Announcement of World Bank Provides Twenty-Five Million Dollars Loan to Tanzania Investment Bank on July 26, 1979

.FOR IMMEDIATE , RELEASE O .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/4 Ju 1y 26 , 19 79 WORLD BANK PROVIDES $25 MILLION LOAN TO TANZANIA INVESTMENT BANK The World Bank today announced the approval of a $25 million loan to the Tanzania Investment Bank (TIS), one of the major financial intermediaries in Tanzania. The funds wi 1l be used for meeting a pa rt of Tl BI s foreign exchange requirements for investments in medium- and large-scale industrial, agro-pro- cessing, and tourism development projects through June 1982. This loan is the fourth line of credit that the World Bank and its affiliate, the International Development Association (IDA), have provided to TIB. The three operations 2pproved earlier by the Bank and IDA in support of TIB totaled $36 million. The present loan will help TIB to enhance its role in the financing of industrial and other productive sectors during Tanzania's Third Five-Year Development Plan. TIB was established in 1970 and is wholly owned by the Tanzanian govern- • ment. Its operations in loan financing and equity investments have grown rapidly in various economic sectors, and most TIB assisted projects utilize domestic raw materials. By 1983, TIB is expected to be financing 25% of Tanzanian industrial investment. It is also gradually extending its acti- vities from loan financing to project identification and promotion. Among the most important sectors for which TIB has provided financing are: food and food processing, transport, chemical and rubber products, tourism develop- ment, textiles, and metals. Co-financing is being provided by the European Economic Community's Special Action Account in the form of a $15 million credit to the Government of Tanzania to be- on-lent to TIB. The credit is being extended to the govern- ment for 50 years, including 10 years of grace. It is interest free, but carries a service charge of 3/4 of 1% a year to cover administrative expenses. The government will provide the funds from the credit to TIB on the same terms as the World Bank loan. The World Bank loan is guaranteed by the Government of Tanzania. It is repayable in conformity with the aggreg~te amortization schedule for TIB's subloans and investments, and carries ].9% interest a year. NOTE: Money f~~ures are e~pressed in U.S. dollar equivalents . •