Announcement of World Bank and Colombia Subscribe One Hundred Fifty-Five Million Dollars Loan Agreement in Support of New Administration’s Efforts on September 6, 2002

World Bank and Colombia Subscribe $155 million Loan Agreement in Support of New Administration’s Efforts Contacts: Alejandra Viveros (202) 473-3406 aviveros@worldbank.org Christopher Neal (202) 473-7229 Cneal1@worldbank.org For more information on the project, please visit: http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_02022804022278 WASHINGTON, September 6, 2002 – The World Bank and the Government of Colombia today subscribed a loan agreement for $155 million to support the new Administration of President Alvaro Uribe implement long-term reforms needed to achieving sustainable economic growth, social development and poverty reduction. This agreement is part of the continued and increasing support that the World Bank is providing the Government of Colombia for the substantial economic and social reforms currently under implementation. "This Social Sector Adjustment Loan is a first step in the World Bank‘s overall support of President Uribe’s efforts to promote equity and efficiency in the social sectors, particularly with respect to programs for the poor and vulnerable,” said David de Ferranti, World Bank Vice-President for Latin America and the Caribbean, who co-signed the loan agreement with Luis Alberto Moreno, Ambassador of Colombia to the United States. “Since taking over on August 7, the new administration has already introduced structural reforms that are key to guaranteeing the sustainability of both social protection and economic growth.” The Social Sector Adjustment Loan (SECAL), approved by the World Bank’s Board on August 1, will strengthen reforms in health and education, and introduce a social risk management strategy to ensure that Colombia is better prepared to protect its most vulnerable populations and key social expenditures. These areas are at the forefront of the agenda of President Uribe, who as newly-elected president met with World Bank President James D. Wolfensohn in June. In addition to strengthening Colombia’s social safety net, the loan will support expanded immunization campaigns, increased health insurance coverage for the poor, and improve transparency and citizens’ oversight of the government’s principal social sector programs. This single-currency, fixed-spread loan has a term of 15.5 years, including five years of grace. It is expected to be disbursed in a single tranche shortly. ## For more information on the World Bank’s work in the Latin America and Caribbean region, please visit: http://www.worldbank.org/lac