2010 SELECTIVE CAPITAL INCREASE

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 2010 SELECTIVE CAPITAL INCREASE PROCEDURES FOR SUBSCRIPTIONS TO CAPITAL STOCK OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT UNDER THE PROPOSED 2010 SELECTIVE CAPITAL INCREASE Washington, D.C. July 2010

2 TABLE OF CONTENTS Page I. INTRODUCTION... 1 II. NOTICE OF INTENTION TO SUBSCRIBE... 1 III. FORM OF SUBSCRIPTION... 1 IV. PAYMENT ARRANGEMENTS... 2 V. LEGISLATIVE AUTHORIZATION OF ADDITIONAL SUBSCRIPTIONS... 4 VI. MEMORANDUM OF LAW... 4 VII. REPRESENTATION... 4 VIII. SUBSCRIPTION PERIOD... 5 IX. ADJUSTMENT OF VOTING POWER... 5 X. FURTHER INFORMATION... 5 ANNEX A: Proposed 2010 Selective Capital Increase Resolution... 6 ANNEX B: Form of Subscription ANNEX C: Number of Shares Allocated and Payment Amounts ANNEX D: List of IDA Members Not Eligible to Borrow from IBRD ANNEX E: Instructions on Payment by Note APPENDIX A to ANNEX E: Form of Request for Capital Subscription Payments by Note APPENDIX B to ANNEX E: Form of Note APPENDIX C to ANNEX E: Form of Confirmation of Deposit of Note... 23

3 - 1 - I. INTRODUCTION 1. On July 20, 2010, a Report entitled New World, New World Bank Group - Enhancing Voice and Participation of Developing and Transition Countries and 2010 General Capital Increase (R /4) was approved by the Executive Directors of the International Bank for Reconstruction and Development (Bank). Attached to the Report is a draft Resolution entitled 2010 Selective Increase in Authorized Capital Stock to Enhance Voice and Participation of Developing and Transition Countries (Selective Capital Increase Resolution), a copy of which is attached as Annex A. The Selective Capital Increase Resolution (SCI Resolution) proposes an increase in the Bank s authorized capital and authorizes the acceptance of increases in members subscriptions to the capital stock of the Bank. 2. On July 21, 2010, the SCI Resolution was submitted to the Governors of the Bank for their voting with a deadline of September 10, 2010, subject to extension by the Executive Directors of the Bank. 3. The purpose of this booklet is to describe the steps for subscribing to the additional shares as authorized for each member in paragraph 2 of the SCI Resolution. II. NOTICE OF INTENTION TO SUBSCRIBE 4. The Bank shall start accepting subscription to additional shares when the SCI Resolution has been adopted by the Governors. However, it is suggested that members who wish to subscribe shares under the SCI Resolution notify the Bank as soon as possible of their intention to do so. Such notification, which does not constitute a binding commitment on the part of the member, helps the Bank in its financial planning. 5. This notification may be transmitted either by , facsimile or courier. If transmitted by e- mail attachment, the address is corpsecmembers@worldbank.org; if transmitted by facsimile, the number is (202) or (202) ; if transmitted by courier, the address is The World Bank Group, Room MC11-351, 1818 H Street, NW, Washington, D.C , U.S.A. III. FORM OF SUBSCRIPTION 6. Each member subscribing to additional shares of the capital stock of the Bank is required to furnish the Bank with a Form of Subscription for such increase, which shall be substantially in the form attached as Annex B. The terms and conditions of such subscriptions are provided in paragraph 3 of the SCI Resolution. 7. In accordance with paragraph 3(f) (iv) of the SCI Resolution, those members 1 that were allocated shares under paragraph 2 column 1 on the basis of the member s commitment to provide agreed contributions to the Sixteenth Replenishment of the resources of the International Development Association (IDA), shall first deposit with IDA an Instrument of Commitment under IDA16 Replenishment in the amount agreed between the member and the Bank. 1 Members that committed to provide contributions to IDA16 Replenishment were Argentina, Chile, Islamic Republic of Iran, Kuwait, Peru, Philippines, Russian Federation and Saudi Arabia.

