Colombia - Fifth and Sixth Development Finance Companies Project

Document of The World BanK FOR OFFICIAL USE ONLY Report No. 3440 PROJECT PERFORMANCP ATTTT REPORT COLOMBIA--FIFTH AND SIXTH DFCs PROJECTS (Tanse QA_'0 AXT AMn April 30, 1981 Operations Evaluation Department tra6* ofuames usi a Isestcntentstayutno asu aseay be diy sclonwsouny orduse Baahration teir offcial duties. Its contents may no otherwise be disclosed without World Bank authoiain  FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT COT.OMRTA--FTFTH AND STXTH DFCs PROJECTS (LOANS 903-CO AND 1223-CO) TAL AF CANTENTS Basic Data Sheet ....................................................... ii PROJECT PERFORMANCE AUDIT MEMORANDUM (HIGHLIGHTS) ................. 1 ATTACHMENT: PROJECT COMPLETION REPORT I. Introduction ........................................ 3 ii. Objectives and Expectations of the Bank ................. III. Utilization of the Loan Proceeds ...................... 5 IV. Institution Building ..................... .......... 11 V. Resource Mobilization and Sector Issues ................. 18 VI. Conclusions ............................ 20 Annexes: I. Commitments under Loans 903-Co and 1223-CO .............. 23 II. Projected and Actual Disbursements ........................... 24 III. Summary of Operations ....................................... 25 IV. Analysis of Subloans Approved ............................... 26 V. Financiera Lending Under Loans 903-CO and 1223-CO Compared to Financieras' Total Loan Portfolio (September 1979) and Gross Value Added in Manufacturing (1976-77) ............................... 28 VI. Subprojects Financed under Loans 903-CO and 1223-Co ..... 29 VII. Projected and Actual Rates of Growth of the Financieras ................................. 37 VIII. Comparisons of Amounts Actually Committed by Each Financiera after Pooling Arrangements with Amounts Initiated by Each Financiera as Leader ........ 38 IX. Growth of Professional Staff of the Financieras and Banco de la Republica ........................... 39 X. Consolidated Resource Structure of the Financieras, 1975-79 ............................ 40 XI. Resource Structure of the Financieras, 1975-79 .......... 41 XII. Financial Statements ................................... 42 XIII. Man-weeks Spent on Financiera Projects ............... 50 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - 1 - PROJECT PERFORMANCE AUDIT REPORT COLOMBIA--FIFTH AND SIXTH DFCs PROJECTS (LOANS 903-CO AND 1223-CO) PREFACE This report presents the results of a performance audit of the fifth and sixth DFC projects in Colombia for which loans 903-CO and 1223-CO of US$60 million and US$80 million, respectively, were made in May 1973 and March 1976. Loan 903-CO was closed in December 1979, two and one-half years after its oriRinal closing date, with a small cancellation of US$120,000. As of December 1980, loan 1223-CO was 96% disbursed. The report consists of highlights prepared by the Operations Evalua- tion Denartment (OED) and a Project Completion Report (PCR) prepared by the Latin America and the Caribbean Regional Office on the basis of a project rnmnlptinn missIon on Colombia In Anril/Mav 1980. Followine its abbreviated procedure, OED has reviewed the Appraisal and President's Reports, the loan documents, the minuiteso~ f t-he Bnard diriisnnQ nn the PCR- On the haRls of this limited review, OED in general finds no reason to disagree with the concluinna of the PCR. The Government indicated it had no comment to offer on the report.  - ii - PROJECT PERFORMANCE AUDIT REPORT COLOMBIA--FIFTH AND SIXTH DFCs PROJECTS (LOAN 903-CO) BASIC DATA SHEET Amounts (in US$M) As of 02/28/81 Original Disbursed Cancelled Repaid Outstanding Loan No. 903-CO 60.0 59,.9 0.1~ 28.3 31.6 Cumulative Loan Disbursements FY74 FY75 FY76 FY77 FY78 FY79 FY80 (i) Planned 8.0 38.0 51.0 60.0 60.0 60.0 60.0 (ii) Actual 3.0 20.7 43.0 52.2 58.0 59.2 59.9 (iii) (ii) as % of (1) 37.5 54.5 84.3 87.0 96.7 98.7 99.8 PROJECT DATA OritLnal Lotatn AwtuLtai or Date Re-estimated Board Approval 07/72 05/31/73 Tnan Agreement 06/11/73 06/11/73 Effectiveness 09/11/73 11/09/73 Loan Closing 06/30/77 12/31/79 Total Project Cost (US$M) 60. 60W0 MISSION DATA Month/ No. of No. of Man- Date of Year Weeks Persons Weeks Report Preappraisal 10/71 3 2 6 11/71 Appraisal 03/72 4.2 10 42 04/73 Supervision I 12/73 1 2 2 01/74 Supervision 11 11/74 1 2 2 12/74 Supervision III 08/76 0.5 4 2 08/76 Supervision IV 04/77 1 4 4 05/77 Supervision V 12/78 0.2 3 0.6 01/79 Supervision VI 05/79 0.5 2 1 06/79 Completion u-u5o 1 41iou FOLLOW-ON PROJECT Sixth Development Finance Companies Project, Loan No. 1223-CO, approved on March 16, 1976, in the amount of US$80 million.  - iii - PROJECT PERFORMANCE AUDIT REPORT COLOMBIA--FIFTH AND SIXTH DFCs PROJECTS (LOAN 1223-CO) BASIC DATA SHEET Amounts (in USSM) As of 02/28/81 Original Disbursed Cancelled Repaid Outstanding Loan No. 1223-CO 80.0 77.5 - 9.5 68.0 Cumulative Loan Disbursements FV76 FV77 FV78 FV79 FV8 (i) Planned 2.0 15.0 41.0 70.0 80.0 (ii) Actual - 10.8 37.0 56.4 72.9 (iii) (ii) as % of (i) - 72.0 90.2 80.6 91.1 PROJECT DATA Original Loan Actual or Date Re-estimated Board Approval 08/75 03/16/76 Loan Agreement 03/31/76 03/31/76 Effectiveness 07/01/76 09/01/76 Loan Closing 06/30/80 12/31/80 Total Project Cost (US$M) 80.0 80.0 MISSION DATA Month/ No. of No. of Man- Date of Year Weeks Persons Weeks Report Preparation 11/74 4 1 4 12/74 Preappraisal 01/75 2 4 8 02/75 Appraisal 05/75 6 3 18 01/76 Supervision I 08/76 0.5 4 2 08/76 Supervision !1 04/77 1 4 4057 Supervision III 12/78 0.2 3 0.6 01/79 Supervision IV 05/79 0.5 2 1 06/79 Completion 04-05/80 1 4 4 10/80 FOLLOW-ON PROJECT onJunven15 19v7lpm t i ompanies rojct, Loha amun o-fCUS$100, amilvio on June 15, 1978, in the amount of US$100 million.  - 1 - PROJECT PERFORMANCE AUDIT MEMORANDUM (HIGHLIGHTS) COLOMBIA--FIFTH AND SIXTH DFCs PROJECTS (LOANS 903-CO AND 1223-CO) 1. Apex lending, today a DFC lending instrument widely used by the Bank, was nnnred in rn1nmhin whprp -innp 19AA the Rank hns hpon Rinnort- ing the operations of a group of private development finance companies (finan- cieras), uaing a contral authority (Rnnon d 1n Paihlin rRRI , nTbniq central bank) as official borrower and intermediary for on-lending to each flnanciera eligible under the scheme. Such an approach proved particulnrly well suited to the needs of a multipolar economy organized around relatively atL. LtL~UJJ 5CJ L &Innt -t - LLW - - trial projects, the two loans under review had a number of specific objectives L ateu LU Lile CHdU u U Bankau LundUse La aLLL ulat Lu IInumah'. .Le aUtendeu I's loans to support the Government's efforts to promote industrial decentraliza- L .UH diIU CAjJUL LULACLC LU 111UUC LLACD*O 111C DaASi aLo'u CA L ou I.ut Linaut.. aAoo to reduce the heavy concentration of their operations on the larger, more CLUliblie begmelL Uk piLVate iLnUUDLiy, Uy making BuAn funus availale for medium-sized firms lacking alternative sources of financing. Under the sixth loan, an elemenL Uf se.LeCtlivity in lending was introduced LU suppot tLuse objectives: peso-denominated subloans--which sub-borrowers had, in the past, preferrea over foreign excuauge suuuans--were resri Cn LU pJu LCe UdhU located outside the main urban centers, geared towards exports, or sponsored by medium-sized enterprises. 3. An important objective of the Loans was Lu vU-4u p BE capabil for taking over the Bank's functions vis-a-vis eligible financieras. A delegation of greater authority to BR was meant to reduce the manpower re- quirements involved for the Bank in supervising directly several borrowing institutions. in turn, this was intended LU faciitate Luincuson of other financieras under the Bank scheme, partly with the related objective of bringing about a wider GiLflULLUi o DHk fuud* AcLLULUinS.y, fnanC4ra located in regions where the exposure of the original five financieras sup- ported by the Bank was limiteU wete maue elgibLe unurtheu1 --C -Lw= unde the fifth loan, one more under the sixth. 4. The two loans were committed and disbursed slightly behind schedule (PCR, para. 3.01 and Annexes I and MI). Bank funds were allocated LU rela- tively large companies, reflecting inter alia a continuing preference on the part of the tinancieras for low risk and more profitable OperaL115 krCA, para. 3.02). The average size of the subloans was US$440,000 with subloans in excess of US$1 million accounting for 49% of the loan amounts, of which 73% went to firms with assets in excess of US$2.5 million equivalent. The introduction of new financieras under the scheme, rather than differentials in lending terms, led to a reduction in the concentration of lending in - 2 - Colombia-s three largest cities, which eased from 77% under the third and fourth loans to 68% under the fifth and sixth loans (PCR, para. 3.05). On the other hand, the provision of privileged lending terms appears to have been instrumental in improving the export performance of subprojects financed under Bank loans (PCR, para. 3.06). The Bank thus recorded a measure of success in supporting the Government's decentralization and export expansion policies. However, its attempt at directing its funds to "non-established" firms, lacking alternative sources of credit, has failed so far for lack of workable operational criteria (PCR, para. 3.03). In part, the Bank-s limited success in qualifying new financieras under its scheme prevented a wider use of its funds--in terms of size as well as geographic location (PCR, para. 4.15). 5. Because of rising short-term interest rates as well as uncertain- ties in the financial markets arising from inflationary expectations, the financieras were not able to mobilize medium- and long-term resources as expected (PCR, paras. 5.01 and 5.03). However, they engaged increasingly in short-term operations---a development which the Bank supported as useful in maintaining profitability in the face of hieh inflation and enhancing the financieras' experience in mobilization of resources, even if only short-term resources (PCR. naras. 4.10; 5.01. 5.02. 6.02 and 6.05). 6. BR's canabilitv to assume ranidlv nart of the Bank-s qunervision work was overestimated and the scope of its functions vis-a-vis the finan- cieras later revised (PCR, paras. 6.03 and 6.07). The Bank relied on RR mostly for reviewing subloan appraisal where its capacity developed more adeanatelv (PCR_ nara. 4.14): more recentlv BR-R contribution to the ,11nerVi- sion of borrowing financieras has slowly developed. 7. Neither one of the two special components set up under the sixth loQn to finana tAchnolnov improvement nrnorAmc nnd eniWity invomant t n new enterprises was utilized to its full amount. The technology component su f fered, fronm lac oL f nre%motionn hut-h=efj nnc va (PCrP pa?an 3.4) I hIle 4 the equity investment component was useful in underlining the Bank's concern for the fina-nclier_-s lack of driv toars -evlop4n A- domestI -4fpI market, it was not successful in alleviating the financieras' distrust of equity investments as a hedge- agaInst inlto,adsrutnuihd" recently by an unwelcoming fiscal regime (PCR, paras. 3.12 and 3.13). 8. Other points of interest are: - the unsatisfactory methodology used to calculate repayment periods on subloans (PCR, para. 13.10)1 an - the progressive introduction of "floating" lending rates by the financieras (PCR, paras. 3.11 and 5.03). -3 - ATTACHMENT PROJECT COMPLETION REPORT COLOMBIA FIFTH AND SIXTH DFC LOANS (LOANS 903-CO AND 1223-CO) I. INTRODUCTION 1.01 The Rank rounp has hen associated with the Colombian nrivatp development finance companies (financieras) since the establishment of the initia- iv-in-iea in 1959 and the early19s.Sfa have participated in seven Bank DFC loans totalling US$342.5 million, and an May 27, 1980. This completion report reviews the fifth loan (903-CO) of US$60 mlion, aproved in OJULLC _L1j aLLU LIC~ ).LA.LL1 LUCZU V.J.~J U.. U.JYUJ LLUsL approved in March 1976. Because the impact and effectiveness of the finan- cieras operations have been influenced by the prior and subsequent loans, this report does not deal only with the results of the two loans under review, but rather examines the developments that nave taken place in the operations of the financieras and in the strategy of the Bank during most of the disburse- ment period of the two loans, i.e., 1975-79. 1.02 The Colombian private financieras were established to provide longer- term financing, both debt and equity, to private productive enterprises mainly in the industrial sector. The oldest and largest financiera, Corporacion Financiera Colombiana, came into operation in Bogota in 1959. Between 1959 and 1964 four other financieras, CF Nacional, CF del Valle, CF de Caldas and CF del Norte, were set up in each of Colombia's main industrial-commercial regions. Since then, twenty-four more financieras have been established, mostly in recent years, of which two (CF de Santander and CF de Occidente) participated for the fifth Bank loan, and a third (CF Aliadas) participated in the sixth loan. 1.03 Bank Group assistance to the financieras started with IFC equity investments in Colombiana and Nacional in 1961, and in each of the other three older financieras shortly thereafter. 1/ The first Bank DFC loan of US$25 million to Colombia was signed in 1966. The loan was made to Banco de la Republica (BR), Colombia's Central Bank, for onlending to the five older financieras. with each of which the Bank maintained a direct supervisory relationship. BR's role was primarily administrative, but its Department of navplnnmpnt C'rpdit (DDC) had the resnonsibility for vetting the economic priority of the financieras' investment proposals. In addition, BR was nranAred to rnvr for a fAP the foreign exchange risk on Bank-financed subloans for subborrowers wishing to exercise this option. 2/ 1rM f,LdL LU I~ AL LU .d4 6. 4 1 r rfca w -1 Nacional shares. 2/ In practice, no subborrower to date has opted to take the full foreign exchange risk on a subloan. 1.04 Since the mid-sixties the operations of the participating financieras have grown rapidly and they are now the mosL important institutional source in Colombia of term credit for private industry. Overall it is estimated that the projects they help to finance represent as mucn as one quarter or total investment in fixed assets by private industrial corporations (sociedades anonimas). In addition, they provide working capital.loans to their clients, promote and provide seed capital to new ventures, and foster efficient resource allocation through their involvement in project preparation, appraisal and implementation. 1.05 The operations of the financieras have been examined in the past in several OED studies. The 1971 OED study of overall Bank lending to Colombia pointed out that a high proportion of financiera lending had gone to a rela- tively small number of large manufacturing enterprises and raised some doubts about the economic efficiency of this heavy concentration of lending. The OED Performance Audit Report of the first and second financiera loans, produced in 1974, examined the operations of the financieras in more detail. It concluded that the financieras had been an effective mechanism for allocating and channel ing resources to medium sized and large enterprises, but questioned the cost- effectiveness of the Bank's approach, which under these two loans focussed heavily on institution building in each of the five financieras. The report suggested that it might have been more effective in the long run for the Bank to have devoted less attention to the individual financieras and to have devoted a greater proportion of its efforts to broader issues of industrial policy and capital market development. The PPAR for the third and fourth loans, prepared in 1977, similarly found that the Bank had been successful in transfArring rpqiiirops for Colombi'q indiitrial grnwth- hut lpA q(-rtqful in encouraging domestic resource mobilization and capital market development, duep mAinly to the resqt-ric-tive financial envirnment- prevaiiling, in Colombnia.- II. OBJECTIVES AND EXPECTATIONS OF THE BANK availability of foreign exchange resources to the financieras, and building the Live U.a LinaUCieras iULU sUu and effective teLm endilg 1sLiLULos. The fifth loan shifted directions to encourage a wider distribution of the proceeds of Bank funds, intensify local resource mobilization efforts, include other financieras as channels for subloans, and build up the capacity of Banco de la Republica to appraise and supervise individual financieras and to review appraisals of investment projects. Similar objectives were pursued under the sixth loan, with additional loan features being introduced to achieve them. In addition, the sixth loan attempted to enhance the contribution of financiera operations to the achievement of national industrial development priorities by giving increased emphasis to export development and industrial decentralization. 2.02 The Bank sought to encourage a wider distribution of lending in order to assist a larger number of enterprises and to support the government's efforts to promote industrial growth outside the main urban centers of Bogota, Medellin, and Cali. The Bank also wanted to give priority to lending to firms - 5 - whose access to other sources of credit. particularly private foreign borrowing, was limited. The Bank intended for the financieras to mobilize medium- and long-term domestic resources to provide term financing to industry and reduce the relative dependence of the financieras on Bank and BR official credit 14np.. Thp __lpantinn nf orpArpr rpqnnqihi1irips tn RR wnq meant to faci'i- tate the inclusion of other financieras in the project, reduce the manpower rurmnF odrcnroj ect supenvrisio-n, nde normit Hi nl n arantpr focus on industrial and financial sector issues in Colombia.. New features pation of new financieras on a limited basis; (ii) restriction of eligibility forJJ pesoudenUUia.LI u L suW.Loans LUo expor proLjects ~ L, industrLia deJ.U~.centr.alization projects and projects by small and medium sized enterprises; and (iii) special components to encourage equity iuvestmeut in new u p e _d Jecuuugy improvement programs. 