Announcement of Philippines Receives Eighty Million Dollars for Industrial Credit on May 22, 1978

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/93 MAY 22, 1978 ft':) L IPPJNES .REC.EJVES-$-&)-MlLLI ON FOR INDUSTRIAL CREDIT The World Bank has approved a loan of $80 million to the Philippines for its third industrial investment project in the country. The project will provide long-term finance for the establishment and expansion of industrial enterprises of all sizes with the exception of cottage industries. Of the loan amount, $50 million will be for large-scale enterprises and $29.7 million for small- and medium-scale industry. The balance, amounting to $300,000, will help finance the establishment of an institute within the Development Bank of the Philippines for training the management and staff of smaller development finance institutions . • The project will be implemented by the Development Bank of the Philippines which plays an important role fn the Philippine economy. It is the country's largest supplier of long-term credit. Although its activities are mainly in the large-scale industrial sector, they cover also small-scale enterprises in both the industrial and agricultural sectors. The Development Bank of the Philippines has also received, through the Philippines Government, two industrial credit loans from the Bank totaling $125 million. The third industrial credit project will support the Philippine Government's efforts to create new jobs at reasonable cost, promote exports, and disperse economic activities in the country to bring about a regional balance in economic development. The World Bank loan bears interest at 7.5% per annum, but has different terms of repayment. The $30 million earmarked for aiding small- and medium- scale industry and for setting up the development banking institute will have a term of 20 years including a grace period of 5 years; the $50 million for assisting large-scale industry will be repaid on the basis of a flexible amor- tization schedule reflecting the composite repayment schedules of subloans of the Development Bank of the Philippines . • NOTE: Money figures are expressed in U.S. dollar equivalents.