Announcement of Morocco Receives Two World Bank Loans for Industrial Development on July 16, 1981

FOR IMMEDIA ll: RELEASE . \ J 1818 H Street1 N.\t\'., Washington, D.C. 20433, U.S.A.• Telephon~e: (202) 477-12.34 0 . BANK~NEWS RELEASE NO. 82/6 July 16, 1981 MOROCCO RECEIVES TWO WORLD BANK LOANS FOR INDUSTRIAL DEVELOPMENT "\ The World Bank today approved loans totaling $140 million to Morocco to support the country's industrial development. A loan of $70 ';mi 11 ion to the Banque Nationale pour: le Developpement Economique (BNDE).will ·help the institution to assist with .financing f)f.;?the foreign exchange r<equirements for efficient industrial projects. This is the ninth line of credit to be extended to BNDE by the Wor(c]d Bank for ·this purpose. Of the loan total, at least $14 mi11ion will go to export-oriented industrial ~roj~cts. Priority will be given to those subprojects expected to export at least 20% of their incremental production. · The loan will support the Moroccan government's industrial program, and particularly its drive for rapid growth of the export sector. The loan, with associated technical assistance by the Bank, will also help BNDE to build up its project appraisal c~pacity, portfolio monitoring, and export promotion activities. Another loan of $70 million will enable the Government of Morocco to provide a second line of credit to BNDE and the commercial banks for reiending to small-scale industrie:s. Funds are also earmarked for technical assistance and the foreign exchange cost of retated studies. A specialized unit in the Ministry of Commerce and Industry will provide technical and managerial assistance to new and existing small-scale industries. ·\\ This loan will help provide resources to small entrepreneurs who would dtherwise have difficulty in obtaining credit, and will generate industrial employment at costs substantially below those in industry in general; the loan is expected to benefit some 600 firms and result in the creation of about 15,000 jobs. The World Bank loans have terms of 15 years, ,incl.uding four years of grace, and bear interest at 9.6% per annum. The loan to BNDE is guaranteed by the Moroccan government. NOTE: Money figures are expressed in U.S. dollar equivalents.