Announcement of World Bank Loan to Improve Argentina's Agricultural Services on March 1, 1991

FROM:LACUP 202 676-9271 TO:WB EXTIP 202477 7170 JUN 11. 1991 10:04AM #449 P.02 FOR IMMEDIATE RELEASE vVorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Telephone: (202) 477-1234 WORLD BANK NEWS NO, 91/ 47/LAC Contact; Ciro Gamarra (202) 473-8721 WORLD BANK LOAN TO IMPROVE ARGENTINA'S AGRICULTURAL SERVICES WASHINGTON, March 1, 1991 -- Argentina will improve its ability to compete in export markets for basic and high value-added agricultural, horticultural, livestock, forestry and fisheries products through a project assisted by a $33.5 million World Bank loan. The project will strengthen the agricultural services managed by the Subsecretariat of Agriculture, Livestock and Fisheries through investment in, physical facilities, institutional development, training and technical assistance activities., The agricultural services project will strengthen animal disease control, phytosanitary programs, improve wool grading and classification, strengthen analysis and monitoring of maximum sustainable maritime fish catches, promote export of higher vale-added meat products, improve research and provide specialized training. Private sector will be assisted under the project to venture into new export markets by partly financing marketing studies, technical assistance, and overseas visits and export promotion. . The total cost of the project is estimated at $83.2 million. The Interamerican Development Bank is expected to cofinance the project with $30 million and the government of Japan is expected to finance technical assistance, training and studies in the project's forestry and fisheries subsectors with a $1 million grant. Local counterpart funds will provide the balance of $18.7 million. The World Bank loan to the Argentine Republic will be disbursed over eight years. It is for 17 years, including five years of grace, with a variable interest rate, currently at 7.73 percent, linked to the cost of the Bank's borrowings. They also carry an annual commitment charge of 0.25 percent on the undisbursed balances. NOTE; Money figures are expressed in U.S. dollar equivalents.