Announcement of Turkey Borrows Seventy Million Dollars for a Development Bank Project on March 17, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/68 MA RC H 17 , 19 77 TURKEY BORROWS $70 MILLION FOR A DEVELOPMENT BANK PROJECT Industrial development in Turkey will be assisted by a loan of $70 million from the World Bank. The loan to the Devlet Yatirim Bankasi (DYB) -- the State Investment Bank of Turkey -- will help meet the foreign exchange cost of investments in ~anufacturing enterprises in the country's pub 1 i c sector. The Turkish Government established DYB in 1964 for the purpose of financing public sector industry. The World Bank made its first loan of $40 million to DVB in 1974. This loan financed 10 projects in manu- facturing and processing industries. DVB is an effective intermediary in • the financing of economically sound projects. The new loan will cover about 6% of DYB's projected commitments during 1977-78. Building on the successful performance of DYB under the first loan, the new loan will continue to assist DVB in financing important projects in the public sector and thus will enable DYB to increase its contribution to the industrialization efforts of Turkey. The Bank loan to DYB will have the guarantee of the Government of Turkey. The loan will be repayable in conformity with the aggregate of the amortization schedules applicable to sub-projects which will not exceed 15 years. The Bank loan will carry interest at the rate of 8.5% per annum. The DYB will re-lend at an interest of 12.5%. ---·-------------- NOTE: Money figures are expressed in U.S. dollar equivalents . •