Announcement of IDA Lends 7.5 Million Dollars for Agricultural Credit in Bolivia on June 23, 1975

,, ,; I', I.(),, 1, (~) • INTERNATIONAL DEVELOPMENT ASSOCIATIO~N 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE; EXECUTIVE 3-6360 IDA News Release No. 75/46 June 23, 1975 IDA LENDS $7.5 MILLION FOR AGRICULTURAL CREDIT IN BOLIVIA The expansion of production of cattle, sheep and crops in Bolivia will be assisted by a credit of $7.5 million from the International Development Association (IDA), an affiliate of the World Bank. The IDA credit will help finance agricultural credit operations by the Bolivian Agricultural Bank (BAB) and commercial banks. BAB's Agricultural and Livestock Division will manage the project. This is the fourth IDA operation in support of Bolivia's agricultural development. The new project includes substantial aid for small farmers as the IDA credit will finance for the first time in Bolivia cultivation of crops to help improve the economic conditions of about 3,600 poor rural families. Assistance will be extended for the production of sugarcane by small farmers in Santa Cruz; cultivation of potatoes, wheat and oats by small farmers in Cochabamba, and growing of grapes by small farmers in • Tarija. The project will also contribute to the costs of agricultural research at the Saavedra experimental station, in the Santa Cruz Department. The livestock component of the project includes continuation of the cattJ.e develop- ment program in the Beni region by medium- and large-size ranchers, and of sheep breed- ing in the Altiplano, and development of cattle by medium-size farmers in Santa Cruz. It is estimated that the project will provide full employment to some 4>000 small- holders and seasonal employment to about 8,000 workers. The project will also help to increase sugarcane and beef exports and meet the growing domestic demand. The first two IDA credits, totaling $3.4 million, were made in 1969 and 1970 to finance development of some 300 cattle ranches. A third credit of $6.8 millionp approved in 1971, was to assist further livestock development, including cattle ranches in Alto Beni and Chapare and sheep breeding in the Bolivian altiplano. Under the new credit, IDA funds will be on-lent by the Government to BAB and some 10 Bolivian commercial banks in order to achieve a wide country coverage. Total cost of the project is estimated at $12 million equh.1lent. The IDA credit will finance 62,~ of the total, the Government 20%, participating farmers 11%, and connnercial banks 7%. The credit to the Government of Bolivia is for 50 years, including 10 years of grace, at no interest~ A charge of 3/4 of 1% will be made to cover IDA's administrative • COS to. ---------------- Note: Money figures are expressed in US dollar equivalents. 0