Announcement of Four Million Five Hundred Thousand Dollars IDA Credit to Turkey for Agriculture on February 18, 1971

I' V • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 Ti::LEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/6 Subject: $4.5 million IDA credit February 18. 1971 to Turkey for agriculture Turkey will increase fresh milk, milk products and meat supplies for its growing urban population and expanding tourism trade with the assistance of a $4.5 million credit from the International Development Association (IDA), of the World Bank Group. Dairy production in Turkey has been hampered in the past by limited technology and scarcity of long-term credit. The approximately $7 .5 mil- lion project will help improve these conditions and ;issist in the • establishment of modern dairy farming as part of an overall livestock development program wider the Second Five-Year Plan. Some 250 to 300 specialized dairy farmers are expected to benefit. Participants, who now have relatively small herds of about 10 cows, will be assisted in increasing output of high quality milk, milk products and, to a lesse~ extent, beef. Demand for these products is increasing, especially in urban areas. Tourist consumption is also rising and the project is therefore expected to contribute indirectly to foreign exchange earnings. It will also provide improved breeding cattle and demonstrate higher husbandry and forage production technology to farmers outside the proje:ct. In addition, a technical services group will be established in the Ministry of Agriculture and a lending group will be set up in the Agriculture Batnk • of the Turkish Republic (ABT) -- both with necessary expertise to under- take larger, more comprehensive projects. /more  .. 1 IDA P.R. No. 71/6 -- Turkey -- agriculture - 2 - The project centers on the four main milk consuming areas of • Adana, Ankara, Istanbul and Izmir. Financing will cover the cost of 4,400 dairy cattle, tractors and other farm machinery, seeds for fodder crop improvement and technical services. Turkish manufacturers are expected to supply some of the tractors. The IDA credit to the Republic of Turkey is for a term of 50 years, including a 10-year grace period. It will be interest free but carries a 3/4 of 1% service charge to meet IDA's administrative costs. Approximately $3.9 million of the credit will be relent to ABT for 15 years at 6.5%. ABT, in turn, will lend to participating farmers. • The remaining $600,000 will be used by the Government to provide technical services through the General Directorate for Livestock Develop- ment Projects, including training, special studies, vehicles and equipment. The Government will contribute about $1.4 million for the project with the balance of $1.6 million being provided by the farmers. The Food and Agriculture Organization of the United Nations (FAO) assisted in the preparation of the project tlllder the World Bank/FAQ Cooperative Program. - 0 - •