4 The Form of Subscription and Instrument of Commitment may be transmitted either by , facsimile or courier. If transmitted by attachment, the address is if transmitted by facsimile, the number is (202) or (202) ; if transmitted by courier, the address is The World Bank Group, Room MC11-351, 1818 H Street, NW, Washington, D.C , U.S.A. IV. PAYMENT ARRANGEMENTS 9. Under the SCI Resolution, a member s subscription to shares is conditioned upon the free and immediate use of national currency paid-in capital. To ensure that funds paid-in are immediately usable by the Bank in its operations, payments for subscriptions to the SCI will be made in cash. In lieu of cash, for any member that has legislative constraints requiring payment for subscriptions by note, the Bank will also accept notes deposited by the member. The specific amounts to be paid by each member are shown in Annex C. 10. The Bank's capital stock is expressed in the Bank's Articles of Agreement in terms of United States Dollars of the weight and fineness in effect on July 1, 1944 (1944 Dollars). On October 14, 1986, the Executive Directors of the Bank decided, with effect starting on June 30, 1987 and until such time as the relevant provisions of the Articles of Agreement are amended, to interpret the words United States Dollars of the weight and fineness in effect on July 1, 1944 in Article II, Section 2(a) of the Articles of Agreement of the Bank to mean the Special Drawing Right (SDR) introduced by the International Monetary Fund, as the SDR was valued in terms of United States Dollars immediately before the introduction of the basket method of valuing the SDR on July 1, 1974, such value being equal to current United States Dollars for one SDR (the 1974 SDR). Pursuant to this decision, subscription payments will be calculated at the rate of current United States Dollars equals one 1944 Dollar (or 1974 SDR), corresponding to 120,635 United States Dollars per share. 11. The paid-in portion is equal to 6% of the total subscription price of shares, payable as follows: A. Payment of the United States Dollar Portion The subscribing member shall pay 0.6% in United States Dollars. Payment of the 0.6% portion is to be made to the IBRD account with the Wells Fargo Bank N.A., New York, Account Number (ABA ). The payment must be confirmed by the Wells Fargo Bank N.A. before payment is made effective; and B. Payment of the National Currency Portion The subscribing member shall pay 5.4% is payable in a member s national currency, if freely convertible. Payment of the 5.4% portion is to be made to IBRD Account A with the member s Depository (normally the Central Bank). This amount shall be computed at the market rate of exchange in effect at or immediately prior to the date of payment. The payment must be confirmed by the Depository before payment is made effective. If the member s national currency is not freely convertible, the 5.4% portion is payable in any freely convertible currency. For the purposes of this capital increase, the Bank shall regard as freely convertible currency the currency of a member which the Bank determines is adequately convertible into United States

5 - 3 - Dollars 2. In order to achieve the unrestricted usability of the national currency paid-in portion, the Bank will immediately convert national currencies paid by members into the Central Bank, by transferring the national currencies from the Central Bank into an IBRD operating account and converting them into United States Dollars for use in Bank operations. C. Payment by Note (i) Under the terms of the SCI Resolution, each member acknowledges that the paidin portion of its subscription is needed in the Bank s operations and that the ongoing right under Article V, Section 12 of the Articles of Agreement to substitute notes for a member s currency does not apply to this subscription. However, if a member must pay for its subscription by note due to legislative constraints, the SCI Resolution permits members to make payment by depositing non-negotiable, non-interest-bearing notes payable on demand and issued by the member or its depository. The notes may be denominated in the member s national currency 3 or in United States Dollars. In order to ensure immediate usability, such notes will be encashed by the Bank promptly upon deposit. In the event of any failure to pay on the notes, the voting rights attached to such shares would be subject to suspension within seven days. Members wishing to pay by note are required to submit a request in the form set forth in Annex E. (ii) In the event of any shortfall in payment for shares due to exchange rate fluctuations between the date of issuance of a note and the date of encashment, the member will make a supplemental payment to the Bank within seven days. If no supplemental payment is received by the Bank, the shareholding rights (including voting rights) in respect of the shares represented by the shortfall will be suspended within seven days until full payment is received. If exchange rate fluctuations result in an over-payment by the member, the Bank will apply any excess in payment for additional shares up to the maximum number of shares allocated to the member. Once the member s allocation is fully subscribed, the Bank will promptly return any excess payment to the member. D. IDA-only members As the requirement for payment in freely convertible currency may impose a substantial burden on the foreign currency reserves of low-income countries, members that are recipients of IDA resources and are not eligible to borrow from IBRD (IDA-only members) as of July 1, 2010 (the members listed in Annex D) may pay in their national currencies even if not freely convertible. These national currencies must be freely available for use by IBRD, including the ability to transfer the national currency from the Central Bank into a commercial bank account bearing IBRD s name. 2 As a general guideline, freely convertible currencies are currencies that are readily bought, sold, and converted into other currencies without the need for permission from a central bank or government entity and without government restrictions on the manner and amount that can be traded. By contrast, a currency is not freely convertible if it is exchangeable in certain circumstances but not in others. For example, a country may allow free convertibility for domestic trade transactions but require special approval for international investments in order to maintain government control over flows of such investment in and out of the country. Similarly, a currency is not freely convertible if the government controls the exchange rate or requires permits to exchange more than a certain amount. 3 Provided the currency is freely convertible as provided in paragraph 10 B. above. For the IDA-only members described below the notes could still be denominated in national currency even if not freely convertible.

