Announcement of World Bank and IFC Support Productive Enterprises in Liberia on September 9, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/16 September 9, 19 76 WORLD BANK AND IFC SUPPORT PRODUCTIVE ENTERPRISES IN LIBERIA The World Bank has approved a $7 million loan, including $150,000 for technical assistance, to the Liberian Bank for Development and Investment (LBDI) to help finance productive enterprises in Liberia. The ·International Finance Corporation (IFC), an affiliate of the World Bank, is also Investing up to $306,300 in the share capital of LBDI. This represents IFC's participation in LBDI 's share capital increase from $1 mi 11 ion to $3 mi 11 ion, bringing IFC's shareholding in LBDI, after a stock dividend to be issued, up from $248,490 (24.8% of existing share capital) to $616,910 (20.6% of share capital after the capital increase). LBDI, established in 1965 with the assistance of IFC, has emerged as the • prime source of medium- and long-term development financing for Liberian entre- preneurs. In line with the Government's plan to develop export-oriented industries, a growing share of LBDI 's financing has been for the agro-based industries of wood and rubber production as well as for small-scale manufacturing, transportation, tourism and services enterprises. About four-fifths of LBDI 's investment are in Liberian controlled enterprises. LBDI 's level of operations experienced a dramatic upswing in 1974 when approvals of loans and equity investments rose to nearly $5 million. Commensurate with this increase in operations, LBDI 's net profits reached $302,000 or 23% of average net worth, in 1975, when a dividend of 6!% was declared. According to current projections, the World Bank loan will meet 85% of LBDI 's additional foreign resource needs for the 1977-mid-1979 periodG In addition to the latest loan, LBD! has so far received two World Bank loans totaling $5 million, two credits totaling $3 million from the African Deve 1opmen t Bank, and a 1oan of about $1 mi 11, ion from Kred i tans ta H fur Wieder~ufbau (KTW). The loan to LBDI, (P. O. Box 5~7, Monrovia, Liberia), is guaranteed by the Government of Liberia. The interest wi 11 be at 8.9% per annum. It wi 11 be re- payable substantially in conformity with the aggregate amortization schedules of the sub-loans, with a maximum perlod of 15 years from the approval of the last sub-loans, and, in the case of the technical assistance part of the loan ($150,000), a period of 15 years, including 2i years of grace. • NOTE: To date, World Bank assistance to Liberia has totaled $81.2 million • Money figures are expressed in U.5$ dollar equivalents.