2.03 As will be shown in the following, the fifth and sixth loans contin- ued the success of prior loans in efficiently transferring resources for industrial development and strengthening the financieras. Results from the shitting emphas s of the Bank were positive, but did not develop as rapidly as anticipated. Size and geographic distribution of subborrowers remained rela- tively constant through the fifth loan, and improved slightly under the sixth due to the special features designed by the Bank for that loan. Special technology and equity investment components of the sixth loan proved valuable, although their use was somewhat restricted due mainly to their innovative nature and the particular capital market conditions. Mobilization of term resources was frustrated by the effects of high and varying inflation rates, uncertainties in the financial markets, and credit restrictions, which resulted in a predominant short-term orientation of capital markets. Thus, almost all of the substantial resources mobilized by the financieras were raised through short-term instruments. Although two new financieras participated in the fifth loan and one in the sixth, the latter did not make subloans under the seventh and no new financieras have entered the proiects since. Finally, BR's capacity for reviewing subloan appraisal has developed adequately, but its financiera supervision capacity remains in the nascent stage. III. UTILIZATION OF THE LOAN PROCEEDS -Mm T Oan l -hrna mh4h h me effective i v 1973 .a fully committed (Annex I) by Banco de la Republica (BR) as of December 31, 1975, six mothLsO after I.Ll the origi anal.S. tm-4nl..toC JAC daefo ..J.u.cM4SS4on.U tUJ o,: sbr 4c.t. However, due to the rejection of one subproject by the Bank on economic gLUnUs, U LUUL UU An Le AmULD LCmoUnLs r U orL cLLain )UU1JLJUJC%Ln , final date was extended to December 31, 1976 to allow full commitment. Disbursements also proceeUed behind the appraisal estimates. The original closing date was extended from June 30, 1977, until March 31, 1980, to -6- complete disbursements because of unexpected delays in the implementation of some large subproiects (Annex II). Loan 1223-CO, for US$80 million, was approved in March 1976 and became effective in September of that year. The Loan has been utilized substantially in line with expectations. and was 86% committed by the target date of June 1978. The terminal date for submission nf snhnrniizrtct has been extended through the nrpmpnt -n il 1orw rnnc dzrt-inn of additional subprojects for financing under this loan, as some original subloan requests were reassigned to the sevtnth ioan. I. / Nearly- 90% bf the funds were disbursed by March 1980, and the agreed closing date is now December 31, 1980. tions of US$4.6 million) were spread among a total of 316 subprojects, 109 U7vUL LU%I VUJ".V dU 4.U L UUl L 4/U iL.JUU %_1LALA ViL.L* . tieUAe IV 4n V provide details on each of the subprojects. Subprojects Financed Under the Loans 3.02 Size of companies financed. Most of the companies financed under the fifth and sixth loans were large or medium sized in the Colombian context. 3/ The Bank has favored an increase of lending to medium industry in order to promote a more even distribution of Bank funds, to stimulate competition within the industrial sector, and to support medium size firms in cases where justitied by Colombia's regional markets. The main reasons for the preference of the financieras to concentrate their lending activities towards comparatively large firms were (i) the greater profitability of larger loans; (ii) the ability of larger firms to produce accurate financial statements and to prepare good projects for financiera consideration; (iii) the additional operations and hence income generated by serving the larger clients; (iv) the better guarantees and lower risks of larger established firms; and (v) the preference of the financieras to lend to widely held (rather than family owned) companies. 1/ The sixth and seventh loans allowed outstanding financing to related enterprises of up to US$4 million under any one loan, or US$8 million cumulatively under the seven DFC loans; several projects were switched between the loans to take advantage of the higher cumulative ceiling. 2/ In some instances. different figures anear in the tables for subloan commitments under the sixth loan because this report was prepared before 1nn 1aption. Rv ronl tnn qhonit- 212 ianhnrniPrt- will iplv hrp been financed. 3/ The Bank recognized in the early 1970's that the financieras were not th.. os aprpra er nsttutins for 1-cn44- t-- Sma~ll1o*rree~ initiated projects for that sector through Corporacion Financiera Popular kL r) a guverument-wned UVe.LUPUeL Uuz.* LI=e IJL LLCM tU U LC JPjLUVt=U US$52.5 million in three loans for onlending through CFP to support small industry. This strategy has worked well, w.LI IaLcteras generaLLy lending to firms larger than CFP's target group (firms with less than Col$35 million in total assets) or that nave "graduated" from Cr s clientele. - 7 - 3.03 Under these loans additional arrangements were included to ensure a wider size distribution. In the fifth loan, an upper limit of US$4 million was set both for the size of any subloan (as under Loan 742-CO) and for the aggregate amount of Bank funds that could be outstanding to any one firm or group of firms (the aggregate was increased under the sixth Loan for export and decentralization projects). Under the sixth loan, the option for enter- prises to borrow Bank funds in pesos was restricted to firms with total assets of less than Col$100 million or to those financing export or industrial decentralization projects. The Bank tried to give preference for subloans under the fifth and sixth loan to firms "that would have difficulty in receiv- ing finance from alternative sources," but found this concept not to be operational and dropped it in subsequent loans. 1.04 If firm sizes are classified according to assets. 78.1% of the total funds disbursed under Loan 903-CO, and 69.8% under Loan 1223-CO, against 35.5% ant 77.1 under thp third and fourth loans. resnectively. were disbursed to firms with total assets in excess of Col$100 million at the time of subloan apprOval As inflation was ranidlu OrndinO tho reAl vqliiP of this ColS100 million marking point, the sixth loan figure represents a significant increase ~A4..,., - t-T1- n. r f 1l"rAC CrAincy 1-n, -Tn-l I pntir- ini jJi enteq is & -- 15. _ - - - - prises (assets below Col$20 million) remained roughly constant between the 3*UJ LUcation UL. SUUpLUjULL>* kA LCVJew UL gagauwxuesvuu of the financieras' total subloan portfolio indicates that the financieras slightly reduced the concentration of teier lending under the fxtt and sixth loans in Antioquia (19% of subloans), Valle (24.7%), and Cundinamarca (23.9%), as compared with 29%, 30%, and 18%, respectively, under the prevCuuI two lans. This improvement was due partly to the efforts of the smaller financieras located in the less developed regions. The ality to borrow in pesos for decentralization projects also encouraged eligible enterprises to use Bank funds. While the greater margins provided to financieras for tending for decen- tralized projects did not offer a very powerful incentive, since other factors listed in para. 3.02 are also important in the lending decision, they did help to improve the profitability of the generally smaller and less profitable decentralized financieras (Norte, Occidente, Caldas, and Santander). 3.06 Export performance. At the time of subproject appraisal under the sixth loan, 78 of the 207 enterprises had exported 10% or more of sales during their most recent fiscal year (similar data for the fifth loan were not com- piled). These enterprises received 54% of the proceeds of the sixth loan. Data compiled for 1979 indicate that 33 of the subborrowers had exported more than 10% of sales. However, this drop is probably due more to the rapid expan- sion of domestic sales in the late 1970's rather than to a real fall in exports. Also under the sixth loan, 28 enterprises representing 21% of subloan amounts qualified as export subprojects, and thus received peso interest rates on subloans. based on their expectations of making net exports due to the sub- project over the ensuing five years equal to or greater than the foreign tchange costa of the initial investment. While ex most export data are available only on a company basis, and no data were available in nine cases, wrbseme lklo the iniort rinvrments will be met in a maority of cases. - 8 - In particular, some of the larger subborrowers with established export markets seem to have done well in meeting goals, while the smaller firms may have been less able to cope with the real appreciation of the Colombian peso and increased competition in export markets in the late 1970s. With the qualification that sufficient information to judge export performance of subprojects will not be available for several years, it seems that the performance so far has been adequate and reasonably in line with expectations. 3.07 Economic merits. Under the fifth loan an economic rate of return calculation (ERR) was required when the product to be produced through an investment proposal had an effective rate of protection in excess of 25%. For the sixth loan, the financieras were required to calculate ERRs for all projects requiring subloans or investments in excess of US$250,000. The financieras have found that the ERR provides a general indicator of the performance of the project and is preferred to partial economic indicators such as investment cost per job created or effective protection. The ex-ante ERR estimates for the whole pipeline of proiects vary from 15% to over 150%. with the average between 40% and 60%. During the field visit, the mission collected some basic information for a small sample of subproiects to comnare ex-ante ERR estimates with actual figures, concluding that estimated production volume and hnrdr nrirpq vPntrlly h;vp hppn hphnvino in ;erordancP Trit-h previous estimates, and in many cases actual figures are better than estimated nnp/s. ~ rh~ - I mmqf- hP rPrcgni7.Pd th;;I the nrnvi pi-P(i qn?q ne-ti,1 figures may overestimate the ERR because international price comparisons are uprv diffirilt nd tht (olomhi;n nrndct i. not always enual in anlity to the product with which it is being compared. The fact that effective P r o'-ec tionn f or cer tain- i ndus t riJ al S ec torS i S ranthIer h1i gh ,1n C olo nmbIa- - ( See Report No. 2989-CO dated May 14, 1980, para. 29) would also seem to indicate that -- - - -e f c e c - o ep o et a not be -S i h a h calculation suggests. 3.08 Subproject investment costs. Annex VI compares the estimated inrvestment costs at the timeI t1ie subproUjects wee apoed wit tI e actuaLl investment costs at the time of subproject completion. As can be seen from Annex vi, toere is a wice range of JiSperSiQn. is is aue to uiferent factors: (i) the acceleration of the rate of inflation, especially after 1976; as a consequence, the actual inflation was always ahead of expectations; and (ii) in some cases projects were expanded due to increases in product demand, and in other cases some projects were reduced for the opposite reason. 3.09 Employment and sectoral distribution. The average investment cost per direct job created was of the order of US$28,000 for the two loans, rela- tively high but reasonable, given the stage of development of Colombia and the focus of the projects on financing efficient investments rather than screening subprojects through partial indicators such as cost per job. The distribution by industrial subsector of the subprojects financed under both loans is shown in Annexes IV and V. The food, beverages and tobacco subsector was the most 1/ For several reasons, ex-post ERRs cannot be calculated for most sub- projects. Instead, the mission compared some key projected data for the firm with actual data in order to "auesstimate" the likelihood that the projected ERR would be achieved. - 9 - important user or Bank runas unaer coth loans (5o SuupOJeut .AL 4.u/. V disbursements), followed by the textiles and apparel subsector (65 subprojects and 13.2% of disbursements), chemicals (44 subprojects and !5.6% of disburse- ments), and non-metallic minerals (23 subprojects and 9.8% of disbursements). These four subsectors accounted for almost three quarters of total disbursements. 3.10 Subloan terms. One of the most frequent concerns of the financieras was the excessively short time frame for subloan repayments.that BR frequently authorized, beginning with the fifth loan and accelerating through the sixth. Annex VI shows that 34% of subprojects were financed with less than one year of grace for the third and fourth loans, compared to 41.5% for the fifth and sixth. However, the change was much more severe for the repayment period: 21.2% of subprojects have a repayment period of less than 10 years under the third and fourth loans, compared to 78.2% for the fifth and sixth. This shortening by BR of average maturities was done purportedly to reduce the risk of potential foreign exchange losses on Bank loans (para. 4.17), although the sixth loan had a fixed amortization schedule 1/ and thus BR's foreign exchange risks were not reduced by shortening subloan terms. The Bank has been critical of the methodology often used to calculate repayment periods, particularly an improner use of the financial rate of return and calculating the firm's rather than the project's payback period, but this issue has not yet been satisfac- torily resolved, although agreement in principle has been reached with BR in connection with the eighth loan. 3.11 Interest rates to final borrowers have been 20% on pesos (raised to 25%. during the course of the loan 9 whirh annlied to 33! of subloans) and 10-3/4% on dollars (no firms accepted this alternative) under 903-CO, and 25% on pesos and 11 31/% on dollars under 1223-CO. Due to a high and fluc1rtuat; ing, inflation rate (Table 4.1) through the period 1975 to 1979, the nominal interest rates on peso suUlan ha~ve bee slgtyngtv - n -, except in 1975 and 1978 when they were significantly positive. 3/ Also, the interest differential earned by BR on the loans has been .nadequate to cover the foreign exchange risk it has assumed (para. 4.17). The Bank official estimates consistently underestimated JIIL."ation, as 11LL cofe bnzan high levels of illegal exports continued to pressure prices upward. The Bank generally encouraged higher subloan interest rates, but BR and the goverment opposed any increases above 25%, and maintained interest rates on other official credit lines at still lower levels. As a result of the fluctuating inflation in Colombia, the Bank moved under the seventh loan to an inflation- based interest rate adjustment mechanism, and under the eighth loan to a system of semi-annual adjustment of interest rates for new subloans. 1/ The amortization schedules were best estimates .made at appraisal of the composite of subloan amortization schedules. The fifth loan had an actual composite amortization schedule. 2/ The loan had a "trigger" clause requiring adjustment of the interest rate if inflation went outside the 12-16% range. 3/ Taking into account advanced payment of interest, which is customarily required by Colombian banks and financieras, effective interest rates on peso subloans were 27-33% p.a. which would correspond to a positive real interest rate on average for the period 1975 to 1979. - 10 - 3.12 Special components. In support of the objective of increasing the capitalization of the Colombian industrial sector, the Bank established an Equity Investment component of US$5 million under the sixth loan to allow the financieras to finance equity investments in new enterprises with Bank loan funds. The component was quite innovative, and the Bank realized that there were many hurdles to financieras making these investments. Mainly, the funds cost the financieras 22% o.a. and. as investments in new enterprises have 5-7 year maturation periods, the financieras were understandably worried about the imnant of these onerations on their income statements. Some finan- cieras claimed that the Bank was being inconsistent in promoting equity 4niresctmenti-a inewi fqrn TAilo1 nt-tl Qn a t4ima nm lni4na .1hn l . n ;-,- ciera profitability. In practice, two equity investments were made, in Coll\nkUe (USy1 m11i-n. and lromiogas (US0.7 million,, both of which are large, ambitious projects in which IFC is also an investor The equity invest- initial equity was a problem in both cases. Both investments required an ec eptionU to LU ke UDY-)%JV, UVO PU P.LUJt-_L;L iUCLAL1UU1U WLL.L1 LIIU OdLUrt. [LILL t- ):LdJiibiiLU indicating that the component is best suited for larger projects for which raising initial equity is inherently more difLicult. 