6 - 4 - V. LEGISLATIVE AUTHORIZATION OF ADDITIONAL SUBSCRIPTION 12. The Bank recognizes that legislative authorization to subscribe to additional shares will vary from country to country. If any member country so requests, the Bank is prepared to review and comment upon any proposed authorization legislation. VI. MEMORANDUM OF LAW 13. In implementing the provisions of paragraph 3(e) of the SCI Resolution, before each subscription shall be accepted by the Bank, each subscribing member is required to furnish the Bank with a Memorandum of Law (legal opinion), signed by a legal officer of the Government who is authorized to give legal opinions on Government action. The Memorandum of Law should set forth: (a) (b) (c) The requirements under the member s law for subscribing to the additional shares of the capital stock of the Bank; reference should be made to the applicable constitutional provisions and laws authorizing the subscription of such additional shares; The manner in which the requirements under the member s law have been fulfilled; reference should be made to the document whereby the subscription is made, and to the authority of the person signing such document validly to bind and obligate the member; and The requirements under the member s law for making payments on the capital subscribed, including the portions of such subscriptions which are left subject to call and any amounts required to be paid in order to maintain the value of the national currency portion of the capital subscription; 4 reference should be made to the applicable legislation enabling such payments to be made as and when due. 14. The Memorandum should conclude by showing, on the basis of the foregoing, that the subscribing member has taken all steps necessary to carry out its obligations under the Articles of Agreement of the Bank with respect to the additional shares of capital stock subscribed and should be accompanied by copies of all documents relied upon in the Memorandum. VII. REPRESENTATION 15. Each subscribing member is also requested to furnish the Bank with a representation, either combined with the Form of Subscription (Annex B), or in a separate statement, to the effect that the member has taken all action necessary to authorize its subscription. 4 See Article II, Sections 5, 7 and 9 of the Articles of Agreement of the Bank. In addition, note that the requirement to make payments in order to maintain the value of the national currency portion of the member s capital subscription would only apply in the case of IDA-only members who elect to pay in their national currency in accordance with the provision at the end of paragraph 3(c) of the SCI Resolution.

7 - 5 - VIII. SUBSCRIPTION PERIOD 16. The SCI Resolution provides that members will have four years from the date of adoption of the SCI Resolution to subscribe to shares allocated to them. Extension for individual countries will be considered for a period of up to 24 months beyond the initial four years. Each request for extension will need to be accompanied by a specific schedule of legislative steps to be taken to subscribe to shares. Any extension beyond the first 12 months will require the approval by the Executive Directors. The Executive Directors expect Management to report periodically on the status of subscriptions and extensions. While early subscription is encouraged, members will be able to customize their own subscription schedule within the five-year subscription period. IX. ADJUSTMENT OF VOTING POWER 17. The voting power of individual members will be adjusted at intervals at which such shares are subscribed and issued to the member. Thus, shares will be considered subscribed and issued to the member, and the corresponding voting power will be adjusted after the Bank has received: (a) the Form of Subscription for such shares; (b) the Memorandum of Law relating to such shares; and (c) the required payments for such shares, all in accordance with paragraph 3 of the SCI Resolution. X. FURTHER INFORMATION 18. Members wishing to obtain additional information on the matters covered in the text should write to the Bank to the attention of: Vice President and Corporate Secretary International Bank for Reconstruction and Development 1818 H Street, NW Washington D.C United States of America Facsimile No: (202) or (202) Address: corpsecmembers@worldbank.org

8 - 6 - ANNEX A INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT [DRAFT] Resolution No Selective Increase in Authorized Capital Stock to Enhance Voice and Participation of Developing and Transition Countries WHEREAS at its April 2010 meeting, the Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries endorsed proposals for the second phase of reforms to enhance the voice and participation of developing and transition countries in the World Bank Group; WHEREAS in their Report approved on July 20, 2010, the Executive Directors recommend that the Board of Governors approves: (a) an increase in the authorized capital stock of the Bank and allocation of shares to members as set forth in Part (A) of this Resolution; and (b) a review of the Bank s shareholding every five years, starting in 2015, as set forth in Part (B) of this Resolution; and WHEREAS in order to achieve the purpose of the special increases in subscription of members, the Executive Directors have noted that it is necessary for all members to waive their rights under Article II, Section 3(c) of the Articles of Agreement of the Bank (hereinafter referred to as the Articles ) to subscribe to a proportionate share of the increase in authorized capital stock under this Resolution; NOW THEREFORE the Board of Governors hereby resolves as follows:

9 - 7 - (A) Increase in Authorized Capital Stock and Allocation of Shares 1. The authorized capital stock of the Bank is increased by 230,374 shares of capital stock, each having a par value of $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944, as interpreted by the Executive Directors; 2. Each member of the Bank is authorized to subscribe up to the total number of shares set forth opposite its name in the table below, subject to the conditions set forth in paragraph 3 below: NUMBER OF SHARES ALLOCATED NUMBER OF SHARES ALLOCATED Member 6% PAID-IN; FULLY Member 6% PAID-IN; FULLY 94% CALLABLE CALLABLE 94% CALLABLE CALLABLE Column (1) Column (2) Column (1) Column (2) AFGHANISTAN 99 - COSTA RICA ALBANIA COTE D'IVOIRE ANGOLA DENMARK ARGENTINA 2,643 - DJIBOUTI - 73 ARMENIA ECUADOR AUSTRALIA EGYPT, ARAB REPUBLIC OF 1,322 - AUSTRIA EL SALVADOR AZERBAIJAN ERITREA - 77 BANGLADESH ETHIOPIA BELGIUM FINLAND BELIZE - 84 FRANCE 1,945 - BENIN GAMBIA, THE - 70 BHUTAN - 58 GEORGIA BOLIVIA GERMANY 3,812 - BOSNIA AND HERZEGOVINA GHANA BRAZIL 8,314 - GREECE 4,142 - BURKINA FASO GUATEMALA BURUNDI GUINEA CAMBODIA GUINEA-BISSAU - 73 CAMEROON GUYANA CANADA 1,255 - HAITI CAPE VERDE - 67 HONDURAS - 86 CENTRAL AFRICAN REPUBLIC HUNGARY CHAD ICELAND CHILE INDIA 9,348 - CHINA 38,283 - INDONESIA 3,009 - COLOMBIA 1,326 - IRAN, ISLAMIC REPUBLIC OF 3,474 - COMOROS - 45 IRAQ CONGO, DEM. REP. OF IRELAND CONGO, REPUBLIC OF ITALY 5,215 -

