The Bank of Japan and the World Bank signed an agreement today, February 12, in Tokyo for the loan to the World Bank of Yen 36,000,000,000 (U.S. $100,000,000 equivalent). This loan, carrying interest at the rate of 7.14% per annum, will be repaid in five equal installments from February 1973 to February 1975.
The Bank of Japan, in announcing the loan to the World Bank, noted:
"In view of the recent developments of Japan's balance of payments, The Bank of Japan has decided to extend the above loan to the World Bank, which has made a great contribution toward the development of the Japanese economy for many years, in order to help the World Bank's activities and thereby strengthen international monetary cooperation."
In commenting on the transaction Robert S. McNamara, the President of the World Bank, said:
"I am particularly pleased at this first Yen loan from Japan, a country with which we have had a long partnership in the development process. It is most gratifying that at this stage Japan is able and willing to make its resources available to help others in this same development process.
"I would also like to express my warm thanks to the Japanese Government, and to The Bank of Japan who have helped us so generously in completing this notable transaction."
