Announcement of Jordan Receives Four Million Dollars for a Development Finance Company on June 21, 1976

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 76/37 JUNE 21, 1°976 JORDAN RECEIVES $4 MILLION FOR A DEVELOPMENT FINANCE COMPANY The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $4 mill ion to assist the development of medium- and small-scale industry in Jordan. The credit wi 11 meet part of the foreign exchange re- quirements of the Industrial Development Bank of Jordan (IDB) for investment in medium- and small-scale industrial enterprises. The credit will also help finance a study of the small-scale • industry and handicraft subsector . IDB was established in 1965. It is empowered to fi- nance private industrial, tourism, and mining projects through loans, equity participation, underwriting and guarantees. IDB has so far concentrated its efforts in making loans to indus- trial and tourism projects and providing these clients with assistance in the fields of financial management and project preparation. In March 1975, IDB expanded its activities to assist very small enterprises. It intends to expand this pro- gram in the coming years. The IDA credit to Jordan is for 50 years, including 10 years of grace. It is interest-free except for a service charge of 3/4 of 1%. The Government wi 11 re-lend about $3,675,000 of the credit to IDB (P. 0. Box 1982, Amman, Jordan) for invest- ment in industry during the two years ending June 1978. The balance of the credit will be used as a grant to help finance IDB 1 s small-scale industry and handicraft program and to fi- • nance the study·of this subsector . NOTE: Money figures are expressed in U.S. dollar equivalents.