10 - 8 - NUMBER OF SHARES ALLOCATED NUMBER OF SHARES ALLOCATED Member 6% PAID-IN; FULLY Member 6% PAID-IN; FULLY 94% CALLABLE CALLABLE 94% CALLABLE CALLABLE Column (1) Column (2) Column (1) Column (2) JAPAN 3,559 - ROMANIA 1,407 - JORDAN RUSSIAN FEDERATION 6,651 - KAZAKHSTAN RWANDA KENYA SAMOA - 82 KIRIBATI - 72 SAO TOME AND PRINCIPE - 61 KOREA, REPUBLIC OF 13,586 - SAUDI ARABIA 6,651 - KOSOVO SENEGAL KUWAIT 1,919 - SIERRA LEONE KYRGYZ REPUBLIC SINGAPORE 4,498 - LAO PEOPLE'S DEM. REP SLOVENIA 88 - LEBANON SOLOMON ISLANDS - 62 LESOTHO - 83 SOMALIA - 80 LIBERIA - 74 SOUTH AFRICA LUXEMBOURG SPAIN 6,851 - MADAGASCAR SRI LANKA MALAWI SUDAN M ALDIVES - 68 SWAZILAND - 59 M ALI SWEDEN MARSHALL ISLANDS - 68 SWITZERLAND MAURITANIA SYRIAN ARAB REPUBLIC MEXICO 12,562 - TAJIKISTAN MICRONESIA, FED. STATES OF - 58 TANZANIA MOLDOVA THAILAND 2,417 - MONGOLIA - 71 TIMOR-LESTE - 77 MOROCCO TOGO MOZAMBIQUE TONGA - 62 MYANMAR TUNISIA NEPAL TURKEY 11,908 - NETHERLANDS TURKMENISTAN NEW ZEALAND UGANDA NICARAGUA - 81 UNITED ARAB EMIRATES 1,831 - NIGER UNITED KINGDOM 1,945 - NORWAY UNITED STATES 38,459 - PANAMA UZBEKISTAN PAPUA NEW GUINEA VANUATU - 84 PARAGUAY VIETNAM 2,325 - PERU YEMEN, REPUBLIC OF PHILIPPINES ZAMBIA POLAND 2,540 - ZIMBABWE PORTUGAL TOTAL 219,017 11,357

11 Each subscription authorized under paragraph 2 above shall be on the following terms and conditions: (a) the subscription price per share shall be par; (b) each member may subscribe to shares up to the total number set forth opposite its name in the table in paragraph 2 above from time to time prior to the fourth (4 th ) anniversary of the date that this Resolution is adopted, or such later date as may be decided upon consideration of a request by a member for an extension of the subscription period containing a schedule of the steps the member will take to subscribe the shares, provided, however, that: (i) extension of the subscription period with respect to a member to the fifth (5 th ) anniversary of the date that this Resolution is adopted or earlier shall be decided under the authority of the President, and such an extension to a date later than the fifth (5 th ) anniversary of the date that this Resolution is adopted shall be decided by the Executive Directors; and (ii) in any event, the subscription period shall not be extended beyond the sixth (6 th ) anniversary of the date that this Resolution is adopted; (c) with respect to each subscription listed in paragraph 2, column 1 above, the subscribing member shall pay to the Bank under Article II, Section 7(i) of the Articles: (i) gold or United States dollars equal to 0.6% (six-tenths of one percent) of the subscription price of the shares subscribed, and (ii) an amount in its own currency or any other currency equal to 5.4% (five and fourtenths percent) of such subscription price, provided in each case that such currency: (A) is paid in cash or, in the case of amounts under sub-paragraph (c)(ii) above, in accordance with paragraph (d) below; and (B) is freely convertible for use in the Bank s operations, except that any member that is eligible to borrow only from the International Development Association (hereinafter referred to as the

12 Association ) and not from the Bank as of July 1, 2010 shall be exempt from the requirement in clause (B) if that member s currency is not freely convertible; (d) payment of amounts under paragraph 3(c)(ii) above may be made by way of deposit of noninterest-bearing demand notes in a form acceptable to the Bank which the Bank will promptly encash, provided that, if the note is denominated in a currency other than United States dollars and if the amount of the notes falls short of the amount due in United States dollars on the date of encashment, the member will make a supplemental payment to the Bank within a period of seven days of presentation of the note for encashment to ensure that the Bank receives the full purchase price of the shares subscribed; (e) with respect to each subscription listed in paragraph 2, columns 1 and 2 above, the Bank shall call the 2% and 18% portions of the subscriptions payable under Article II, Section 7(i) of the Articles which are not required to be paid under paragraph 3(c) above only when required to meet obligations of the Bank for funds borrowed or on loans guaranteed by it and not for use by the Bank in its lending activities or for administrative expenses; (f) before each subscription shall be accepted by the Bank, the member shall have: (i) taken all action necessary to authorize such subscription and shall furnish to the Bank such information thereon as the Bank may request; (ii) made the payments provided for in paragraph 3(c) and (d) above; and (iii) taken all action necessary to ensure the unrestricted and immediate usability by the Bank in its operations of the portion of the subscription price of shares paid in the member's currency under Article II, Section 7(i) of the Articles; and (iv) for the shares allocated under paragraph 2 above on the basis of the member s commitment to provide agreed contributions to the Sixteenth Replenishment of the resources of the Association, the member shall have first deposited with the Association its instrument of commitment under the Sixteenth Replenishment in the amount agreed between the member and the Bank; and

