Announcement of Thirty Million US Dollars Loan to Help Industrial Development in Morocco on December 20, 1974

• 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank News Release No. 74/101 December 20, 1974 $30 MILLION LOAN TO HELP INDUSTRIAL DEVELOPMENT IN MOROCCO The World Bank has approved a loan of $30 million equivalent to Morocco's Banque Nationale pour le Developpement Economique (BNDE), the country's main sou+ce of long-term finance for industrial development. BNDE will use the proceeds of the Bank loan to finance the import component of specific industrial enterprises. Procurement of imports will be through normal commercial channels. The Moroccan development finance company was established in 1959. Since then BNDE has received six World Bank loans for a net • amount of $113 million. The International Finance Corporation (IFC), a member of the World Bank Group, became a shareholder in 1962. most recent loan from the Bank to BNDE, $24 million made in May 1973, The was fully committed by May 1974. The loan just approved will assist BNDE to meet its growing requirements, supplementing resources obtained from its own operations and other sources. A significant portion of BNDE financing has gone to export-oriented projects, mainly textiles and food processing. Most of its remaining financing, however, is for import substituting projects. The World Bank loan is being made to BNDE with the guarantee of the Government of Morocco, at 8% annual interest. Repayments will confo·rm substantially to repayments received by BNDE on its loans financed out of World Bank funds. The $30 million Bank loan is expected to be fully disbursed by 1978 . • Note: Money figures are expressed in US dollar equivalents.