Announcement of Ecuador Receives Fifth World Bank Loan for Industrial Finance on February 25, 1982

.. , . . - f'O~ IMMf DIA ff Rf UA\i · · s)_ c)J Hi18 HStreet/N,W., Washington, D.t. 204JJ, lJ'.S.A. •Telephon~: (202) 477-1234 () = BANK NEWS- RELEASE NO. 82/52 0 Contact: Gi ro Gamarra February 25., l 98t r, 0 '\~02) . 477-8034 oEC.UADO~ R'ECE IVES FIFTH WORLD ~B~NK l°OANi \ 1) - FOR INDUSTRIAi. Pl NANCE . lndustrialrdevelopment~in Ecuador wi 11 be assisted by a loan of $60 mi 11 ion, the Wor 1d Bank announced today. r11 The World,,Baok oloan, to be chanelled through 13 development finance companies, wi 11 provide i nduc; tr i a 1 financing amounting to $59 mi 11 ion and techn i ca 1 ass is tahce 0 estimated to cost $1 mi 11 ion in foreign exchangee Each finance comp_any wi 11 receive funds in proportion to its ability to increase equity or to sell longer term debt issues to raise dbmesti'c currency resoug-ces. The objectives are to incre\ase lending to industrial enterprises cind. at the same. time, to encourage mobi 1 ization of local resources. . /( About 60 investment projects, worth abou~ '$240 mi 1 lion, wi 11 be partially fin·anced by the World Bank loan. About 8,000 Jobs are expected to be created. Export-oriented.projects will receive at least $20 million of the World Bank loan\ Co-financing from commercial ba~ks is expected to provide about $40-50 million for the investments. Another $10-20 million is expected to come from export credit institutions. '\, r'· Technical assistance costi~g up t~-,1 million will be used fo~ advisory services to the development finance companies, for a study of industrial incentives, and forr-~trengthening the capabi 1 tties; of the Superintendency of Banks~ - \_/ 0 The Central Bank of Ecuador wiJl be the government's fiscal agent in relending the proceeds of the World Bank loan. The address of the Central Bank is: Banco Central del Ecuador, 10 de Agosto y Briceno, Quito, Ecuador, Telex: 2165 BANCENED Cab le! 8ANC ENTRAL , QU ITO.. - - Since 1971, the World Bank has made four loans "to Ecuador for development banking and one for sma 11 enterprise credit, tota 1 i ng $114 mi 11 ion. The $60 mf 11 ion . World Bank Joan to Ecuatk:,r carries an interest rate of 11 .. 6% a yenr and is repayable broadly in 1 ine ~tith the ~ment schedules of the development finance compani~s: up to 15 yea rs wfth three yea rs of grace. NOTE': Money figures are expressed in U.S. dollar equivalents • ••