3.13 The Equity investment components have been continued since the sixth loan, but utilization in the Colombian context has been difficult. The finan- cieras have taken a cautious approach to equity investments due to the risks involved, the long gestation period particularly in new enterprises, the relatively depressed yields on investments due to a tax system which until recently did not distinguish sufficiently between nominal and real profits, high yields on relatively safe short-term loans, and the relative illiquidity of some such investments given Colombia's thin stock market. In addition to these difficulties, demand for the component itself is reduced by the following factors: (i) new companies generally use equity to meet start-up cash needs, while Bank funds finance mostly foreign expenditures; (ii) the financieras did not actively promote the component; and (iii) the number of large, widely owned enterprises being formed in Colombia (for which the component is designed) has been very low in recent years. The sine qua non for increasing use of the component, namely improvements in incentives for equity investments, was addressed in the context of Bank sector work (and also by IFC Capital Markets Department), and is discussed in this report in paras. 5.04-5.05. 3.14 Technology component. The US$5 million Technology component, which was introduced under the sixth loan, was also experimental. In total, 21 such subloans for US$1.97 million were made, adequate in light of the comnonent's newness. The obiective of the component was to help Colombian enterprises to undertake technology improvement programs designed to make Hhpir nrndiition Pfficipncv and nrodit cialitv internationally comnetitive. The Bank later broadened the eligibility requirements under the special c_ onent t 4,.-1-4.fi, 4r n-f nnllyit-inn r-n r nlr~ PeminmPnt- fr-r Pviqrincr plants. The funds were used for a variety of purposes, including establishing for technlogies or prcessese (18%), ollut c (1%,adhrn for technologies or processes (18%), pollution control (12%), and hiring foU eig techi Cia.L1 LIS (6U/o' am un oft. -ULUUl- -.U -.L -..U -.U .U- - 4 Ute - 11 - under the component is small (mainly because of the small average size of the technology improvement projects), the number of projects financed gives reason to be encouraged about the potential of similar components in future Bank DFC loans. Demand was also restrained in part because of (i) lack of a clear under- standing by financiera staff of possible uses of the component; (ii) limited promotion by the financieras, and (iii) the relatively small size of investments by firms in eligible items, which often could be financed by the firms' own funds. As with the Equity Investment component, low levels of use of this component should not be interpreted as meaning that its establishment was not warranted. The activities financed have contributed to raising the efficiency of the sponsoring enterprises. BR and the financieras have strongly supported the continttinn of such components in thp cavpnth and Pighth loans, and com- mitted themselves to make special promotional efforts to incease their utili- zation through direct contacts with the industries and chambers of coMmmerceo, and through more systematic dissemination of promotional literature. TT TXTrT rTTTTATXT DYTTTT TATr .L V L 0_4.LLU._.UIL1 1JUJ..111J.L11%.1 4.01 This section presents an analysis of the operational and financial performance of the eight participating financieras, including the three BR-supervised financieras, during 1975-79, concentrating mainly on those aspects about which the Bank expressed concern in the appraisal reports or during the course of project implementation. BR's overall performance with respect to the supervision of newly participating tinancieras and subproject review is also discussed in this section. In line with the emphasis of the Bank over the period 1975-79, this section will give relatively more attention to the institutional development of BR than to that of the financieras--further information and analyses of the financieras are available in the appraisal reports of the seventh and eighth loans (Reports Nos. 2013b-CO and 2885a-CO). 4.02 Ownership, management and staff. Colombian shareholders have maintained a majority interest in all eight financieras. Norte has recently promoted the sale of a majority interest in the financiera to the Santo Domingo group, a powerful industrial and financial services conglomerate which also owns about three-fourths of the equity of Santander. While the sale has had a positive impact on Norte's capitalization, IFC, which is represented on Norte's Board, and the Bank are following closely its effects. All eight financieras are headed by competent and experienced presidents, and their boards, which benefit from the experience of many leading businessmen and bankers among their members, have continued to follow operations closely. While some of the financieras have periodically suffered from a considerable turnover of the more junior analysts, due partly to their relatively low salary levels, they have continued to have canable and exnerienced management and staff at the senior levels (Annex IX). 4.03 Appraisal and supervision. in the successive financiera loans, tribution to efficient resource allocation through sound evaluation of irvesments haveobe. ma.Lin t11e qaPLioaprL aJ. i L. wor k.LL of the fi provements have been made in the quality of appraisal work of the five older - 12 - financieras and Santander, but the appraisal work of Occidente and especially the financieras as a group has gained in depth and coverage and, while still emding an area us L&eLiv e wdAnuess, marketing uueiyJiV nQas improved. Some deficiencies, however, still remain in appraisals of technology development and pollution control projects. Economic evaluation or projects has been further strengthened with the help of Bank-sponsored seminars to train BR and rinanciera staff in this important aspect of project work. Calculation of economic rates of return have helped focus attention on critical economic issues and in several cases has been the main cause tor rejecting a subloan. The financieras have maintained efficient supervision and follow-up systems. Generally, they still give preference to the supervision of Bank- and BR- financed projects over those financed with their own resources, due to the larger size of the former projects and the discipline imposed by Bank and BR reporting requirements. 4.04 Reporting information. The financieras have found the information required by the Bank in the form of periodic reports on their financial and operational performance to be quite useful in their operations. However, during the early implementation of the sixth loan, the financieras expressed a strong desire to simplify and reduce the amount of information they were required to submit to the Bank. A thorough review and modification was then made of the Bank's reporting requirements to ensure that the frequency, timing and content of reports were in line with the Bank's supervisory needs and not creating an extensive burden for the financieras. 4.05 ODerations. Althouah the Bank did not rely heavily on the projec- tions made at the time of appraisal, they provide a useful point of reference for evaluating the financieras' operational Derformance (Annex VTT). Measured against the projections made under the sixth loan, the financieras as a group fel1 a little qhnrt of thp exnetatinns rewarding the vrowtb f tnrnl nmer and portfolio amount. From 1975 to 1979, the financieras' combined assets incrased ata comnonnded annual rnwth nf 92 n cnmnared ton the annpraial estimate of 25%, while the combined portfolio grew at 22% p.a. against 29% p ka Crjctd n the aver_age , during 197-7, the tota po-floo Norte, Occidente and Santander grew by 25%, 28% and 38% p.a., respectively, Financiera lending has been dispersed widely over industrial subsectors. financiera lending by region of the country (Annex V). 4.06 To address the problem of low capitalization levels of industrial firms, the government cook two steps, namely, issuing Monetary Board Resolution 65 of 1977, requiring financieras to hold at least 10% of their assets in equity of new or transformed companies, and through Law 20 of 1979, reducing 1/ The portfolios of smaller financieras tended to grow more rapidly than those of larger ones, due partly to the practice of the financieras of "pooling" large subloans among themselves, usually on an equal basis (Annex VIII). - 13 - capital gains tax liabilities on the sale of fixed assets and equity investments. Mainly as a result of the requirements of Resolution 65, but helped in part by the equity components of the sixth and seventh loans, equity investments increased at a compounded annual growth of 32%, compared to 13% between 1970 and 1974. 4.07 While the financieras as A group have performed adequately in certain "develonmental" asnects of onerations (i.e.. medium enternrise and i ndustrial decentralization lending, equity investments, export promotion, _tcr achivempnts hAvp nrht- w as ann PwnrtPd. Thiq mv hP riip in part to lack of real competition among financieras and hence little incentive to promote more d if fiJcul1t or risky opner -tions. a ost- ragirins haver onlyT ne financiera committed to term lending operations. Thus, with the possible ex- oly on Bank sublending in a given region. The Bank and BR have realized the po te L.L± U~1~L £ jiLULUL1 . U LUL L.LUCELLL.LLaZ) IL~ IM Jcct anLU [L been taking steps to encourage broader participation (see paras. 4.15-4.16). 4.08 Under the sixth loan (and under the seventh and eighth loans), the financieras were asked to prepare brief statements of the sTrategies they intended to follow over a 2-3 year period to enhance such impact of their operations. In line with the objectives of the sixth loan, their statements focused mainly on steps to promote export and decentralization projects and to increase their support tor medium-size and small firms. While the financieras made some progress in each of these areas, the strategy state- ments themselves were phrased in terms that often proved too general and broad in scope to provide a clear basis to measure progress. 4.09 Financial position and results. The 1975-79 financial statements, with summary financial ratios, of the eight participating financieras are shown in Annex XII. 1/ Over the past five years, for the group of financieras as a whole, liquidity tightened and leverage further increased as a result of (i) expanding short-term operations, (ii) scarcity of long-term funds to finance loans and equity investments, and (iii) difficulty in mobilizing fresh share capital. The Bank relaxed their debt/equity limits from a 6:1 maximum under the fifth loan to 7:1 under the sixth in the case of Colombiana, Nacional, Norte and Valle, and from 4.5:1 under the fifth loan to 6:1 under the sixth in the case of Caldas. The five older financieras were allowed an additional 2:1 debt/equity limit (Occidente and Santander, 1:1) for short-term lending operations. Starting under the seventh loan, the financieras have also been allowed to revalue to market prices their equity investments and fixed assets for purposes of determining their debt/equity ratios. 4.10 As projected during the appraisal of the sixth loan, increased 1PvPrnaoo nd higher margin short-term nnprAtionn Pnhlpd thp finnnriprnA tn maintain a satisfactory level of nominal profitability over the period 1975- 79 (See table below) .g The a a net return on equity of the in197 n no ina financieras increased gradually from 19% in 1975 to 28% in 1979 in nominal 14/ aesurce structure oJ. the~ fiicaucimek is dicuse L.~U il La. terms. In real terms, however, the rates of return on equity of the finan- cieras (as expressed by the financial statements) were negative in 1976 and 1977 when. except for Colombiana, they were below the inflation rates of 25.9% and 29.3%, respectively. With a drop in the inflation rate to 17.8% in 1978, most financieras achieved a positive real return on equity after taxes. Inflation accelerated again in 1979, but the substantial appreciation of eanity investments helned to maintain profitability. Some financieras have now realized these gains through sales of their investments, but recent falls 4 no prios nzsvlightiv redicpd thp anreciation in other cases. AFTER-TAX RETURN ON EQUITY (percentage) A.nfLCI L.LULI Colombiana Valle Nacional Caldas Norte Occidente Santander Aliadas Rate 1975 25.6 23.6 23.6 4.&1 17.4 17.2 15.6 24.0 17.9 1976 26.9 22.5 24.8 10.3 16.9 10.6 13.6 16.0 25.9 1977 29.4 24.4 26.4 18.1 18.2 19.5 16.4 16.5 29.3 1978 26.7 24.6 29.3 19.8 17.0 19.3 16.6 21.3 17.8 -4 -4/ 1979 28.4 25.4 61.9m' 30.6- Z1.6 2Z.0 16.8 20.3 30.0 1/ In the opinion of the external auditors, overstated because of inadequate provision for portfolio losses. 2/ As reflected in the blue collar price index; calendar-year basis. 3/ Included an extraordinary capital gain of Col$247 million from sale of one large equity investment and Col$41.0 million dividends received from another equity investment. If these ites are excluded, the return on equity wu.U siL eaon= a k=aO.- --* 4/ Includes about Col$33.5 million received in dividends from an equity investment. 4.11 Mnsr of the financieras have maintained reasonable administrative cost figures during the last five years. Caldas, as expected, continued to show the highest Adminitrntive cost among the oriainal financieras (increasing from 2.1% of average total assets in 1975 to 2.6% in 1979, comp - 1 ave rage fnr -h- fir oldPr f4nancieras durin2 the same period). Santander, on the other hand, has achieved a significant reduction 1C I e ne. a 10706 n-,j-n tho nnQf fivP yonrq_ the five older from 3.6% in 19715 to 1.9%/ in199 Duigtepsfv hefeolr financieras and Santander have maintained sound loan and equity portfolios but these have largely been resolved. It may be mentioned in this connection that during 1975-79, the Bank, together wt IFT, coninud rt p s n- cant role in helping Caldas to overcome the effects of the financial crisis - 15 - which it suffered in the early 1970's. In addition to providing advice to help the improvement of the portfolio quality and profitability of Caldas, the Bank and IFC closely followed the developments in Caldas' financial situa- tion through the participation of an IFC representative on Caldas' Board of Directors during most of the period 1975-79. 4.12 A review of the portfolios of the closely held financieras during the appraisal of the seventh loan showed a tendency for those financieras to give preference to lending to members of their controlling groups. To correct this undesirable trend. an exnosure limitation was introduced so as to avoid excessive concentration of credit risks, limit "insider" transactions And enhanrp the dPve1npment imnart nf Pqrh financira through an adonate dispersion of its lending and investment activities. Specifically, the fnncea weerquired to limit the-repsr naysnl nepiet a maximum of 25% of the financiera's own equity. This limit was quite effec- t4- 4 , --U4,4- the --,Foll concentr-4- -A 1-~ -,. 1~----1-A with by the financieras. There were minor exceptions in the case of Colombiana, exceeded the limits as a result of certain special situations, but the respec- tive financieras took appropriate and timely corrective actions during the implementation of the fifth and sixth Bank loans. 4.13 Banco de la Republica. Following somewhat slow progress under the fifth loan due to staff turnover, BR, with assistance from the Bank (see para 2.01), developed to adequate levels its capability to review appraisal reports and screen subprojects. BR and the Bank also collaborated in train- ing financiera staff in project appraisal techniques. For a period BR's heightened expertise was used to "second-guess" project design, and unneces- sarily delay subloan approval; following discussions with the Bank and financieras, BR appropriately revised its review strategy to focus more on (i) issues critical to project success, (ii) cash flow aspects relevant to determine subloan terms, and (iii) the economic merits of the project for the country. On the other hand, the "free limit" of US$500,000 which BR agreed to establish for the old financieras has in practice not functioned fully satis- factorily as a result of an excessive tendency on the part of BR to closely scrutinize subloans below the free limit as well. In response to repeated financiera complaints that BR and Bank subloan processing is excessively slow, the Bank found that the main reason for delays is the many reviews and approvals through which a subloan must pass, each of which takes several days to several weeks, rather than excessive delays at any one step. In practice, the minimum processing time from financiera submission of the subloan application to BR to notification to the financiera of Bank disbursement authorization is about four months, 1/ and can be much loneer for subloans above the Bank's free limit. The Bank, as part of appraisal of the eighth loan, has asked BR for nronosals to snpd in nrocesina and will give orioritv to imnlementinL appropriate measures. projects, which do not involve BR in subproject reviews, is about 4.14 To date, while the Bank has clearly reduced its role in financiera -1 -e 14 - ;__.ti pro res int deve - V Tzr " I2O ~ k c. u supe-'s heOU C V financieras has been quite limited. The Bank spent 105.6 man-weeks appraising .LLu L.LI LUGH \ildHU1LMd bu iibU Wdb Vei. y LUbt LlOCH dJI UL , JI EdH"Week appraising the eighth loan (Annex XIII), even though these figures do not take into account that the appraisal of the eighth loan was much more sector oriented. Much of the reduction in Bank staff time spent on financiera supervision results from the maturity of the financieras and of reporting systems rather than the effective assumption by BR of previous Bank responsibilities. In the first place, BR's financiera supervision staff has suffered excessive turnover, with neither of the two persons individually trained by the Bank still working in this activity. Also, since the Bank still retained its authority on the insti- tutional aspects related to the implementation of the Bank loans, the finan- cieras continued to look to the Bank to resolve any issues that arose. Finally, the Bank has been much keener to delegate financiera supervision to BR than BR has been to accept it. While the Bank in the past has been quite thorough and relatively rigorous in trying to shape financiera operations and structure to what the Bank considered an appropriate model, BR has been reluctant to assume such role vis-a-vis these private institutions, partly because conflicts might arise between BR's legal bank supervision role (through its Superintendencia Bancaria) and its assigned role under the Bank loans. 