Announcement of France, World Bank Sign Cofinancing Agreement on April 17, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D .C. 20433 , U.S.A. BANK NEWS RELEASE Contact: Carol Stitt April 17, 1985 (202) 477-5322 FRANCE, WORLD BANK SIGN COFINANCING AGREEMENT The Government of France and The World Bank today signed a comprehensive agreement to cofinance projects in developing nations. Three types of cofinancing are covered under the agreement. Under the terms of the agreement, the French Treasury has earmarked F2 billion ($200 million) to cofinance development projects over the next two years. The agreement also emphasizes regular consultations between the government, the recipient countries, and the Bank to attract further cofinancing, especially through export credits. A third aspect of the agreement underlines the recognition by the French government of the high quality of commercial cofinanced loans. In this way the agreement seeks to enhance the flow of lending from French commercial institutions for World Bank-financed priority development projects. The agreement was signed in Washington, D.C. by Mr. Pierre Beregovoy, France's Minister of Economy, Finance, and Budget, and Mr. A.W. Clausen, President of The World Bank. France has had an active cofinancing relationship with The World Bank , mainly in Africa, through its development institutions--the Caisse Centrale de Cooperation Economique and the Fonds d'Assistance et de Cooperation. Cofinancing of World Bank projects with these sources has ex ceeded $740 million for 115 projects over the past ten years. The new agreement will extend World Bank cofinancing with France to a greater number of developing nations than in the past. Most recently France has pledged $1 54.6 million in direct contributions to the Special Facility for sub-Saharan Africa, which was initiated by The World Bank. French banks have also supported The World Bank's program, begun in 1983, of new cofinancing instruments for commercial banks. Eight French commercial banks have participated, in the amount of about $70 million, in six of the nine B-loans signed so far. These banks have been lead manager or agent in four of these B-loans. . .. /  - 2 - Today's agreement with France brings to 13 the number of current cofinancing framework agreements signed with The World Bank. In initiating this agreement, France, one the world's largest sources of official development assistance, reaffirms its strong support for World Bank operations. ###