Announcement of 50 Million Dollar Loan to Boost Tourist Industry in Morocco May 4, 1987

Monday, May 4, 1987 Monique Amaudry Press Release No. 87/58 (202) 676-9331 IFC PROVIDES $50 MILLION LOAN TO BOOST TOURIST INDUSTRY IN MOROCCO The International Finance Corporation is providing Credit Immobilier et Hotelier, the principal source of hotel long-term financing in Morocco, with a $50 million loan equivalent. The IFC loan will provide CIH with the foreign exchange required to finance a substantial number of investments to be made in the tourism sector in Morocco. IFC, an affiliate of the World Bank, is the leading private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. IFC is lending for its own account f.26.0 million (approximately $12.5 million equivalent), plus an additional f.26 million, which may be swapped by IFC for $12.5 million equivalent at the option of Credit Immobilier et Hotelier. The swap will enable CIH and Morocco to benefit from a lower interest rate. In addition, CIH asked IFC to help in arranging a $25 million syndicated loan in various currencies (Deutsche mark, Guilders and U.S. dollars). IFC, assisted by Banque NMB-Interunion, put together a syndicated loan with nine financial institutions, including Banque de l'Union Europeenne, Abu Dhabi International Bank, Inc., Bergan Bank A.S., Oesterreichische Laenderbank, Banque NMB-Interunion, Al Saudi Banque, Caixa Geral de Depositos-Paris Branch, International Bankers Incorporated S.A., Banque Worms, SIFIDA Investment Company, Societe Lyonnaise de Banques and the Arab Investment Company S.A. - MORE - - 2 - The Moroccan tourism sector, which today generates $600 million in foreign exchange, is expected to continue growing at 6 percent per year. Major investments will be required to rehabilitate existing hotels and expand overall capacity. IFC played a critical role in helping CIH obtain the necessary foreign exchange requirements when Morocco's access to foreign exchange remained limited. CIH expects to continue its cooperation with IFC as co-financers on individual projects and as a channel to help it have access to international financial markets. IFC holds seven investments in Morocco in cement and construction materials, food and food processing, mining and development finance, amounting to approximately $95 million. - END -