Announcement of Rwanda to Borrow from IDA for Small Enterprises Program on April 7, 1983

• ' <;I FOR IMMEDIATE RELEASE · •,~World Bank ',J' 1818 H Street, N.W,, Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 :-.o'-;'-:Y IDA NEWS RELEASE NO. 83/ 6ls-:: ", Contact: Pushpa Schwartz April 7, 1983 (202) 477-3294 RWANDA TO BORROW FROM IDA FOR SMALL ENTERPRISES PROGRAM Rwanda will borrow SDR 6. 5 million ( $7 million) to provide financing for small-scale enterprises and to develop a program for assisting these enterprises, the International Development Association (IDA) announced today. The credit from the World Bank's affiliate for concessionary lending will provide"a line of credit to Banque Rwandaise de Developpement (BRD) of <~'o.9 million, at least $2.5 million of which will be used for BRD's proposed small-scale enterprise program, $4.4 million for financing larger projects with high economic priority, and $0.1 million for a study of small-scale enterprise. Established in 1967 to encourage the creation and development of productive enterprises through the provision of long- and medium-term loans or • guarantees and equity participation, BRD is the main institution providing term financing in Rwanda. It has played a significant role in financing investment, particularly by the private sector. The previous IDA credits to BRD w:.i:::te in the amounts of $4 million and $5.2 million~ The largest subproject financed under the earlier credits helped the Societe des Mines du Rwanda (SOMIRWA) rehabili.tate its mining operations, which cur-1:::ently employ 8,500 workers and provide livelihood for some 2,000 artisan miners who extract and sell ores to the company. The other subprojects were in such sectors as industry, tourism, and automotive repair. Rwanda has received 18 IDA credits, totalling $188 million, since 1970 when World Bank Group-assisted operations started in the country. IDA credits are for 50 years, including 10 years of grace; they carry no interest but have a small annual service charge (0.5% on the undisbursed balances of the credit 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 negotiation of the credit • • 0