Announcement of World Bank Places Loans to Iraq in Nonaccrual Status on December 21, 1990

FOR IMMEDIATE RELEASE 'Norld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 NEWS RELEASE NO. 91/F27 Contact: Sheldon Rappaport (202) 473-1797 WORLD BANk PLACES LOANS TO IRAQ IN NONACCRUAL STATUS WASHINGTON, December 21, 1990 -- The World Bank has placed all loans to, or guaranteed by, Iraq in nonaccrual status effective December 17, 1990. This action was in accordance with the Bank's policy of placing all of its loans to, or guaranteed by, a country in nonaccrual status if payment on any of those loans is overdue by more than six months. Iraq's assets have been frozen since August. Since that time it has been unable to make its debt service payments to the Bank. The principal amount outstanding on loans to Iraq is about US$51.4 million equivalent in various currencies or about 0.05 percent of the Bank's total outstanding loans. Overdues from Iraq total about $10.2 million, consisting of $7.1 million of principal and $3.1 million in interest and other charges. There are now nine countries in nonaccrual status.