholders’ desire to make the allocation of aid more results-based, the Bank anticipates that the new process will reduce the cost of preparing the budget itself and increase flexibility.

FY 2004 IBRD Financial Results

As a development institution, the IBRD does not maximize profit. Instead, it aims to earn a return on its assets that is sufficient to ensure its financial strength and sustain its development activities on an ongoing basis. The IBRD usually earns a net return on its assets of about 1 per cent per annum. In FY 2004 the IBRD managed to achieve a net return on assets of 1.2 per cent. The IBRD’s main financial risk rests with the credit quality of its disbursed loan portfolio. At the end of FY 2004 the IBRD’s equity-to-loans ratio, which is a summary measure of the institution’s risk-bearing capacity, was 29.4, compared to 26.6 in FY 2003. These levels are considered sustainable.

Principal and charges totalling US$728 million from four IBRD borrowers^[9] were recorded in "non-accrual" status at the end of FY 2004. No IBRD borrower entered into non-accrual status during the fiscal year. During FY 2004 the IBRD held provisions equivalent to about 3.5 per cent of its outstanding loan portfolio against anticipated losses. The Bank follows very conservative investment and hedging policies. In FY 2004 the IBRD raised US$12.5 billion in medium- and long-term debt on international capital markets to fund its operations. This was US$6.8 billion lower than in FY 2003. All proceeds from new funding are initially invested in the IBRD’s liquid asset portfolio until they are required for IBRD operations. The IBRD strategically repurchases, calls or prepays its debt to reduce the cost of borrowing and to reduce the exposure to refunding requirements in a particular year or to meet other operational requirements. In FY 2004 the IBRD repurchased or called US$4.0 billion of its outstanding borrowings. The IBRD enters into currency and interest rate swaps to convert US dollar and non-US dollar fixed-rate borrowings into US dollar variable rate funding for its loans. The IBRD does not enter into derivatives for speculative purposes.

The process and procedures under which the IBRD manages its financial risk profile continue to evolve as its activities change in response to market, credit, product and other developments. The Executive Board and its Audit Committee periodically review trends in the IBRD’s risk profiles and performance as well as any significant developments in its risk management policies and controls.

Allocation of FY 2004 Net Income

IBRD net income supports its development objectives. In July of each year Executive Directors recommend to Governors specific allocations from the previous year’s net income. IBRD "allocable" net income, after reserves, was US$995 million in FY 2004. In addition to providing funding for IDA operations and heavily indebted poor country (HIPC) debt reduction, net income allows the IBRD to respond to unforeseen humanitarian crises and to provide grants, from time to time, for other development causes. Governors approved allocations from FY 2004 net income of US$300 million to IDA, US$240 million to the HIPC Trust Fund, US$50 million to the Debt Reduction Facility for IDA-Only Countries and US$405 million to the Bank’s Surplus Account.

How to Access Information at the World Bank The World Bank’s Public Information Centres, in Washington and in many of the Bank’s regional offices, provide a wide range of Bank documents, including the following: project information documents; project appraisal documents (after approval by the Board of Executive Directors); country economic and sector work documents and sectoral policy papers; the annual report and the World Development Report; Monthly Operational Summary and International Business Opportunities; environmental data sheets, assessments, analyses and action plans; World Debt Tables and Global Development Finance; and Operations Evaluation Department précis. These materials and a variety of World Bank and World Bank Institute special studies are available through the Bank’s InfoShop located at: 701 18th Street N.W. Washington, DC 20433, USA Phone: (202) 458-4500 Fax: (202) 522-1500 E-mail address: pic@worldbank.org Additional up-to-date information is also available on the Internet at www.worldbank.org/infoshop.

Managing Canada’s Interests at the World Bank

Finance Minister Ralph Goodale, as Canada’s Governor at the World Bank, is responsible for the management of Canada’s interests at the Bank. Minister Goodale exercises his influence through exchanges of views at the Development Committee and annual meetings of the Board of Governors of the Bank, and through discussions with the President of the Bank. Within the Development Committee, Minister Goodale represents the interests of Canada and all other members of the Canada/Ireland/Commonwealth Caribbean constituency.

The Department of Finance consults closely with CIDA and Foreign Affairs Canada in formulating Canadian policies related to Bank issues. Paul Thibault, the President of CIDA, is Canada’s Alternate Governor for the World Bank.

Governors have delegated decision making for a wide variety of day-to-day operational, policy and administrative matters to the Bank’s Executive Board. The Executive Board formally approves all loans, credits, projects and World Bank policies; discusses Country Assistance Strategies; and provides strategic advice to Bank management as appropriate. Of 24 Executive Directors on the Board, 12 are from developing and transition countries and 12 are from developed countries. Marcel Massé, who was elected Executive Director in September 2002 and re-elected in October 2004 by constituency Governors, represents Canada and the 12 other members of the constituency.

Canadian Executive Director’s Office at the World Bank

One of the key roles of the office is to provide advice and assistance to Canadian individuals and businesses on doing business with the Bank. Over the past two decades, the Executive Director’s office has helped introduce roughly 1,000 Canadian businesses to such opportunities through seminars and workshops held across the country and by organizing direct contacts in Washington. Beyond its formal work, the office provides a valuable bridge between the Bank and Canadian constituents—individuals, NGOs, federal and provincial agencies, associations, the academic community and parliamentarians, among others.

In addition to the Canadian Executive Director’s office, the Canadian Embassy in Washington has established an Office for Liaison with International Financial Institutions that can advise Canadians on how to participate in Bank-financed projects. The office can be reached at (202) 682-7788.

Another point of contact for Canadian businesses is the Bank’s Business Web page at www.worldbank.org/opportunities. Canadian firms, organizations and institutions that are interested in pursuing opportunities created by Bank-financed projects should consult the Bank’s Web site on a regular basis. Information on CIDA’s cooperation with and support for World Bank and World Bank-supported programs can be found at www.worldbank.org/canada.

Members of the Executive Director’s Office
Executive Director	Marcel Massé (Canada)
Alternate Executive Director	Gobind Ganga (Caribbean)
Senior Advisor	Grant Cameron (Canada)
Senior Advisor	François Pagé (Canada)
Senior Advisor	Donal Cahalane (Ireland)
Senior Advisor	Stephen Free (Canada)
Advisor	Sharmila Prakash Khare (Canada)
Advisor	Lisaveta Valantina Ramotar (Caribbean)
Executive Assistant	Monique Piette
Program Assistant	Monica Morris
Team Assistant	Danielle Pierre
Phone/fax	(202) 458-0082/(202) 477-4155
Address	MC-12-175, 1818 H Street N.W. Washington, DC 20433, USA mmasse@worldbank.org mpiette@worldbank.org

Canadian Procurement at the World Bank

Canadian firms benefit from Canada’s World Bank membership by accessing procurement opportunities under World Bank-financed loans. Canadian expertise in the power, environmental, engineering, public service reform, health, education, financial and transportation sectors has led to procurement opportunities for Canadian firms for developing country projects around the globe.

