British Guiana - British Guiana Credit Corporation Project

RETURN TO REPORTS DESK RESTRICTED WITHIN R e p o r t N o. TO-279a ONE WEEK 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 It may not be published nor may it be quoted as representing the Bank's views.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 DEVELOPMENT APPRAISAL OF THE BRITISH GUIANA CREDIT CORPORATION PROJECT June 7, 1961 FILE COPY Department of Technical Operations  CURRENCY EQUIVALENTS $ 1 British West Indies (BWI) = U.S. cents 58.33 $ BWI 1 million = U.S. $583, 333 1 U.S. $ = $ BWI 1.715 $ 1 BWI = E 0.4.2 LJ 1 Sterling = $ BWI 4.80  APPRAISAL CF THE BRITISH GUIAMA CREDIT CORPORATION PROJECT TABLE OF CO01TENTS Page No. Summary I Introduction 1 II Background of Agricuitural and Forestr, Development 1 III The British Guiana Credit Corpora-tion 3 Organization 3 Loan Characteristics and Procedures 4 Loan Operations 5 Quality of Loan Portfolio 6 Financial Situation 6 IV The Project 7 A. The Corporation's Lending Program 7 B. Resources of the Program 10 C. Details of the Proposed Loan 10 V Justification of the Project 10 VI Conclusions and Recommendations 11 Annexes Annex No. Details of the Corporation's Lending Operations 1-a Lending Operations by Separate Programs 1-b Delinquent Loan Situation as at December 31, 1960 2 Condensed Balance Sheets since Inception 3 Condensed Profit and Loss Accounts since Inception 4 Pro-forma Profit and Loss Account 5 Program of Lending for the Period January 1, 1961 - June 30, 1963 6 Cash Flow Statement 7  APPRAISAL OF THE BRITISH GUIAT\ CR7ThTT COPO ATIONi P'10JECT S U IMI M A R Y i. A loan to British Guiana to increase the financial resources o'2f the British Guiana Credit Corporation for its lending program was nego- tiated in February 1960. However, before the loan documents could be presented to the Executive Directors, the general manager of the Corpor- ation resigned, and it was not until December 1960 that a new general manager was appointed. Meanwhile the term of the Corporation's Board expired and most of the members were replaced by new appointees. A Bank mission visited British Guiana in March 1961 and reappraised the project. ii. The Corporation's lending program would amount to the equivalent of US36.4 million (BIUJI$ 10.98 million) for the period January 1, 1961 to June 30, 1963. An amount of US.3.4 million (BWIe 5.9 million) of the total would be spent on the development and improvement of agriculture, forestry, fisheries and related processing and storage facilities, There is need and effective demand for investment in these fields. The rest of the program, not included within the project, covers the financing of light industries, housing and crop loans to agricultural co-operative societies. iii. The resources of the Corporation consist of loan capital made available by the Government in the form of advances for an indefinite term at a rate of interest of 3.5 per cent per annum. iv. With the guarantee of the United Kingdom, British Guiana iouldbe the borrower of a Bank loan of US