Announcement of Third Credit to Bolivia for Livestock Development on June 3, 1971

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/23 Subject: Third credit to Bolivia for June 3, 1971 livestock development New financial assistance to further improve Bolivian livestock production will be provided with a $6.8 million International Development Association (IDA) credit, it was announced today. IDA extended two smaller credits to Bolivia in 1967 and 1970 to assist the initial stage of a program for cattle ranchers in the Beni Department. The region is in the Bolivian lowlands and is especially suited for in- • creaslng beef cattle production • Progress under the program's first stage was more rapid than anticipated. Some 230 ranchers have obtained loans and the two IDA credits have been connnitted ahead of forecast. Rancher interest in investment to develop beef production and in the adoption of modern management techniques has been stimulated, and institutional arrangements for extending financial and technical services to ranchers have been strengthened by the Government. The new project continues the program but is larger and more diverse. It is expected to have substantial economic impact by helping finance development of some 250 cattle ranches in the Beni Department and adjoining areas and 150 sheep ranches in the highlands, and by providing related technical services. Most of the sheep ranches are cooperatives or sub- cooperatives and over 3,000 families on small holdings are expected to obtain • additional income as a result of investments in sheep ranch development under the credit. /more IDA P.R. No. 71/23 - Bolivia - livestock - 2 - Production increases stimulated through the project and its predecessors are expected to provide a substantial surplus of beef for export. The project • provides for Government measures to assist exports and for financing slaughterhouse construction and renovation. The credit will also finance the employment of consultants to advise on these investments and on measures to improve export marketing. The project, at maturity, will result in beef output of some 10,000 tons a year. Most is expected to be exported, resulting in some $5.5 mil- lion in foreign exchange earnings. The project will also raise mutton out- put by about 1,450 tons a year and wool output by about 575 tons -- for domestic consumption. Banco Agricola de Bolivia (BAB) will administer the project. (Casilla Correo No. 1179, La Paz) is the foremost agricultural credit institution in Bolivia. BAB • The IDA credit to the Government of Bolivia will be for a term of 50 years, including a 10-year grace period. It is interest free but carries a service charge of 3/4 of 1% to meet IDA's administrative expenses. The Government will make the funds available to BAB, which will re-lend to cattle and sheep ranchers. - 0 - •