In FY 2004 Canadian companies provided US$71 million in goods and services under Bank-funded projects associated with investment lending with, as in past years, consulting services accounting for approximately half this amount. For example, Cowater International Inc. provided advisory services and capacity building for the implementation of reforms under a US$5.99-million Municipal Financial Management Technical Assistance project with the Government of South Africa. Développement International Desjardins and the Montréal-based International Civil Aviation Organization also gained World Bank financing to provide technical assistance to developing countries. Canadian companies such as Tecsult International, CIMA International, SNC Lavalin, and Geomar International Inc. were successful in gaining financing from the World Bank in 2004 for various consulting services.

The Executive Director’s office collaborated with several institutions and government agencies to promote business opportunities with the Bank. Through their participation in Canada in several events and conferences such as International Development Days, the annual meeting of the Saskatchewan Trade and Export Partnership and special events organized by the World Trade Centre in Montréal, Toronto and Halifax, World Bank representatives provided information to the Canadian private sector on how to do business with the Bank.

In 2004 the Canadian Executive Director’s office undertook several initiatives to strengthen commercial and other ties between Canada and the World Bank Group. The relationship between the World Bank and Canada was highlighted by the participation of World Bank President James Wolfensohn at the 10th Conference of Montreal in June 2004.

Over the course of 2004 the World Bank and the Canadian Executive Director’s office helped launch the Private Sector Liaison Officer (PSLO) Network for Canada to promote increased dialogue between the Canadian private sector (companies, non-governmental organizations, and academic institutions) and the World Bank Group. This network was established following months of work and strong collaboration between the World Bank, the Canadian Executive Director and the Office of Liaison with international financial institutions at the Canadian Embassy in Washington. The World Bank offers two annual training programs to the PSLOs and provides them with information and documentation on the Bank's projects and programs to share with the private sector. The World Bank has an active PSLO Network in Europe and plans to expand the Network to include several countries in Asia and Latin America. The Canadian organizations participating in the PSLO Network are Business New Brunswick, New Brunswick; the World Trade Centre, Montréal, Quebec; the Canadian Manufacturers and Exporters, Ontario; Manitoba Trade and Investment, Manitoba; Saskatchewan Trade and Export Partnership, Saskatchewan; and Alberta Economic Development, Alberta. The regional office of International Trade Canada in Vancouver is acting as the PSLO for British Columbia. In 2005 the Bank intends to finalize the PSLO Network in British Columbia and to work with additional partners in Nova Scotia.

Trust Fund Activities

Consultant trust funds (which, in Canada’s case, are financed by CIDA and administered by the Bank) are a source of funds for identifying and preparing Bank projects, programs or analytical work focused on poverty reduction. These trust funds support the participation of Canadian consultants, individuals or firms in activities and programs funded by the Bank. In FY 2002 the Board of Directors approved a package of reforms for consultant trust funds that simplified and standardized existing eligibility criteria. These reforms have resulted in standardized consultant trust fund framework agreements for all donors. The changes strengthened the alignment of the consultant trust funds with the Bank’s overall strategic development priorities and resource-planning processes.

The Bank has also proposed a further set of reforms to the Consultant Trust Fund program that would effectively see the closure of all tied trust funds by the end of FY 2007. Canada is supportive of these reforms and is now in the process of winding down our own consultant trust fund. With current resource levels, it is expected that the Canadian Consultant Trust Fund will close by the end of FY 2006. Going forward, Canadian consultants will be able to access a much wider range of opportunities by becoming eligible for contracts funded by any consultant trust fund. Access to procurement opportunities is also expected to become much easier with the July 2004 launch of the "eProcurement system" for the selection of consultants and the further development of the Canada-wide PSLO Network, which aims to be a link between the Bank and the Canadian private sector.

CIDA’s framework agreement with the Bank, signed in June 1995, governs all of its other single-donor trust fund arrangements with the Bank, the World Bank Institute and the Global Environment Facility. These primarily comprise project co-financing arrangements but also include prominent specific trust funds like the Canada Persistent Organic Pollutants Fund (C$20 million) and the C$5-million trust fund with the World Bank Institute. This trust fund, which currently extends to FY 2005, enables the World Bank Institute to engage Canadian expertise in the preparation and delivery of its training programs in countries eligible for Canadian official development assistance. Allocations are made annually to five or six World Bank Institute programs, based on their compatibility with Canadian development assistance priorities.

In addition, CIDA participates in a number of influential multi-donor trust funds targeted at specific development issues. These include trust funds for the Prototype Carbon Fund (US$10 million), the Public-Private Infrastructure Advisory Facility (C$350,000), the Cities Alliance (C$350,000), the Asia Sustainable and Alternative Energy Fund (C$4.25 million total), the World Bank–WHO Health Systems (US$750,000 total) and the Global Gas Flaring Reduction Partnership (C$400,000 annual contribution).

International Finance Corporation

The International Finance Corporation (IFC), created in 1956, supplements the activities of the IBRD and IDA by providing financing on commercial terms for productive private sector enterprises that lack access to private capital markets. The institution is the largest multilateral source of loan and equity financing for the private sector in the developing world. The institution provides both loans and equity investments; loans represent 74 per cent of the IFC’s disbursed portfolio. Through its co-financing arrangements, it leverages substantial private financing for development purposes. By investing alongside the IFC (as Canadian financial institutions have done since the mid-1990s through their participation in the IFC loan syndication program), investors gain valuable access to potential new customers, attain a high-yielding asset and, given the IFC’s good relations with developing country governments, benefit from a degree of implicit political risk coverage.

In FY 2004 the IFC signed investment commitments totalling US$5.63 billion for 217 projects in the developing world, compared to US$5.03 billion in FY 2003. Of this amount, US$0.88 billion was mobilized through loan syndications, compared to US$1.18 billion in FY 2003. Of the US$4.75 billion of the IFC’s own financing, US$3.40 billion was provided in the form of loans, US$171 million in the form of structured finance products (including guarantees), US$1.13 billion as equity investments and quasi-equity investments, and US$60 million for risk management products. The IFC earned net income of US$993 million in FY 2004, compared to US$487 million in FY 2003.

