Announcement of Seventy-Five Million US Dollars Loan for Philippine Industrial Development on December 18, 1975

•World Bank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 75/99 December 18, 1975 $75 MILLION LOAN FOR PHILIPPINE INDUSTRIAL DEVELOPMENT A World Bank Joan of $75 mill ion, announced today, will help to provide medium and long-term capital for industrial investment in the Philippines. The project is in line with the Government's development strategy, which emphasizes further industrialization to achieve its growth and employment objectives. The loan is being made to the Government, which will relend proceeds to the wholly Government-owned Development Bank of the Philippines (DBP). The loan is earmarked to cover foreign exchange costs of capital • goods imports for medium and relatively large industrial sub-projects. Eligible enterprises will include those engaged in manufacturing, agro- industries, mining, ocean shipping and tourism. The loan is expected to cover just over 50% of DBP's total direct foreign exchange commitment requirements over the next two-year period. Loan funds will be directed mainly towards investments that would further diversify the non-traditional export base, encourage domestic processing of traditional exports, and encourage intermediate and capital goods production. Besides adding to medium and long-term funds needed to develop the industrial sector, the Bank Joan will continue the process, begun undtr a loan made in 1974, of assisting DBP to make institutional improvements. The proceeds of this earlier loan of $50 mill ion were also relent by the Government to OBP to finance direct imports for medium and relatively large industrial projects. The $75 mill ion loan is being made to the Republic of the Philippines for a term of 18 years, including four years of grace, at 8i% interest a year. The proceeds of the loan will be relent to DBP on the same terms as the Bank loan for onlending to specific productive enterprises . • Note: Money figures are expressed in U.S. dollar equivalents.