WASHINGTON -- World Bank officials Wednesday announced that they have surpassed the $1 billion mark in credit extended through their innovative cofinancing techniques involving commercial banks.
They reached the milestone Wednesday after the World Bank approved participation in a pair of commercial loans totaling $487 million to Hungary. Officials at the World Bank said they have been promoting the cofinancing approach because it allows them to share any credit risk with commercial banks around the world.
Manufacturers Hanover, Ltd., London, was one of the four lead banks coordinating a $385 million Eurodollar loan to the National Bank of Hungary. The Arab Banking Corp., London; IBJ International, Ltd. Standard Chartered Bank, London, also helped arrange the loan. The remaining credit was extended in the form of Japanese Yen through The Industrial Bank of Japan, Ltd. and The Dai-Ichi Kangyo Bank, Ltd.
Including the two latest loans to Hungary, the World Bank and commercial banks have joined forces to extend $1.07 billion in credit since Sept. 13, 1983, when the Bank began offering its innovative cofinancing instruments. Using those schemes, the World Bank has provided $125.6 million in loans, while commercial lenders contributed the remaining $940.4 million. …