While the bulk of the IFC’s financing is provided to middle-income countries, the institution is increasingly targeting frontier markets (countries such as those in Africa, traditionally of little interest to private investors). Canada supports this stronger focus on frontier markets, while recognizing the difficulties posed by higher business costs and financial risks.

Canada supports a number of technical assistance programs through the IFC’s Technical Assistance Programme, which was instituted in 1988 and manages technical assistance programs funded by bilateral and multilateral donors. In FY 2004, 133 technical assistance projects were approved with a total value of $23 million. The Technical Assistance Programme now has 44 active funding agreements with 20 donor countries or regions, in addition to the IFC as a donor. Through FY 2004 donors have provided cumulative contributions of US$188 million and approved more than 1,380 technical assistance projects under this program.

Donors also provided other funds in support of small- and medium-enterprise project development facilities, the Sustainable Business Assistance Program focusing on social and environmental issues and investment climate initiatives. In addition to its consultant trust funds with the IFC, CIDA has also provided funding for the Africa Project Development Facility, Pacific Enterprise Development Facility, Program for Eastern Indonesia SME Assistance, SouthAsia Enterprise Development Facility, South East Europe Enterprise Facility, Mekong Private Sector Development Facility, Private Enterprise Partnership and Foreign Investment Advisory Service.

Canada maintains a 3.44-per-cent share of IFC capital. It has paid in US$81.3 million to the IFC’s capital stock. Given the risks associated with its financial operations, all of the IFC’s authorized capital is paid-in.

Canada’s Financial Participation in the IFC

	Subscriptions	Voting Power
Total	(% of total)	(% of total)
US$81.3 million	3.44	3.39

Multilateral Investment Guarantee Agency

The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 to encourage foreign investment in developing countries by providing viable investment insurance against non-commercial risks (e.g. expropriation, transfer restrictions, breach of contract, and war and civil disturbance), thereby improving or creating investment opportunities. MIGA’s Canadian clients include Barrick Gold Corporation, Hydro-Québec International and The Bank of Nova Scotia.

In FY 2004 MIGA approved 55 guarantees totalling US$1.1 billion for 35 projects, of which 20 were in IDA-eligible countries. IDA-eligible countries also benefited in FY 2004 from 35 MIGA technical assistance efforts. During FY 2004 MIGA also increased its support for investors from developing countries: it supported eight investments made by developing country enterprises in other developing countries.

Canada’s Financial Participation in MIGA

	Subscriptions	Voting Power
Total	(% of total)	(% of total)
US$56.535 million	3.11	2.74
Of which paid-in US$10.732 million
Of which callable US$45.803 million

Future Challenges

That millions of the world’s poorest are unable to share in the benefits of globalization is both an economic and a moral issue, and has made development a prominent theme of G-7/G-8 meetings and of policy discussions in other multilateral fora (e.g. in the UN system, regional summits and World Trade Organization negotiations). Effective use of scarce resources is central to international discussions of development issues. At the International Conference on Financing for Development in March 2002, developed and developing country leaders agreed that more must be done to channel resources in support of development and that, for their part, developing countries have a responsibility to ensure that these resources are used effectively. Donors, conscious of the uneven results of decades of official development assistance, want to ensure that scarce assistance resources produce measurable results. This requires stronger efforts by developing countries to create sound policy and institutional environments. The Bank, as the world’s largest provider of development financing, plays a crucial role in providing advisory and financial assistance to countries to help strengthen their economic, social and governance policies. Going forward this will remain one of the Bank’s more pressing challenges.

President James Wolfensohn has indicated his intention to leave the World Bank Group after his term expires on May 31, 2005. A new President will be selected. With the change in leadership and shareholder interest in further enhancing the effectiveness of the World Bank Group, this is a window of opportunity for Canada to press for reforms to maximize the Bank’s impact on poverty reduction and sustainable growth in developing member countries.

More effective measurement and monitoring of development results is a critical element of the development effectiveness agenda, and Canada will continue to stress the importance of results-based indicators. While the Bank has embarked on a program to improve its results measurement and monitoring, adapting and refining the Bank’s results measurement work to different developing country poverty reduction strategies will be a substantial challenge over the medium term.

Recognizing the importance of country-owned development strategies, the major challenge for the future will be to orient the Bank’s operations towards those clients that have strong economic and governance frameworks in place and to help convince countries with weak policy frameworks of the need to alter their policies. As the Bank moves increasingly to support nationally owned development strategies, a key challenge will be to work with developing country governments and civil society to ensure that there is sufficient capacity on the ground to develop and implement these strategies. The Bank will also have to work increasingly with other partners, both multilateral and bilateral, on the basis of their comparative institutional strengths, to improve the quality and effectiveness of development assistance within individual countries.

Without careful attention to the unique needs of individual countries, the Bank will be unable to meet its objectives of improving the quality of its operations and strengthening its development impact. Moreover, the effectiveness of the Bank’s own operations must be enhanced through closer partnerships with bilateral donors and international organizations. Cooperation with UN agencies, in terms of measuring global and national progress towards the Millennium Development Goals, will be key, given the high operational priority the Bank attaches to helping countries achieve these goals.

The Bank will continue to provide support to developing countries facing a broad range of institutional, economic and social challenges. The Bank’s strategy for contributing to capacity building and poverty reduction in low-income countries under stress will continue to evolve based on its operational experience. However, the Bank’s future challenges are not limited to the world’s poorest countries. A majority of the world’s poor live in middle-income countries, and over the coming year the Bank will be looking at how best to address the problems facing this particular segment of the world’s poorest.

Establishing clear development priorities and being more selective in its operations will be critical to future success. Canada will continue to stress the need for the Bank to be much more selective and transparent in its operations.

Joint Issues

Overview

The IMF and the World Bank are important institutions for Canada, each playing a unique role in the international economic and financial system. Nevertheless, there are key areas where the mandates of the two Bretton Woods Institutions overlap, or where there is a requirement for close cooperation and coordination of activities. The heads of both institutions have put considerable effort into increasing cooperation. At the International Conference on Financing for Development, held in Monterrey, Mexico, in March 2002, leaders from both the developing and developed worlds asked the Bank and Fund to explore innovative ways to enhance the voice and participation of developing countries in their decision-making processes. Three particular examples—Bank/Fund measures to enhance developing country voice, the joint preparation of the debt relief initiative for heavily indebted poor countries, and joint work on a new long-term debt sustainability framework for low-income countries—are examined below.

