Announcement of IDA Approves Ten Million Dollars Credit for Tanzania Rural Development Bank on June 23, 1980

'. FOw-lMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/105 June 23, 1980 IDA APPROVES $10 MILLION CREDIT FOR .TANZANIA RURAL DEVELOPMENT BANK The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a $10 million credit to Tanzania for a project to strengthen the Tanzania Rural Development Bank. Under the project, the capacity of the Tanzania Rural Development Bank will be expanded to enable it to provide credit in an efficient manner for economically viable rural development projects. Training programs for the bank's employees and village officials will be improved. In addition, consultants and Tanzanian staff will be used to develop a new management information system and improve other aspects of the bank's organization. The project includes financing for transport facilities, office • equipment and furniture, a small computer, and office facilities. A study will be conducted with the help of consultants to find ways to improve the distribution of farm inputs. A $5 million line of credit will be provided as part of the IDA credit to support the bank's lending program. The Tanzania Rural Development Bank was established in 1971 to provide long- and medium-term financing for rural development as well as technical assistance and advice for the promotion of rural development. The bank now also provides short-term financing. It has acted as an intermediary for channeling credit to a number of agricultural and rural development projects assisted by IDA in Tanzania. It is the main credit institution·for the rural sector, serving about 8,000 villages in the country. The $10 mill ion IDA credit to Tanzania is for 50 years, with 10 years of grace. It is interest free but will carry a 3/4 of 1% service charge a year to cover IDA's administrative costs. The Tanzania Rural Dev~lopment Bank will be responsible for implementing this project. Its address is: P.O. Box 268, Dar-es-Salaam, Tanzania. Cable: MTAJI, Dar-es-Salaam, Tanzania. NOTE: Money figures are expressed in U.S. dollar equivalents . •