Announcement of Togo to Use IDA Credit for Structural Adjustment Program on May 19, 1983

FOR IMMEDIATE RELEASE • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 83/81 Contact: Pam Brennan May 19, 1983 (202) 477-3293 TOGO TO USE IDA CREDIT FOR STRUCTURAL ADJUSTMENT PROGRAM Togo's economy will be strengthened through a program of structural adjustment which will be supported by a credit of SDR 36.9 million ($40 million) from the Interna.tional Development Association (IDA). The credit from the World Bank's affiliate for concessionary lending will finance imports of raw materials, intermediate goods, capital equipment, and spare parts. The structural adjustment program being implemented by the governmifot is expected to accelerate development in agriculture and rrun1ng. State enterprises will be rehabilitated and private investment in small- scale industries will be promoted. Measures to be taken under the IDA credit and the International Monetary's Fund's financial stabilization program for 1983 are mutually supportive. • An investment plan for 1984 and 1985 will be prepared, which will emphasize highly productive and quick-yielding projects, particularly in the area of rural development. Regulation of food crop marketing will be reduced to stimulate production for domestic consumption and export. The feasibility of constructing a plant to process phosphate rock into phosphoric acid for export will be studied by the Office National des Phosphates. The government w.ill also prepare a sector-wide annual report on state enterprises. The IDA credit will be disbursed in two tranches, $25 million immediately after effectiveness, and the remaining $15 million after a performance review to take place late in 1983. The IDA credlt is for 50 years, including 10 years of grace; it carries no interest but has a small annual service charge (0.5% on the undisburs~d balances of the credit and and 0.75% on the disbursed balances). NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negoti- ation of the credit. • - 0 -