China - Financial Sector Technical Assistance Project

Document of The World Bank FOR OFFICIAL USE ONLY 1kspQrlt. Nu : - C.Yi ? '1. -iA :'t, r - V, AUtlDr: KAINANC AL ;5EK'19in. 7EC,B1 AL Ek>. Report No. P-5674-M, Autlho r KAI' hvA E s MEMOIRANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 42.1 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT AUGUST 27, 1992 This document bas 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.  CURRENCY EQUIVt.LENTS (as of August 1992) Currency Name: Renminbi Currency Unit: Yuan (Y) I Yuan 100 Pen $1.00 - Y 5.5 1 Yuan $0.18 ABBREVIATIONS AAPRC - Audit Administration of the People's Republic of China ADB - Asian Development Bank GOC - Government of China JGF - Japanese Grant Facility MOF - Ministry of Finance NBFI - Nonbank Financial Institution PBC - People's Bank of China FISCAL YEAR January 1 - December 31  FOR OMCIAL USE ONLY CHINA FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT Credit and Prolect Summars Borrower: People's Republic of China Beneficiary: The People's Bank of China (PBC) Credit Amounts SDR 42.1 million ($60 million equivalent) Terms of Credit: Standard, with 35 years maturity Financint Plan: Local Foreian Total ---- ($ million) ---- IDA 1.5 58.5 60.0 Japan Grant Facility 0.2 4.4 4.6 People's Bank of China 0.9 - 0.9 Ministry of Finance 0.2 - 0.2 Audit Administration of the People's Bank of China 1* - la Total 2.8 62.9 65.7 La The amount is $19,000. Economic Rate of Not applicable Return: Staff Apgraisal Report: Report No.10072-CHA This document has a restricted distribution and may be used by recipients only in the performance |of their offcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE PEOPLE'S REPUBLIC OF CHINA FOR A FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT 1. I submit the following memorandum and recommendation on a proposed credit of SDR 42.1 million ($60.0 million equivalent) to the People's Republic of China to help finance a Financial Sector Technical Assistance Project. The credit would be on standard IDA terms with 35 years maturity. The Government of Japan is providing a cofinancing grant of $4.6 million equivalent. 2. Background. Prior to 1979, China had virtually a monobank system in which most financial transactions were handled by the People's Bank of China (PBC) with two other banks--the People's Construction Bank of China (PCBC) and the Bank of China (BOC)--providing specialized services, the former as channel for budgetary funds to state-owned enterprises and the latter as channel for all foreign exchange transactions. There was also a network of rural credit cooperatives (RCCs). Allocation of resources was primarily by fiscal direc- tive; nonbank financial institutions (NBFIs) were virtually nonexistent; and financial instruments were limited to cash and bank deposits. Financial reforms started in 1979 with the restoration of PBC as the country's central bank and the reestablishment of the Agricultural Bank of China (ABC) as a specialized bank to take over PBC's rural banking functions. In 1984, PBC's formal establishment as the central bank was completec with the divestiture of its urban commercial banking functions to the newly created Industrial and Commercial Bank of China (ICBC). Reforms began to deepen in 1986, and the financial sector has since undergone a rapid transformation. Many advances have been made, while significant development challenges remain, a number of which are addressed under the proposed project. 3. The financial sector has grown and diversified to include, in addi- tion to the institutions mentioned above, two comprehensive nationally repre- sented banks, a development bank, numerous urban credit cooperatives and a large number of NBFIs of various types (trust and investment corporations, leasing companies, security corporations and insurance companies). Moreover, the range of financial instruments has broadened to also include government bonds, commercial paper, bankers acceptances, trade bills and bond-like enter- prise shares. PBC has begun to develop increasingly sophisticated indirect tools for monetary control and to give a larger role to interest rates in mobilizing savings and, to a lesser extent, in allocating resources. The various reforms have led to considerable financial deepening and succeeded in reducing the role played by the budget in investment financing, while substan- tially increasing the role of bank finance. A voluntary market in government securitier is beginning to develop and two formal stock exchanges have been opened in Shanghai and Shenzhen, while informal securities markets exist in many other cities. Financial institutions have developed some, albeit still limited, autonomy in making lending decisions and most major banks are now in principle responsible for their own profits and losses.  - 2 - 4. Notwithstanding these advances, there remains substantial scope for further strengthening. The system is still overwhelmingly dominated by insti- tutions (mainly banks), accounting for more than 90 percent of total financial assets, reflecting the still nascent money and capital markets. Financial intermediaries continue to be characterized by rudimentary management skills. Price competition exists only to a limited extent and government intervention in credit allocation--directed credit--remains greater than desirable, even for a country in which many prices remain distorted. While the rapid abate- ment of the high inflation in the late 1980s caused most interest rates (excepting some priority lending rates and some deposit rates) to reach posi- tive real lev'ls, inflationary pressures have increased, wnich may lead to a need for an tard adjustment in the level of interest rates. Moreover, the interest rate structure is characterized by a large number and wide dispersion of rates. Although firm data are lacking, there has been a deterioration in the quality of bank portfolios, while the level of provisions for bad debt is insignificant and inadequate as a consequence of Ministry of Finance (MOF) guidelines limiting the allocations a bank can make. The financial stability of banks has also been affected by the changing composition of their assets and liabilities. 5. Perhaps most importantly, a number of the essential institutional foundations for the sound functioning of any financial system require further strengthening. Most of these fall under the current mandate of the PBC, with some also under the purview of MOF. In particular, prudential regulations are virtuslly nonexistent and PBC's capability to supervise banks is just develop- ing; the accounting framework needs significant modernization and at present does not permit an accurate reading of financial conditions; the absence of a modern payment and clearing system results in inefficiencies in the movement of funds; the legal framework for the sector remains incomplete; and the strategy and tools for government domestic debt management and the conduct of indirect monetary policy are currently just developing. 6. Lessons Learned from Previous Bank Operations. The Bank Group has financed five loan and credit operations to the China Investment Bank (CIB) to support the development of a term lending institution, which, in turn would foster the development of light industry. Bank Group involvement also com- prised four rural credit operations with the Agricultural Bank of China. Fur- thermore, CIB, and, in recent years, a number of other financial institutions have been channels for Bank Group support for industrial development and restructuring in metropolises such as Tianjin and Shanghai through city-based projects, in provinces such as Gansu through province-wide projects, and in rural areas through the cross-provincial Rural Industrial Technology (Spark) Project. The implementation record has generally been satisfactory with respect to the specific objectives of the operations. However, the country- wide economic reforms over the last decade that transformed today's China virtually into a mixed economy have also meant that the financial system as such as has come under increasing pressure to adjust as well. Achieving the objective of efficient financial intermediation is predicated on the develop- ment of a sound regulatory framework and solid institutions, he-e the atten- tion given to the development of the financial sector infrastructure under this operation. The earlier operations have provided the Bank Group with a basic understanding of the Chinese financial system; this was further enhanced through a Financial Sector Review (Report No. 8415-CHA, June 29, 1990). The  insights gained and analysis effected have served as the basis for the design of this financial sect .r technical assistance project. 7. Rationale for Bank Group Involvement. Development of an efficient financial sector is crucial to the success of China's economic reform program; enhancing PBC's institutional capabilities and relevant capabilities of MOP are key to strengthening the sector. The Bank Group has played a role in identifying sector issues and providing recommendations for their resolution, most recently iia the framework of the Financial Sector Review. The proposed project would provide a vehicle for supporting the implementation of the report's key recommendations and help to ensure the success of other planned Bank Group operations involving financial intermediation. These other opera- tions would complement the proposed project in supporting institutional upgrading of individual intermediaries. The proposed project would pave the way for certain policy reforms (notably in the areas of bank regulation, supervision and accounting) and would provide a forum for continuing dialogue on other reforms (in the areas of interest rates, directed credit, bank finan- cial condition and provisions policy). 8. Proiect Oblectives. The main objective of the proposed project is to support the development of an efficient and stable financial sector by strengthening key financial sector institutions. Achievement of this objec- tive will in tur.n improve the efficiency and effectiveness of resource mobili- zation and allocation. Other objectives include providing the Government of China (GOC) a noninflationary means of budgetary financing through development of the government securities market and providing PBC with tools to conduct monetary policy in a way which is conducive to the maintenance of macroecono- mic stability. It was agreed during negotiations that GOC, IDA ard PBC would annually review progress in financial sector reform, with reference to selected areas (interest rates, directed credit, financial sector legislation, loar loss provisions policy and bank financial condition and performance). These discussions would also serve as a vehicle for the Bank Group to update its knowledge of the composition and structure of the financial sector. 9. Proiect Description. The proposed project will support technical assistance, training and/or equipment for the following key compinents: (a) strengthening PBC's functions in the areas of banking system regulation, supervision (including the conduct of portfolio reviews of selected branches of the specialized banks) and accounting (including the development of new accounting standards for the financial sector and strengthening of PBC's own accounting f4nction); (b) helping MOF modernize the overall accounting frame- work and helping the Audit Administration of the People's Republic of China (MPRC) modernize audit standards; (c) supporting the development of a more efficient payment and clearing ^ystem; (d) strengthening PBC's capabilities to more effectively fulfill its role as a fiscal agent and MO's goverrnment domestic debt management role; (e) strengthening PBC's statistics and research and monetary policy functions; (f) supporting selected activities of PBC's legal department; (g) strengthening PBC's Graduate School; and (h) undertaking a study on the management of directed credit. The project would complement support being provided to PBC by the Asian Development Bank to develop the .igulatory framework for the capital market. A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of procure- ment and of disbursements, and the disbursement schedule are shown in Sched- ule B. A timetable of key project processing events and the status of Bank  - 4 - Group operations in China are given in Schedules C and D, respectively. The Staff Appraisal Report, No. 10072-CHA, dated August 25, 1992 is being distrib- uted separately. 