Announcement of One Million US Dollars Loan for Industrial Development and Investment Bank in Liberia on June 15, 1972

• INTERNATIONAL BANK FOR RECONSTRlJC'Tf Q~..~~ ,~.f\JD OE\/ELC)PfvlENT ~ "t ' 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/36 Subject: $1. O million loan for Industrid Jwe 15., 1972 Developmnt and Inwst•nt Bank in Liberia The World Bank has approved a loan of $1.0 million for the Liberian Bank for Industrial Development and Investant (LBIDI) to help meet the costs of the import component of inveatment projects to be financed over the next two yi~ars. LBIDI was established in 1965 to promote private enterprise through loans, equity participations, guarantees and underwritings. It is the only source of long-term capital for industrial financing in Liberia. LBIDI was formed with the assistance of the Intemational Finance Corporation, a World Bank affiliate., • which subscribed 25% of the share capital. The Government of Liberia, IFC and riivate Liberian investors together hold 51% of LBIDI 's share capital. icvestors own the remaining 49%. Since its operations began in 196 7, LBIDI has invested or lent $2 million, Foreign mostly to small firms. About 59% of the b,ank' s investments or lending opera- tions have gone into industry, 28% into agribusiness and 13% into tourism, transport and other services. Industrial loans have been predominantly for foo':i processing, wood and fumiture. \~gribusiness projects financed include palm oil, tobacco, poultry and ~ber. LBIDI expects to make loan commitments of more than $2 million in the next tw~ years. These comi tments, mainly in t~e fields of import substitution, rn:ocessin~ of local r~: materials and the development of agribusiness, could \!01,tribute to a total :~nvestment of over $5 million. -~~ .. The World Bank loan with an interest rate of M per annum, is guaranteed by the Republic of Liberia. Amortization would conform with the aggregate of ma,rtization schedules of subloans and investments made by LBIDI. Previous World Bank Group lending to Liberia has totaled more than $28 mil- • lion. This has helped finance projects for roads, power, port expansion, for agricultural development and educational improvement. - 0 -