Enhancing the Voice and Participation of Developing Countries in the Bretton Woods Institutions

Responding to the call at the March 2002 International Conference on Financing for Development that the Bank and the Fund find "innovative and pragmatic" ways to enhance the participation of developing and transition economies in their decision making, Ministers discussed the voice issue during the 2003 and 2004 meetings of the Development Committee of the Boards of Governors of the World Bank and the IMF.

Much progress has been made in addressing capacity constraints in the offices of developing country Executive Directors at both institutions. Measures have been taken to deal with the problem of weak capacity within developing country capitals to assess important World Bank and IMF policy issues from a developing country perspective and to make Bank and Fund operations more responsive to borrowers’ needs.

In April 2003 Executive Directors approved an increase in the professional staff complement of the two Executive Directors representing African countries at each institution. The two institutions are also making greater efforts to involve staff from developing country Executive Directors’ offices in their internal training programs. The World Bank has expanded its secure access to Executive Board documents to developing country capitals. Following the September 2003 Development Committee meeting, the World Bank established a secondment program to expose mid-level developing country officials directly to World Bank operations, with the object of improving their understanding of the Bank’s operational and decision-making processes. In early 2005 the World Bank is expected to host 18 officials from developing countries, including 10 from Africa. Separately from the World Bank and IMF, some bilateral donors are working to establish an independent policy advisory unit that developing countries could draw on to seek policy advice on key World Bank and IMF policy issues.

More broadly, the World Bank is moving to enhance developing country influence and participation by increasing its efforts to involve developing countries in the design and formulation of its Country Assistance Strategies and non-lending programs. The Bank is also making greater efforts to focus its Country Assistance Strategies on priorities identified by developing countries themselves in their Poverty Reduction Strategy Papers. Within IDA, borrower representatives fully participated in the five meetings convened between February 2004 and February 2005 to discuss operational priorities for the 14th IDA replenishment period (2005–2008).

Looking ahead, the Development Committee is expected to revisit this issue at its next meeting in April 2005. In October 2004 the Development Committee urged the Bank and Fund Boards to cooperate closely together in exploring all relevant options, to strive to achieve consensus amongst all members, and to prepare a report for its April 2005 meeting. The report is expected to deal with the difficult remaining issues of Board composition and voting structure. At present there is no consensus among members to alter either the voting structure or the composition of the Executive Boards at the World Bank and the IMF.

Multilateral Debt Relief

In September 1996 the IMF and World Bank launched the Heavily Indebted Poor Countries Initiative (HIPC Initiative) to reduce the unsustainable debt burdens of the world’s poorest countries. After a review of the HIPC Initiative in 1999, a number of modifications were approved to provide faster, deeper and broader debt relief and to strengthen the links between debt relief, poverty reduction and social policies. Currently 42 countries are being considered for assistance under the HIPC Initiative. Guyana, a member of Canada’s constituency at the World Bank, reached its HIPC completion point and completed the process in December 2003.

Good progress has been made. As of the end of December 2004, 27 countries were benefiting from debt relief under the HIPC Initiative. Fifteen of them (Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Senegal, Tanzania and Uganda) have completed the HIPC process and received irrevocable debt relief. These countries will receive over US$53 billion in debt relief under the HIPC Initiative and additional measures, and they will benefit from an average two-thirds reduction in their debt burdens. Importantly, for these countries, social spending has dramatically increased while average debt service has fallen significantly, and debt ratios have declined to levels similar to many other poor, but initially less indebted, countries.

In 2004 both the Bank and the Fund agreed to extend the sunset clause of the HIPC Initiative for another two years, to end-2006, in order to give countries that have yet to enter the HIPC process more time to take the necessary steps, including reform programs supported by the Bank and the Fund.

Canada’s Actions in Support of the HIPC Initiative Canada has been at the forefront of international efforts for a swift and decisive approach to the debt burdens of the world’s poorest countries, both multilaterally and bilaterally. Multilaterally, Canada has consistently advanced the debt relief agenda by: announcing in February 2005 Canada’s commitment to cover the debt- service obligations of eligible reforming low-income countries to IDA and the African Development Fund. Canada urged other donors to do the same. Additionally, Canada called on donors to agree on the need to provide further IMF debt relief and to identify the best way to finance this cost. The benefits would be available until 2015 to all countries that have completed the HIPC process and to other low-income (IDA-only) countries that have the ability to use these savings for development. This provides poor countries with immediate fiscal space to implement their poverty reduction strategies; leading efforts in the G-7 for the enhanced HIPC debt initiative (announced in September 1999), as well as continually working to improve the effectiveness of the initiative, as evidenced by Canada’s leadership role on the G-8 Leaders Statement on Debt Relief, issued at the Kananaskis Summit in June 2002; committing C$75 million in Budget 2003 to further debt relief efforts, bringing our total contribution to the HIPC debt relief trust funds at the IMF (C$65 million) and World Bank (C$250 million) to C$315 million. This will help to ensure timely debt relief for deserving countries; calling on all bilateral creditors to follow Canada’s lead and to put in place a moratorium on debt payments from reforming HIPCs; supporting the provision of additional debt relief ("topping-up" assistance) at the completion point of the HIPC process for those countries negatively affected by, for example, falling commodity prices. Canada has also called for a more generous method of calculating the amount of debt relief that should be offered to countries in need of topping-up assistance; calling for flexibility in linking HIPC debt relief to the Poverty Reduction Strategy Paper process to avoid delaying debt relief to deserving countries; and strongly supporting continuing World Bank and IMF efforts to develop a long-term debt sustainability framework for low-income countries and the debt distress-based grant allocation framework to be used under IDA14. Bilaterally, Canada is helping the poorest countries by: no longer collecting debt payments from 11 reforming HIPCs on loans outstanding as of March 31, 1999 since January 1, 2001, and from another 2 countries—Democratic Republic of Congo and Rwanda—since Budget 2004, under the Canadian Debt Initiative (CDI); forgiving, also under the CDI, all remaining debts owed to Canada for eligible countries that have completed the HIPC process—Benin, Bolivia, Ethiopia, Ghana, Guyana, Madagascar, Senegal and Tanzania; forgiving C$1.3 billion in official development assistance (ODA) debt to 46 developing countries since 1978, including all of its ODA debt to 22 HIPCs, at a cost of C$900 million; of the HIPCs, only Myanmar (formerly Burma) currently has ODA debt to Canada; and providing development assistance since 1986 on a grant basis so as to avoid worsening the debt problems in the poorest countries.

Long-Term Debt Sustainability in Low-Income Countries

Debt sustainability is an essential condition for economic stability, which, in turn, is a foundation for economic growth and development. Many low-income countries have struggled to maintain their external debt at sustainable levels while also trying to meet development objectives such as the Millennium Development Goals (MDGs). The economic weakness of many poor countries leaves them vulnerable to exogenous shocks, such as a fall in primary commodity prices, which could alter their debt sustainability prognosis. Excess lending, even on concessional terms, could lead to unsustainable debt burdens going forward.

