Announcement of Morocco to Boost Export Capacity with World Bank Loan on May 7, 1987

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. 87/ 62 Contact: Fawzi Rihane (202) 477-5325 MOROCCO TO BOOST EXPORT CAPACITY WITH WORLD BANK LOAN WASHINGTON, May 7 -- Morocco will improve its export performance and develop its industrial base with a project supported by a $70 million World Bank loan. The project consists of eight lines of credit to Morocco's national development bank and seven Moroccan commercial banks, which will use the funds to finance export-oriented private sector industrial investments. Each of the participating banks will appraise subprojects and submit them directly to the World Bank for approval and subsequent financing. Export growth is crucial to Morocco's ability to service its foreign debt and achieve economic recovery. This growth, however, depends on a continuation of the policy adjustment process undertaken by the government in 1983 with the support of two World Bank industrial and trade policy adjustment loans. The World Bank loan is for 15 years, including four years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are expressed in U.S. dollar equivalents.