Announcement of Thirty-Five Million US Dollars to Uruguay for Industrial Development and Export Expansion Project on December 4, 1975

• ·'1\/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 Bank News Release No. 75/95 December 4, 1975 $35 MILLION TO URUGUAY FOR INDUSTRIAL DEVELOPMENT AND EXPORT EXPANSION PROJECT The World Bank has approved a $35 million loan to Uruguey to help finance an Industrial Development and Export Expansion project. The project - the Bank's first operation in the industrial sector in Uruguey - will support a lending program to industrial export enterprises to finance the cost of imported working capital items and machinery and equipment. The project will also include technical assistance to the Government • • There are three main components in this project: a) imported working capital of $24.5 million; b) a medium-and long-term investment financing component of $10 miilion, e..nd c) a technical assistance component of $0. 5 million. To earry out the project, the Cent:rai Bank of Uruguay will establish a new fund called the Industrial Export Promotion Fund (IEPF). IEPF will make available the proceeds of the loan to commercial banks which in turn will lend them to selected export enterprises for imported working capital items and capital goods. The project will fina..Dce the hiring of consultants in export marketing and analysis and appraisal of industrial projects. The loan has a term of 18 years including five years of grace, at an interest rate of 8-1/2 percent per annum. • Note: Money figures are expressed in US dollar equivalents .