Announcement of Twenty-Six Million Loan for Industrial Credit in Ecuador on December 28, 1976

•world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/49 December 28, 1976 $26 MILLION LOAN r'OR INDUSTRIAL CREDIT IN ECUADOR The World Bank has approved a $26 million loan aimed to strengthen the development banking system of Ecuador and to contribute to the improvement of the country's capital market. This project will be the Bank's third operation in the industrial finance sub-sector of Ecuador. The loan will be channeled through the Central Bank of Ecuador and, at least, two development finance companies. The project's main purpose will be to support improvements in EcuadO'..:'s industrial sector, particularly regarding the financing of industrial growth. The • loan will permit financing about 12.6% of the estimated foreign exchange require- ments of the two major participating development finance companies (DFCs) during the period 1976-80. The loan will be relent to Comision de Valores-Corporacion Financiera Nacional (CV-CFN),a government-owned DFC; to Ecuatoriana de Desarrollo, S.A.- Compania Financiera (GOFIEC), a privately owned DFC; and to other newly established DFCs, which may qualify for participation in the project. The loan will bear interest at 8.7% per annum and will be repaid within a term not exceeding 15 years, including three years of grace, on a schedule reflecting the composite amortization terms of the sub-loans to be made by the participating DFCs. • NOTE: Money figures are expressed in US dollar equivalents .