4.15 Despite the introduction of the limited participation concept under the sixth loan, which in theory simplified eligibility criteria, only limited success has been achieved in qualifying new financieras for participation in the projects. The maximum debt/equity ratio of 4:1 to qualify for limited participation under the sixth loan, which was adequate at the timet quickly became too low as the financieras began short-term operations in the mid-1970's. The limit was raised to 6:1 under the seventh loan to take into account the changing needs. In spite of this, Aliadas was the only financiera which par- ticinated on a limited basis under the sixth loan. A majority of the non- participants were financieras which concentrated on short-term operations MHoreover, given the rapidly increasing leverage of the new financieras, the participation without a detailed appraisal of the institution, and this lengthy procedure discouraged particip4 i Thu teAdtional potinof the loans and further increases in lending to medium enterprises and industrial to foster did not occur. 4.16 At appraisal of the eighth loan, the Bank carefully analyzed BR's experience in financiera supervisiou ana UeL1UtU aLLUg1ULeLnLt u UnUf:tL supervision around the capabilities and comparative advantages of each. BR's main role will be to supervise compliance with Subsidiary Loan Agreements, especially the financial covenants (including debt/equity ratios, exposure limits, liquidity ratios, etc.) for all participating financieras. In addi- tion, while BR will retain primary responsibility for supervising new finan- cieras, the involvement of the Bank in important policy and institutional issues is recognized. Procedures for new financieras to participate in Bank - 17 - loans are being further streamlined in order both to encourage wider partici- pation and to limit Bank and BR manpower requirements implied by new partici- pants. The Bank has recognized that staff resources devoted to financiera supervision have been reduced as much as possible while still maintaining the project objective of having institutional development impacts on participating intermediaries. 1/ BR plans to improve its capaDility to detect institutional weaknesses and request solutions from financieras, but the Bank will continue in its role of general advisor on operating and financial policies and strate- gies. It is expected that the Bank will assist BR in developing effective systems and procedures for the more routine kinds of supervision, while focusing its direct supervision of the financieras increasingly on their efforts to raise increasini amounts of resources in local and international capital markets and other policy issues. In practice, this system does not substantially chane nrior arrangements, but defines more realistically the role that can be played by BR. 4.17 Under the fifth loan, all subloans were made in pesos (66% at 20% in pesos (76% at 25% interest) and the rest in dollars. BR accepted the foreign exhag ris Lude tLe lo~Uan~a fo a.U Of. ( -1 to 14-1/4% when interest rates rose), and for up to 13-1/2% for peso subloans adU J/ 4& LoL dollarL subloans~ under tIe sixthI 'Loan. ~.ILroughI endL7 / 7 DILX S income had slightly exceeded expenses on the lines of credit, although appre- clation of the principal of the Bank loans poses potentially large losses for BR. As of December 31, 1979, BR's liabilities at current exchange rates exceeded assets plus earnings by Col$380 million (about US$8.4 million) on the fifth loan, and Col$887 million (US$19.7 million) on the sixth loan. 2/ The main cause of these "paper" losses has been the sharp appreciation against the dollar of currencies disbursed by the Bank (the depreciation of the peso against the dollar has actually been less than the implied fee given BR to cover that portion of the risk), which has resulted in an effective US dollar interest rate on the fifth loan of about 13%, and on the sixth loan of almost 18%. Also, some losses were caused by BR incorrectly assuming that it could not relend the cash surpluses accumulated on the lines, a problem which was rectified in late 1979. 3/ Of the roughly US$242 million that the Bank has 1/ In some IDF projects in other countries (e.g., Mexico, Honduras, Jamaica) the Bank has few dealings with the intermediaries, and works almost exclusively with the "second-tier" facility. Institutional impacts of the projects on the intermediaries, other than developing project appraisal and supervision systems, in these cases are not project objectives. This report does not address the highly complex and subjective question of which type of project would be "better" in Colombia, although the success of the approach used indicates that the Bank's strategy at least has worked. 2/ Exchange rate fluctuations since end-1979 have likely reduced these sums. 3/ As of year-end 1979 BR had Col$558 million cash on hand from rollover and rn.h flrw nrrfir on t-hp DFC r -dit lines. enual to 13% of the neso value of outstanding subloans. - 18 - disbursed to BR under the financiera loans, liabilities as of year-end 1979 exceeded assets plus earnings by some Col$3.9 billion (about US$87 million). In negotiating the loans, the Bank generally encouraged higher interest rates in part to improve BR's income; for example, three points more on the interest rate could have erased paper losses on the fifth loan through 1979, and reduced the losses on the sixth loan by about one-third. Still, it must be recognized that future exchange rate fluctuations can cause sharp differences in this balance, and that the actual financial cost or benefit to BR of a financiera loan cannot be reasonably estimated until the bulk of a loan is repaid. V. RESOURCE MOBILIZATION AND SECTOR ISSUES 5.01 Domestic resource mobilization expectations, which began under the third loan at rather modest levels, were established at Col$250 million in additional resources to be mobilized as a condition of the Bank releasing the second tranche of US$30 million of the fifth loan. The Bank was interested in seeing that the financieras mobilized substantial local resources to cover th shortfall which were hing experinced hv the client enternrises in meeting the working capital and local financing needs of investment projects. UTndpr thbp qiw-h 1 nn- i-hp finnnriprn. narppd rhtbv wnii16 n~imn tn raise at least Col$400 million in CY76, and larger sums in subsequent years. Prior to 1975, then Bnkl hadf mainly pronmoted mob il izantion of mediiim- and long-term resources, but rising short-term interest rates and credit restrictions made which allowed the financieras to issue short-term certificates of deposit to generate substantial resources through this mechanism. The Bank supported for industrial sector financing and financiera profitability, but advised caution to guard against any possible liquidity crises caused by sudden withdrawals. The domestic resource mobilization objectives of the fifth and sixth loans, as well as that of the seventh loan of Col$1.5 billion through end-1979, were exceeded by the financieras, mainly through increases in short-term deposit resources. 1/ 5.02 The combined resource structure of the seven financieras parti- cipating fully under the fifth and sixth loans is shown in Annex X. Despite a gradual reduction in the percentage of funds provided by official sources from 52% at year-end 1975 to 42% by the end of 1979, the financieras continue to rely principally on the Bank, BR and other official credit lines as the principal sources for their project financing funds. Resources from foreign banks (other than those contracted as cofinancing under the Bank loan) are used almost exclusively for short-term import-export financing. 1/ The growth of the short-term resources has slowed down during 1979/80 as a result of the introduction by the Central Bank of new short-term financial instruments designed to mop up liquidity and thus help contain inflation. - 19 - Tn snite of the comnetition fro-m high vlPIina Anti lianiri anvprnmPnt- irqtrii- ments, the financieras were successful in raising short-term funds in tlhe domestic market;* th,e percent ag-eof resourc~es mobil ized local ly tro1 debt instruments increased from 11% at year-end 1975 to 16% by December 1979, WL&~I LL y L. EL. U ~U UL _.LjL. * U.LJ..L \ ~ . U t- oyu. U.LA..L4..L), 4 L- 11 -.2. of the gain occurring in 1978. Total equity increased substantially in nominal terms uuring ti period through retained kaLriugS Unu diVuienu reinvestment of shareholders, but declined as a proportion of total resources from 19% to 15%. The financieras have had to maintain high dividend pay-out ratios (at least 60%) 1/ in order to qualify for tax exemption on their own dividend earnings and to offer sufficiently attractive returns to tneir shareholders. 5.03 The inability of the financieras to mobilize term resources and help develop the Colombian capital market in a substantial way is not surprising in view of the environment in which they were operating. Beginning in the early 1970's, resource mobilization by the private sector in Colombia was hampered by competition from high yielding and highly liquid, tax-exempt public sector instruments, and the indexed instruments (UPACS) of the savings and loan system offering monetary correction. The financial system was also saddled with complex reserve requirements and interest rate regulations on both the lending and borrowing side which kept rates artificially low and which made it extremely difficult for the private sector to compete for funds. As a consequence, a large and active extra-banking market developed which became an important recourse for firms in need of scarce working capital financing. Under these conditions., additional Bank pressures on the financieras would not have made a significant difference to their success in term resource mobilization. On the other hand. the short-term resources mobilized by the financieras have increased funds available to the industrial sector and, thronah rolling over qhnrt-fPrm loans- the financieras have in effect been able to provide medium term funds to industry at "floating" interest rates. Finally In arlv 190 the garnment tnk snma key stpn (frping ertain interest rates and lowering reserve requirements) that had been favored by the Bank and augur well for the development of th fia-a catn n r.n1nnhjq_ industrial sector issues, particularly export promotion, industrial decentral- After a period of fairly rapid growth during the early 1970's, Colombia's manuLLLu eApoLt greW much Less Lapuly anu stagnated An tne late *fry due to appreciation of the peso in real terms, competition from the Far East n Key sectors, and rapidly LiucLeUUg intenaul UmanU U gusU. LowerLng o import restrictions was seen as a good mechanism for reducing inflation, and an effective means of promoting industrial efficiency and hence indirectly promoting manufactured exports. Finally, the financial leverage of industrial enterprises was increasing sharply in the 1970's, and the local authorities and the Bank correctly perceived the need to stimulate equity investment as a means of reducing this leverage. 1/ However, in many cases dividends are taken in shares, so the earnings remain with the financiera. - 20 - nThp .PAnnk in genral hAc ncrpd wirh the nnaarr-l d nl.nment priorities of the government, and through the financiara projects has aimed to c,inn t Lccir fa.t--. C Tn. Ai4 ol - ncc 1 ant- -c am P-1-a I nn -Ir r a -~nrr m n specific policy measures to address these issues has not been as fruitful as accorded to controlling inflation (through a stemming of foreign exchange fuws andu moutUary expansuiu) leu an excleSively >L!ULLeCII Uk.ULLL.UU ou policy making, while the Bank's recommendations were directed more towards the medium and Long term. In some instances when the Bank ana government policy views coincided, e.g., regarding the need to promote equity investment, the Bank often favored the use of fiscal and other stimuli, while the government approach at times was to try to force the desired behavior through regulation (e.g., Resolution 65 required tinancieras to invest in equities an amount equivalent to 10% of total assets). On the other hand, the sector work did lead to a sharper focus of Bank lending on exports and ind-ustrial decentraliza- tion and has contributed to the internal policy dialogue. VI. CONCLUSIONS 6.01 With the fifth and sixth financiera loans, the Bank built upon institutional development efforts of the past and channelled resources at a relatively rapid rate to the Colombian industrial sector. The financieras channelled Bank resources to economically efficient projects showing high ERRs and a significant employment impact. The five old financieras and Santander are now reasonably mature and efficiently run DFCs, and the subprojects they financed under the loans were generally sound in a technical and financial sense. BR also made major strides in developing its ability to review appraisal reports and screen subloans to ensure lending for proiects which are economically beneficial to the country. 6.02 During 1974-79, when most of the fifth and sixth loans were dis- 'hrqPd_ thp ColmbiAn Pronomy and the manufnurina sctnr wPre growing strongly. The boom in coffee prices resulting from the frost in Brazil, combined with larea ravanuc from ille1 a I nrtual ri in trnql dmnnr fnr goods and rapidly improved the foreign exchange position of the country and herncen 44-s ability 44-. Impor 4a mate4-.,, m-4 a's and, capi4tal goods~ fn- the nusra sector. The financieras' capacity to process subloan applications generally kepL Up WLh IdeaHU. ILLe £Lin ietas IVC UCC aLe .L grow at Cal potJolUV e rates over the period and their profitability, which fell below inflation for most financieras during the mid-1970'S, haS recentLy improved in most cases to levels that offer a real positive return on equity. 1! 1/ Table 4.1 gives the accounting profits only, which understate the actual return on equity from the investor's viewpoint by not including apprecia- tion of investments. - 21 - 6.03 On the other hand, efforts by the Bank to increase support to priority activities within the industrial sector have had oniy moderate success. BR's excessive scrutiny of appraisal reports at times has caused unnecessary delays in subloan processing and hence additional costs to project sponsors. BR's capability for supervision of financieras is still in the nascent stage: however, the Bank has been able to substantially reduce its financiera supervision activity due to the maturity of the financieras and increasing qonhistiratinn of information and rpnorting systems. Recognizing the limitations to small-scale industry lending by the financieras, the Bank h ~ ~ . __r~f,1 riedtiscosne 17 thog Corrpcracion linancira Popular, with three loans totalling Col$52.5 million. 6.04 The Technology and Investment components, which were introduced under the SixthI loan, were not fully ut41ized1 ma4_1bcas ~~ and the particular capital market conditions, but the projects for which they components. These components have been continued in subsequent loans with the £uLsupport U DR and ne Linancieras. 6.05 The domestic resource mobilization of the financieras increased markedly in the late 1970's, with beneficial impacts both on credit avail- ability for the industrial sector and on financiera operations and profitabil- ity. While financial market conditions did not permit medium- or long-term mobilization, the enhanced experience of the financieras with mobilization of funds should facilitate term mobilization when conditions permit. The Bank should continue its efforts initiated under the seventh loan to achieve a movement of the capital markets and the financial system towards term lending on a floating interest rate basis supported by a last resort lending facility. Another possible lesson here may be that specialized lending institutions (e.g., financieras that engage only in term lending) may not be as viable and effective in the long run as full service institutions offering a wide variety of credit services to industrial clients, because, with erratic inflation, financial institutions can be caught in cost squeezes, their growth can be constrained by lending only for longer terms, and a variety of credit instruments are necessary to meet rapidly changing capital market conditions. This aspect should be addressed in connection with future DFC lending in Colombia. 