13 (g) by subscribing to such shares, the member shall be deemed to have: (i) provided its irrevocable consent to the unrestricted and immediate use of its paid-in capital notwithstanding the member s rights of approval under Article IV, Sections 2(a) and (b) of the Articles, its right under Article V, Section 12 of the Articles to substitute notes or similar obligations, or any other rights or restrictions; and (ii) acknowledged that the paid-in portion of its subscription is needed in the Bank s operations and that notes or similar obligations may not be substituted in place of any member s currency. 4. In the absence of notice to the Bank from any member within twenty one (21) days of the date of transmission of this Resolution to the Governors for voting that it intends to exercise its rights under Article II, Section 3(c) of the Articles to subscribe to its proportionate share of the increase in the authorized capital stock provided under this Resolution, such member will be deemed to have waived such a right. 5. All rights, including voting rights, acquired in respect of shares for which payment is made by note pursuant to paragraph 3(d) above shall be suspended: (a) if payment is not made within a period of seven days of its presentation for encashment; and (b) if, for any note that is denominated in a currency other than United States dollars, encashment yields a shortfall in the purchase price of the shares and the supplemental payment is not made within a period of seven days of the relevant payment date, in each case only with regard to shares for which payment has not been received and until full payment in cash is received by the Bank. 6. After the end of the subscription period set forth in paragraph 3(b) above: (a) the subscription for any shares in respect of which rights have been suspended pursuant to paragraph 5 above shall become void; and

14 (b) the allocated capital stock of the Bank that has not been subscribed, including any shares in respect of which the subscription has become void pursuant to paragraph 6(a) above, shall become part of the Bank s unallocated capital stock. (B) Regular Shareholding Review The Bank s shareholding shall be reviewed every five years, starting in Parts (A) and (B) of this Resolution shall not become effective unless all members have waived their rights under Article II, Section 3(c) of the Articles to subscribe their proportionate share of the increase in the authorized capital stock of the Bank provided under this Resolution.

15 ANNEX B FORM OF SUBSCRIPTION Dear Sir: (COUNTRY) has at present (NUMBER) shares in the capital stock of the International Bank for Reconstruction and Development and hereby subscribes to (AMOUNT) additional shares on the terms and conditions laid down in paragraph 3 of Resolution No. [ ] of the Board of Governors entitled 2010 Selective Increase in Authorized Capital Stock to Enhance Voice and Participation of Development and Transition Countries. On behalf of (COUNTRY) I represent that the Government has taken all action to authorize the said subscription. A Memorandum of Law is attached hereto. Yours sincerely, For (COUNTRY) Signature (Name and official title of person signing) Vice President and Corporate Secretary International Bank for Reconstruction and Development 1818 H Street, NW Washington, D.C United States of America

16 ANNEX C PROPOSED 2010 SELECTIVE CAPITAL INCREASE Number of Shares Allocated and Payment Amounts Member Number of Shares Allocated A Total Cost ( in current $ ) B=A*120, % Portion of Subscription ( in current $) PAID-IN PORTION * 5.4% Portion of Subscription ( in current $) Total Paid-In (in current $) Callable Portion of Subscription (in current $) AFGHANISTAN 99 11,942, , , ** 716, ,226, ALBANIA ,907, ,907, ANGOLA ,158, ,158, ARGENTINA 2, ,838, ,913, ,217, ,130, ,708, ARMENIA ,301, ,301, AUSTRALIA ,336, , ,042, ,380, ,956, AUSTRIA ,336, , ,042, ,380, ,956, AZERBAIJAN ,142, ,142, BANGLADESH ,158, ,158, BELGIUM ,263, , ,524, ,915, ,347, BELIZE 84 10,133, ,133, BENIN ,200, ,200, BHUTAN 58 6,996, ,996, BOLIVIA ,831, ,831, BOSNIA AND HERZEGOVINA ,546, , , , ,793, BRAZIL 8,314 1,002,959, ,017, ,159, ,177, ,781, BURKINA FASO ,200, ,200, BURUNDI ,907, ,907, CAMBODIA ,111, , ,140, ** 1,266, ,844, CAMEROON ,453, ,453, CANADA 1, ,396, , ,175, ,083, ,313, CAPE VERDE 67 8,082, ,082, CENTRAL AFRICAN REPUBLIC ,631, ,631, CHAD ,631, ,631, CHILE ,136, , ,325, ,028, ,108, CHINA 38,283 4,618,269, ,709, ,386, ,096, ,341,173, COLOMBIA 1, ,962, , ,637, ,597, ,364, COMOROS 45 5,428, ,428, CONGO, DEM. REP. OF ,158, ,158, CONGO, REPUBLIC OF ,958, ,958, COSTA RICA ,774, , ,253, ,726, ,048, COTE D'IVOIRE ,158, ,158, DENMARK ,536, , ,862, ,292, ,244, DJIBOUTI 73 8,806, ,806, ECUADOR ,158, ,158, EGYPT, ARAB REPUBLIC OF 1, ,479, , ,611, ,568, ,910, EL SALVADOR ,520, , ,700, ,111, ,409, ERITREA 77 9,288, ,288, ETHIOPIA ,955, , ,185, ** 1,317, ,638, FINLAND ,336, , ,042, ,380, ,956, FRANCE 1, ,635, ,407, ,670, ,078, ,556, GAMBIA, THE 70 8,444, ,444, GEORGIA ,453, ,453, GERMANY 3, ,860, ,759, ,832, ,591, ,268, GHANA ,695, ,695, GREECE 4, ,670, ,998, ,982, ,980, ,689, GUATEMALA ,158, ,158, GUINEA ,593, ,593,665.00

