Announcement of Thirty-Five Million US Dollars Loan for Industry in Morocco on May 20, 1971

lNTERNi\TIONAL BAl'H< FOR • RECOI\ISTRUCTI D DEVELOPi\llENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 71/26 Subject: $35.0 million loan for May 20, 1971 industry in Morocco The World Bank has approved a loan of $35. 0 million to the Banque Nationale pour le Developpement Economique (BNDE), a development finance company in Morocco. The loan will help prolIK)te the growth and diversifica- tion of industry and enable Morocco to increase its foreign exchange earnings. The latest loan is the fifth offered by the World Bank to BNDE. It will provide BNDE with a suitable amount of capital to meet forecast commitments until the end of 1972. The Bank has been associated with • BNDE since 1962, and has previously made four loans totaling $62.5 million • In addition, IFC holds about $1 million or 25% of BNDE' s share capital. Established in 1959, BNDE is the largest institutional source of medium and long-term finance for industrial enterprises in Morocco. It has had a growing role in financing industrial and other productive ventures. Projects tm.der BNDE's consideration currently include the expansion of two oil refineries and an automobile assembly plant. In recent years BNDE' s general performance has consistently improved, and it: has continued to expand its business activities, especially in 1970. BNDE' s lending during 1970 accounted for a substantial part of total private investment in industry, and over three-quarters of aggregate investment approved by the Moroccan Investment Commission f0r that year. The loan is guaranteed by the Kingd0,_ra of Morocco. It is repayable over 14 years, including a two-year grace period, and cat·ries an interest rate of 7"!.r.% per annum. - 0 - •