6.06 The Bank's sector work has helped Bank staff to understand better the financial and industrial sectors in Colombia, but the dialogue on financial and industrial policies has had only a limited impact. Financial sector work focussing on developing medium- and long-term capital markets was frustrated by hiah inflation rates. credit restrictions, and the instabilities created by the coffee boom and the rapid growth of earnings from illegal exports. Industrial sector work develoned recommendations (e.g.. faster devaluation to promote manufactured exports) with which the government generally agreed as long-term )hiPriveQ hiit- thpqp were apnprAllv nnqidPrPd a- -,Pondarv in imnortanc to the short-run objective of the government to control inflation. However, the projects to reflect certain sectoral priorities. - 22 - 6.ut in conclusion, tne mia-1iu s markea a significant chauge in e philosophy and approach of the Bank to the financiera projects, and the late 1970s saw substantial experimentation and innovation with new project components designed to support specific industrial development objectives, greater delegation of responsibility to BR for project design and supervision, more work by the Bank on financial and industrial sectors, and major efforts to involve the financieras more deeply in domestic and international capital markets. 1/ Progress has been slow, but still fairly impressive, given the ambitious objectives. The eighth loan, approved by the Executive Directors on May 27, 1980, has been designed around past experience to address some of the problems detected. The role of BR is more carefully defined, based on a realistic assessment of its capabilities and the need for financiera supervision. The target group has been narrowed to emphasize the firms with less access to other credit sources. Criteria and procedures for participation in the projects by other financieras have been eased, and greater-promotion is expected. Finally, long discussions with the financieras and strong promotion by the Bank of the Technology and Equity Investment components have clarified the scone and ourpose of the components, and should make utilization easier. 1/ As "cofinancing" was introduced under the seventh loan, it is not dealt with explicitly in this report, but has certainly been a major new direction for the projects. COLOMBIA: PROJECT COMPLETION REPORT LOANS 903-CO AND 1223-CO Commitments under Loans 903-CO and 1223-CO (in US$ million) IBRD Fiscal Year Loan 903-CO Loan 1223-CO and Quarter Cumulative Percentage of Cumulative Percentage of and-Quarter'Amoun Total Loan Amuount Total Loan 1973/74. December 31, 1973 3.9 6.5 March 31, 1974 8.0 13.3 June 30, 1974 23.1 38.5 1974/75. September 30, 1974 30.3 50.5 December .31, 1974 39.6 66.0 March 31, 1975 51.8 86.3 June 30, 1975 1/ 57.7 96.2 1975/76 September 30, 1975 58.1 96.8 December 31, 1975 58.5 97.5 March 31, 1976 59.0 98.3 June 30, 1976 59.0 98.3 1976/7 September 30, 1976 59.0 98.3 8.5 10.6 December 31, 1976 59.9 99.8 20.4 25.5 March 31, 1977 34.0 42.5 June 30, 1977 41.9 52.4 1977/78. September 30, 1977 53.2 66.5 December 31, 1977 56.4 70.5 March 31, 1978 65.8 82.3 June 30, 1978 1/ 68.8 86.0 1978/79 September 30, 1978 71.0 88.8 December 31, 1978 74.4 93.0 March 31, 1979 74.5 93.1 June 30, 1979 74.5 93.1 1979/80 Septenber 30, 1979 74.5 93.1 December 31, 1979 75.4 94.3 March 31, 1980 75.4 94.3 June 30, 1980 80.0 100.0 1/ Original terminal dates for submission of subprojects under Loans 903-C0 and 1223-CO, respectively. COAOK[ IA: PRO.J Me CONPILET IN REPOUHT LOANS 903-CO AND 1223--CO Projected and Actual Disbursements (in US$ million) Loan 903-CO I.oan 1223-CO IBRD Fiscal Year Percentage of Percentage of Percenta8e of Percentage of and Quarter Forecaat Total Loan Actual Total 1Loan ForecasL Total La.n Actual Total Loan 1973/74 Deceaber 31, 1973 0.6 1.0 - March 31, 1974 3.0 5.0 0.5 o.8 June 30, 1974 8.0 13.3 3.0 5.03 1974175 September 30, 1974 17.0 28.3 5.3 8.8 December 31, 1974 26.0 43.3 12.0 20.0 March 31, 1975 33.0 55.0 18.2 30.3 June 30, 1975 38.0 63.3 20.7 34.5 19i 76 September 30, 1975 43.0 71.7 26.9 44.8 Deceaber 31, 1975 45.0 75.0 32.4 54.0 March 31, 1976 48.0 80.0 - - June 30, 1976 51.0 85.0 43.0 71.7 2.0 2.5 - - 4- September 30, 1976 54.0 90.0 45.6 76.0 4.0 5.0 - - D.cember 31, 1976 57.0 95.0 48.3 80.5 7.0 8.8 2.4 3.0 March 31, 1977 59.0 98.3 50.6 84.3 11.0 13.8 6.1 7.6 June 30, 1977 .1 60.0 100.0 52.2 87.0 15.0 18.8 10.8 13.5 Sopcember 30, 1977 - - 54.7 91.2 20.0 25.0 20.0 25.0 December 31, 1977 - - 56.6 94.3 27.0 33.8 26.2 32.8 March 31, 1978 - - 57.8 96.3 34.0 42.5 32.1 40.1 June 30, 1978 - - 58.0 96.7 41.0 51.3 37.0 46.3 September 30, 1978 - - 58.5 97.5 48.0 60.0 43.8 54.8 December 31, 1978 - - 58.7 97.8 56.0 70.0 48.6 60.8 March 31, 1979 - - 59.2 98.7 64.0 80.0 53.3 66.6 June 30, 1979 - - 59.2 98.7 70.0 87.5 56.4 70.5 1979180 September 30, 1979 - - 59.9 99.8 73.0 91.3 61.9 77.4 December 31, 1979 - - 59.9 2/ 99.8 76.0 95.0 65. 1 81.4 March 31, 1980 - - 59.9 99.8 78.0 97.5 71.3 89.1 June 30, 1980 1/ - - 80.0 100.0 72.9 94.3 198181 3 September 30, 1980 - - 78.4 98.0 December 31, 1980 -8.0 1nel' l O riginal cl,ing daF es 9 er Loans 9 C0 a 1223-CO, reipecivey. 2/ BR's advice awaited an dispositl,o of undIsburged balance of vs'121,238.19. 3/ projected. COLO1B1.IA: PROJECT CCMPLETIOl1 REPORT LIANS 903-CO AND 1123-CO Sumnary of Operations 1/ L o a n 1 2 2 3 - C 0 Loan 903-CO Equity Technology Credit Colmponent Investment Improvement Total Amount Almount Amount Amount Amount (UJs$ (Us$ (Us$ (LIS$ (US$ - __ No. million) No. millon) No. mi lion) No. million) No. million) Total applications 154 102.9 210 99.9 4 2.6 25 2.8 239 105.3 Applications pending - -- 1 0.2 - - - - 1 0.2 Applications withdrawn 28 18.4 19 11.4 - - 3 0.4 22 11.8 Applications rejected 9 8.9 3 2.2 - - - - 3 2.2 Applications reduced - 9.1 - - - -- 0.2 -- 0.2 in amount Total approvals 117 66.5 187 86.1 4 2.6 2:2 2.2 213 90.9 Total cancellations 8 6.6 4 10.6 1 0.4 1 0.2 6 11.2 Net commitiments 109 59.9 183 75.5 3 2.2 21 2.0 207 79.7 1/ Based on Banco de la Republica's data as of Decembcr 31, 1970. CO^AmB3A, P80J6CT C0WILETIL81 UEPIAT þQ4Is 903-CO0AN 1223-00 Analyel. of ..ubl~* Aporo.4 L06N 1221-CO LA, 91 1C10 C8EDIT CO lKif QUITY 1INW: InKT COMPNPENT TECH0~ INVESTIIIET C0i0l1d1T TOTAL ~b,r Il %ion å-"mer i Aunt i lub nt- ~_ iue 1 - A %ount17. %uba J,dn- (.Ai$'000) (Us$'000) ( m) - $ I WUS000) S ) (US_00) .id- - 4 2,2 623 0.8 - . 2.0 6 C,eId.. i 1. 212 0. 1 6.0 2,8 ,. - -db -- 1 5.3 2,5m7 3.21 Co n 14 12.8 3,ad 5.3 39 21.4 0,456 38 4 19.0 356 18.1 41 20.7 10,B12 13.5 lcinl2 193 425 70 14 18.6 1:,911 11.8 1 10 47.7 877 44d. 5 44 21.3 9,778 12. ,16 .7 4,81 6.2 - 18 8.7 4,867 6.3 0-cid.-nt 7 6.4 1.386 2.1 6 3.3 4.862 6.4 - - - - 9 4.8 250 >2.7 7 3.4 5,12 6.4 1antander 4 3.7 2,95 3.7 99 6.0 2,502 .3 - - - 2 9.5 217 11.0 13 6.2 2,719 3.4 val I 13.8 3,111 5.2 46 25.1 18,70 24.6 1 33.3 179 7.9 2 9.5 85 4.3 49 23.7 18,834 21.6 Pool 35 32.1 44,62t 24.4 16 B.7 22,352 29.7 2 66.7 2100 . - - . - 24452 3.7 Togbl 109 100.0 59,950 !00.0 181 ft0.0 75.534 O0.0 100.0 2,279 100.0 21 100.0 1,971 10.0 207 100.0 79.784 900.0 9. 97igan, A.Ount U1$100,000 and bew; 20 15.3 1.254 2.1 55 30.0 3,680 4.9 - - - -- 13 62.0 605 30.7 68 32.9 4,290 5.4 USt00,001 - 200,00» 24 22.0 ,.67 6.1 40 22.0 6,19 .9 • • - - 6 19.0 459 23.3 44 21.3 7178 1.0 U1$200,001 - 300,00 12 11.0 2,837 5. 25 13.7 6.428 .5 - - - 4 9.0 907 46.0 29 14.0 7,335 9.2 US0300,001 400,00 14 12.8 4,780 8.0 16 8.7 5,548 7.3 - - - - - - - - 16 7.7 5.548 7.0 US0400,001 500,000 5 4.6 2,34% 2.9 12 6.6 5,385 7,1 - - - - . . . 92 5.8 5,185 6.7 U,$5000001 - 600,00» 2 9.8 1,095 9.8 6 3,3 3,465 4.6 - - - - .. - 6 2.9 5,665 4.2 U1$600.009 - 700,000 2 4.6 3,297 5.5 3 1.6 1.836 2.4 2 66.1 679 29.8 - - - 2 2.4 2.515 3.2 US$700,001 - 6000 1 0.9 795 1.7 1 8.5 1.993 1.5 - - - - . .. - 1 0.5 1.995 1.4 us$800,009 - 900,000 5 4.6 4,110 6.9 1 0.5 827 1.1 - - - - - - - 0.5 827 1.0 US$9900,009 - 9,000.1000 4 3.7 3,928 6.6 5 2.7 9,770 6.3 - - - - ·· - 2 2.4 4,770 6.0 US$1,000,001 - 2,000,000 10 9.2 11,466 19.2 12 6.6 15,821 20.9 1 33.4 1,600 70.2 - - - - 13 6.3 17.42 21.8 UO2,0u0,001 and above 7 6.5 20.219 ]3 3. 7 . 19,935 26. - - - - - - - - 7 3.3 19,935 25.0 To-.1 109 100.0 111 3 il00.0 75.534 100.0 1 100.0 2 279100.0O 2l 100.0 1~471 100.0 207 109 0 79 784 10, 0 T-' 3 7ear. 1 0.9 24 - 1 0.5. 21 0.0 - - - 2 9. ! 904 1.3 3 1.4 125 11.2 vy.r - - - - 4 2.2 41 0.6 - - - 5 23.8 416 :1.1 9 4.3 847 .9 5 terd 92 11.9 3,092 5 2 33 18.0 5,394 7.9 - - - - 13 61.9 1,321 d7.0 46 22.2 6,715 el.4 6 t..r 16 14.7 4,406 7.3 33 28.0 ,9,69 99.0 - - - - - 33 15.9 9,069 11.4 7 dir 15 93.8 8,142 9to 20 95.3 90,727 14.2 - - - - - - - 28 13.5 10,727 11.4 8 2 1.1 0,268 17 l 5 31.8 22.000 29.2 - - - - 1 4.8 130 6.6 '59 28.6 22,130 21.7 9y.ar 1 0.9 209 1.0 10 1e2 35 32.1 23, 78 39.6 23 12.6 24,479 32.4 3 100.0 2.279 100.0 • - - - 2& 12.6 26,58 33 5 11.Y..r....- - - 12 Y..r. 5 4.6 9.691 16.2 2 9.1 2.7/4 3.7 - - - - - - - 2 1.0 2.774 3.5 16 7ear* - - - .- . .- .. 15 T..r. • • 1 0.5 639 0.8 - - - - - - .. - 9 0.5 6l9 0 8 T 109 1o0.0 59,950 1 ,0 JL_, 00 7505034 00.0 3 101.0 2,279 00.0 29 W.0_ 1,971 10.0 207 101.0 79,784 100.0 u. ny Crc, P-r1od 0 7.ar 13 91,9 2,768 4.6 90 5.2 6.0 0.9 - - - - 2 9.5 117 5.9 >2 5.0 797 1. 0.5 Year 4 3.7 500 0.0 6 3.3 709 0.9 - - - - - - - - 6 2.9 709 0.8 1 Year 23 19.1 4,689 .e 59 32.2 11,7791 15.6 - - - 14 66.7 1,085 S5. '73 35.3 12,856 16.1 . 8 7.3 1,351 2.3 7 3.8 3.177 .4.2 • - - - - - - - 7 3.4 3,177 4.0 2 Year. 55 50.5 41,705 69.6 87 47.5 43,227' 57.3 - - - 23.8 769 19.0 92 44.4 64.746 55.2 2.5 r - - . 2 1.1 5,360 7.1 - . - - - - 2 1.0 5,.61 6.7 3 7.are 6 5.5 8.937 14.9 12 6.6 10.560 14.0 - - - - - - - 12 .8 10,560 13 3 4 Y.ars - - - . 5 -..- - - . - 3 100.0 2379 0.0 - - 3 ,.4 2,279 2.9 T.I1t 909 110 59 150 902.0 183 100.0 0.0 100.0 100.0 _21 100.0 L971 100.0 207 IN), .7i 784 100.0 0. Byr..r T- tl 11-3/41 - - - - 2 1.1 500 0.7 - • -2 .0 500 06 92.0 1 - . . - 17 9.3 9,461 12.5 - - - - - - - 17 8 2 9,461 1.9 2-9/461 - - - - 1 0.5 1.00 0.8 • - - - - - - - 9 0.5 6 , 0. 17.0 3 - . - - - - - - 1 33.3 1,600 70.2 - - - - > 0.4 1.600 2.0 18,0 1 - - - - - - - - - - - - 21 [00. 61 10.0 U> la.7 1.99 2 19.0 - - - 2 66,7 679 29.8 - - 2 1.0 9.7 0.9 20 0 % 61 56.0 39.,65 64.2 . . .. 27 0 1 . . - - 1 0 5 639 0.. - - - - - - - - > 0 4 63 , 0.8 25 0 1 44 44.0 201,415 33.8 149 81.5 6o,27a 79.8 - - - - - - - - 149 72.0 61.7) 75.5 26.0 1 _ - 13 7.1 4,056 54 - - .. > _ 3 (<>tal 09 >100 0 59,95» 1-.0 183 1000 75534 1,0 3 10>7> 1 1,1 1 71 lo 1 707 la1 >774 >00. 0,01o 9 1-60 ,- lt I- -hi o I - 8 0 0'001 - ¯ 0 0-Z 01 - '01 06 65 o 0 601 -4 10 y ().0 n zG .l 1 901 I 9 9 6 9IN ' 6l '9 ,9'e t 1' sp 91 6 9~ I 0¯ 'sp i i 0 001 09 f.0 1 8 05 96.909 q11 10 ' z t m ,U I_ Q_ i__o_M_iø?_o-iiM-__-__ii r i£tø o- -I=si_ r-iILt~ a«oo; tø,£ix -F 88 7189 - n9 8t 898 -TW ---i6oit . ,. nd a n o o :a w ,,I g ¯6 900it 0 ¯(1 01¯'0¯¯ 0800 6809 ¯ l ¯ii ¯ I '008 6 8£'5 ¯0 00 098 -PU 566 TJE 0 ¯1 9i 09 tt 6%r ¯ l z¯ @I'I 5, 6 61 9 E 69 i9 '9 5111'19 Vt 16 I e z* t 61 I; l t z 91[ 1,1 zg "g i, 1Zt gt c09' £6' li'l t- Wol -9o6,oti 1 g I 9er 61 00 1 110 0 001 816 8 001 80 0 001 60' 1 0 01 . 0 5 0 000 ,51 21 U b' àöl 6ot 6 ot 99 '9 ' L ¯¯ - - - oo 09'1 (1 960'11 6 9 6 6 -6 / 'w 9l *^t Pl" ""1, " 0 t0001102 9 0008o 0¡, 9 01 ' 6 0 889 i 9. E - - - -69*6 9 £ 601 00'9 £'i 9 z91li t, 00 - 0'005li03 t 8 0169 E 'I 961 iO5 8 0 - - - - 9 5C 5 01 9-1 9'l cis 0U il--f 000 - nr 001:3 90E0 00:'92 I 1E 01 9iO 605 0*E i 060 609 099 0E 0°E E19'9E 0SE 99 69 06'9£ 00' 09 99o8fl11 000(0' 0080803 i 8 '90' 9 I £ - - - - - - - -o1 ' o0 c i- &008 '' E '©-li '0M0l- '00K -03 08 615'9 £ I 91 - - - - - - - - '9 6ti'9 0 98 £°9 066°C l'0 81 068881000 - 0-090103 8 9 860'0 9 Z08 99 Z0 ' 00Z 08 6 - - - - 99 919'0 00 00 9 g•0 000'1 OS -g uo8Ig 0°09. - 00003 0 9 il0's '98 (K: £0 91 61 0 1 9 - - - -00999' E'98 90 E09 060' 0-11 Z1 0688880 e09 - 0-00113 S0 689 9'C 0- - 0- - - - - 6 169 00 £ 0 (1 " 0 '80E- --0'tu0103 9 1: 0 9 ' 6 c - - - - 6 - u o9 ' 1 91 g 1 0ó0l tE C "gt1 0 ' 1 -8U 0f1 1c0 0 08 1 56 E I 11 - - - - - - - C i55 0'9 81 00E 961'1 00 0 8'11180 ' 11 - 0001803 uo 1 1' i 9 6 9I '1 '9 I - - -91'6 9 g E0 til 8.1 0 "©11118 00 - 0e01t03 £ 0925 9 0 i 0 D 8 g'0 1 - - - - ' 5 E- 9 - ---TO 0 008 000 68 0 "001 £O 1 '0008 806' 0'001 IE 0 0 60 0 0 0080C 0001 †j5 6 0800 E91 .L0 L.nt 06 65 O'00 1 60 L.* 60 plp 0 E - - '0 etg v' c £ 00 8 0 E 0 0E E9 0' 00 50 0 - - - 6 CE C0'9 6'80 09 0 £t 090 98 0'EE 90 110 U 0 0 . - - - - - - * i 9, 1 ' c - 6 9 P o 60 009 0'8 0 - - - - - - - 6'0 009 88l 0 - -60 -0 •9ee3e P 3 60 8: 0I -- - - - - -60 09 8 - - - 8s01I9 * *P89"l - - - ~- - - - - - - 80 ,l'0 0 II0 - - t' ' - • - - - - --2 091 CC -0 6 - ' - . - - ."'.))g "8 t t- - - - - - - - - -- 'i 9"U " ,A1P'9c t 991 9E - - - - - - - E'8.0E ' 1 9 40' E8" 6 i 50'E0 09 08 £'E 08 89 I - - 00' 0'E 8*9 6 00t 9190 0'0 0 "P S 19 1-0 8 C 09, 9 - - - - - 11 11.c S 190'9 9'0 - - -s 6Z 609 '99 9 S19 9 'E 9' 0 808 990'9 9'9 g vi9oc V0 81' £6 00 06 908 081 0 - - - - UI8 5006 '6 cl ,9 *9' 0•8 g 0'83e*139 >o1 $¥'9 000 * 5 09 o, G 99 9 0 •6 - - 9'8 19v1u C V'e 19 sgOZ Ee9'E Cv0 1 einbogsay 000l 990'60 0'081 £ 0V00t 16co 0u10, 8 o'001 61E' 0001 l o'00i 9c's£ 0-001 Let 000l 06'6s o'00 #0 '8 0.9 98 0 - - - - - - 019 9'l 1o 961 6'0 108eisa0*me ol8 lp'1 00 9 9- E8 09 I - - - -901 08 - - - T9' ti C-1 09 ' 0 - - - -¥- - - - 9,0 9L 0 - t$ - - - 106.ri- E'06 OoV'il 016 £i61 9°6 6)16' 0-56 00 008 6lO*t E0 00E0095 0E 166 908 t'66 ESiT66 '6 0 8000.-q9 8,0 08t 6t 9 - - - -000 Et 9 £0 099' t t 0'E li)'anmeres 80930 t'O .9)1 0l c - - - - - - - 961 18 0 0 691*1 u't c 3""8"0nbe.8809ssde:sa •; 911'8 90t i - - -. - - - 9 00Z1 £'E I 0'0 061' 9'9 £ A£M08P 081430*9 88 0:0 9-1 0 00E 09) 99 8 - - - -00£59 18l 0 60 001 0'8 0 18eniq90 08asa080-0c0 916' 00 it '£ 091 * 0 -- E 08' C- 8 9-1 lig g• 8 (*ó sgzea ::d.m 0 806nPea 8e0e0 00 8 9t'0 (9 (1 900E 950 0:80 9 - - - - 0Z 05' 00 £ £'0 009 9'E 0 "0123o"P"8 le3 010g 09509 -g 91 9.00 £889 16 0 0-60 609 9 £989* 009'9 ' 01 08 5i 9*6 E'0 6 080800i9 08ille*0-" 808 (0998 1 E0 9802 909 0:10 1 Z-0£ 009'8 00 0E0065 1E'E 0·91 90 6081 9t'0 0'11 018**o3 9-0 9109 60 0 - - - - - - S 900'9 0' 9 0'0 805l 0'0 E 0900 0609" 1 0 079 98 i - - . - - - - - 9'0 ZZ9 9'8 I 00 099 00' 0 C "PoI 9 800 :108 988'88 £4 00G 0-1 010 009 8 - - 1°01 96é'8 9'08 68 0.08 090'£ l' 018 touioiod Pa0 8:6de o " 199 9 - - - - - - - u,9 19' 91 E 80 08 60 8 *,,"P.d Po 9-i 00l'Z 00 88 - - - - - • 9'( 0' 0 9 18 9'9 99'0 C'O 8 '000o" 8po 8069 1£ 680'0 80 15E 00 06 ('91 - - -,99 -8'0 00 96801 68 88 0*,s8l1" 90 00isn) 601.¢£n (000isn08 0 000.s (.0 009 0008sn)*..:.0 0*10 9n 0p8 V0sn lpoli' V " 6 " m 1 a tosy m I 80l 001 §0* g u- ooioti t-, cv9'4 0 ul, 91-L06 09)4- -9o01 1,03.80 3908 1 %,Cs0807 -28 - ANNEX V COLOMBIA: PROJECT COMPLETION REPORT FinnieaLeNdiS 903der LaN-0 9113-COad123C Compared to Financieras' Total Loan Portfolio (September 1979) and Gross Value Added in Manufacturing (1976-77) Disbursements GroGo Under Loan Value Added in Loans 903-CO Portfolio Xanufacturing and 1223-CO Sept. 1979 (1976-77) A. By Economic Activity Textiles 11.5 11.1 14.1 A nnp-l nne Fnnt w P r 136- Wood products 3.4 1.4 1.4 Paper and printing 12.8 7.2 6.4 Leather goods 0.6 0.9 0.3 Rubber goods 5.4 2.6 2.1 Che micals 15.6 11.7 20.1 Non-metallic minerals 9.3 5.7 4.8 Basic metal industries 1.8 2.4 3.5 Metal products (except machinery) 2.7 6.6 4.3 NoTIn-eleCLri.C idhiilery I,.A 1. L ?.J Electric machinery 2.5 1.7 2.7 Transport eq-ta,4pm-ent 1.0 0.1 4.1 Other manufacturing 1.8 3.1 1.0 Other sectors 1.7 25.1 n.a. Total 100.0 100.0 100.0 3. 1y Geograohic Location Antioquia 19.1 27.6 Atlantico 8.9 7.4 Bolivar 7.2 3.2 Boyaca -.9 C aldas 3.2 3.9 Cordoba 0.2 G uajira 1.6 0.5 N ariRo 0.1 - Risaralda 4.7 4.6 Santander 1.8 3.0 Valle 24.7 19.7 Other 0.6 2.1 Total 100.0 100.0 C. Bv Asset Size of Client Up to ColS 3.0 milion 0.4 1.0 -).A 7 A 4 11- n. 1.1 l ULY J.U 1.U ILLLLLU V *7 1 1 ColS7.0 - 15.0 million 3.3 3.0 rnl$15.0 - 100.0 million 22.0 17.9 Col$100.0 million and above 73.4 77.0 Total 100.0 100.0 .X 2.1 ... 2- I3. 2i i p~ S?V- --ZZ . ..... ... ........ - - - - - . . . - - . .. ... . . . . . . . . . . . - - , I ~ ~ ~ ~ ~ ~ ~ I nw a r2 r•E2 n- zz, s . u. n- lz -- - - - -- - - - - -5 --; - - - - . - . -- - - ., . .• . . . .- . . PP- . ... . . I ii -. . .0~ . . . . . . . * * mC - we,te 0es fe - - - - - - - - - - - - - - - - - CC,C,, w .--- -6 - ww w c www wwww wwwoo ooo ww -ocwo - - - - - - -eooww w3 3 oeE-.o. 0o r - .- = .. . O40.å . . . . . . . . . .n ..' " i i- a w e - e eg w uw- us o g - Igo e m wo e - E w g: CUoML~8A aw1JT C~Isu m 07 i.lbgrjectt Finaacod Under loans 90-CO wAnd 1223.C0 ~OPRACIoti rimNCEM X ~m~ATAta Company's Preta Etploy- 9Enomi Class Coot og Proleo - Fnancing of ProloIo_(jL Ja_nk ___- 1.g,_ ProcealeTing ( h -r (1979) B-urn o nt c.-. Capita1/ B.,. . of Po.- Estit..d 4ctual 0r. B0- nk L a Finan- Olher Copa- T.., Cr,c. Amount 71a-- Ba B.nk 0o.unt I ofl E,q,ity d 67 o L- It.r Ponduct CCMn jet (Uj$æ00) .run i c1.00 0y fund4s (Yr) (Sr) (US$'00)o cl-. (US$'0O0) S.h. (1979) Subpro)c (Col$(000) (1) 1. £~14ane wt,h G-ad f~e- ciel 7erfoirmance (over 20. rLiurn on equi ty baefor. itaxes) 903-Co ,000.0 ,000.0 - 9.3 - - - 0.7 10 2 993.1 I i1.. ih. 1 4 - - 2.7 175 19h.6 34 Traflon 1.A 903-CO £ 205.5 558.5 1F.0 16.1 - - - 83.9 ' - 90.0 . iess than B 4 - - 32.7 is 1,265.9 Moea products 1223-Co N. 2,049.1 2,309.6 12.7 10.6 - - 78.5 10.9 7 2 245.0 2 1 - 50.5 4 21.3,63.8 - Teottle 1223-CO E 2,233.1 2,230.3 0.2 5.6 - - 6.0 B8.4 5 1 126.3 2 2 9 - - 2.5 311 23.9 Toit ile 1223-Co E 776.4 69.4 1l2.0 7.1 - - 54.0 78.9 5 1 61.8 1 1 9 - - 25.2 i 4,021.0 22. coopnI.s wi4th K,d.. pinn- (10-20% re.urn on euity Textiles 903-CO m,t. 2,193.5 2,177.2 ( 0.7) 23.2 - - - 76.2 B 2 105.2 2 4 10 1.121.0 4 17.6 100 653.2 - Z,eta prodseti 903-CO I 1,847.3 3,71.3 2101.0 21.7 - - 68,1 160.2 2 804.1 L. 0.5 1 - - - - - a A7 conrioIn t1223-cO t 211.6 144.1 51.7 55.3 32.4 · - 6.3s. 8 . 3 4 2 - - 12.2 6 567.0 - F.ood 1223-co 1357-CO E 1.448.6 1,55".1 24.1 7.9 32.1 - - 60.0 6 2 123.2 2 3 1 - - 15.7 19 115.8 64 1avco S4 1223-co m.p. 727.0 072.0 19.9 22.1 25.4 - 17.8 34.7 5 I 192.7 2 1 2 - - b.i oh.io 4 Col. 1223-CO 1,2 ,9.7 1 922.1 47.9 23.6 8.4 - 4'.9 1.1 8 3 492.4 2 4 1 - • 19.4(*) 84 123.0 67 111. C!