Announcement of Morocco to Develop Electrical and Mechanical Industries on January 18, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/22 Contact: Fawzi Rihane January 18, 1985 (202) 477-5325 MOROCCO TO DEVELOP ELECTRICAL AND MECHANICAL INDUSTRIES Morocco will further strengthen its industrial base by continuing the development of its electrical and mechanical industries (EMIs). Some 40 such industries will benefit from a line of credit to be financed through a loan of $25.1 million from The World Bank. These EMIs are expected to generate investments of about $43 million and 1,500 jobs. The project will also help promote long-term lending by Moroccan commercial banks for industrial activities. And it will strengthen the Office for Industrial Development in its role of industrial promotion. A line of credit of $22 million, to be lent through six Moroccan commercial banks, will finance the development of the EMIs. Equity participations, amounting to $2.8 million, in private or public EMIs, will also be financed. The remaining $200,000 will be used for studies aimed at strengthening market analysis. Potential EMI products will be identified and detailed market studies will assess their viability. This project is designed to help alleviate the pressure on Morocco's balance of payments through efficient import substitution and increased exports of EMI products. Adequate medium- and long-term financing, which has so far been limited, is necessary to develop EMIs. The World Bank loan is for 17 years including four years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.