During the period from December 22, 1955 to February 21, 1956, the International Bank for Reconstruction and Development made two loans in two countries. A loan of $4.2 million to Honduras was announced by the Bank on December 22, to enable a highway maintenance organization to be set up and begin operations; the loan was also to finance preliminary engineering studies for the improvement and new construction of various sections of two of the country's important highways. The Bank of America of San Francisco, the American Security and Trust Company of Washington, D. C. and the Whitney National Bank of New Orleans participated in the loan, without the Bank's guarantee, to the extent of $872,000. The total cost of the project was estimated to be equivalent to $8 million The loan was for a period of nine years at an annual interest of 4½ percent, including the Bank's commission; amortization was to begin on December 1, 1957. This was the first Bank loan to Honduras.