-ne.el .vi Pour fi- bore Poaon.,,) T903-CO I 731.9 797.3 8.9 37.9 - . - 62.2 B 2 302.1 2 I - - (1.7) (50) - Textiles 6 0ry Cle.ning 1223-Co B 1,401.0 1,648.0 17.7 25.0 - - 48.0 22.4 7 2 674.4 2.2 6 2 - • 9.4 65 925.9 90.3 a, 1223-CO 269.1 233.2 (13.3) 3.1 20.5 - 26.2 14.6 2 2 08.9 1 2 1 - - - 25 340.5 - T-lls. 1223-Co E 4 32.7 18.7 19.9 :5.9 - - 9.9 34.2 6 I 2I9.9 2 3 - - -- . 22 1160.6 94.7 T1..iles 223-Co i 2,298.8 2.017.6 <12.2) 23.1 - - 72.9 4.0 10 3 466.0 1 4 2 - - 2,2) 30 2.454 7 150 Inlipk, 6.A. 1223-Co .P. 2,53. 2 2.994.3 2.0 25.3 4.3 - 42.4 27.6 10 2 764.2 2 1 2 - - (19.3) 10 10.20.2 45 lobaoo0 770.4 60.9 21.0 15.6 - - 62.6 20.6 6 2 102. 2 2 2 - - (3.3) 4 3.592 - Expalnson (E); Noe roduc-.r (N.P.); HN- Enrprises (N0) VW.IMCT COHPLETMON ~EPORT COl~BIA_ IPROJCT CMfST10N EORT S.bgo~ele Fnaced Under Loanu 903-C0 .,d 1223-C0 ~ ~E 10"C I ~A2aåE.% Da 00C~£NT Clas. Co.. . o rp act Fincing o ±rai L.g __.bn e ____ Total> ProcesinsTim (mL.U0.oh) Espor(. __f979) .>. R 0turn on se r.- cpital/ 0ate of of Pro- Estimat>ed Actual O.r- Bank .Fi-an- Uth.r Cff.- T.r- Cro A-ount FIn-. Bx Bank 6B.unt Equ1ty >.d by Lbo Re-urn Pr-duct la.n V.ct (U$V000Q) u etra- ny fu.d. (Y,) (T) (US0000) cI.r (US$V000) 1.l.s (1979) (c.pojec (CI$'000) (1) I. C~mpnis wich V$d inn C1.1 Performance (oer. 20% return ont - quiy Eletical products 903-CO E 1,235 1.262 3.4 14.0 15.0 9.4 1L.6 49.0 10 i 13 l 8 2,380) 1.8 82 70 43.8 - Paper produe 903-CO & 183 200 9.0 10.0 - - 40.0 5 1 121 2 2 2 - - 50 3 210.0 - 903-CO I 1,860 2.001 8.0 19.1 31.1 - 13.0 16.7 2 330 1 2 7 - - 38 33 19.0 - k.b.. 903-CO ^ 3,101 1,457 76.0 12.0 - - 49.0 39.0 7 2 651 2 3 4 2,00M 3.0 38 40 8.5 - Chem1l producr, 903-CO E 319 675 87.0 15.0 15.0 21.0 2.0 47.0 6 1 104 1 2 3 3M 8.3 36 20 40.6 - Co.truc,on atI.. .223-CO £ 239 241 1.0 35.0 37.0 - - 26.0 5 1 86 1 1 6 - 6 17 56.1 Vood l223-CO I 1,319 1,351 3.0 48.0 - 52.0 - 0 2 >55 2 2 6 -- 23 32 116.6 38 Con11oo estariale .223-CO , 640 791 14.0 42.0 19.0 10 - 29.0 3 I 110 3 2 2 - - 30 - 62 7 395 coosruction materials 1223-CO 116 119 3.0 63.0 - - 27.0 4 1 . 7 1 1 2 - - 32 8 248 3 - II. Cmpne w eith møde«t vIn.- ift- Perf,.- . Ppe 903-CO K 245 265 6.0 34.4 - - - 63.6 - 91 1 2 2 - • 19 0 9,3 - F-od 1223-00 I 1,330 3,91> 294.8 10.0 10.0 - 1.0 49.0 8 2 40 2 3 7 - - 13 75 79.3 27 Food 1223-CO 940 0,006 6.8 34.0 22.0 - 42.0 2.0 8 2 341 2 4 5 - - 10 78 39.7 36 111. C~mp-1i2! wth r"or Finen- cl,> Perforanc. (b.l 10 .Irero. eully before. taxas) T.xtiles 903-Co N.1. 974 1,51 5.7 24.1 >3.4 - .. 26.2 8 2 . 365 I 1 1 - - 6 218 97.1 Food 903-CO M.A. 24.143 32,651 36.0 3.0 13.0 1.0 4.0 35.0 10 2 906 3 1 12 2,17 19.7 L.4 2.353 263.7 32 Coof.ecin 903-Co E 986 . 1.069 6.0 26.2 - - 61.8 4.0 M . 2 302 1 1 2 - - Lbo. >0 . Totile. 1223-CO .. 1.725 . 1.761 2.0 1.0 1 I 1.0 28.0 I 2 982 1 3 3 - - LO.. 114 14.0 20 ch.mic-t. 1223-CO W.I. 7.241 8.270 14.0 40.0 12.0 - - 48.0 10 ». 360 2 4 11 - - 5 454.5 36 j/ lExpanson (E); New Prod.ct (o.P.); K.., Entepri.. (9.E.). C014C8l~ U g UJEC CL.T IlPOM 9,11,10-10c fInanced Udr Ina 103.-CO önd 1?22-CO Class ~ ~ ~ ~ lii Cato_P ac 'nnig fPir. I!L _ M p.k 1-. rT-a p v~ biaTil ole _Ex l.t (L199 K-~ur a metra-Capital. BtIo of Pro- P 't>mated Actu.a O0.e- n k .. B n .- o C.p. - T-n C ~Aut Fin- Da Banii - Ik Aa.unidb 1 f Eq1,y U-d y labo r roduct~~. 11a0 _m . st (o$alin) u tlrs n ud Y) (V)(S'0) ir 0$000) s0.es (1979 _Subp'qij-c (C.11'00 (1) 1. Copengcä with Good Winan- 'Wal P-rom~.anc (over 201 returnon 0equity0 before temas Plastic prod-ci. 903-Ca a 33.0 36.0 9.09 10.0 - 3.0 - 2.0 8 2 281.0 2-112 4 *. 1 .. 20.0 0.15 21.53 gl 97 F.d 90.0co a 111.0 116.0 4.50 31.0 28 3.0 47.0 a 2 848.5 3 3 . . 3.0 53.85 35.00 43 786 Oolicol, 1A 1223-CO E .B .8 - .5 - - - 0.29 5 1 15.0 /2 1-1/2 . 1/2 .. - - 28.00 83 lodu.triae lundy, s0 1223-CO E 13. 14.0 7.69 2.0 4 - 0.7 7.00 5 1 52.0 1/2 1 . 1 .. 0. 4 0.30 56.20 14, 206 Pr1itn I223-CO E 1.2 1.2 - 0.8 - - - 0.40 3 1 21.4 1/2 1 . 2. - - 27.00 - 124 Ma.t1.1. SA 122i-CO 8 131.0 201.0 53.4 34.0 4 35.0 - 58.00 6 2 1,024.3 1/2 2 .. 1 .. 3.3 .00 69.50 150 160 Heral products 1223-00 £ 24.3 24.3 5.5 - 2 0.9 15.00 0 2 150.0 1/2 3 *. 2 *. 50.0 12.24 21.34 21 134 ne. C.lubiana, a 1223-co E 52.0 53.3 2.5 14.0 - - 1 25.00 8 2 361.3, 4 . -1/2 Z. 20.0 3.85 21.53 i 97 %l opne it'h hude. Flnn cial Performanceo (10-20 r eturn oq.ity bt-or . t...) Cll,ataco-. Ltd.. 903-e.0 .. 15.0 72.4 .96 21.0 - 9 410.00 12 3 648.3 1/2 b . 4 . - 19.00 492 139 C.Ib6-.o, Ld.. 1223-CO E 02.0 . 51.0 .97 6.8 3. 1 - - 43.01 8 2 180.9 2 1 . . - 19.00 jolt 139 C-rI1.oc Ld.. 1223-CO 8.E. 9.0 11.5 27.72 3.9 - 3 2.00 6 2 99.9 2 . 1 . -12.88 81 113 aI ~.r th~.oor n (bel o. 107. return .o equity 1223-CO 1 144.0 191.0 32.63 36.0 - 10 [.0 60.0 10 2-31 1,485.0 1-1/2 3., 1/2. - - 7.00 2 437 So.p 1223-co E 14.0 13.0 .92 2.0 - 5 - 7.0 6 1 42.8. 1/2 ' . :.5 - 3.45 1. 175 sulph. 1223-00 a 9.5 9.5 - 3.5 3.6 - 2.4 8 2 97.2 1 3 *. L/2 -. 2 1 0.00 10 170 fluerals 1223-CO .IE. 11.1 15.1 5.0 2.2 - .4 7.5 7 2 98. I/2 5.. 1.. -- 245 If Expan.Ion (0); New' Product OIf); Now Enterprie (.N.). CO~UMBlt PrOJC-T C(WU IOIs altp_ T 6.rojects 1 .FInanced Und. L-.n 903-Co ,n 1223-C0 COlAaC1(ON PINAKNC ILL M Eg o - a c oe-- n n- h Cp T .oun0 Iun ERquiy 0.dt by aktbtr Rt4u[n Product L__Jo. 1ect (Coi‡milioe} (run (1) claras ny tand* (yr) (v.) (Utis 00 cla.a (US3'00U) Selaa (1979) Supoet (o_0- 8. Cpknifte wth iCo- inan- ci l_ Performanrce (mvr 20% return o *quity Food 903-CO G 6010 641 (99) 100 - - - - 3,0 1.5 23,506 4.0 3 Ies. :han 1 . - 72.0 100 6.450 0 Me1taI poducts 903-C0 10,104 7,034 30 - 31 60 6.0 1.0 10,910 2.0 1.0 1.e. th'n 1 * . 50 I 20.0 27 2o0,518 Metal prout 90' 3-C. 9 60,16 89,050 47 19 13 g 14 45 9.0 2.0 589,031 3.0 4.0 2.0 b.D. w.0. 30.0 - (9 >WI.1 pr,d.c,. 903-C E 38,206 13164 40 12 - 8 - 79 10.0 2.0 268,312 4.0 3.0 1.0 N.O. N.8. 31.0 3 17.854,668 Metal products 903-CO E 19.561 3,291 17 34 - 66 5.0 1.3 49,623 3.0 4.0 l... Ih.n 1 .. - . 26.0 s 424.125 Textile 903-CO E 4,919 3,564 12 21 27 - 14 38 6.0 1.0 48,390 3.0 4.0 1... thn .. I. N.0. m.D. 20.0 42 132,476 Food 903-CO N.E. .3,1 3,1 - 32 5 - 20 37 7.0 1.5 42,616 4.0 6.0 Iame then I s. - - 34.0 101 319.00 Clohing 6... 003-CO E 8,553 9.025 I 28 9 - 28 42 10.0 2.0 108.896 1.0 1 1ess then I *. 121 I1 21.0 32 282.031 ChOllcaL. 903-CO I 21,014 22,023 3 3 - 39 2 34 5.0 1.5 4h.231 5.9 6.0 I - - 93.0 10 2.202.00, ChemicaLo 903-CO K 77.789 189.230 1 2 - . 3' 60 10.0 2 121.726 3.0 6.0 1.001 4 38.0 2, 6,758,214 00.de 223-CO .p. 38.170 37,56 <2) 42 - - 28 37 8.9 8.0 429,260 6.1 4.0 1.0 - - 3.4.0 10 37.0,M00 I'o.d) 1223-CO E 73.8>6 84,232 I7 44 - - - 16 1.0 8.0 1.010,304 3.0 3.0 1.0 - - 47.0 2.4 1353.83] Food. 1223-CO 0 0.5910 37.920 (1) 42 - - 20 32 0.0 2.0 613.977 3.0 6.0 1.0 - - 6.0 241 203,283 Cosinaction 1223-CO E 41,293 41,24 (9) 87 29 - 3 31 0.0 1.0 311.840 5.0 6.0 2.0 .. M.0. 69.0 13 3.17. 461 Con-trucion 1223-CO I 11.13 87.748 3 60 - - 12 20 6.0 1.5 328,960 1.0 1.0 1.0 - - 70.0 40 443.700 m-al prod.. 1223-CO i 21,904 22,024 4 21 - - 41 38 6.0 8.0 133,019 2.0 1.0 t... thau 1 .. 50 1 20.0 246 91.000 MInL,6 1223-CO i 39,3 43,937 10 35 26 - - 39 10.0 2.0 430.120 1.0 3.5 .0 - - 42.0 28 2.092.23, Cofeccion 1223-CO 9.P. 9,36 86.642 19 8 - - 70 72 6.0 3.0 38.447 3.0 2.0 1.0 ·· - 47.8 6 260.047 CO..bonfel 1233-Co & 11.188 11.139 (1) 64 - - 18 10 5.0 1.0 189,209 2.0 2.0 I 1.828 33 24.6 3D 3.713,000 ,-t 1223-CO M.9. 13.032 10,516 (19) 71 - - . 29 4.0 1.0 219,351 6.0 1 2.5 1.012 21 27 19 80.370 8ood 1223-Co 28851 28.85& - 31 - - L6 83 7.0 1.0 243.048 3.0 3.0 1 - - 28.0 3 487,000 min8., 1223-co .E. 41.323 30,269 (36) 13 21 - 22 44 7 I 5.0 4.0 1 - - 90.0 17 1.780.5s29 1I. Ca.g_9 wl h4dst nn (l0-2'0"itru o- equ8iy M8.n9 8223-CO E 34.807 31.478 (10> 69 - - 2 29 8 2 17,364 6.0 4.0 LO - - 17.8 42 8.230,820 Plastice 1221-C0 I 18,975 11,697 (38) 67 - - 33 - 6 2 220.141 2.5 8.0 1.0 204 0 10.0 91 123,771 M.t.l p.oduc:. 12-CO i 9,084 9,500 C 21 - - 15 18 7 I 70,03 2.0 o.0 1.0 6 I 10.0 22 438,08 Fo-d. 1223-CO K 37.%2 36.673 (3) 42 - m - 8 I I 438.046 4.0 1.0 1.0 - - 25.0 91 386.031 ~1.0a produc-t 1223-CO 8 41566 37,863 (9) 34 - 2 64 1.0 2.0 378.213 1.0 3.0 1.5 183 3 18. 51 683.891, (b.Lw 101 .tun ot øsIty Co..nrucion 908-CO 0 7,299 6,700 <8> 44 - 14 13 29 1.0 1.0 96,101 3.8 2.0 bose than . - 6.0 - (9) C pn-tr.ction 908-CO 8.E. 1.136,602 0,316,916 84 12 3 38 27 82.0 2.0 6,000.000 1.0 7.0 6 110 12 0.01 863 8.229,972 M.tal products4 901-Co o.. 1.21 84.298 (9) 18 27 12 I 42 10.8 3.0 93,780 3.0 8.0 8 - - - 124 113.420 Automul,1nd. 901-Co H.A. 20.75 9.900 (52) 13 52 - . 31 7.0 0.1 1,306 2.0 0.1 Is. th.. . 0 .D. - 2 134.379 C9onfeccione 801-CO l 71,300 816.633 54 30 - . 40 25 8.0 2.0 1,317.29 4.0 8.0 1... le i . - - 5.0 i. 1.861 T-xtil.. 903-Co 137.643 174.487 27 82 - -1 36 7.0 2.0 1.311.932 1,0 8.0 1.aa man I . - - 162,33 MetsJ p-od.t 1228-CO , .P. 6,84 1:749 1 39 - - 19 23 1.0 1.0 64.01. 7.0 1.0 8 - - 9.0 76 73.70 H., 1223-Co .8. 24.410 g 9.080 23 88 15 20 47 1.0 2.8 81.231 2. .02. 0 . h ... . - 5 43 697,341 ~.Mtl 1221-CO . - - 4 1 l 0 8 I/ 1mpan.lon (E); 8.ew Pr et {N .F.)>i., 1.w Enerpris >8,.), 00c~LålA papJi= ~ BATION aEP2u tro1ct1 Una*, 903-Co n 1223-E£ CMP'~~Clcmu flUEA &L~AA ifCmpn' Pre-0as loploy- Eooi Cla** Cot fFr--t _ ?linancina of Iro jc. K La.[e (Toget Pr..oessing Tie (asnth Isporre l17) atr M.on .ent ores- Capitall mate of of tro- Etimted Actol Oer. Bnk 12 V.fin- Other Cops Taro G-c Aount vin- BR Bok A-nt t of Equity tad by Lbo, 0eturn *.duct LOa jact <Co>$ '000> ru 0>eiera ny funds (7r) (l'r) (uSP'00 c0ers (U||i'000) sal** (1979) subprOoec (Cole'000) (l) 1.Co~ne tih C9od Flnn (Dygr 201 ret.uo 0n *quty before tones) Lesther product. 1223-Co E 4,060 3 2.gob (6.2) 56 - 30 - 14 7 7 6 1 - - 1u. 1s 35.3 73.51 12br product. 2:23-CO 7.. 2 47247 100 g197.3) 12.2 18.6 13.0 - 56.2 6 2 220.5 2 6 t - - c9i 9 9.0 32.5 0I. C.ompaie epit 06d.0r FInano- (10-201 return 00 equity, b, for.tame Tastles. 1223-CO E 20,142 2,790 (36) 60 - - 22 18 6 1 167.0 o... *.o. 0.0. - - 15.12 >6 0.3 C0LOl161.å' PROJECT C~MLSTJOW UEPLMT S firj t Financd Unid-rl n 903-CO -nd 1223-CO C-aPC4ACIONFNNCCACLMAA of.tr an Cu-. Bank L-.n It.. (-.nh) Eprs(1979) il.-n o Created Capi-a/ at Piro- Elett= .d. Actul rnce ay Tr Grac Amoun Fina- Amo.n i f Euty by Su- Lbor, o Projct oanjic (C..$'000) Bank Bt as other, Fu2d" (eas)(ea (US'00 cOrffiak (Cl'00 ae (1979) Proj-ct (uss'000) Reur 1 WireMs 903-CO m. P. 11.035.2 9,179.0 14.0 47.0 - - - 53.0 12 la 3,807.0 3 6 6 ;00.000.0 1.0 26.4 3. 11.1 penc.ile903-0 E 1,361.4 1,3w1. 7 1.5 24. -C,1. 4. 4 1 329 2 5 46.21r2.0 L 4.0a 58. 32 4. Chmlcal 903-M0 E 2,749.6 2,749.6 - ' 10:. 38..0 - 2. 22.0 ' 99.9 4 3 1.. -2. 0 91.6 Polyllt!eri Fb.r. 903-CO ,0. ,5. 2.0 341.0 19.0 - 17.0 26.0 121 2 98. 3 10 n . - 26.4 4 9 54.1 iyo 0-CO 5. 85.1,1 26.0 10.0 - .- 64. 7 1 237.. 2 12 1 . 24.0 1 -51 Sisa Sak 90-0 E 1285 1285 - 49.0 - - 24.01 27.0 10 2 634.7 1 59.941 0 74 20.0 016.1 Terla903-Ca E 1,714.9 l,'64.2 9,190 - - 4. 8.0 7 1 187.5 1 3 L 4.7l0.0 1.6 24.4 44 42.4 C-ot-ucion hitaiLs gO3-CO K. p. 840.7 952 .8 13.3 311.0 1 8.0 -1 - 5. 6 1 2631.0 4 12 1 483 1. 6.0 570 132. Het acinM93-C 1,703.1 1,70.:,1 . 1.0 - - - 82.0 8 314.0 11 4 0.5 .. - 70 1 100.2 Te=tilW3 9 -CO E 1,40. l 4,138L.5 U25.0 . 0 - - 420 4. 0 1 2 . 2440 21.7 30 261 159.2i Axlsad rnaisine 93-0 .. ,50. 0 1,434.11 15.0 80 - - - 20.0 La 2 ,0 .0 2.50 -o 79 t,1. 20. 391 62.4 Potypr-pyl.n. 11-ppila. 103-CO E L,861. 7 2,0040.0 7.0 Y4.0 - - 32. 0 14.0 10 3 1,.00. 1 2 4 12 7.404.0 3.1 38.0 2,16 76b.9 lIe dl M Ca-et. 903-C 11 3,07. ,107. - 150 6.0 - 63.A 14.0 7 2 470.0 1 1 2 6,000.0 50.0 36. 600 I. Drug 23-CO 3:535. 219. 23.0 16 33.1 22.1 LO. 4 L1?.a 5 1.5 13.9 275 16,2. 317.9720 - 9esal il n aa 1:223-CO 1 84,863.1:2 1250 9 1. . . ,7.1 23.0 12 19.7? 1.aiesGerent 123-C E ,512.2 10825 27.0 90 - 41. 10.0 40.0 6, 2 40.0 1 1 17 73366. 2 midr upl C mtr l 122z3-C & 166201,900 0 4.4 - - .67.0: 24. 225 22511 0.0 1 0. 21.3 2122.0 - Emrodre ewngMteile 123C0 E 157 7 .923 114.0 47.0 24 - 120 8. 9. 7 .0 14.2 3 ,1 9.o.5.9.29 60 481. Boks1223-Co E I63. 62,157.6 (0.6 50.0 S.4, - - 46 8 2 1,006. 2 1.0 0.25 97.1515. 19.1 38.6 43.7 2. ^ Auoo eSuplies. 12123-C0 I.. t9,597.0 16,149.0 18.0 32. 0 31.0 }13. - 24.0 a 153.0 2 1.5 1.75 - - 62.0 c 37 12.0 - Tatls1223-0 26,3é2.0a 4 3,885.0 66.0 20.0 - 4.0 I5.0 61.0 5 1 248. 2 2.2.5 296394. 50 24.0 - lit n Ble12-CO E 052.11 23,760.0 115.0 521.0 - - 8.1) 40.0 6 1 33.0 . .0 4,9. 4.:3.6 57. - JnmcasF.r åari t ur, 12123-00 1 L77,158.0 169,8. (1 0 231.0 - 21.0 24 .0 31.0 6 2 L.017.0 i 3,7 Is .5 322,2ý14. 100.0 67.4 50 89.0 81.2 Teties123-0 24,947.5 24,701. 7. 26. - 20. - 54. 7L. 7.573.5 25.0 44.0 C 4 - Brika1123-Cm 14,6. - • .5 - 700 2 5.5 0.5 7. l=d tiriel Ga. 1223-Ca E 44,67 1. 3,3.0 6.0 27 .0 - 26. ( 9.0 38.0 6 2 300.0 1 l-.5 1 30,tils.a 82.0 3M., i5 70.0 18.3 Metle1223C & 4,il23.0a 4,531.6 10.0 Sli.4 - 18. - 26.2 4 1 64. 1 2 2.5 .5 - - 6.: 1 29 1 - Fibrgias 22-Ca ba 6 S,05. 1[1,15193.0 54.0 7P.6 24.0 -: - 6. 10 2 376 2 1 .5 6.9.L602 .6 -. 3 3 uood 1223-C E 269, . 0 3 11 . 40 3. 19.7 503 5 1 2,951.4 2 1 0.5 2388. " ,33:1:7."4. Fod1223 -M 2 2991.0 2.67 . 5 (4.0) 41. 7 - - - 5. 10 -.3 1 2.7?1 4.75 - 42.5i 1 0 8.2 - tel12-0 E ,722.0 7,0,6,.1 .).0 0 - -: 20 10 3 1054.0 0.5 1.5 2.25 --55.4: -- - uua ndBlt 12-C E 6,3.0 9,8.0 15.0' 56.0 "- 44.0 4 1 136.3 2.0 1.5 0.7 10 ,4. .1 12 2. Egec.. . and Equip. 1223-Co E 6,1.95,8. . 30 - - 80 7. 2 827.0 3 4.25 2 ii7,9o0.0 7.0 46.0-- - C!!!.dC,paies Wi th "6dsat (B~e 201retun onequty c., 90W3-CO E 184.7* 232.7- 26.2 357.0 - 30. 0 - 3. 10 045 3 4 362ý.0 5.2 l7.O 140 1.7 Hatces 93-co z 612.0 52.1 (1.) 5. - - 4. 33.2 4 t 12,036.0 4.1 16.11 Cgonl90-C E .122."* 64.3* 3.0 , . o> ..0. 0 .0 5 5.0 1 5 1 L.e - 14.1 66 14.0 Poly..tr g03-Co E 6 4 6.1 6700.0o- 9.0 318.0 6.0 12. 9.i 35.0 10 2 2.317. 1 14,518.0 1.7 1 2.6 B9 7 5.'3 Tetiea900 W ,6. ,®0 20 2. 408 1 300 1 2 6. 7 . n. 20.0 10.0 13 107.7 Pulsig1223-Co 1 21,285.0 22,68?.0 6.0 51.:0 - - - 49.0 8 2 311.0 1 2.7JL 5. 75 7835.1. 14. 112. Publishin 123CO 49.6..,.6-..0 - 54.0 8 176.8 , 0.75 3:, 78 9 .0 2.* 14.0 49.6 Co Mtu t .t.ae 12-D E 12,60 4. 1,8 . (0.0) 32.0 -o 1 0 - 5. 5 1 * 150 2 0.5 1--19., 1. 30. - T.". le 1223-C o ,1. 0590 00 2. 12.0 4 1 80.0 2 .211 2- - -190 ( 4) • 2. Tires 123CO E 29620 9,6.0 00 530 - 23.0 - 241 1 ,0. 1.25 3 5,11.0 1.6 166 583. - PaP.r 1223-Co 269,434. 300,212.1 11.0 19.0 10.0 B.0 21.. 42.0 10 ZOO,40.0 I I., i.l 3,6944. 0 19. 130 5. 2 Plett.a1223-C ,7. ,2. 10 50 - - - 3. 1 100. 1 .25 0.75 --1.5 2 7 - Teties1223-C0 9,78. 106,1222.3 ,12.0 .4> -, 9.5 38.6 19.2 8 1 9 .6 4 3 .2 1,9 . 11.5 41 71.0 92.9 Ammoia 93-CO J ,1,30 0 ,300 - 1. 46.0 5 2 1, . 0 : 9 122,316.0 24.88. -- rae903-CO E 4,186.a** 4,:269.7e 2.o 21.0 -. .30 53. 6 .5 383. 2 2 14,00.0 4.2 7.5121. Pulsig903-00 1,64 5.l 3.224.0 916.0 49:.0 O 39.0 12.0 8 2 2 l --107 0. LaisCara 903-CO E 452.3ý 45'2,3 - 29.0 - - 45.0 26.*0 8 2 150o,0 0. 0. 0.7 -- 0.0 30 IN.A Saud -nd Gr-ve 1223..Co 1 31,350.0 20,195.0 316.0 30.0 - - - 70.0 10 li 2123.3 2 4 0.5 1 11 5. 1e:,l ac n is 23C 7 1 405. . .2'S 4.01 ealw b at and ailt. 1223-C0 'I 63,989.01 6 1 970 5 1.0. • Tetls1223-Co 16,650. 16,143.2 (3.0) 4D0.0 -a - 0 44.0 1 2 179.7 2 0.5 0.5 38.626.4 .21 50.4 - to t i , teri 1223-C0 E 2,035.0 3,479.2 A1,.0 56.0 44. 4 1 55.0 1 1 0.751 0 .3. aa46 0 94. - Hea ndaL 223-C0 E 1 0,609.5. 10,6665.0 (1.0 668 - 1.2 6 1 17. 2 !.5 -0.75 - 5. 1, 44.4 - ArConiinn 1221- 0 E 2,1. ",7.. 0 li 7o . -,-:- 21.3 1 2 701 21.53,4 . 53 l, . '.tL Inutre 123C 3140 3 ,9. 8.0 31.0 -L 130 3. 7 4..2 0.5 0 7 ,5, . 7. 1030 4 - TeVls123-C0 E 33,2 24 .0 34,353.9 3 .0 >4.3 -L. 71 1. 6 1 323.0 1 ..5 2.25 --i.l( ' lea rout 223-V0 W.P. 22,71 3.01 59,242.7 161.0 10.0 1 0.0 - 33.t 47.2 8 2 ib6.2 0.5 27 2.6, 32 ý1 0 - Tetl..1223-0 0 E 10,125. 1 60 . 5.0 .0 0 - - - 1. 1470 20 1 -.5 --9 .29 4 'e t en1223-C E U2 ,21301 1,il . 42.0 32.1 - 3." - 29.5 5 1 99.0 14.0 1 'o . 6 3 8.0 -- hxI llI 1223-Co E 23,366.3 35,96o.o !4.0 16.2 - - 7.2 74.6 10i 2 19... 3.0 2.75 2.75 224,234.2 9.1 109 .9.4 - CI.0M9lt, Pko3l C8I'iTLa 8up08i 1ubgre1ctc Financed Und.a L.ano 9K03-CO and 127)-C. C~ 140 l IIMM82laCIE. Dtl. VALl. TntaS Proces.lng nC-pay. C-ypany' Epl.y- Cla.. o..PoÉart FInanc I P1 n ct (U tac I-an -._ P-00J n)454j. EP-1rt (19719) Pr-tk- ...n Est. nf r i.,.- C- R-..rn ~,.cret.d C.påta1/ of Pr3.c Pro- Et1-*ted åct.a run ete- pany Tern Grac. Asa,0n linan- AG-~n. L nf Equity by S.- labor Metro Lago jan <ect _(Co'0) B<. Mank b _ nas_ other nod iYrs) fYrs) .___ ¾54M_> _ or 00 Bank (yst A00~01 Sale (1979 Pl Uoje OD0) 1. Cmpanica with Fo t 2- cla.5 Pertoon,a ('uver 201 r.nur nnequity bei 903-CO 8 131,000 140,000 6 25 13 29 33 7 2 L,300 4 10 11 26,44 tI 26 399 351 42 soft dl.k. 903-CO 1 54, 00 55,000 1 25 11 37 27 10 2 495 4 2 3 - - 05 65 046 137.9 EdIbIe t.t.-a,i.l orIi. 903-C0 8.1. 31,006 35,150 53,3 28.4 8.5 - 1 60.1 5 2 344 2 1 2 - - 22 - - mao tters 903-CO 0 07,940 24,100 36.5 9 - - II 70 10 2 130 1 8 9 - - 32.1 60 408 - Per, c.r.~db.rd prodact. 903-CO g 62<,000 575,200 (7.3) 27.4 7 - 1.6 64 l0 3 2,004 l6 6 7 610, 000 11.4 41.6 44 6.871 85.5 Paper 903-CO 1 396,11 632.720 9.2 6.5 9.4 - 14.3 19.0 10 3 1,024 1 0 14 - - 44.8 46 9,000 123 Eectrlc. cablaes 903-CO 8.P. 67,800 67,000 - 60 - - 18 22 8 2 1,000 2 8 14 - - 70 16 3,766 54.7 PrIn,i1 903-CO 8 3.0170 2,907 7 43 4 - 20 33 7 2 850 3 3 5 7.62) 7.1 40.9 110 573 44.8 Ttr.. 903-CO m.P. 60, 000 0 - 42 - - 1.8 42.2 7 3 1.0(6 1 3 4 - - 5.7 64 938 114 CItrIc Id 901-CO 0 12,200 13,200 · 19.7 26.9 - - 53.4 l0 3 352 1 1 2 143.098 59.6 37 71 2,046 33.7 St 903-Co 0 20,650 20,650 - 34 - - - 66 6 2 IlS 1 4 5 402(60 1.7 28 2 11,100 42.2 2gar (221-Co 8 263,000 272,000 3 30 28 6 211 10 2 2,665 2 5 5 261,444 18 26 185 1,471 60.9 (ndnvoaae S.A. 1223-CO 1 68,550 - - 58.2 - - - 4.( 1 0.3 641 5 6 lO - - 74.1 22 2,206 35.1 tIle 1223-CO 8 Il9* 280 I3S 34 63 - - 21 8 2 41 3 5 6 - - 367 4 134 - pkIc. 1223-Co 8 . 