Announcement of Tanzania Receives Fifteen Million Dollars World Bank Loan on December 8, 1977

• World Bank ·1r. w H Street, N.\i\' .. \\'Jshinglon, D.C. 20433, U.S.A. • Telephone: (202) 393~6360 BANK NEWS RELEASE NO. 78/26 December 8, 1977 TANZANIA RECEIVES $15 MILLION WORLD BANK LOAN The World Bank has approved a $15 million loan that will assist investment in productive enterprises in Tanzania. Recipient of the loan is the Tanzanian Investment Bank (TIB), a government-owned institu- tion established in 1970 to provide medium- and long-term finance and technical assistance to projects in various sectors of the Tanzanian economy. The largest recipients of TIB assistance so far have been in the manufacturing and processing enterprises. Other important beneficiaries have been tourist development projects, especially hotels, textiles, chemical and rubber processing activities, the transport sector and the metals and non-metallic minerals subsectors. To finance its lending operations, TIB obtains long-term domestic and foreign loans and grants from the Government, international lending agencies and bilateral donors. • The World Bank and its affiliates have been extensively involved with TIB since its founding and have worked closely with it in developing its potential as a key participant in Tanzania's industrial development. TIB has so far received assistance from the World Bank worth $21 million -- in the form of an IDA credit of $6 million and a Bank loan of $15 million. Apart from these, TIB administers an IDA Technical Assistance Credit of $6 million to Tanzania for financing feasibility and pre-investment studies in the industrial sector and the training of Tanzanian staff in key areas. Because of the reputation it has gained as an efficient and well- organized financial institution, a strategy has been designed for TIB to expand and diversify its operations. To achieve these objectives, the institution needs additional financial resources. The $15 million World Bank loan will enable TIB to ffnance parts of the planned increase and diversification. The loan will meet part of TIB 1 s foreign exchange requirements to cover its commitments up to December 1980. TIB will relend the proceeds of the loan at a m1n1mum interest rate of 11 percent per annum. The maximum maturity of sub-loans will be 15 years including adequate grace periods. The World Bank loan is guaranteed by the Government of Tanzania. The interest will be 7.9 percent per annum. It will be repayable substan- tially in conformity with the aggregate amortization schedule for sub-loans and investments for which withdrawals for the loan account are approved or • authorized . NOTE: Money figures are expressed in U.S. dollar equivalents.