Announcement of Morocco to Boost Export Industries, Improve Efficiency of Financial Sector on December 7, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/27 Contact: Fawzi Rihane (202) 473-2675 MOROCCO TO BOOST EXPORT INDUSTRIES, IMPROVE EFFICIENCY OF FINANCIAL SECTOR WASHINGTON, December 7, 1989 -- Morocco will expand and modernize its industrial sector and boost manufactured exports through a project supported by a $170 million World Bank loan. The project includes lines of credit to seven commercial banks and Banque Nationale pour le Developpement Economique, Morocco's industrial development bank. The funds will finance industrial, industry-related, and tourism projects. Further, the project will support progressive liberalization of Morocco's financial system and help improve the country's balance of payments by financing efficient import-substitution and tourism investments. The commercial banks that will participate in the project are Banque Centrale Populaire, Banque Commerciale du Maroc, Banque Marocaine du Commerce Exterieur, Banque Marocaine pour le Commerce et l'Industrie, Credit du Maroc, Societe Generale Marocaine de Banque and Wafabank. The project will promote competition in the area of investment lending and support the commercial banks in the early phase of their involvement in lending for tourism projects, a relatively new investment area for these institutions. The project will also strengthen export-promotion activities. Since 1983, the World Bank has played a key role in assisting Morocco re-orient its economy and strengthen its industrial and financial sectors through policy and institutional reforms. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. Note: Money figures are expressed in U.S. dollar equivalents.