§ The International Development Association (I.D.A.) an affiliate of the World Bank, today announced that its executive directors have recommended and transmitted to Member Governments for approval a proposal for a replenishment of I.D.A.'s resources in the amount of $1,200 million. In 1964, the first replenishment approximately to $750 million.
§ Eighteen member countries, plus Switzerland, propose making available to I.D.A. for lending on development projects in the poorer countries of the world $400 million annually for three years. The first payment by the contributing countries is scheduled for 8th November, 1968.
§ Under the terms of this proposal, the eighteen Member countries would make contributions to I.D.A. equivalent to $1,170.5 million in the amounts shown below:
| Country | (U.S. Dollars) |
| Australia | 24,000,000 |
| Austria | 8,160,000 |
| Belgium | 20,400,000 |
| Canada | 67,200,000 |
| Denmark | 12,120,000 |
| Finland | 3,720,000 |
| France | 97,200,000 |
| Germany | 117,000,000 |
| Italy | 48,360,000 |
| Japan | 66,480,000 |
| Kuwait | 5,400,000 |
| Luxembourg | 600,000 |
| Netherlands | 26,520,000 |
| Norway | 10,680,000 |
| South Africa | 3,000,000 |
| Sweden | 24,120,000 |
| United Kingdom | 155,520,000 |
| United States | 480,000,000 |
§ also, five of these countries—Canada, Denmark, Finland, The Netherlands and Sweden—propose to make available the equivalent of $17,520,000 in supplementary contributions to I.D.A. during the same period and on the same payment terms.
§ Completing the package of additions to I.D.A.'s resources, the Swiss Confederation, not a member of the I.D.A., would make a 50-year interest-free loan equivalent to approximately $12 million payable in three equal instalments on 1st July, 1968, 1st July, 1969, and 1st July, 1970.
§ The combined total from above resources would enable I.D.A. to make new lending commitments of $1,200 million up to 30th June, 1970. I.D.A.'s uncommitted funds, as of 29th February, 1968, had dwindled to $52 million. All these funds are earmarked for specific "credits" (as I.D.A. loans are called) expected to be approved and signed before next 30th June.
§ Plans call for a sizeable backlog of other credits to be processed and approved by 30th June and to be signed as soon as the second replenishment becomes effective.
§ The target date for the replenishment to become effective is 30th June, 1968. At least 12 countries, pledging not less than $950 million, must formally notify I.D.A. by that date that they will make their specified con- 369W tributions, in order for the obligation to become binding on any of the countries. However, I.D.A.'s executive directors may extend the closing date beyond 30th June, if they see fit, in view of the differing procedures which must be followed by the various legislative bodies. The replenishment proposal is based upon the continuation of I.D.A.'s present policy of requiring full international competition for procurement of goods and services financed by I.D.A. However, in view of the present serious balance of payments problems of the United States, this proposal provides that, during the three years ending 30th June, 1971, and for as long thereafter as permitted by the state of its resources, I.D.A. would call upon the United States contribution to meet disbursements on new credits only for the amount needed to finance procurement in the United States. Thus, during that period, payments under the second replenishment would have no adverse effect on the United States balance of payments. Amounts deferred, however, would be subject to subsequent call, thus permitting the entire amount of the replenishment to be committed.
§ As a necessary corollary to this deferment arrangement for the United States, a number of other participating countries have agreed to permit a compensating acceleration of I.D.A.'s drawings upon their contributions in order to meet its disbursement requirements.