17 ANNEX C PROPOSED 2010 SELECTIVE CAPITAL INCREASE Number of Shares Allocated and Payment Amounts Member Number of Shares Allocated A Total Cost ( in current $ ) B=A*120, % Portion of Subscription ( in current $) PAID-IN PORTION * 5.4% Portion of Subscription ( in current $) Total Paid-In (in current $) Callable Portion of Subscription (in current $) GUINEA-BISSAU 73 8,806, ,806, GUYANA ,612, ,612, HAITI ,819, ,819, HONDURAS 86 10,374, ,374, HUNGARY ,336, , ,042, ,380, ,956, ICELAND ,114, , , , ,267, INDIA 9,348 1,127,695, ,766, ,895, ,661, ,060,034, INDONESIA 3, ,990, ,177, ,601, ,779, ,211, IRAN, ISLAMIC REPUBLIC OF 3, ,085, ,514, ,630, ,145, ,940, IRAQ ,158, ,158, IRELAND ,434, , ,693, ,326, ,108, ITALY 5, ,111, ,774, ,972, ,746, ,364, JAPAN 3, ,339, ,576, ,184, ,760, ,579, JORDAN ,765, ,765, KAZAKHSTAN ,276, , ,064, ,516, ,759, KENYA ,158, ,158, KIRIBATI 72 8,685, ,685, KOREA, REPUBLIC OF 13,586 1,638,947, ,833, ,503, ,336, ,540,610, KOSOVO ,250, ,250, KUWAIT 1, ,498, ,388, ,500, ,889, ,608, KYRGYZ REPUBLIC ,577, ,577, LAO PEOPLE'S DEM. REP. 37 4,463, , , ** 267, ,195, LEBANON ,076, , ,244, ,604, ,471, LESOTHO 83 10,012, ,012, LIBERIA 74 8,926, ,926, LUXEMBOURG ,577, , ,003, ,114, ,463, MADAGASCAR ,247, ,247, MALAWI ,853, ,853, MALDIVES 68 8,203, ,203, MALI ,819, ,819, MARSHALL ISLANDS 68 8,203, ,203, MAURITANIA ,923, ,923, MEXICO 12,562 1,515,416, ,092, ,832, ,925, ,424,491, MICRONESIA, FED. STATES OF 58 6,996, ,996, MOLDOVA ,885, ,885, MONGOLIA 71 8,565, ,565, MOROCCO ,158, ,158, MOZAMBIQUE ,596, ,596, MYANMAR ,158, ,158, NEPAL ,009, ,009, NETHERLANDS ,981, , ,318, ,798, ,182, NEW ZEALAND ,336, , ,042, ,380, ,956, NICARAGUA 81 9,771, ,771, NIGER ,838, ,838, NORWAY ,225, , ,954, ,393, ,831, PANAMA ,361, , ,071, ,301, ,060, PAPUA NEW GUINEA ,352, ,352, PARAGUAY ,904, ,904, PERU ,028, , ,807, ,341, ,686, PHILIPPINES ,136, , ,325, ,028, ,108,389.90