10. Actions Agreed. At negotiations agreements on the following were obtained: (a) PBC and MOF to conclude consultants' contracts for the PBC and MOF accounting cumponents and PBC supervision component as a condition of credit effectiveness; (b) PBC to develop its supervision capacity by carrying out comprehensive asset reviews of the four specialized banks: the first round of which will necessitate 6 years starting 1993; (c) MOF to raise the ceiling on the permissible level of loan loss provisions to at least 0.5 percent of a financial institution's portfolio by end 1992; (d) HOF to develop over three years, new accounting standards in harmony with international generally accepted accounting principles, following a schedule agreed with IDA, and (e) PBC to present IDA a proposed timetable for enactment of prudential regu- lations within four months of completion of related consulting services. 11. Benefits and Risks. By strengthening regulation and supervision of financial intermediaries, the proposed project will help _o ensure that the full benefits of financial sector reform and increased institutional diversity are reaped and not outweighed by enhanced sector instability. Accounting reforms will make it possible for banks to accurately evaluate potential bor- rowers' financial conditir,.s., give bank and enterprise managers the tools to understand their performance and accordingly adapt their management strate- gies, and facilitate capital market development. A modern payments and clear- ing system will make economic transactions more efficient, and strengthened domestic debt management will enable the GOC to finance itself in a manner conducive to price stability. One project risk is that implementation of financial reforms will not proceed at the pace required to create a favorable environment for project implementation. While the 1989-91 austerity program has entailed some strengthening of administrative controls, the authorities' commitment to economic, including financial sector reform remains firm, pro- vided such reforms are consistent with macroeconomic stability. Moreover, even if specific financial sector reforms are delayed, the project is still considered justified, given the long-term nature of institutional development and the need to prepare the ground now for the time when their implementation becomes possible. To guard against the risk that the project will overtax the absorptive capacity of beneficiary institutions, each institution has estab- lished a project management team, while IDA will closely supervise the proj- ect. 12. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President Attachments Washington, D.C. August 27, 1992  - 5 - Schedule A CHINA EINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT Summary of Prolect Costs and Financina Plan ($ million) Local Foreign Total Estimated Prc:ect Costs PBC Regulation and Supervision 0.5 5.8 6.3 Payment and Clearing 0.1 42.5 42.6 Accounting 0.7 3.5 4.2 Internal Audit 0.1 - 0.1 Research and Statistics 0.1 1.5 1.6 Fiscal Agency/Monetary Policy - 1.6 1.6 Legal 0.1 0.2 0.3 Graduate School - 0.5 0.5 Automation Strategy Study - 0.2 0.2 Directed Credit Study /a /a MOF Accounting 0.7 2.4 3.1 Domestic Debt Management - 1.1 1.1 Debt Monitoring 0.1 0.2 0.3 MAPRC Standards Development - 0.2 0.2 Total Base Cost 2.5 59.7 62.2 Physical contingencies 0.2 1.6 1.8 Price contingencies 0.1 1.6 1.7 Total Proiect Cost 2.8 62.9 65.7 Financina Plan IDA 1.5 58.5 60.0 JGF 0.2 4.4 4.6 PBC 0.9 - 0.9 MOF 0.2 - 0.2 AAPRC /a ka Total 2.8 62.9 65.7 la Less than $100,000.  - 6 - Schedule B Page 1 CHINA FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT Procurement hethod and Disburseqents /a ($ million" Procurement Method Total Project Element ICB LCB Otherl_b N.B.F./c Cost 1. Good- 1.1 Paymunt System Equipment 36.7 - - - 36.7 (36.7) (36.7) 1.2 Other - 1.01d 1.0/d 0.2 2.2 (1.0) (1.0) (2.0) 2. Technical Assistance - - 23.1/eLf 3.7 26.8 & Training - (21.3) (21.3) Total 36.7 1.0 24.1 3.9 65.7 (36.7) (1.0) (22.3) (60.0) ia Figures in parenthesis are the amounts to be financed by the IDA Credit. Lb_ TLternational or local shopping. ic N.B.F.: Not Bank-Financed. Includes administrative overheads to be financed by MOF, PBC and AAPRC as well as items to be financed by the JGF in parallel with the IDA Credit. Id Amounts allocated are indicative until final detailed procurement plans are prepared by MOF and PBC and agreed with IDA. le Includes $1.8 million in consultant ser7ices to be financed by the JGF under one contract with services to be financed by the IDA Credit. /f Services would be procured in accordance with World Bank "Guidelines: Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" (Washington, D.C., August 1981).  -7 - Schedule B Page 2 Disbursements ($ million) Disbursement Category .Amount Percentage to be Financed Consultant Services and Training 21.3 100% Goods under all components 38.7 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 75Z of local expenditures for other items procured locally. Total 60.0 Estimated IDA Disbursements: IDA Fiscal Year FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY2000 --- - ---- ($ million) -------------------- Annual 3.0 2.7 4.4 9.6 12.0 15.8 9.0 2.5 Cumulative 3.0 5.7 10.1 19.7 31.7 48.5 57.5 60.0  - 8 - Schedule C CHIN FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT Timetable of Key Pro1ect Processing Events Time taken to prepare the project: 11 months Prepared bys Government with Bank Group assistance First IDA mission: October 1990 Appraisal Mission Departure: September 1991 Date of Negotiations: July 27-31, 1992 Planned Date of Effectiveness: December 1992 List of relevant PCRs and PPARs: Credit/Loan No. Proiect PCR Date PPAR No. Loan/Credit 2226/1313-CHA China Investment Bank June 21, 1990 Loan/Credit 2434/1491-CHA China Investment Bank II May 21, 1991 9945 Loan/Credit 2659/1594-CHA China Investment Bank III May 21, 1991 9945 Credit 1462-CHA Rural Credit June 11, 1990  Schedule 0 Page I STATUS OF SANK GROuP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA A. STATEMENT OF SANK LOANS AND IDA CREOITS (AS of 4une 30 1992) Loan/ Amount (USS million) Credit Sor- (net of cancellations) Umber FY rower Purpose Bank IDA Und . fa) Fourteen loans and twenty-four credits have been fully disburse 1337.94 1362.9 Of which SECAL: 2967/1932 88 PRC Rural Sector AdJ. 200.0 100.0 . ............ 1411 84 PRC Polytechnic/TV University - 85.0 3.4 2382 84 PRC Lubuge Hyaroelectric 141.4 1.0 2444/1500 84 PRC Agricultural Education II 45.3 (23.5)(b) 1.4 1551 85 PRC University Oevelopment II - 145.0 6.3 2493 85 PRC Power II 117.0 6.3 2501 85 PRC Changeun (Luan) Coal Mining 79.5 - 37.6 2540 85 PRC Railway It 220.0 49.9 2580 85 PRC Weiyuan Gas Field Technical 25.0 - 0.4 Assistance 1664 86 PRC Technical Cooperation Credit J' - 20.0 13.9 1671 86 PRC Provincial Universities - 120.0 2.8 2678/1680 86 PRC Third Railway 160.0 70.0 82.5 2689 86 PRC Tianjin Port 130.0 48.8 1689 86 PRC Freshwater Fisheries - 60.0 1.8 2706 86 PRC Beilunqang Thermal Power 225.0 21.3 2707 86 PRC Yantan Hydroelectric 52.0 13.5 2723/1713 86 PRC Rural Health & Preventive Med. 15.0 65.0 37.5 1733 87 PRC Red Soils * 40.0 0.3 2775 87 PRC Shuikou Hydroelectric 140.0 29.0 2783/1763 87 PRC Industrial Credit IV (CIS IV) 250.0 50.0 92.3 2784 87 PRC Shanghai Machine Tools 100.0 18.8 1764 87 PRC Xinjiang Agricultural Oev. 70.0 19.4 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 81.5 2811/1792 87 PRC Beijing-Tianjin-Tanggu Expressway 25.0 1c5.0 43.8 2812/1793 87 PRC Gansu Provincial Oev. 20.0 150.5 76.5 1835 87 PRC Planning Support & Special Studies 20.7 