In the spring of 2004, the World Bank and International Monetary Fund introduced a new Debt Sustainability Framework in Low-Income Countries, which seeks to make that challenge less difficult by providing guidance on new lending to low-income countries whose main source of financing is official loans. The key features of the new framework include the following:

• The debt sustainability framework is a "forward-looking" approach that aims to guide borrowing and lending decisions for low-income countries on terms that allow borrowing countries to devote resources towards achieving the MDGs, while also staying within their means to repay loans. By taking into account each country’s specific circumstances, the framework tries to help borrowing countries balance their need for funds with their current and prospective ability to repay their debts. Linking a country’s borrowing potential to its current and prospective ability to service debt should help countries avoid accumulating excessive debts.
• This approach puts responsibilities on both borrowers and creditors. The low-income countries that seek new loans are responsible for maintaining debt sustainability. They must develop and strengthen policies and institutions that enhance their capacity to manage debt and reduce their vulnerability to exogenous shocks ranging from international trading conditions to natural disasters. Among other things, they will need to keep new borrowing in step with their capacity to repay loans, diversify exports and build up foreign exchange reserves.
• Creditors and donors, for their part, need to comprehensively review long-term debt projections, which incorporate forward-looking analysis and account for possible shocks. Potential creditors and donors should also consider giving additional resources in the form of grants and/or highly concessional loans for low-income countries with high levels of debt distress to reduce the possibility that these countries later experience debt distress. Creditors and donors also need to explore options that can help limit the potential impacts of adverse exogenous shocks or help low-income countries cope with them.

In response to this work and the lessons learned under the HIPC Initiative, Canada and its partners supported a new grant program at the Asian Development Fund. In late 2004 Canada and other donors agreed to a new grant allocation framework linked solely to debt distress indicators for both IDA and the African Development Fund going forward. Work to further enhance the debt sustainability framework for low-income countries will continue at both the World Bank and the IMF in 2005. In October 2004 the Development Committee also asked the Bank and the Fund to accelerate their work on means to help mitigate the impact of exogenous shocks on low-income countries and to report to their Boards at an early date.

Annex 1
Active IMF Lending Arrangements—As of December 31, 2004

Member	Date of arrangement	Expiration  date	Amount  approved	Undrawn  balance
			(in SDR millions)
Stand-By Arrangements—Total			54,546	19,137
Argentina	September 20, 2003	September 19, 2006	8,981	4,810
Bolivia	April 2, 2003	March 31, 2005	129	27
Brazil	September 6, 2002	March 31, 2005	27,375	10,175
Bulgaria	August 27, 2004	September 5, 2006	100	100
Colombia	January 15, 2003	April 14, 2005	1,548	1,548
Croatia, Republic of	August 4, 2004	April 3, 2006	97	97
Dominican Republic	August 29, 2003	August 28, 2005	438	306
Gabon	May 28, 2004	June 30, 2005	69	28
Paraguay	December 15, 2003	March 31, 2005	50	50
Peru	June 9, 2004	August 16, 2006	287	287
Romania	July 7, 2004	July 6, 2006	250	250
Turkey	February 4, 2002	February 3, 2005	12,821	907
Ukraine	March 29, 2004	March 28, 2005	412	412
Uruguay	April 1, 2002	March 31, 2005	1,989	140
Extended Fund Facility  Arrangements—Total			794	311
Serbia and Montenegro	May 14, 2002	May 13, 2005	650	188
Sri Lanka	April 18, 2003	April 17, 2006	144	124

Annex 1
Active IMF Lending Arrangements—As Of December 31, 2004 (cont'd)

Member	Date of  arrangement	Expiration  date	Amount  approved	Undrawn  balance
			(in SDR millions)
Poverty Reduction and Growth Facility Arrangements—Total			3,328	1,693
Albania	June 21, 2002	June 20, 2005	28	8
Azerbaijan	July 6, 2001	July 4, 2005	68	26
Bangladesh	June 20, 2003	June 19, 2006	400	252
Burkina Faso	June 11, 2003	June 10, 2006	24	17
Burundi	January 23, 2004	January 22, 2007	69	43
Cape Verde	April 10, 2002	April 9, 2005	9	2
Congo, Republic of	December 6, 2004	December 5, 2007	55	47
Congo, Democratic Republic of	June 12, 2002	June 11, 2005	580	53
Côte d’Ivoire	March 29, 2002	March 28, 2005	293	234
Dominica	December 29, 2003	December 28, 2006	8	5
Gambia, The	July 18, 2002	July 17, 2005	20	17
Georgia	June 4, 2004	June 3, 2007	98	84
Ghana	May 9, 2003	May 8, 2006	185	105
Guyana	September 20, 2002	March 19, 2006	55	37
Honduras	February 27, 2004	February 26, 2007	71	51
Kenya	November 21, 2003	November 20, 2006	225	200
Kyrgyz Republic	December 6, 2001	April 5, 2005	73	10
Lao People’s  Democratic Republic	April 25, 2001	April 24, 2005	32	14
Madagascar	March 1, 2001	March 1, 2005	92	11
Mali	June 23, 2004	June 22, 2007	9	8
Mongolia	September 28, 2001	July 31, 2005	28	16
Mozambique	July 6, 2004	July 5, 2007	11	10
Nepal	November 19, 2003	November 18, 2006	50	36
Nicaragua	December 13, 2002	December 12, 2005	98	42
Rwanda	August 12, 2002	August 11, 2005	4	2
Senegal	April 28, 2003	April 27, 2006	24	17
Sierra Leone	September 26, 2001	September 25, 2005	131	14
Sri Lanka	April 18, 2003	April 17, 2006	269	231
Tajikistan	December 11, 2002	December 10, 2005	65	29
Tanzania	August 16, 2003	August 15, 2006	20	11
Uganda	September 13, 2002	September 12, 2005	14	6
Zambia	June 16, 2004	June 15, 2007	220	55
Total			58,668	21,142

Annex 2
IBRD Loans and IDA Credits—
Fiscal Year 2004 (July 1, 2003–June 30, 2004)

