British Guiana - British Guiana Credit Corporation Project

R ESTR I CT E D F11E CoPy Report No. P-25 This report was prepared for use within the Bank. It may not be published nor may it be quoted as representing the Bank's views. The Bank accepts no responsibility for the accuracy or completeness of the contents of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMIENZ REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO BRITISH GUIANA June 7, 1961  REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO BRITISH GUIANA 1. I submit the following report and recommendations on a proposed loan of $1.25 million to British Guiana to enable the British Guiana Credit Corporation to expand credit for farming, forestry, animal husbandry and fishing. PART I - HISTORICAL 2. Although the Bank has never lent to British Guiana, its contacts with the country date back to 1953. In that year, a mission, organized by the Bank, made a general survey of the economy and offered recommendations for its development. One of these recommendations which related to the establishment of a credit institution was adopted when the Government formed the British Guiana Credit Corporation in 1954. 3. In July 1958, the British Guiana Government, with the approval of the UoK. Government, asked the Bank for assistance in financing its develop- ment program. A member of the staff visited British Guiana in November 1958 and concluded that the Bank should help in improving agriculture. Following a further visit in April 1959, a loan of $1.25 million to be made available to the British Guiana Credit Corporation for lending to agriculture over a two-year period was negotiated in Washington in February 1960. 4. Before the loan documents could be submitted to the Executive Directors, the General Manager of the Corporation resigned and it was not until December 1960 that a new General Manager was appointed. Meanwhile, the term of the Board expired and most of the members were replaced by new appointees. A mission went to British Guiana in March 1961, the loan documents were revised and negotiations were concluded in Xme 1961. 5e The Bank has already made the following loans lith the guarantee of the United Kingdom. Amount as of April 30, 1961 Year Borrower Purpose (in U.S.$ million) 1952 Colony of Southern Rhodesia Power 28.0 1953 Territory of Northern Rhodesia Railways 14.O 1955 East Africa High Com- mission Railways & harbours 24.o 1956 Federal Power Board (Federation of Rhodesia and Nyasaland) Power 80.0 1958 Federation of Nigeria Railways 28.0  - 2- 1958 Federation of Rhodesia and Nyasaland Railways 19.0 1960 Federation of Rhodesia and Nyasaland Agriculture 5.6 1960 Colony and Protectorate of Kenya Agriculture and roads 5.6 1961 Protectorate of Uganda Power 8.4 Total 212 o6 Of which has been repaid 1300 Total now outstanding 199