18 ANNEX C PROPOSED 2010 SELECTIVE CAPITAL INCREASE Number of Shares Allocated and Payment Amounts Member Number of Shares Allocated A Total Cost ( in current $ ) B=A*120, % Portion of Subscription ( in current $) PAID-IN PORTION * 5.4% Portion of Subscription ( in current $) Total Paid-In (in current $) Callable Portion of Subscription (in current $) POLAND 2, ,412, ,838, ,546, ,384, ,028, PORTUGAL ,336, , ,042, ,380, ,956, ROMANIA 1, ,733, ,018, ,165, ,184, ,549, RUSSIAN FEDERATION 6, ,343, ,814, ,326, ,140, ,202, RWANDA ,768, ,768, SAMOA 82 9,892, ,892, SAO TOME AND PRINCIPE 61 7,358, ,358, SAUDI ARABIA 6, ,343, ,814, ,326, ,140, ,202, SENEGAL ,158, ,158, SIERRA LEONE ,666, ,666, SINGAPORE 4, ,616, ,255, ,301, ,556, ,059, SLOVENIA 88 10,615, , , , ,978, SOLOMON ISLANDS 62 7,479, ,479, SOMALIA 80 9,650, ,650, SOUTH AFRICA ,336, , ,042, ,380, ,956, SPAIN 6, ,470, ,958, ,629, ,588, ,882, SRI LANKA ,158, ,158, SUDAN ,857, , ,690, ** 5,211, ,645, SWAZILAND 59 7,117, ,117, SWEDEN ,669, , ,410, ,900, ,769, SWITZERLAND ,993, , ,859, ,399, ,594, SYRIAN ARAB REPUBLIC ,158, ,158, TAJIKISTAN ,371, ,371, TANZANIA ,231, ,231, THAILAND 2, ,574, ,749, ,745, ,494, ,080, TIMOR-LESTE 77 9,288, ,288, TOGO ,819, ,819, TONGA 62 7,479, ,479, TUNISIA ,431, , ,019, ,465, ,965, TURKEY 11,908 1,436,521, ,619, ,572, ,191, ,350,330, TURKMENISTAN ,184, , , , ,453, UGANDA ,873, , ,143.35** 832, ,040, UNITED ARAB EMIRATES 1, ,882, ,325, ,927, ,252, ,629, UNITED KINGDOM 1, ,635, ,407, ,670, ,078, ,556, UNITED STATES 38,459 4,639,501, ,837, ,533, ,370, ,361,131, UZBEKISTAN ,158, ,158, VANUATU 84 10,133, ,133, VIETNAM 2, ,476, ,682, ,145, ,828, ,647, YEMEN, REPUBLIC OF ,158, ,158, ZAMBIA ,158, ,158, ZIMBABWE ,158, ,158, Total 230,374 27,791,167, ,526,695 1,426,740,253 1,585,266,948 26,205,900,542 Total (In USD Billions) * The paid-in portion is equal to 6% of the total subscription price of shares. Of the 6%, 0.6% is payable in United States Dollars and 5.4% is payable in a members national currency, if freely convertible. ** These amounts relate to IDA-only members who were allocated shares based on their economic weight under-representation. These shares require 6% paid-in capital and are subject to the payment arrangements outlined in paragraph 3(c) of the SCI resolution. Afghanistan, Cambodia, and Sudan were allocated shares based on their GDP-60/40 under-representation while, Ethiopia and Sudan's allocation was on a PPP Booster basis. Lao's People's Democratic Republic was eligible for additional shares based on its GDP 60/40 under-representation and booster shares on PPP basis.

19 ANNEX D List of IDA Members Not Eligible to Borrow from IBRD*. AFGHANISTAN CAMBODIA ETHIOPIA LAO PEOPLE S DEM. REPUBLIC SUDAN UGANDA * Classification from OP 3.10, Annex D as of July 1, The above list only includes IDA-Only members who were allocated shares on the basis of their economic weight under-representation. All countries receiving shares based on this allocation are subject to the 6% paid-in capital requirement and the payment arrangement terms as outlined in Paragraph 3(c) of the SCI Resolution.

20 ANNEX E Page 1 of 2 INSTRUCTIONS ON PAYMENT BY NOTE 1. This annex sets forth the terms and conditions on which, and the procedure by which, a member may make payment by note for the national currency portion of its subscription. 2. No payment by note will be permitted unless and until a request for such payment shall have been filed with the Bank in accordance with the provisions of this Annex and such request shall have been approved by the Bank. A. REQUESTS FOR PAYMENT BY NOTE 1. Any member that wishes to pay by note shall deliver to the Bank a written request in English, substantially in the form of the Form of Request for Capital Subscription Payments by Note as set forth in Appendix A to this Annex, signed in the name and on behalf of the member by the official of the member who is authorized under the laws of the member to sign such a request. Normally such a request is signed by the Minister of Finance of the member or an official holding an equivalent position. 2. The request shall be accompanied by a specimen of the notes which the member proposes to deposit. The notes shall be substantially in the form of the Form of Note as set forth in Appendix B to this Annex. 3. Each request shall be executed in duplicate. One counterpart shall be submitted to the Bank to the attention of the Vice President and Corporate Secretary, and may be transmitted either by , facsimile or courier. The other counterpart shall be deposited with the member s depository. 4. The Bank, after a review of the request and before approving it, may require from the member additional evidence to show to the satisfaction of the Bank that the request of the member and the notes have been duly authorized, and that such notes when executed and delivered to the depository for the account of the Bank will be valid and binding obligations of the member or depository, as the case may be, and will be lawfully held by such depository for account of and subject to the order of the Bank. The nature of the evidence so to be submitted will necessarily vary as among different members by reason of variations in their enabling legislation and depending on whether the notes are to be obligations of the member or of the depository. All documents so submitted must be in form and substance satisfactory to the Bank. C. PROCEDURE FOR PAYMENT 1. When the Bank approves a request presented in accordance with this Annex, it will notify the member and the depository of such approval, and of any modifications of such request which the Bank shall have approved and will authorize the depository to receive, for account of the Bank, notes in the approved form and denominations and in the approved aggregate principal amount, duly executed by the persons designated in such request.