	IBRD	IDA	Total
	Amount	Amount	No.	Amount
	(in millions of US dollars)
By area
Africa	0.0	4,115.9	68	4,115.9
East Asia and Pacific	1,665.5	907.2	30	2,572.7
Europe and Central Asia	3,012.9	546.2	52	3,559.1
Latin America and the Caribbean	4,981.6	338.2	50	5,319.8
Middle East and North Africa	946.0	145.0	11	1,091.0
South Asia	439.5	2,982.1	34	3,421.6
Total	11,045.4	9,034.6	245	20,080.1
By theme
Economic management				428.6
Public sector governance				3,374.0
Rule of law				503.4
Financial and private sector  development				4,176.6
Trade and integration				1,212.7
Social protection and risk management				1,577.0
Social development, gender, inclusion				1,557.8
Human development				3,079.5
Urban development				1,358.1
Rural development				1,507.8
Environment and natural  resources management				1,304.6
Total				20,080.1

Annex 3
IBRD Loans and IDA Credits to Developing Countries

	IBRD		IDA		Total
	No.	Amount	No.	Amount	No.	Amount
	(in millions of US dollars)
By fiscal year (July–June)
Cumulative to 1968	549	11,418.1	116	1,831.8	665	13,249.9
Total 1969–73	374	8,917.8	273	3,931.6	647	12,849.4
Total 1974–78	666	24,372.3	376	7,947.4	1,042	32,319.7
Total 1979–83	711	44,908.0	518	16,368.1	1,229	61,276.1
1983–84	129	11,947.2	106	3,575.0	235	15,522.2
1984–85	131	11,356.3	105	3,028.1	236	14,384.4
1985–86	131	13,178.8	97	3,139.9	228	16,318.7
1986–87	127	14,188.2	108	3,485.8	235	17,674.0
1987–88	118	14,762.0	99	4,458.7	217	19,220.7
1988–89	119	16,433.2	106	4,933.6	225	21,366.8
1989–90	121	15,179.7	101	5,522.0	222	20,701.7
1990–91	126	16,392.2	103	6,293.3	229	22,685.5
1991–92	112	15,156.0	110	6,549.7	222	21,705.7
1992–93	122	16,944.5	123	6,751.4	245	23,695.9
1993–94	124	14,243.9	104	6,592.1	228	20,836.0
1994–95	134	16,852.6	108	5,669.2	242	22,521.8
1995–96	129	14,656.0	127	6,864.0	256	21,520.0
1996–97	141	14,525.0	100	4,622.0	241	19,147.0
1997–98	151	21,086.2	135	7,507.8	286	28,594.0
1998–99	131	22,182.3	145	6,811.8	276	28,994.1
1999–00	97	10,918.6	126	4,357.6	223	15,276.2
2000–01	91	10,487.1	134	6,763.5	225	17,250.6
2001–02	96	11,451.8	133	8,067.6	229	19,519.4
2002–03	99	11,230.7	141	7,282.5	240	18,513.0
2003–04	87	11,045.4	158	9,034.6	245	20,080.1
Total*	4,810	393,748.0	3,745	151,390.6	8,555	545,139
* Note: Joint IBRD/IDA operations are counted once as IBRD operations. When more than one loan is made for a single project, the operation is counted only once. Amounts may not add to totals because of rounding.

Annex 4
Disbursements by IBRD and IDA Borrowers:
Goods and Services From Canada—To June 30, 2004

	IBRD	IDA	Total
	Amount	Amount	Amount
	(in millions of US dollars)
By calendar year
Cumulative to December 1960	133.5	–	133.5
1961	8.2	–	8.2
1962	3.7	–	3.7
1963	5.6	7.4	13.0
1964	4.7	1.8	6.5
1965	5.4	2.7	8.1
1966	11.6	5.3	16.9
1967	13.2	14.7	27.9
1968	6.3	7.8	14.1
1969	4.4	11.0	15.4
1970	7.6	1.3	8.9
1971	11.1	2.2	13.3
1972	10.5	2.3	12.8
1973	12.4	5.1	17.5
1974	15.8	8.4	24.2
1975	22.1	15.0	37.1
1976	25.7	10.8	36.5
1977	34.5	4.8	39.3
1978	26.1	5.5	31.6
1979	44.4	8.1	52.5
1980	51.5	7.8	59.3
1981	94.3	14.5	108.8
1982	75.0	17.6	92.6
1983	82.3	26.9	109.2
1984	92.6	54.3	146.9
1985	94.3	39.7	134.0
1986	184.8	46.8	231.6
1987 (January–June)	92.8	23.4	116.2

Annex 4
Disbursements by IBRD and IDA Borrowers:
Goods and Services From Canada—To June 30, 2004 (cont'd)

	IBRD	IDA	Total
	Amount	Amount	Amount
	(in millions of US dollars)
By fiscal year
1987–88	182.1	47.4	229.5
1988–89	197.0	45.0	242.0
1989–90	164.0	41.0	205.0
1990–91	139.0	34.0	173.0
1991–92	131.0	38.0	169.0
1992–93	151.0	41.0	192.0
1993–94	115.0	69.0	184.0
1994–95	123.0	48.0	171.0
1995–96	169.0	56.0	225.0
1996–97	113.0	42.0	155.0
1997–98	82.0	32.0	114.0
1998–99	69.0	37.0	106.0
1999–00	73.0	22.0	95.0
2000–01	45.0	15.0	60.0
2001–02	48.0	16.0	64.0
2002–03	41.0	20.0	61.0
2003–04	41.0	30.0	71.0
Total	3,008	951	3,959
Per cent of total disbursements	2.4	1.8	2.2
Per cent of FY 2004 disbursements	3.8	2.0	2.8

