Announcement of World Bank to Assist Industrial Sector in the Philippines on May 11, 1981

. FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/84 May 11 , 1981 WORLD BANK TO ASSIST INDUSTRIAL SECTOR IN THE PHILIPPINES The World Bank announced today the approval of a $150 mill ion loan to the Philippines to support medium- and large-scale projects in the industrial sector. The loan will be made to the Central Bank of the Philippines, which will relend the proceeds to participating financial institutions. These institutions, which will include development finance corporations and commercial banks, will use the project funds to finance economically viable investments in the industrial sector. The project is intended to finance mainly medium- and large- scale enterprises with assets ranging from $2-6.7 mill ion; smaller enter- prises are being assisted under other World Bank projects in the Philippines. About 170 sub-projects are expected to receive assistance for their estab- • lishment, expansion, or rationalization. The individual sub-Joan ceiling will be $6 million, and sub-projects to be financed must be labor-inten- sive, export-oriented, and efficient in terms of resource utilization. A specially created Apex Development Finance Unit within the Central Bank will be responsible for administering the project. This unit will channel funds for industrial enterprises, including the pro- ceeds of the Bank loan and borrowings from the international financial market, through accredited financial institutions. These institutions will thus acquire experience in development-oriented term lending. The World Bank loan has the guarantee of the Republicofthe Philippines, and is for 20 years, including 5 years of grace, with in- terest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • •