94 See note 21 above. In 1959, the World Bank`s cumulative loans amounted to about $4.5 billion. Until 1994, cumulative public sector lending by all MDBs except the EBRD (which, until 1994, largely followed the World Bank`s practice of regulating the right to regulate in its public sector lending contracts) amounted to more than $470 billion. See WB 1994 Report, 8, at 229; ADB 1994 Report, 3, at 10; 1994 Report, 4, 39; AFDB REPORT 1993, 5, 45. The IFL contains conversion options for managing foreign exchange and/or interest rate risks over the life of the loan. These options are built into the loan agreement and can be executed at any time at the request of a borrower. In accordance with their debt management strategy requirements or changing market conditions, IFL borrowers have the option to switch from a variable interest rate to a fixed rate, or vice versa. The IFL also offers the flexibility to use ceilings or interest margins to manage interest rate volatility. Similarly, IFL offers a currency conversion option for hard currencies and some local currencies. 64 In expressing his views on the World Bank`s lending contracts and these underlying legal issues, he largely reflected the views of the World Bank`s legal department, which was based on legal provisions developed before it became General Counsel.

In particular, his lectures at the Hague Academy in 1959 were conceived less as a presentation of his personal opinions on these issues than as an explanation of the World Bank`s practice and its institutionally developed legal roots. Telephone interview between the author and Aron Broches (June 25, 1995). Transaction costs: expressed as a percentage per year on the amount of the loan remaining to be liquidated, unless otherwise stated. 28 See the opera WB. Man, supra note 12, at OP 7.01, `3-6 (July 1994). Most World Bank loans are project loans, not balance-of-payments loans. For a given project, described in detail in the loan agreement, a World Bank loan reflects decisions made through negotiations between World Bank staff and government officials on the specific goods and services to be acquired with the proceeds of the loan. See id.

The World Bank also participates in balance-of-payments aid known as adjustment credits. This takes the form of loans that depend on the adjustment of certain economic and fiscal adjustments on the part of the borrowing country. See Head, Supranational Law, supra note 1, at 629; Shihata, supra note 1, with 25:27, 58:59. 151 The preventive role of a provision that establishes international law as applicable law could also be significant when a borrower or guarantor contemplates a more hostile act than that established in the previous example. State A might consider, for example. B, to declare the loan and guarantee agreements null and void – and that State A and Company X will be free of any financial obligations under this government – on the grounds that these agreements were concluded under a previous government and are therefore no longer binding.