Announcement of Fifteen Million Dollars IDA Credit to Tanzania on March 17, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/36 March 17, 1977 $15 MILLION IDA CREDIT TO TANZANIA The International Development Association (IDA), an affiliate of the World Bank, has announced a $15 million credit to help relieve Tanzania's immediate economic problems as well as support the country's long-term develop- ment program. Tanzania needs foreign assistance in order to continue its recovery from the serious economic crisis which started in 1974. The crisis was trig- gered by a combination of external and internal factors: a two-year drought, which led to a sharp fall in agricu;tural production and loss of export earnings; the importation of food and other essential commodities at inflationary prices; and not least of all, the large increases in the price of petroleum. To counter the crisis, the Government adopted a series of measures to restructure the eco- nomy. These called, among other things, for increased production of food and other farm produce; a tight control on imports; and a sharp reduction in govern- ment spending. These measures are slowly taking effect, but in the meantime, the Tanzanian balance of payments position remains weak. The credit will provide foreign exchange for the imports of essential capital, intermediate goods and raw materials for the public and private sectors of the economy. It will also assist the Tanzanian Government's efforts to restructure the economy in the face of current difficulties, and to pursue the country's declared social and econo- mic goals of self-reliance and the eradication of poverty. The $15 million IDA credit to Tanzania is being made on standard terms of 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1 percent. Note; Money figures are expressed in U.S. dollar equivalents.