21 ANNEX E Page 2 of 2 2. When the depository has received such notes pursuant to such approval it shall promptly notify the Bank thereof and shall hold the notes in safekeeping for account of and subject to the order of the Bank. 3. The depository shall honor all duly authenticated demands, orders and other instructions of such officers of the Bank as may from time to time be designated by the Bank, with respect to such notes and shall be fully protected in acting in accordance with any such demand, order or instruction.

22 FORM OF REQUEST FOR CAPITAL SUBSCRIPTION PAYMENTS BY NOTE ANNEX E APPENDIX A Page 1 of 2 [Date] Vice President and Corporate Secretary International Bank for Reconstruction and Development 1818 H Street, NW Washington, D.C United States of America Dear Sir: 1. (HERE INSERT NAME OF COUNTRY MAKING REQUEST) hereby gives notice of its desire to make payment for the national currency paid-in portion of its subscription by non-negotiable, noninterest-bearing demand notes pursuant to paragraph 3(d) of the SCI Resolution. (HERE INSERT NAME OF THE OBLIGOR ON SUCH NOTES). 2. The aggregate principal amount of such notes is (HERE INSERT AMOUNT). 3. Such notes will be in denominations of (HERE INSERT DENOMINATIONS) and are to be in the form of the specimen note attached hereto and made a part hereof. 4. It is hereby represented and certified that the execution and delivery of such notes has been duly authorized in accordance with applicable laws and regulations and such notes, in such form, when signed by one of such authorized persons and received by (HERE INSERT NAME OF DEPOSITORY), as depository, for the account of your Bank will constitute valid and binding obligations of the obligor on such notes in accordance with their terms and that they will be lawfully held by said depository for account of and subject to the order of your Bank. 5. It is understood and agreed that, notwithstanding the delivery and acceptance of such notes: (a) the obligation of the undersigned, under the Articles of Agreement of your Bank, to pay to your Bank the amount of such currency represented by such notes shall only be discharged by payment to your Bank of such amount in such currency and to the extent of such payment, and (b) the rights and obligations of your Bank and the undersigned, under said Articles of Agreement, in respect of the value of such currency required to be paid to your Bank and the maintenance of such value shall continue in full force and effect and, for that purpose, the amount of such notes at any time outstanding and unpaid shall be deemed to be the currency of the undersigned held by your Bank on account of the subscription of the undersigned to the capital stock of your Bank.

23 ANNEX E APPENDIX A Page 2 of 2 6. (HERE INSERT NAME OF COUNTRY) hereby agrees to execute and deliver to your Bank any and all such further instruments and furnish such other information as you shall reasonably request in order fully to comply with the provisions of Annex E to the Bank s publication entitled Procedures for Subscriptions to Capital Stock of the International Bank for Reconstruction and Development under the Proposed 2010 Selective Capital Increase (July 2010). Yours sincerely, For (COUNTRY) Signature (Name and official title of person signing) NOTE: The request should be signed in the name and on behalf of the member by the official or representative of the member who is authorized to sign such request.

24 ANNEX E APPENDIX B FORM OF NOTE 1. For value received, (HERE INSERT NAME OF COUNTRYOR DEPOSITORY WHICH IS THE OBLIGOR ON THE NOTE) hereby promises to pay to INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT on demand, the sum of (HERE INSERT THE PRINCIPAL AMOUNT OF THE NOTE) without interest. 2. All or any part of the sum aforesaid shall be paid, upon demand made in writing or by facsimile transmission or SWIFT message to (HERE INSERT AGENCY TO RECEIVE DEMAND) by credit of the amount so demanded to the account of the International Bank for Reconstruction and Development with the depository duly designated by the (HERE INSERT NAME OFCOUNTRY) pursuant to Section 11 (a) of Article V of the Articles of Agreement of the International Bank for Reconstruction and Development. If payment of a part only of said sum shall be demanded and made, a notation of such partial payment shall be endorsed on the reverse of this note or, at the option of said International Bank for Reconstruction and Development, a new note, in substantially the same form as this note, for the sum remaining unpaid hereon shall be executed and delivered in exchange for this note. 3. This note is executed and delivered pursuant to paragraph 3(d) of the proposed 2010 Selective Capital Increase. 4. This note is non-negotiable. (NAME OF OBLIGOR) Signature (Name and official title of person signing) Date:

25 ANNEX E APPENDIX C [LETTERHEAD OF DEPOSITORY BANK] FORM OF CONFIRMATION OF DEPOSIT OF NOTE [Date] Vice President and Corporate Secretary International Bank for Reconstruction and Development 1818 H Street, NW Washington, D.C. United States of America Dear Sir: We are pleased to confirm receipt on (HERE INSERT DATE OF RECEIPT) of a Promissory Note in the amount of (HERE INSERT AMOUNT INDICATED IN THE NOTE) from (COUNTRY). Attached is a signed copy of the Promissory Note. Yours sincerely, Signature (Name and official title of person signing on behalf of the Depository Bank) Attachment: Signed copy of Promissory Note