11,750 2L.000 78 60 - - - 40 10 2 222 6.5 t 7 - - 32.8 20 587 sott årO1k. 1223-CO 57,000 58,000 3 32 - - 13 15 6 2 691 1 17 20 - - 49.3 41 !1.402 76.7 7,d19 . 0esS.A. 1223-C0 1 . 17,800 22,18 24.2 60.8 9 - - 42.2 6 5 306 U 5 2 - - 74.1 2 .005 73.4 V1223-Co 6.354 10,4(7 63.9 26.4 . . - 20.8 12.8 1 1 19 7 1 7 100,100 13.0 38.9 2 9,208 - Conp .r pp3 223-CO 8.1. 28,700 20.25 7 9 12 - 37 42 0 2 70 5 3 16,146 24 30 L,008 - printing 1223-C< E [.J3 1,127 (4.7) 27 - - 46 27 8 2 267 4 2 ii 7,.23 7.5 40.9 00 547 15.9 Cotn,ctlon materIaI. 1223-Co 8 01.6 506' 15.6 90 - - - (0 6 1.3 83.2 2 3 6 - - 15 16 245 - Polyrlhylena .r.p bat. 1223-Co 9.?. 41,491 41,503 9.7 31.0 - - 57.2 1 6 2 347 5 2 3 - - 49.6 2' L,660 17.3 lotloS 1223-Co 1 91,000 96,590 1.6 9.3 31,6 - 38.1 11 10 4 84100 28.4 3 42 1,26 - ape 5223-co 1 3133,681 22.9 10 - - 59.2 7 2 2,000 5 4 8 - - 62.7 5 66,736 21.8 sta1 1223-CO E 4,000 3,605 <8> - - · - - 5 2 64.5 1 4 5 403.,06 1.7 20 21 1,100 42.2 Ttr.. 1223-Co E 244,366 244,366 - 24.2 12.3 . 20.5 43 8 2 1,600 8 3 4 2.I000 3.2 54 311f 768 84 15. Copnles wtt, 4,d..t.nn- cil P.rfo2manrn (b.lo 20% return on equtty laLher. 94.3-Co 1 7,749 9,025 16,5 54 46 6 540 2 3 4 55 1.550 903-Ca 1 7,930 8,500 9.2 22 19 39 7 2 8 7 10 (5 Cunstructioo *ngn.rLi 903.CO 1 389' 389- 57.8 21.4 20.0 6 1 (98 6 10 O 1 4.8 sogar 93-C0 a 36,606 61,000 40 41 59 l0 2 6b1 2 4 2 6.512 15 59 3 260 140.0 75 Chemi 903-CO 19 ,220 20,020 4.1 27 73 10 m3 176 9I 4 1 40,579 15.5 701 28.5 ro.d 1223-CO 0 5,130' 2.313' 1 . 67 9 21 23 8 3 1.97 4 2 10 6:199 30 10 3 87 5.379 28 7 Stee1 hardwar. 1223-C0 1 10ý430 11,487 to 48 19 13 10 2 6.2 5 2 1 S18.' 2. 522 0o1.n Se1 I. 1253-CO 1 646' 1,246' 67 50 21 21 10 2 477 2 3 14 2 2,020 43.4 .11 drIllIng 1223-CO 1 64t1* 910' 51 23 6 71 0 1 250 5 2 19.8 23 1.663 vng-tabl. oSS. 6 fat. (223-CO 8 162,723 162,725 22 22 16 7 L.5 1,465 2 4.5 5.5 19 3 2,.4 L21.5 Tori.. 1223-CO 6 26,000 26.000 12 33 12 63 7 2 90 5 4 5 58 SI s,494 C.ra.ic. 1223-CO 0 11.500 51,500 25 75 10 2 80 3 2 4 2,582 5 50 5f11tlnk. 1223-CO 1 92,000 92,000 25 48 27 7 1 595 2 6 58 58 65 037 s37.9 Contru"ctn n 1223-o 0 09,307 96,506 6.9 18.0 4.2 77 5 1.5 46 3 4 3 54.8 26.2 S.l-aOh..lo. « ap. 1223-CO 1 56' 33' (0.9> 16.7 83.3 7 5 36 2 5 2 211 8.8 16.7 6 302 bugar 1223-CO 1 33,936 56,603 40 37 63 10 2 177 1 4 2 6,812 15 19.3 241 251 Food 1223-so 8 52,656 16,550 30.6 27 21.8 49.2 7 2 78,000 4 5 19.4 25 445.2 Pa.tca 1223-C0 b.P. 17,452 17,525 . 50.9 24.6 24.3 8 2 222 L 3 L 1.7.- 750 111. o r with_Ponk PI. -- c5.5l Performance (belo 107. reron, un equity ,b,ore 1a09> Sugar 9(3-CO 0 550,000 80,000 - 23 25 - 2 50 lO 2 3,596 6 4 5 6,932 50 0 709 050 47.7 u903-Co 0 679* 2,162 218 31 - - - 09 8 2 212 3 I 6 8t.458 57 2 252 216 260 Gl.a. borrIes 903-CO 1 15,975 520,000 0.0 32.9 17.2 - - 49.9 6 2 2400 l 2 242,000 - 0.4 547 5i3 II5' S,¥00 903-Co 770,589 111,042 15 32.9 12.9 - 26.6 25.6 12 3 3.954 L 3 I 9.2 II 2,019 44 Adh..Io produt. 903-CO 1 47,000 49,000 4 S8 - - 45 37 8 2 300 2 2 3 4,235 2 1 7I 667 - sugar 903-CO 0 01,000 22,320 6.2. 41.6 - - 19 39.4 10 2 335 3 3 4 223,0~0 24.3 7.3 17 1.235 - Cent 903-0 0 110,000 143,200 32 41 - - - 59 7 2 1,L 5. 6 11 21,430 2.4 6 10.333 45.3 Hanufacturing ( ~arsenia) 903-CO N.P. 46,792 60,296 28.6 36.1 - 3.3 34 8. 6 1 700 5 2 3 7,674 IS 8.1 172 755 83 Wheatflour 903-CO 6 1,066' 1,600' 50 22 - - - 75 6 2 560 5 3 6,1 32 1,0Wu - CarJb,-rd 5223-Co E 13,593 13,193 - 31 - - 14 55 8 2 10 2 2 en 9 2 174 - Sug., 5223-Co 1 197' 397' - 45 - - - 55 6 5 270 3 5 2 86,459 57 2 - 21.5 Somes 52:3-CO 1 5620 1,179' 510 33 25 - - 42 0 2 504 4 1 2 06,45 52 2 1 - - bug.r 1223-Co 0 1,543* 1,977 47 14 67 - - 17 8 1 213 3 4 1 20,600 6.2 0.3 162 406 - lood 1223-CO 1 85* 85 - 62 · . - 35 6 2 2 2 3 - - 5.0 1 466 - .nuIIet 5223-CO 1 58,676 1.674 - 25.3 - - 19.9 4.0 10 2 118 3 4 5 - - 3.9 21 7., - uSa.. basIls 1223-1C5 600 r1223-Co 1 5,452 17,000 40 28.3522.3 - 12.3 36.9 0 2 560 1 3 4 · - - 52 5.4tH Car~boar<4 and Lu... 1223-Co N. 8,302 9,30 52 60 - - 25 lO 0 2 S61 5 1 2 - - 2 an 930 - PubliM.s.h,g 5223-'0 8.P. 7,916 t0,100 29.2 49.9 57.3 - - 32.8 lO 2 156 0 4 5 - - 4.6 14 721 s.gar 1223-L E 35,057 35,017 - 37 28.5 - M.5 6 5 5o 9 2 3 52.5.0 52 0.4 525 240 15.A suga.r 1223-Co £ 502,400 105,000 - 29.9 41.9 - - 26.2 10 5 5 4 8 (0 49,04, 23.5 9.2 ,40 75 29.2 soga 5223-5 0 30,0100 38,000 - 56 -:- 9 25 0 2 000 5 3 55 3o,9 57 5 - - 23 Ltd. 4 .ap' tws.,m 6ype 5223-Cu N, . 1,560 3,400 1(8 20 - - I 65 lO 7 22 4.5 3 4 - + 0 53 120 - 4.0ar 13-CO t 371,461 210,390 44 26.4 . - 26 35.6 jp - 2 2,450 4.5 7 0 229.790 24.3 .3 $2 7,4/ 27.5 eublishin, 122-0 E 3,75 4.700 16 40,9 - - 31.3 15.0 d 2 48 5 6 - - 757 - Iran .51le 1223-n< , .6. 39,500 60,061 52 20 IS - 4s.8 19.1 U. . 3 450 5 5 1 3.300 · - - - 66.5 Soop 1223- Co 1 2.995 24,046 05 28 - - 72 6 2 500 7 - - 4 7 191 125.9 52 id. La MarvIli. 123-CO 1 10,375 22.533 117.1 42.4 - - 28.9 2d.7 8 2 10 1 7 55 - 179 125 9 - * 5, US$'000 ( 970 - 37 - ANNEX VII CULUDIA. KUJlL PURILLULTN RLPURi LOANS 903-CO AND 1223-CO Projected and Actual Rates of Growth of the Financieras 1/ Loan 903-CO Loan 1223-CO Nominal Growth Real Growth 3 1972-197 TO76.1070 1079-1070 ,107.1070 CALDAS Tnta AAqptq 1n-A 15.1 20.0 (3.4) Gross income 7.7 21.0 30.0 6.6 Net income 70.0 15.6 46.0 22.6 Total portfolio 12.5 14.5 21.0 1.6 Total assets 8.1 14.2 20.0 (3.4) Cross income 8.7 23.0 29.0 5.6 Net income 9.6 18.9 31.0 7.6 Total nortfoli,2/ 8.8 i.n 18.4 (5.0) NACIONAL Total assets 17.7 25.0 21.0 (2.4) Gross income 20.0 29.0 30.0 6.6 1 '7 '? I f 17 11 r n 1~ 1) Net incom 4.LLI1 . I LV . I I. -. Total portfolio2/ 18.6 33.0 20.0 (3.4) NORTE Total assets 23.0 28.0 26.0 2.6 Gross income 29.0 21.0 31.U 7.o Net income 21.0 19.2 25.0 1.6 Total portfolio .f2. 902. VALLE Total assets 13.8 30.0 23.0 0.4 Gross income 24.0 31.0 28.0 4.6 Net income 17.1 33.0 22.0 (1.4) Total portfolio 14.2 28.0 21.0 (2.4) OCCIDENTE Total assets 17.8 31.0 28.0 4.6 Gross income 26.0 41.0 40.0 16.6 Net income 21.0 29.0 29.0 5.6 Total portfolio 2I 18.2 37.0 28.0 4.6 SANTANDER Total assets 14.0 29.0 37.0 13.6 Gross income 13.3 35.0 47.0 23.6 Net income 9.2 27.0 29.0 5.6 Total portfolio ! 14.1 45.0 38.0 14.6 1/ Excludes Aliadas which participated under the Sixth Loan only on a limited basis. 2/ Medium- and lonz-term portfolio. 3/ As adjusted for inflation at an average annual rate of 23.4% for 1972-1979, based on December-December changes in the working class kobrero) cost-of-living index. - 38 - ANNEX VIII COLOMBIA: PROJECT COMPLETION REPORT LOANS 903-CO AND 1223-CO Comparisons of Amounts Actually Committed by Each Financiera Atter Pooling Arrangements with Amounts initiated by Each Financiera as Leader (In US$ million) Loan/Financiera No. Amount % No. Amount % Loan 903-CO Cadas 3 1.0 3.00 33 8.6 14.33 Colombiana 25 12.6 21.01 48 32.4 20.67 Nacional 24 14.3 23.83 51 12.6 21.00 Norte 16 3.8 6.33 45 9.4 15.67 Valle 26 21.5 _35.83 46 11.8 19.67 Occidente 10 3.0 5.00 13 2.8 4.67 Santander 5 2.8 4.67 9 2.2 3.67 (Cancelled) - 0.2 0.33 - 0.2 0.32 Total 109 bU.0 100.00 245 60.0 100.00 T-n 172UCOr Caldas 12 5.8 7.25 37 9.6 12.00 Colombiana 47 23.2 29.00 69 15.6 19.50 Nacional 46 13.3 16.63 68 13.9 17.38 Norte 20 6.9 8.63 46 12.2 15.25 Valle 55 21.7 27.13 68 15.4 19.25 Occidente 7 5.1 6.38 12 3.1 3.88 Santander 14 3.4 4.25 18 5.1 6.38 Aliadas 4 0.6 0.73 4 0.6 0.75 Uncommited - - - - 4.5 5.61 Total 205 80.0 100.00 322 80.0 100.00 - 39 - ANNEX IX COLOMBIA: PROJECT COMPLETION REPORT LUANS 903'J-C^U AND 1223-n-n Growth of Professional Staff of the Financieras and Banco de la República 1975-79 (Sept. 30) 1975ý 1979 Caldas 15 32 Colom-b1ana 29 38 Nacional 15 27 Norte 2, 5n v a.L.L e vccidente152 Santander 112 Aliadas 15 Vanco de la Rep::ic 33 5- (Development Credit Department) 1/ As of December 31, 1979. COLOMBlA: PROJECT COMPLET1ON REPORT LOANS 903-CO AND 1223-CO Consolidated Resource Structure of the Financieras, 1975-79 1/ (in Col$ million) 1975 1976 ¯ 1977 - 1978 1979 Amount Ainount Amount % Anount % Amount IBRD 2,392.5 28.1 2,822.8 26.9 3,609.3 25.8 4,209.8 20.9 4,934.8 20.4 BR & Other Official 2,032.9 23.9 2,344.7 22.4 2,578.9 18.4 3,953.0 19.6 5,325.6 22.0 Sources Foreign banks 1,006.4 11.8 1,094.1 10.4 1,653.4 11.8 2,688.2 13.3 3,268.2 13.5 Bonds 2/ 593.3 7.0 600.8 5.7 677.0 4.9 546.6 2.7 676.1 2.8 CDs & time deposits 324.0 3.8 1,150.2 10.9 1,958.4 14.0 4,154.9 20.6 3,257.6 13.5 Other liabilitles 581.0 6.8 647.7 6.2 1,262.7 9.0 1,937.5 9.6 3,064.3 12.7 Equity 1,579.9 18.6 1,880 17.5 _225I.5 16.1 2,675.1 13.3 _3 665.5 _ 15.1 Total 8,510.0 100.0 10,498.3_100.0 13,991.2 100.0 20,165.1 100.0 24,192.1 100.01 1/ Excludes Aliadas which participated under the Sixth Loan only on a limited basis. 2/ Excludes bonds issued to BR. - 41 - COL3TA: PROJECT CHPLETION REPORTX LOANS 903-CO AND 1223-CO Resource Structura of the Financierac, L975-79 (in ColS million) 1975 1976 1977 1978 1979 A Aoun A-ouAnt .c Amo.nt 2 A.unt CA LDAS 1BR D 361.5 38.6 429.5 38.1 529.2 35.2 583.5 28.4 625.4, 27.3 BR and 0the. Offic'-al5-urces 203.6 2.8 226.9 20.0 199.5 13.3 2519.1 12.7 333.7 14.6 Foreign Banks 61.6 6.6 39.5 3.5 t12.2 7.5 146.0 7.1 194.3 3.3 Bonda 11 72.4 7.7 68.0 6.0 82.5 5.5 56.1 2.7 54.9 2.4 CDs and Time Deposita 25.7 2.8 101.3 9.0 152.4 10.2 45.7 21.7 428.4 18.7 Other Liabilities 43.9 4.7 66.3 5..9 153.9 10.2 260.4 12.7 256.6 11.2 Equity 3/ 166.9 17.8 196.6 17.5 271.7 18.1 301.5 14.7 398.0 17.3 TOTAL/ 935.6 100.0 1,126.1 100.0 1,501.4 100.0 2,052.3 100.0 2 91 3 ICO.0 c0 LOSIAN A 1RD 627.5 26.6 688.8 25.3 902.2 24.4 988.1 20.3 1,057.1 18. BR and Other officiasousrcee 571.8 24.2 585.3 21.5 730.9 19.7 968.0 19.9 1,072.1 18.7 Fnreign R.nk. 242-7 10.3 288.9 10.6 396.0 10.7 329.5 6.8 535.7 9.3 Bondc V 254.6 10.8 262.5 9.6 267.0 7.2 185.2 3.8 236.0 4.1 CD. id Ti.e Deposits 81.8 3.5 259.9 9.5 541.1 14.6 1,352.1 27.8 704.8 12.3 Other Liabilici.s 176.2 7.4 184.0 6.7 285.9 7.7 352.8 7.2 1,233.8 21.3 .quity 3/ 05.8 17.2 457.9 16.8 579.5 15.7 693.6 14.2 85.85 TOTAL 2,360.4 100.0 2,727.3 100.0 3,702.6 100.0 4,869.3 1e0.0 5.745.3 100.0 4ACIONAL :BaD 533.9 36.3 629.2 34.5 734.8 30.2 820.6 21.2 1.042.9 22.1 ER and other Official Sourrec 255.6 17.3 348.6 19.1 352.7 14.5 664.6 17.2 1,099.1 23.3 Foreign Banks 133.8 9.1 93.8 5.1 215.6 8.9 628.8 16.2 630.1 13.3 Bonds U 90.6 6.1 130.5 7.2 165.5 6.8 117.4 3.0 116.0 2.5 CD@ and Time Depositg 22.1 1.5 140.2 7.7 229.3 9.4 638.5 16.5 652.4 13.8 Other LiabiitiLes 66.4 4.3 85.3 4.7 270.6 11.1 447.1 11.5 237.7 5.0 Equity 3/ 371.1 25.2 394.5 21.7 464.5 19.1 559.2 14.4 946.1 20.3 TOTAL !,M. ..33. 3,87.2 -. ,- 10 .0 4ORTE IBRD 378.3 37.4 443.9 39.7 623.3 44.6 685.3 33.4 781.0 23.0 Skand thor0ffidcalScurea- 251.1 2.8 225.0 21). !36.3 9.22. 15.9 687.! 22.0 Foreign Banka 101.5 10.0 110.7 9.9 102.0 7.3 241.6 11.8 544.0 17.4 Bond. V 27.3 2.7 26.0 2.3 25.2 1.8 15.3 0.7 20.2 0.6 CDU and Time Depocits 8.8 0.9 59.5 5.3 113.3 8.1 301.5 14.7 537.1 17.2 Other Liabilitien 102.4 10.1 88.8 7.9 198.9 14.3 263.0 12.8 244.5 7.9 Equity 3/ 143.1 14.1 163.9 14.7 197.L 14.1 219.1 10.7 309.0 9.9 TOTAL 1,012.5 100.0 1,117.8 0 1.396.1 100.0 2051. 100.0 3,122.9 100.0 VALL! IBRD 440.9 21.6 527.0 20.6 620.7 18.8 760.9 16.1 902.2 16.6 BR and other Official Sources 532.9 26.1 703.3 27.5 852.9 25.9 1.284.5 27.1 1,457.3 26.9 Foreign Bank* 382.5 18.8 462.2 18.0 631.9 18.8 1,008.2 21.3 987.0 18.2 Bonda 123.9 6.1 101.1 3.9 123.2 3.7 144.1 3.0 207.4 3.8 CDg and Time Depoeit& 83.9 4.1 202.8 7.9 458.3 13.9 762.3 16.1 374.1 6.9 Other Liabiiti»e 116.5 5.7 130.2 5.1 144.6 4.4 249.5 5.2 825.6 13.2 Equity 3/ 357.5 17.6 435.2 17.0 477.9 14.5 530.2 11.2 675.3 12.4 TOTAL 2.038.1 100.0 2,561.8 100.0 .3299. 100.0 4,739.7 100.0 5.428.9 10C.3 3CCIDE1~E IBRD 27.7 6.1 63.5 8.8 106.0 10.7 170.5 12.4 203.0 14.4 !R ind Other Official Sourcec 156.9 34.7 166.6 23.2 192.2 19.4 295.6 21.6 385.8 27.2 Foreign Bark. 62.1 '13.7 44.1 6.2 112.1 11.3 117.4 8.6 116.7 8.2 Bonde ./ 23.0 5.1 12.4 1.7 13.6 1.4 28.5 2.1 41.6 3.0 CD9 and Time Depoäita 82.3 18.2 287.1 39.9 348.6 35.1 4L7.5 30.4 336.1 23.6 Other Liabilitie 28.6 6.3 62.1 8.6 97.0 9.7 150.1 10.9 95.9 6.7 Equ.t 3/ 72.1 15.9 83.3 123.5 12.4 192.6 14.0 240.2 16.9 TOTAL 452.7 100.0 719.1 100.0 993.0 100.0 1,372.2 t00.0 IU.3 5J.uu SAMTANDeR URD 22.7 9.6 40.9 9.7 93.1 14.0 200.9 16.7 321.2 22.0 DR and Other OfficialSources 61.0 25.7 91.û 21.5 114.4 17.2. 155.5 12.9 290.5 19.9 Foreign Bank. 22.2 9.4 54.9 13.0 93.6 14.1 216.7 18.0 260.4 17.9 Bonda 11 1.5 0.6 0.3 - - - - - - - CDeand Time Deposit 19.4 8.2 99.4 23.4 115.4 17.3 237.3 19.7 224.7 15.4 Other Liabilitien 47.0 19.8 31.0 7.3 111.8 16.8 214.6 17.8 150.2 10.3 Equity 3/ 63.4 26.7 106.6 25.1 137.3 20.6 178.9 14.9 211.1 14.5 TOTAL 237.2 100.0 424.1 100.0 665.6 00. 1,203.9 100.0 ET8.1 100 ALIADAS 2/ 1åR - - - - 3.4 0.5 6.9 0.5 8.6 0.6 BRand Other OfficialSources 27.0 30.5 32.3 15.5 109.4 16.1 119.7 9.2 145.0 10.7 poreign, Banks 1s.5 ZO.9 217.4 13.1 1-.3 9.4 42. .6 136.2 i0.0 Bonds - - - - - - - -.- CD and Tim Deposite 1.6 1.8 84.8 40.7 265.4 38.9 668.7 51.7 730.9 53.9 Other Liabilicien 1.2 1.3 5.4 2.6 79.0 11.6 182.3 14.1 136.4 10.1 Equizy 2/ 40.3 45.5 58.7 28.1 160.1 23.5 192.5 14.9 200.0 14.7 TOTAL 88.6 100.0 208.6 100.0 681. 100.0 1,294,4 100.0 .357. T 1/ Excludew bonde isnued to SR. 2/ 1975/1976 figures based on unaudited reporta. 3/ Excludes revaluation of azaets. - 42 - ANNEX XII CULUFIA: PROjLECT CO1LETION REPORT !abie 1 LOANS 903-CO AND 1223-CO Financial Statements - Corporaci6u Financiers de Caldas Audited Accounts, as of December 31 (in Col$ million ) 1975 1976 1977 1978 1979 Balance Sheet ASSETS Cash, Beceivables and other Short-term Assets 38.8 50.8 105.1 168.0 253.0 Export-import financing 63.2 42.5 15.3 32.9 49.5 Loans due vichin one year 166.1 256.2 431.7 658.9 570.5 Current Assets 2___7 349.4 552.1 859.8 873.0 Loans due after one year (net) 493.6 571.7 752.0 910.9 1,075.2 Equity Investments 132.5 154.8 160.6 219.4 304.0 Fixed and other assets (net) 41.4 - 50.2 _ 36.7 62.2 39.1 Total Assets 5 I 1 2,052.3 2,-91.3 LIABILITIES and EOUITY Time Deposits 25.7 101.3 152.4 445.7 428.4 Loans Pavable (current) 1 Due to Banks )215.0 ) 229.8 ) 263.9 ) 345.1 459.6 Accounts Payable and other Short-Term Liabilities )_ ) ) ) Current Liabilities 240. 7331-1 0. 1 700 888.t Bonds payable 1/65.2 62.9 75.8 47.6 22.0 BR 75.0 94.2 110.4 182.3 250.3 IBRD TTn.A TQ1 0 AA7 A7. 7 .'Y 1 Other Liabilities 57.2 48.4 159.8 228.4 202.8 Medium- and Long-term Liabilities 3T __ _TT o- ios Share canital naid-in U& 0 ';n1 . loo a -a 711 ' Retained Earnings 35.2 48.0 79.7 109.5 181.0 4/ Less underprovision for expected portfolio losses 2 (14.3) (3.0) - - - Netwm,th TAT- 101 7 61 7 o 1 Total Liabilities and Equity -T . T 1.4 2 2. 3 2i32I3 C.ctotingent Liabilities 717 47. z -tt7. Ratios Ecuity investments as Z of total assets 1L7 11 7 in 7 in 7 111 Current Ratio 1.12 1.1 1.3 1.1 1.0 Total Liabilities/Equity 5.1 5.0 4.9 6.0 3.0 6/ Reserves and Retai!'dd earninQ9 As Mt r *.1 part. I/ 1 & 7 ;o A 3 1 Equity Portfolio as Z of networth 79.4 78.7 59.1 72.8 76.4 Percentage increase in total assets 30.3 20.3 33.3 36.7 11.6 Current kaaarq/ Manuarth . 1. 2n o I Al INCOME STATEENT Total Income 142.0 189.5 262.9 370.3 532.3 5/ Financial expenses 95.5 135.8 173.3 250.8 351.3 Gross Soread 46.5 53.7 89.6 119.5 181.0 Administrative Expenses 17.2 22.8 31.1 42.7 57.4 Provision for losses 21.1 10.2 1.7 - - Taxes 0.9 1.9 14.4 20.1 16.6 Net profit -7. 18.7 42.4 56.7 1070 Dividends 5.8 12.6 26.9 40.5 74.2 Ratios 4/ Gross spread as Z of ATA 5.6 5.2 6.8 6.7 8.3 Administrative costs as 2 of ATA 2.1 2.2 2.4 2.4 2.6 Net profit as % of ATA 0.9 1.8 3.2 3.2 4.9 Net profit as Z of average networth 4.8 10.3 18.1 19.8 30.6 Dividends as % of year-end share capital 5.8 12.6 14.0 21.1 34.2 Dividend pay-out ratio (%) 79.4 67.4 63.4 71.4 69.3 l/ Excluding bonds issued to BR. 2/ Recommended by external auditors over the provision set aside by CFCA. T/ Without deducting provisions for bad debts. 4/ Excluding revaluation of assets estimated at ColS253.5 million. T/ Including about Col$33.5 million received as dividends from investment in Petroleos Nacionales. 6/ Includes revaluation of assets. - 43 - ANIEX KII COLOMBIA: PROJECT COMPLETION REPORT Table 2 LOANS 903-CO AND 1223-CO Fiaca Sement Crporac iSn Financi.- C,,1n-hia- Audited Accounts, as of December 31 in Col$ million ) 19;7 t9o 19 a9 Balance Sheet Cash, receivables and other short-term assets 140.2 159.7 238.5 429.1 617.0 Export-imDort financina 370.2 417.1 595.6 499.9 766.3 Loans due within one year 517.2 747.5 1,192.9 1,840.2 Current Assets 1 1,324.3 207 2,769.2 3_65.2 Loans due after one year (net) 1,127.9 1,192.0 1,409.1 1,683.6 1,838.9 1/ Rauity investments 175.4 184.6 275.6 430.3 607.9 1/ Fixed and other assets (net) 29.5 26.4 28.5 29.5 33.3 Total Assets 2 2.727.3 3 4,912.6 Liabilities and Equity Time deposits 81.8 259.9 541.1 1,352.1 704.8 Loans payable (current) 328.5 341.0 394.6 555.0 488.1 Bonds4 ,,aab. - - 64.1 57.3 111.9 Due to Banks (foreign) 242.7 288.9 396.0 329.5 535.7 Accounts payable and other short-term liabilities 163.0 168.2 268.2 331.7 Current Liabilities 816.30 1,058.0 1,664.0 2,625.6 Bonds payable 227.4 226.4 215.6 132.7 127.4 BR 2/ 337.8 357.0 ) 537.0 7ue. IBRE 560.2 612.1 ) 1,225.8 859.3 931.4 Other liabilities 13.2 1 .7 2.1 26.3 Medium and long term liabilities 1,138.6 1,21i.4 1,459.1 1,550.1 i__9_._ Share capital paid-in 172.6 172.6 198.4 228.3 273.2 Retained earnings and reserves 3.2 285.3 418.7 508.6 612.6 3' Nerwartit 405.8 74~.9 617.1 736.9 885.8 Total liabilities sd equity M _ O A Contingent liabilities I7 - :1403 .ob. Ratios Equity investments as % of total assets 7.4 6.8 7.4 8.8 l.G Current ratio 1.3 1.3 1.2 1.1 1.! Total Liabilities/Equity 5.2 5.4 5.7 6.4 4.6 4/ Reserves and retained earnings as 2 of total portfolio 10.6 11.2 12.1 11.4 11.9 Equity portfolio as 2 of networth 43.2 40.3 44.7 58.4 71.1 Fercentage increase in total assets 13.7 15.5 37.1 31.3 17.0 Currant assets/Networth 2.5 2.9 3.3 3.8 2.6 ./ income Statement Total income 411.0 464.7 704.1 919.7 1,231.2 5/ rinancial expenses 240.6 275.2 437.0 622.1 8.34.1 Gross spread 170.4 189.5 267.1 297.6 397.1 Administrative expenses 36.2 45.4 61.2 75.2 107.7 Taxes 37.2 27.9 47.9 41.6 59.0 Net Profit 116.2 -1.58.0 180.8 230.4 Dividends D 1 7A 107.2 .123.3 170.5 Ratios 3/ Gross sprad s %ofA 7. 