Annex 5
IBRD Loans and IDA Cumulative Lending by Country—
As of June 30, 2004

	IBRD loans	IDA loans	Total loans
	Amount	Amount	No.	Amount
	(in millions of US dollars)
Borrower or guarantor
Afghanistan	–	838.3	33	838
Africa region	259.8	425.8	19	686
Albania	–	757.9	52	758
Algeria	5,911.8	–	72	5,912
Angola	–	415.4	14	415
Argentina	21,633.2	–	120	21,633
Armenia	12.0	808.7	35	821
Australia	417.7	–	7	418
Austria	106.4	–	9	106
Azerbaijan	–	622.0	22	622
Bahamas	42.8	–	5	43
Bangladesh	46.1	10,994.6	185	11,041
Barbados	118.4	–	12	118
Belarus	192.8	–	4	193
Belgium	76.0	–	4	76.0
Belize	86.2	–	9	86
Benin	–	814.5	54	815
Bhutan	–	101.1	11	101
Bolivia	314.3	1,886.2	85	2,200
Bosnia and Herzegovina	–	931.3	45	931
Botswana	280.7	15.8	25	297
Brazil	34,450.1	–	291	34,450
Bulgaria	1,951.5	–	31	1,951
Burkina Faso	1.9	1,465.6	63	1,468
Burundi	4.8	1,012.6	56	1,017
Cambodia	–	607.2	24	607
Cameroon	1,347.8	1,227.0	75	2,575
Cape Verde	–	197.9	18	198
Caribbean region	83.0	52.0	7	135.0
Central African Republic	–	448.5	27	449
Chad	39.5	993.6	46	1,033
Chile	3,920.9	19.0	66	3,940
China	28,492.5	9,946.7	254	38,439
Colombia	12,049.1	19.5	175	12,069
Comoros	–	132.4	19	132
Congo, Democratic Republic of	330.0	2,841.5	74	3,172
Congo, Republic of	216.7	333.3	26	550
Costa Rica	938.5	5.5	40	944
Côte d’Ivoire	2,887.9	2,042.5	87	4,930
Croatia	1,245.7	–	23	1,246
Cyprus	418.8	–	30	419
Czech Republic	776.0	–	3	776
Denmark	85.0	–	3	85
Djibouti	–	148.6	16	149
Dominica	4.0	19.3	6	23
Dominican Republic	1,088.5	22.0	39	1,111

Annex 5
IBRD Loans and IDA Cumulative Lending by Country—
As of June 30, 2004 (cont’d)

	IBRD loans			IDA loans		Total loans
	Amount			Amount		No.		Amount
		(in millions of US dollars)
Eastern Africa		–	45.0		1		45
Ecuador		2,877.2	36.9		81		2,914
Egypt, Arab Republic of		4,900.4	1,984.0		108		6,884
El Salvador		981.4	25.6		36		1,007
Equatorial Guinea		–	45.0		9		45.0
Eritrea		–	445.4		12		445
Estonia		150.7	–		8		151
Ethiopia		108.6	4,503.5		90		4,612
Fiji		152.9	–		12		153
Finland		316.8	–		18		317
France		250.0	–		1		250
Gabon		227.0	–		14		227
Gambia		–	259.2		28		259
Georgia		–	772.8		34		773
Ghana		207.0	4,396.5		116		4,603
Greece		490.8	–		17		491
Grenada		17.0	23.5		6		41
Guatemala		1,404.8	–		40		1,405
Guinea		75.2	1,318.5		61		1,394
Guinea-Bissau		–	292.9		24		293
Guyana		80.0	334.4		32		414
Haiti		2.6	626.5		37		629
Honduras		717.3	1,435.3		71		2,153
Hungary		4,333.6	–		40		4,334
Iceland		47.1	–		10		47
India		30,915.9	30,564.3		448		61,480
Indonesia		28,276.8	1,668.9		305		29,946
Iran, Islamic Republic of		2,849.1	–		45		2,849
Iraq		156.2	–		6		156
Ireland		152.5	–		8		153
Israel		284.5	–		11		285
Italy		399.6	–		8		400
Jamaica		1,660.8	–		69		1,661
Japan		862.9	–		31		863
Jordan		2,319.7	85.3		71		2,405
Kazakhstan, Republic of		1,924.0	–		23		1,924
Kenya		1,200.7	3,612.7		131		4,813
Korea, Republic of		15,647.0	110.8		120		15,758
Kosovo (Serbia and Montenegro)		–	15.0		4		15
Kyrgyzstan		–	680.2		30		680

Annex 5
IBRD Loans and IDA Cumulative Lending by Country—
As of June 30, 2004 (cont’d)

	IBRD loans				IDA loans		Total loans
	Amount				Amount		No.	Amount
		(in millions of US dollars)
Lao People’s Democratic Republic			–	722.9		36			723
Latvia			416.0	–		19			416
Lebanon			1,085.4	–		21			1,085
Lesotho			155.0	352.8		32			508
Liberia			156.0	114.5		33			271
Lithuania			490.9	–		17			491
Luxembourg			12.0	–		1			12
Macedonia    (Former Yugoslav Republic of)			330.8	378.7		30			709
Madagascar			32.9	2,556.5		92			2,589
Malawi			124.1	2,209.5		86			2,334
Malaysia			4,150.6	–		88			4,151
Maldives			–	64.9		7			65
Mali			1.9	1,692.7		69			1,695
Malta			7.5	–		1			8
Mauritania			146.0	820.7		55			967
Mauritius			459.7	20.2		37			480
Mexico			35,659.0	–		192			35,659
Moldova			302.8	289.2		24			592
Mongolia			–	325.9		19			326
Morocco			8,658.1	50.8		135			8,709
Mozambique			–	2,560.0		47			2,560
Myanmar			33.4	804.0		33			837
Nepal			–	1,916.9		79			1,917
Netherlands, The			244.0	–		8			244
New Zealand			126.8	–		6			127
Nicaragua			233.6	1,217.7		63			1,451
Niger			–	1,200.7		55			1,201
Nigeria			6,248.2	2,136.2		114			8,384
Norway			145.0	–		6			145
Organization of Eastern    Caribbean States’ countries			10.4	7.1		2			18
Oman			157.1	–		11			157
Pakistan			6,664.2	7,670.9		210			14,335
Panama			1,273.2	–		45			1,273
Papua New Guinea			786.6	113.2		44			900
Paraguay			870.9	45.5		45			916
Peru			5,897.7	–		96			5,898
Philippines			11,419.2	294.2		169			11,713
Poland			5,710.8	–		39			5,711
Portugal			1,338.8	–		32			1,339
Romania			6,214.0	–		73			6,214
Russia			13,241.1	–		57			13,241
Rwanda			–	1,208.5		57			1,209

Annex 5
IBRD Loans and IDA Cumulative Lending by Country—
As of June 30, 2004 (cont’d)

