Burundi - Banque Nationale de Developpement Economique (BNDE) Project : Burundi - Banque Nationale de Developpement Economique (BNDE) Project

Report No. 1460a-BU FILE COPy Appraisal of the Banque Nationale de Developpement Economique (BNDE) Burundi lune 10, 1977 Industrial Development and Finance Division Eastern Africa Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Worid Bank authorization.  Currency Equivalent (1976) 1 US$ - BuF 89.55 ABBREVIATIONS ADB African Development Bank BNDE Banque Nationale de Developpement Economique CCCE Caisse Centrale de Cooperation Economique DEG Deutsche Entwicklungsgesellschaft EIB European Investment Bank KfW Kreditanstalt fur Wiederaufbau UNIDO United Nations Industrial Development Organization UNDP United Nations Development Program FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY _'PRAISAL OF THE BANQUE NATIONALE DE DEVELOPPEMENT ECONOMIQUE (BNDE) Table of Contents Page No. ABBREVIATIONS i-iv BASIC DATA SUMMARY ......, ............................................... v-vi I. INTRODUCTION . II. THE ENVIRONMENT ... The Economy ....... ............ The Manufacturing Sector.. 2 Government Industrial Policies . . 3 Tourism . .4 The Financial Environment .. 5 The Central Bank (Banque de la Republique du Burundi) 5 Commercial Banks. 5 Term-lending Institutions. 6 The Interest Rate Striucture. 6 III. THE COMPANY ... . ........... .... 8 Background. 8 Ownership .... 8 Board of Directors .. 9 Management .. 9 Organization and Staff .. 9 Policy Statement........ 10 Interest Rates ..10 Procedures ..il Legal ..12 Auditors . .12 IV. OPERATIONS AND FINANCE .12 Operations .12 Resources .14 Loan Portfolio .14 Equity Portfolio .15 Financial Situation .15 Financial Results .15 This report was prepaie. y tlessrs. Philippe Beu,;elin and Louiis Currat following their visit to Burunci in November 1976. This document has a restricted distribution and may be used by recipients on.iv in the perfornTl^ic,t of their official duties. Its contents may not otherwise be disclosed without Word Bhnk uthoflzztin. _  Table of Contents (Cont'd) Page No. V. PROSPECTS ............................................. 16 Business Outlook ...................................... 16 The Company's Strategy .. ............................. . 16 Forecast Operations .. ...... .... ...................... . 16 Resource Requirements ........................... ...... 17 Financial Projections ....... ...... ............. 18 Term Debt/Equity ..................................... 18 VI. CONCLUSIONS AND RECOMMENDATIONS ....................... 18  LIST OF ANNEXES 1. BURUNDI - Interest Rate Structure 2. BNDE - List of Shareholders 3. BNDE - Board of Directors 4. BNDE - Organization Chart 5. BNDE - Industrial Development Unit 6. BNDE - Cost Estimate for Employment of one Expatriate in the Industrial Development Unit 7. BNDE - Statement of Policy 8. BNDE - Total Approvals, Commitments and Disbursements, 1971-1976 9. BNDE - Loans Approved by Sector, by Year and by Term, 1971-1976 10. BNDE - List of Term Loans Approved in the Industrial and Tourism Sectors, 1971-1976 11. BNDE - Analysis of Loans to Industry, Handicraft and Tourism, 1971-1976 12. BNDE - Resource Position as of December 31, 1976 13. BNDE - Borrowings by BNDE as of December 31, 1976 14. BNDE - Equity Investments as of December 31, 1976 15. BNDE - Summarized Balance Sheets, 1970-1976 16. BNDE - Summarized Income Statements, 1970-76 17. BNDE - Project Pipeline as of December 31, 1976 18. BNDE - Assumptions for Financial Projections 19. BNDE - Forecast of Operations, 1977-1981 20. BNDE - Projected Income Statements, 1977-1981 21. BNDE - Projected Balance Sheets, 1977-1981 22. BNDE - Projected Sources and Uses of Funds, 1977-1981 23. BNDE - Past and Projected Financial Ratios 24. BNDE _ Estimated D:isbursement Schedule for the Proposed Credit   - i - BASIC DATA on BANQUE NATIONALE DE DEVELOPPEMENT ECONOMIQUE (BNDE) YEAR OF ESTABLISHMENT: 1967 OWNERSHIP (As of December 1976) Number % of of total Shares Capital Shareholders R