IDB TOUGHENS PROCUREMENT POLICIES
The IDB in January revised policies designed to prevent corrupt practices in procurement and contracts related to Bank-financed projects.
The new language in the Bank's procurement rules and procedures made explicit what had previously been implicit in its policies, and also gives the IDB the right to take the following steps:
Temporarily or permanently bar firms or individuals from future contracts if they are shown to have been involved in corrupt practices.
Cancel or accelerate repayment of a loan or grant if there is evidence that the borrower or beneficiary has not taken adequate steps to halt corrupt practices.
Require that bidding documents include provisions that allow the IDB or its representatives to audit the records of suppliers and contractors participating in IDB-financed projects.
Accept "no bribery" pledges at the request of borrowing countries that commit contractors to comply with laws prohibiting corrupt practices in the country where the contracting takes place.
The revised policies were adopted in the context of increased efforts by governments and multilateral institutions to combat corruption as an integral part of broader efforts to modernize the state and consolidate democratic rule.
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BANK ISSUES
DRACHMA BOND:
The IDB issued its first Greek Drachma bond through its Euro Medium-Term Note Program. The 10 billion Drachma ($34.5 million) issue, launched Jan. 20, was priced at 101 percent, pays a 12 percent annual coupon, and matures Feb. 2, 2000. Morgan Stanley was the lead manager of a syndicate of international banks that placed the issue.
IDB ANNOUNCES NEW LOAN RATES:
The IDB changed its lending rates in February on the convertible-currency portion of loans from ordinary capital for the first semester of 1998.
For outstanding balances of currency-pool adjustable rate loans approved after Jan. 1, 1990, the lending rate is 6.62 percent per year in the first half of 1997, compared to 6.59 in the second semester of 1997.
The rate for outstanding balances of adjustable rate loans from the Bank's single currency facility is 6.99 percent for U.S. dollars, 6.36 for German marks, 3 percent for Japanese yen and 4.31 percent for Swiss francs. The Bank's full credit fee, which in most cases is 0.75 percent, will be charged on all signed undisbursed loans during the first semester of 1998, as it was during the second semester of 1997. A full inspection fee of 1 percent will be charged during the first half of 1998, an increase from the 0.85 inspection fee charged during the second half of 1997.