Announcement of a World Bank Loan to Morocco for the National Rural Finance Project on November 23, 1993

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. 94/30 MENA CONTACT: JEANNIE YAMINE (202)473-2318 MOROCCO: NATIONAL RURAL FINANCE PROJECT The following is information on a project approved by the World Bank's Board. DATE: November 23, 1993 WORLD BANK GROUP SUPPORT: World Bank loan for $100 million equivalent. The loan is for 20 years, including five years grace, at the Bank's standard variable interest rate. TOTAL PROJECT COST: $1.15 billion OTHER PROPOSED FINANCING: Caisse Francaise de Developpement, $30 million; Kreditanstalt fur Wiederaufbau of Germany, $34 million; European Investment Bank, $60 million; Arab Fund for Economic and Social Development, $60 million; Overseas Economic Cooperation Fund of Japan, $95 million; National Agricultural Credit Bank (CNCA), $431 million; sub-borrowers, $340 million. IMPLEMENTING AGENCY: National Agricultural Credit Bank (CNCA) DESCRIPTION: The objectives of the project are to promote private investment in rural areas -- particularly the poorer regions of the country, develop high-quality, competitive and more diversified rural banking for small and medium-sized agricultural and rural enterprises, and establish the enabling policy and institutional environment for more efficient financial and competition in rural credit. Among the activities supported by the project will be the diversification of CNCA financing from on-farm and forestry investments to private coastal fisheries, private artisans, and rural non-farm enterprises, among others. Institutional strengthening and development will be undertaken through funding of training programs and equipment needed to better manage CNCA as a universal bank, and the provision of training for specialists as well as overseas training for CNCA local managers. In addition, the project will provide technical assistance to support the development, testing, and implementation of an agricultural insurance scheme and a climatic risk insurance fund for drought management.