12.5 2838 87 PRC Fertilizer Rationalization 97.4 11.4 2852 87 PRC Wujing Thermal Power 190.0 * 50.7 1871 88 PRC Rural Credit III 170.0 16.3 2877/1845 88 PRC Huangpu Port 63.0 25.0 58.7 2907/1875 88 PRC Dalian Port 71.0 25.0 25.3 1885 88 PRC Northern Irr zition 103.0 43.5 2924/1887 88 PRC Coastal Lands Dev. 40.0 (60.0)(b) 17.5 1908 88 PRC Teacher Training 50.0 8.2 2943 88 PRC Pharmaceuticals 127.0 19.3 2951/1917 88 PRC Sichuan Highway 75.0 50.0 84.8 2952 88 PRC Shaanxi Highway 50.0 11.3 1918 88 PRC Oaxing An Ling Forestry 56.9 9.9 2955 88 PRC 8.elungang 11 165.0 34.5 2958 88 PRC Phosphate 0ev. 62.7 48.4 2968 88 PRC Railway IV 200.0 - 89.3 1984 89 PRC Jiangxi Provincial Highway - 61.0 36.4 1997 89 PRC Shaanxi Agricultural Dev. 106.0 75.7 2006 89 PRC Textbook Development - 57.0 4.1 2009 89 PRC Integrated Reg. Health 52.0 40.4 3006 89 PRC Ningbo & Shanghai Ports 76.4 24.9 3007 89 PRC Xiamen Port 36.0 . 28.6 3022 89 PRC Tianjin Light Industry 154.0 - 110.4 3060/2014 89 PRC inner Mongolia Railway 70.0 80.0 97.1  Schedule 0 Page 2 Loan/ Amount (USS million) Credit 8or (net of cancellations) Number FY rower Purpose Bank IDA Undisb. (a) 2017 89 PRC Shandong AgricuLture Oev. 109.0 43.7 3066 89 PRC Hubei Phosphate 137.0 - 129.4 3073/2025 89 PRC Shandong Prov. Highway 60.0 50.0 67.8 3075 89 PRC Fifth Industrial Credit 300.0 - 201.5 2097 90 PRC Jiangxi Agric. Dev. 60.0 45.2 2114 90 PRC Vocational & Tech. Educ. - 50.0 38.5 2145 90 PRC National Afforestation 300.0 234.2 2159 90 PRC Hebe1 Agricultural Dev. 150.0 107.1 2172 91 PRC Nid-Yangtze Agricultural Dev. 64.0 49.5 3265/2182 91 PRC Rural Credit IV 75.0 200.0 162.7 327412186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 110.1 3286/2201 91 PRC Medium-sized Cities Oev. 79.4 89.0 147.8 3288 91 PRC Shanghai Industrial Dev. 150.0 - 148.5 2210 91 FRC Key Studies Development - 131.2 121.5 2219 91 PRC Liaoning Urban Infrastructure - 77.8 49.9 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 53.6 101.4 2242 91 PRC Henan Agricul. Dev. 110.0 105.0 3337/2256 91 PRC Irrig. Agricul. Intensif. 147.1 187.9 274.1 3387 92 PRC Ertan Hydroelectric 380.0 240.9 2294 92 PRC Tarim Basin - 125.0 123.5 2296 92 PRC Shanghai Metro Transport 60.0 59.3 3406 92 PRC Railways V 330.0 - 330.0 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 62.0 2307 92 PRC Guangdong ADP 162.0 165.6 3415/2312 92 PRC Beijing Envirornent 45.0 80.0 120.8 2317 92 PRC infectious and Endemic Disease Cont - 129.6 130.8 3433 92 PRC Yanshi Thermal Power 180.0 168.1 2336 92 PRC Rural Water Supply and Sanitation 110.0 112.5 2339 92 PRC Educ. Developmen; in Poor Provs. - 130.0 132.9 3443 92 PRC Regional Cement Industry (c) 82.7 - 82.7 3462 92 PRC Zouxian Tnermal Power (c) 310.0 310.0 3471 92 PRC Zhejiang Provincial Highway (c) 220.0 - 220.0 2387 92 PRC Tianjin Urban Devt. & Envir. (c) 100.0 100.0 2391 92 PRC Ship Waste Disposal (c) - 15.0 15.0 .... ..... _........... Total 7459.4 5853.7 6167.7 of which has been repaid 487.7 1.1 Total now held by Bank and IDA 6971.7 5852.6 Amount sold: Of which repaid - Total Undisbursed 3562.4 2605.3 6167.7 (a) As credits are denominated in SORs (since IDA Replenishment VI). undisbursed SOR credit balances are converted to dollars at the current exchange rate between the dollar and the SOR. In soam cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. Cc) Not yet effective.  Schedule O Page 3 S. STATEMENT OF IFC INVESTMENTS (As of June 30, 1992) Invest- Type of Loan Equity Total ment No. FY Borrower Business ..... (USS Million) ...... 813/2178 85/91 Guangzhou and Peugeot Automobile 15.0 4.5 19.5 974 87 China Investment Co. Investment 3.0 0.0 3.0 1020 87 Shenzhen China Sicycle 5.0 - 5.0 Bicycles Co. Ltd. Manufacture 1066 88 Crown Electronics Electronics 15.0 - 15.0 1119 89 Shcnzhen Chronar Solar Solar (a) 2.0 1.0 3.0 Energy Energy Total Gross Comitments 40.0 5.5 45.5 Less cancellations, terminations 2.0 - 2.0 repayment and sales Total Comnitments now Held by IFC 38.0 5.5 43.5 Total Jndisbursed 0.0 - 0.0 (a) Loan subsequently cancelled. 07/10/92 EAZDR