	IBRD loans		IDA loans		Total loans
	Amount		Amount		No.		Amount
	(in millions of US dollars)
Samoa	–	87.8		13		88
São Tomé and Principe	–	75.4		11		75
Senegal	164.9	2,253.9		102		2,419
Serbia and Montenegro	–	522.0		18		522
Seychelles	10.7	–		2		11
Sierra Leone	18.7	667.4		35		686
Singapore	181.3	–		14		181
Slovak Republic	416.6	–		7		417
Slovenia	177.7	–		5		178
Solomon Islands	–	49.9		8		50
Somalia	–	492.1		39		492
South Africa	302.8	–		13		303
Spain	478.7	–		12		479
Sri Lanka	210.7	2,837.1		97		3,048
Saint Kitts and Nevis	29.0	7.0		5		36
Saint Lucia	22.9	28.2		8		51
Saint Vincent and the Grenadines	8.5	14.7		5		23
Sudan	166.0	1,352.9		55		1,519
Swaziland	104.8	7.8		14		113
Syrian Arab Republic	613.2	47.3		20		661
Taiwan, Province of China	329.4	15.3		18		345
Tajikistan	–	332.9		19		333
Tanzania	318.9	4,612.0		128		4,931
Thailand	8,063.4	125.1		125		8,188
Timor-Leste	–	4.0		–		4
Togo	20.0	733.5		42		754
Tonga	–	21.8		4		22
Trinidad and Tobago	333.6	–		22		334
Tunisia	5,232.9	74.6		124		5,307
Turkey	22,003.7	178.5		151		22,182
Turkmenistan	89.5	–		3		90
Uganda	9.1	3,997.5		89		4,007
Ukraine	3,804.9	–		28		3,805
Uruguay	2,370.7	–		53		2,371
Uzbekistan	554.1	45.0		13		599
Vanuatu	–	18.9		5		19
Venezuela	3,328.4	–		40		3,328
Vietnam	–	4,861.1		43		4,861
Western Africa region	6.1	52.5		4		59
Yemen, Republic of	–	2,318.3		131		2,318
Yugoslavia, Federal Republic of	6,090.7	–		89		6,091
Zambia	679.1	2,691.8		82		3,371
Zimbabwe	983.2	662.0		36		1,645
Bank-wide total	393,748.0	151,390.6		8,555		545,139

Annex 6
Projects Approved for IBRD and IDA Assistance in Fiscal Year 2004,
by Country (July 1, 2003–June 30, 2004)

	IBRD loans		IDA loans	Total loans
	Amount		Amount	No.	Amount
		(in millions of US dollars)
Borrower or guarantor
Afghanistan	–		293.0	5		293.0
Africa region	–		351.4	4		351.4
Albania	–		58.0	3		58.0
Angola	–		55.0	1		55.0
Argentina	1,585.8		–	4		1,585.8
Armenia	–		84.8	6		84.8
Azerbaijan	–		25.0	2		25.0
Bangladesh	–		526.5	6		526.5
Benin	–		20.0	1		20.0
Bhutan	–		36.8	2		36.8
Bolivia	15.0		54.0	3		69.0
Bosnia and Herzegovina	–		97.0	3		97.0
Brazil	1,267.3		–	5		1,267.3
Bulgaria	150.0		–	1		150.0
Burkina Faso	–		120.0	3		120.0
Burundi	–		110.4	3		110.4
Cambodia	–		60.0	2		60.0
Cameroon	–		20.0	1		20.0
Cape Verde	–		4.0	–		4.0
Caribbean region	–		9.0	1		9.0
Chad	–		20.0	1		20.0
Chile	210.7		–	2		210.7
China	1,218.3		–	9		1,218.3
Colombia	645.0		–	5		645.0
Comoros	–		13.3	1		13.3
Congo, Democratic Republic of	–		736.0	5		736.0
Congo, Republic of	–		19.0	1		19.0
Croatia	209.0		–	3		209.0
Dominica	–		3.0	1		3.0
Dominican Republic	119.8		–	3		119.8
Ecuador	54.0		–	2		54.0
Egypt, Arab Republic of	340.5		–	2		340.5
Ethiopia	–		320.0	3		320.0
Georgia	–		47.6	2		47.6
Ghana	–		160.5	3		160.5
Guinea-Bissau	–		7.0	1		7.0
Guyana	–		10.0	1		10.0
Honduras	–		154.9	6		154.9

Annex 6
Projects Approved for IBRD and IDA Assistance in Fiscal Year 2004,
by Country (July 1, 2003–June 30, 2004) (cont’d)

	IBRD loans			IDA loans	Total loans
	Amount			Amount	No.		Amount
		(in millions of US dollars)
India			389.5	1,033.0		7		1,422.5
Indonesia			266.0	55.8		3		321.8
Iran			359.0	–		2		359.0
Jordan			38.0	–		1		38.0
Kenya			–	264.7		4		264.7
Kosovo (Serbia and Montenegro)			–	4.0		1		4.0
Kyrgyzstan			–	31.0		3		31.0
Lao People’s Democratic Republic			–	35.7		2		35.7
Lebanon			5.3	–		–		5.3
Lesotho			–	21.0		1		21.0
Macedonia  (Former Yugoslav Republic of)			54.8			4		54.8
Madagascar			–	230.0		3		230.0
Mauritania			–	84.0		3		84.0
Malawi			–	116.0		4		116.0
Mali			–	127.4		4		127.4
Mexico			666.2	–		6		666.2
Moldova			–	63.0		3		63.0
Mongolia			–	18.0		1		18.0
Morocco			36.9	–		1		36.9
Mozambique			–	97.3		2		97.3
Nepal			–	185.8		4		185.8
Nicaragua			–	100.5		3		100.5
Niger			–	109.8		3		109.8
Nigeria			–	322.0		4		322.0
Pakistan			50.0	731.2		7		781.2
Paraguay			54.0	–		2		54.0
Peru			357.0	–		4		357.0
Philippines			96.9	–		4		96.9
Poland			326.0	–		2		326.0
Romania			230.0	–		2		230.0
Russian Federation			100.0	–		1		100.0
Rwanda			–	20.0		1		20.0
Samoa			–	17.3		2		17.3
Sao Tomé and Principe			–	6.5		1		6.5
Senegal			–	45.0		1		45.0
Serbia and Montenegro			–	125.0		6		125.0
Sierra Leone			–	25.1		1		25.1
Slovak Republic			75.3	–		2		75.3
Sri Lanka			–	175.7		3		175.7
Saint Lucia			3.7	3.8		1		7.5
Saint Vincent and the Grenadines			3.1	3.1		1		6.2

Annex 6
Projects Approved for IBRD and IDA Assistance in Fiscal Year 2004,
by Country (July 1, 2003–June 30, 2004) (cont’d)

	IBRD loans		IDA loans		Total loans
	Amount		Amount		No.	Amount
	(in millions of US dollars)
Tajikistan	–	10.8		1			10.8
Tanzania	–	451.0		5			451.0
Thailand	84.3	–		1			84.3
Timor-Leste	–	4.0		1			4.0
Tonga	–	10.9		1			10.9
Tunisia	166.3	–		2			166.3
Turkey		1,585.7		5			1,585.7
Uganda	–	189.6		2			189.6
Ukraine	282.0	–		2			282.0
Vietnam	–	705.5		4			705.5
Yemen, Republic of	–	145.0		3			145.0
Zambia	–	50.0		1			50.0
Bank-wide total	11,045.4	9,034.6		245			20,080.1

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