7. 88. 6.9 7.5 Administrative costs as I of ATA 1.6 1.8 1.9 1.7 2.0 Net profit as % of ATA 4.4 4.6 4.9 4.2 4.3 Ne-t profit-- - -- -- --e as %Afaeaentot 1. 94675. Dividends as 2 of year end share capital 34.8 43.2 54.0 54.0 62.4 Dividend pay out ratio (Z) 62.0 64.2 67.8 68.2 74.0 1/ Net or provision tor losses at Col$l5.7 million and ColS22.1 million for loans and equity investments, respectively. 2/ Includes other official entities. 3/ Excludes revaluation of assets estimated at Col$389.6 million. 4/ Includes revaluation of assets. I/ :ncludes about Col$75.0 million dividends received from equity investment in Petroleos Nacionales. - 44 - A.,NE)X XIT COLOMBIA: PROJECT COMPLETION REPORT Table 3 LOANS 903-CO AND 1223-CO Financial FtA.ts - CornorACon Financiers Naciona) (in ColS million ) 1975 1976 1977 1978 1979 Balance Sheet Assets Cash, receivables and other short-term assets 58.8 77.3 42.4 321.8 462.0 Eiort-import financing 136.0 103.6 378.5 452.0 114.5 Loans due within one year 346.6 593.4 577.4 811.3 ) 1,182.3 Current Assets 541.4 774.3 998.3 1 1,758.8 Loans due after one year (net) 756.6 859.9 1,126.9 1,922.0 2,244.7 Equity Investments 159.7 175.7 247.7 364.1 617.5 3/ Fixed and other assets (net) 15.8 12.3 101.2 39,3 103.3 Total Assets L " 122.2 2 474.1 4,268.5 , ".; Liability and Equity Time Deposits 22.1 140.2 220.3 638.5 ) 652.4 Loans payable (current) 184.0 290.5 308.3 105.6 ) 436.0 Due to Banks 133.8 93.8 176.7 576.4 ) 68.6 Accounts payable and other short-term liabilities 63.4 81.5 212.6 52.0 408.8 Current liabilities 403.3 606.0 917.9 1,372.5 Bonds payable 99.0 126.6 151.1 120.7 ) 54.9 BR 1/ 121.6 142.7 233.9 614.0 ) 673.2 IBRF 475.4 548.4 654.4 699.4 ) 888.5 Other liabilities 10 Li 4.5 51A 595.8 .L an oug term labti.Ces 699.0 U21.6 1,087.9 1,946.9 Share capital paid-in 169.6 169.6 184.4 220.3 34L.0 Retained earnings and reserves 201.5 224.9 279.9 728.8 2/ 605,1 4/ Net worth __3717_ 394.5 468.3 949.1 946.1 Total liabilities and equity T.7-171 Za44.1 4,268.5 Contingent liabilities 169.7 164.4 115.6 348.4 508.0 Ratios Equiry inve n sP - A f rMrAl AQQes 0. R 0A In 9.1 13. Current ratio 1.3 1.3 1.1 1.2 .1 Total Liabilities/Equity 3.4 4.0 4.5 4.8 3.2 6/ Equity portfolio as % of net wor;h' 43.0 45.0 52.9 57.8 65.5 Annual growth of total assets 12.2 23.7 35.8 61.9 10.7 Income Statement Total income 268.0 329.7 444.5 660.8 1,252.4 5/ Financial expenses 144.3 187.7 265.2 416.9 616.5 Asuma 5Iaceu JALJ.1 A.5.U Aly.) 14.**' Administrative expenses 17.4 22.1 31.4 40.4 59.7 Provisions for losses - Net profit 83.3 -9f. 114.0 150.4 Dividends 67.7 71.2 102.2 119.0 92.1 Ratios 4/ Gross spread as % of ATA 8.8 8.6 8.3 7.5 14.1 Administrative costs as % of ATA 1.2 1.3 1.5 1.2 1.3 Net profit as % of ATA 6.0 5 5.3 4.6 11.2 Net profit as % of average networth 23.6 24.8 26.4 26.0 61.9 Dividends as % of year end share capital 39.9 41.2 54.2 54.0 27.6 Dividend pay out ratio (1) 81.3 4.9 8.6 1.2 1/ Includes other official rn*i. 2/ Includes revaluation of assets estimated at Col$261.4 million. 3/ Net of provision for ponsa I lnagp of CoIt" A .l114. 4/ Excludes revaluation of assets estimated at Col$388.5 million. 5/ Includes profit realized from sale of investment in Manuelita (ColS247.0 million) and dividends received from investment ansctroosu .vaciounates LCol7.0 11million). 6/ Includes revaluation of assets. - '45) COLOMBIA: PROJECT COMPLETION REPORT LOANS 903-CO AND L2Z3-Co Financial Itatements C *or"oraWt6n Financiers del '5rte ,Audited Accounts, as of December 31 (in Col$ million ) 1975 1976 1977 1978 1979 Balance Sheets Cash, receivables and other short-term assets 63,2 67.6 45.5 49.3 337.0 Export-import financing 86.1 148.5 165.3 291.2 555.3 Lo.a.ns .uewthi one year 16g-6 264.8 434-8 570-4An Current Assets ZWT ~ T9- _6V5___ 9- Loans due after one year (net) 489.7 535.6 564.1 919.0 1,171.6 Equity Investments (Costs) 82.9 92.1 141.8 210.3 341.2 Fixed and/other assets (net) 11.0 9.2 54.4 22.0 Total Assets T707T-T T7=. 3,122.9 LIABILITY and EqUITY Time Deposits 46.0 82.7 109.1 254.0 ) 537.1 L92.5 c273.0 Due to Banks 101.6 ) 221.0 326.1 ) 544.0 Accounts payable and other short-term liabilities 66.4 61.6 42.7 34.3 ) 407.4 Current Liabilitie- 406.5 417.3 595.6 902.7 1 Bonds Payable 26.0 31.1 26.0 15.3 ) 3.7 BR 104.0 95.4 5.6 ZJU.3 ) 421.7 IBRD 329.5 397.9 434.4 563.4 ) 662.6 Other Liabilities 3.4 73.5 63.8 116,A 13.3 Share capital paid in 85.7 97.5 114.4 124.4 174.4 Retained earnings and reserves 57.4 66.4 86.1 98.6 1.6 2/ Networth lT-l 176-3-9 20_ 0. 5 _2_230 309.0 Total liabilities & equity 1 1 178.8 1=405.9 Z .121.9 Contin2ent Liabilities 44.0 205.1 131.7 283.8 423.6 Ratios .ity iesmants/Tt Aeset. (Z) 8z2 8.2 10.1 10.3 10.9 Currant Ratio 1.1 1.1 1.1 1.0 0.9 Total Liabilities/Equity 6.4 7.4 6.7 9.5 8.3 2/ Reserves and retained earnings as % of total portf. 6.1 6.4 6.6 5.2 4.9 Equity Portfolio as Z of networth 57.9 56.2 70.7 94.3 110.4 Annual Growth of Total Assets (2) 32.8 16.4 25,8 46.7 52.2 Current Assete/Equity 3.0 2.9 3.2 4.1 4.1 1/ INCOME STATEMENT Tiner escived 141-n 172.9 212-8 259.1 434.9 Commissio=s Received 9.9 7.3 13.5 21.8 42.8 Dividends on Equity Investment 6.9 3.9 7.2 10.0 62.0 Other Income 0.3 6.2 10.9 7.2 4.3 Total Income 162.1 190.3 244.4 328.1 544.0 Financial Costs 103.9 129.5 169.3 244.1 403.8 Gross Spread 58.2 60.8 75.1 84.0 140.2 Salaries and Wages 11.1 13.2 io.l 2o.7 22.6 Other Administrative Costs 9.6 11.2 11.9 15.9 34.6 Profits before provisions 37.4 36.4 47.1 47.4 83.0 Provision for Losses 1.3 0.1 - - 17.6 Other Expenses Taxes 12.4 10.4 14.0 11.3 7.4 ec Profits 2a. 2J., 33.J 3.u.1 5,. Dividends 16.5 18.7 26.7 26.9 37.6 Ratios (in percentages) 2/ (ATA * average total assets) Total Income as Z of ATA 18.3 17.9 19.4 18.9 21.0 Financial Cost as X of ATA 11.7 12.2 13.4 14.1 15.6 Gross Spread as t of ATA 6.6 5.7 6.0 4.8 5.4 Salaries & Wages as % of ATA 1.3 1.2 1.3 1.2 0.9 Total Administration Costs as 2 ATA 2.3 2.3 2.2 2.1 2.2 Net Profit as 2 of ATA 2.7 2.4 2.6 2.1 2.2 Net Profit as 1 of Average Equity 17.4 16.9 18.* 1 *1.8 Dividends as 2 of Average share capital 19.7 20.4 23.3 22.5 25.1 Dividend Pay-out Ratio( %) 69.6 72.2 74.6 74.5 64.5 Dii.emd Racaiivre-. .. v .sot.P.o to 1 1 21.7 27.7 25.8 Dividends Received after Taxes as 2 of,6varw a4LqstT 4.9 2.4 3.8 4.5 7.4 Dividends Received as % of Total Rev. 4.3 2.0 2.9 3.0 4.4 1/ 1975 figures taken from previous supervision report (IFC's Annual Status Report, Kay 16), 1977 figures from audnosa report and preliminary 1977 figures from Norte's Balance Sheet as of Septamber 30, 1977. 2/ Excludes revaluation of assets estimated at Col41.4 million. 3/ Includes revaluation of assets. - 46 - ANNEX X11 COLOMBIA: PROJECT COMPLETION REPORT Taol0 = LOANS 903-CO AND 1223-CO Financial Statements - CorporaciOn Financiera del yalle Audited Accounts, as of December 31 (in Col$ million ) 1975 1976 1977 1978 1979 Balance Sheet Assets Cash, receivables and other short-cerm assets 67.7 91.1 136.8 267.3 370.5 Export-import financing 434.8 525.4 709.5 1,109.4 1,281.7 Loans due within one year 631.2 570.9 1,103.5 1 1,631.2 Current Assets 1,3. 1,84 1.949.8 2 3,283.4 Loans due after one year (nat) 812.0 1,250.5 1,152.2 1,998.8 1,569.6 Equity investments (at cost) 76.3 109.0 173.4 253.4 556.4 Fixed and other assets (net) 16.1 14.9 24.1 12.4 19.3 Total Assets ,0J. 2,6. 3,299.5 3 _2_428 Liabilities and Equity Time deposits 83.9 202.8 458.3 762.3 m7 1 Loans payable (current) 317.6 358.1 429.7 673.1 905.6 Due to Banks 382.5 462.2 621.9 1,008.2 987.0 Accounts navable and other short-term liabilities i0s 9 12R.7 140.6 2 A 7 81 5. Current Liabilities 889.9 1,151. 1.650.5 2,873 3,082.1 Bonds payable 123.9 101.1 123.2 144.1 207.4 BR and other liabilities 519.5 703.3 )1,473.6 1,284.5 ) 1,467.6 IBRD 440.9 327.0 760.9 ) 022 Lees current maturities (293.6) (356.6) (429.7) (673.1) (905.6) Medium and long-term liabilities 790.7 974.8 1,167.1 1,516.4 1,671.5 Share capital paid-in 170.0 200.0 200.0 200.0 24d.o Retained earnings and reserves 187.5 235.2 281.9 336.0 435.3 1/ N ewth u675.3 Total Liabilities and Euirv 7 M1A1 7 "1A aA 179e A 790 7 .a Contingent liabilities "TT T7rT -7= 77674 Ratios Equiyu A i t oas l assets J. 4.J .J 5.3 10.2 Current ratio 1.3 1.0 1.2 0.9 1.1 Total liabilities/equity 4.7 5.3 6.5 8.3 6.7.2/ Reserves and retained earnings as . of total portfolio 9.o 9.6 9.u 7.5 8.6 Equity portfolio as Z of networth 21.3 25.0 36.0 47.3 82.4 Percentage increase in total assets 23.6 25.7 28.8 43.6 14.5 current assets/networth 3.2 2.7 4.0 4.6 4.3 2/ Income Statement Total income 357.1 439.3 583.2 774.9 1,025.9 Financial expenses 201.2 259.9 371.5 528.9 719.9 GUos spread 1.2. .7 I17.1 1z.l1. 7 4.U JUU.U Administrative expenses 29.9 36.7 49.1 64.9 88.0 Provision for losses - - - - 19.6 Taxes 46.0 33.8 50.6 56.1 44.4 Net profit 80.0 89.0 112.0 125.0 154.0 Dividends 64.8 68.7 72.0 92.2 103.7 Ratiosil Gross spread as Z of ATA 8.5 7.8 7.2 6.1 6.0 Administrative cost as Z of ATA 1.6 1.6 1.7 1.6 1.7 Net proit C5 A of ATA 4.J 3.9 J.0 3.1 3.0 Net profit as Z of average equity 23.6 22.5 24.4 24.6 25.4 Dividends as Z of year-end share capital 38.1 34.4 36.0 46.1 43.2 Dividend pay-out ratio () 81.0 77.0 64.3 73.8 67.3 I/ Excludes revaluation of asseats estimated at Col$94.2 million. - 47 - COLOMBIA - PROJECT COMPLETION REPORT ANNU XII LOANS 903-CO AND 1223-CO Pinancial statemwnts - CornorRciAm Financier de5 intander Audited Accounts as of December 31 7-7777TI.-IMM ,1975 1976 1977 1978 1979 (Unaudited) Balance Sheet Assets Cash, receivables and other sbort-term assets 17.4 31.4 35.9 145.6 201.4 Export-import financing 18.9 54.3 98.6 106.9 75.9 Loons due within on year 109.2 188.0 258.9 335.5 .juiy Current Assets 145.5 273.7 393.4 558.0 579.2 Loans due after one year (net) 74.4 119.1 236.8 495.4 688.9 Equity Investments (at cost) 12.8 27.3 29.6 90.8 158.8 aixd ane outher assets (net) 4.5 4.U 5.8 29.7 31.2 Total Assets 237.2 424.1 665.6 1,203.4 1,458.1 Liabilities and Equity Time dAnnoita 19.4 99.4 127.8 237.3 224.7 Loans payable (current) 62.0 64.9 57.1 102.2 164.9 Due to Banks 8.3 48.5 145.1 129.6 93.2 Acoaunts navable and oter short-term i4ah414P4s 17.3 22.4 33A 7 T5 on Current Liabilities 107.0 235.2 364.3 547.6 573.2 Bonds payable 4.1 2.9 2.3 1.7 1.4 BR 26.1 32.8 61.4 115.1 220.7 ThD 7. 7 Att 8 a 7 la. a aA o Other liabilities 13.9 6.4 10.5 173.7 154.8 Medim and inng-arm iahlift.m AA.A A.4 1A.0 77.n A73.8 Share capital paid-in 42.6 79.8 100.8 130.3 149.2 Rained.mnine and r9eawstA 10. 2 16.t 4.A Ll.o/ Netorth 63.4 106.6 137.3 178.9 211.1 Total Liabilities and Equity 237.2 424.1 665.6 1,203.9 1 Contingent Liabilities 13.9 97.7 81.0 77.3 158.6 Equity investments/Total Assets (M)' 5.4 6.4 4.4 '7.5 10.9 Cur.nt ra 1.4 1.2 1.1 1.1 1.0 Total liabilities/equity 3.0 3.9 4.4 5.7 4.8 2/ Reserves and retained earnings as % of total portf. 9.2 5.6 5.8 4.8 5.1 Ew nprfn1n as % of natmth 20.2 25.6 21.5 50j8 75.2 Annual groth of total assets 97.0 78.8 56.9 80.9 21.1 Current assets/Networth 2.3 2.6 2.9 3.3 2.0 2/ Income Statement Tonal incoma 36.5 64.0 109.8 183.5 320.9 Financial expenses 17.2 36.6 64.8 134.2 244.7 Gross Sorand 19.3 27.4 45.0 59.3 76.2 Administrative expenses 6.5 8.7 12.5 17.2 25.9 Provision for losses - .1 - 0.3 - Taxes 3.8 7.0 12.5 15.6 . 17.5 Net Profit 9.0 11.6 20.0 26.2 32.8 Dividends 5.5 10.3 14.1 15.0 23.9 Ratios 1/ Gross spread as % of ATA 10.8 8.3 8.3 6.3 5.7 Administrative costs as I of ATA 3.6 2.6 2.3 1.8 1.9 Net profit as I of ATA 5.0 3.5 3.7 2.8 2.5 Net profit as Z of average networth 15.6 13.6 16.4 16.6 16.8 Dividends as % of year end share capital 12.9 12.9 14.0 . 16.0 Dividend pay out ratio (%) 61.1 88.8 70.5 57.3 72.9 V/ Excluding revaluation of assets estimated at Col$81.4 million. 2/ Including revaluation of assets. - 48 - COLOMBIA: PROJECT COMPLETION REPORT M M Table 7 LOANS 903-CO AND 1223-CO rinancial Statements - Corooraci6n Financiera de Occidente Audited Accu"nt, a of 1975 1976 1977 1978 1979 (in Col$ million Balance Sheet Assets Cash, receivables and other sbort-term assets 25.8 35.9 48.4 66.6 64.2 Short-term investments 1.3 17.1 9.6 84.3 88.2 Export-Iport Financing 31.3 74.1 46.6 71.2 43.1 Loans due within one year 170.8 370.0 500.4 537.8 550.9 Current Aasets 249.2 971.1 605.0 759.9 140.4 Loans due after one year, net (of which 154.3 163.3 291.8 501.4 526.7 Equity investments, at coat 42.0 45.7 71.1 101.4 129.9 (of which deducted provisions) - - (0.4) (1.0) (1.6) Fixea oAther -zsets, net 7. 13.A '2-.4 17 1 Total Assets 452.7 719.1 993.0 1 372-2 jL4L1.3 Liabilities and Equity Time deposits 9.5 10 30 34.A 4 1. 336. 1 Other deposits 70.8 183.0 - - - Loans payable (current) and due to Banks 111.1 122.8 147.6 207.2 252.9 Bonds pavable within an year 21.9 18.9 1 2. 11 0 12.6 Other slort-term liabilities 30.0 43.9 44.1 58.3 94.5 Total Current Liabilities 243.3 471.6 553.2 696.0 696.1 Bonds payable after one year 13.9 13.5 15.5 23.4 43.7 BR 82.5 69.7 112.4 197.2 191.8 IBRD 26.1 65.2 95.6 152.8 174.4 Other liabilities 14.8 15.8 92.8 110.2 75.1 Total medium and long term liabilities 164.2 .16.3 483.6 485.0 Share Capital Paid-in 50.8 55.2 75.2 100.2 100.2 Total Equity (Networth) 72.1 83.3 123.5 192.6 240.2 Total Liabilities and Equity 4_5 2.7 719.1 __93.0 1 iLi. .421.3 Contingent liabilities 46.2 62.5 37.9 64.7 118.3 Equit7 investments/total assets (%) 9.3 6.4 7.2 7.4 9.1 Total liabilities/equity 5.3 8.4 7.3 6.5 5.0 2/ Reserves and retained earnings as % of total portfolio 5.1 4.2 5.3 7.6 11.2 Eut,y por1foli/netw-th R 83 4.9 57.6 52.6 54.11 Annual growth of total assets (Z) 31.9 58.8 38.1 38.2 3.6 Current assets/networth 3.5 6.0 4.9 3.9 2.9 2/ Income Statement Total Tnama 70.4 125.3 187.9 260.2 340.7 Financial Expenses 44.1 87.7 137.8 186.3 232.8 Gross Spread T 50.1 T 107.9 Administrative Expenses 8.2 11.0 14.5 20.2 31.1 Provisions for Losses 0.8 2.8 2.3 3.3 2.6 Gross Profits T7_= _ 7 74.2 Taxes 5.2 7.8 13.1 19.9 26.6 Net Profit 12.1 16.0 20.2 30.5 47.6 Dividends 8.1 9.1 0.0 0.0 0.0 Ration / Income as I of average total assets (ATA) 17.7 21.3 21.9 22.0 24.4 Spread a o ATA 6.6 6.4 5.9 6.a2 7,7 Ada. Expenses as Z of ATA 2.1 1.9 1.7 1.7 2.2 Net Profit as Z of ATA 3.0 3.7 2.4 2.6 3.4 Net Pofit s T n w a.u a ty 1742 20. 195 19.3 77.0 Dividends as I of year-end share capital 15.9 16.5 0.0 0.0 0.0 Dividend pay-out ratio (%) 66.9 56.9 -0.0 0.0 0.0 1/ Excluding revaluation of assets estimated about Col$19.6 million. 21 Includina revaluation nf as. COLOMBIA: PROJECT COMPLETION REPORT A XII LOANS 903-CO AND 1223-CO Financial Statements - Corporaci6a Financiera Aliadas Unaudited accounts as of December 31 (All amounto in Col$ million) 1975 196 197 198 1979 (Audited) L^uaeu; Balance Sheet ASSETS Cash receivables and other short-term assets 5.5 16.2 54.9 199.9 264.4 Export-import financing 20.6 32.2 50.6 191.0 154.2 Loans due within one year 4.0 A.'4.. 2.08 Current Assets 72.1 162.4 401.5 990.7 1 §0. Loans due after one year (net) 7.4 33.5 214.2 138.0 134.0 Equity investments (at cost) 5.3 6.0 48.9 116.2 166.4 Fixed and other assets (net) 3.8 6.7 17.0 178.9 48.7- Total Assets 4 1.1136 U Liabilities and Equity rie.. n.... 1.6 84.8 265.4 668.7 730.9 Loans Payable (current) 27.0 30.4 91.9 190.0 44.2 Due to banks 18.5 27.4 45.2 40.5 133.8 A -counts pay.les. .sa oear short-trm liabilities 1.2 5.4 19.6 38.0 123.8 Current Liabilities 48.3 148.0 425.1 937.2 1,032.7 Bonds payable BR - 1.9 21.0 100.7 101.7 IBRD .- - - 7.7 Other liabilities - - 75.3 64.0 15.0 Medium- and long-term liabilities - 1.9 96.3 164.7 124.4 Share capital 35.2 50.0 140.0 150.0 150.0 Retained earnings and reserves 5.1 8.7 20.2 171.9 1/ 50.0 2/ Networth 40.3 58.7 160.2 321.9 200.0 Total liabilities and equity 88.6 205.6 bul. 1,423.8 1,357.1 Cogtingent Liabilities 88.0 33.2 Ratios8.0 32 Equity investments as % of total assets 6.0 2.9 7.2 8.2 12.3 Current ratio 1.5 1.1 0.9 1.0 0.98 Total debt/equity 1.2 2.6 3.3 3.7 3/ 2.2 3/ Equity portfolio as %of networth 13.0 10.0 38.0 60.1 83.2 Annual growth of total assets - 5.0 2*. i0- 4.& Current assets/networth 1.8 2.8 2.5 3.1 3/ 1.9 3/ Income Statement Total income 10.1 31.8 92.4 237.8 337.9 Financial expense 2V-I Gross Spread 7.8 15.6 34.8 78.6 91.8 Administrative expenses 2.3 4.0 8.9 24.2 35.8 Provision for losses - - - - 0.5 Taxes .7 3.7 7.9 16.9 15.6 Net Profit 4,8 7.9 18.0 37.5 39.9 Dividends - 6.6 n.a. 32.4 34.2 Ratios 2/ Gross spread as %-6f average total assets (ATA) 17.6 10.5 7.8 7.9 6.9 Administrative costs as I of ATA 5.2 2.7 2.0 2.4 2.7 Net profit as % of ATA 10.8 5.3 4.0 3.7 3.0 Net profit as 2 of average equity 24.0 16.0 16.5 21.3 20.3 Dividends as % of year end share capital 0.0 13.2 - 21.6 22.8 Dividend pay-out ratio 0.0 82.5 - 85.7 1/ Include revaluation of assets estimated at ColS129.4 million. 2/ Excludes revaluation of assets estimated at ColS342.4 million. 3/ Includes revaluation of assets. - 50 - ANNEX XIII COLOMBIA: PROJECT COMPLETION REPORT LOANS 903-CO AND 1223-CO Man-weeks Spent on Financiera Projects FY80 FY72- FY76- FY72 FY73 FY74 FY75 FY76 FY77 FY78 FY79 fEst. Fy-75 V70 PRE/ PN - 0.5 3.3 22.8 0.1 0.1 6.3 3.1 8 26.6 9.6 APR/NGB 36.2 69.4 - 26.2 39.9 - 79.6 - 57 131.8 119.5 SPN 3.3 51.1 35.9 44.0 10.2 82.2 21.4 44.7 25 134.3 158.5 SWO N/A N/A 21.4 17.8 - 0.9 17.2 37.8 6 39.2 55.9 TOTAL 39.5 121.0 60.6 110.8 50.2 83.2 124.5 85.6 96 331.9 343.3 Note: Figures include all time of projects staff and consultants. Aopraisal/Negotiation Time Fifth Loan 105.6 m/w LL i LoaI 00. 1 MW Seventh Loan 79.6 m/w EigthLon 5 (-s.)