Announcement of Argentina Borrows 100 Million Dollars for Industrial Development on June 20, 1977

eWorldBank 1818 ~ Street,. N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202} 393-6360 BANK NEWS RELEASE NO. 77/137 JUNE 20, 1977 ARG'ENT I NA BORRO\,JS $100 ... MI LUON FOR tND~STR I AL D£VE'LOPMENT Industrial development in Argentina will be assisted by a loan of $100 mi 11 ion from the Hor 1d Bank to the Banco Nae i ona 1 de Desa r ro 11 o (BANADE) , a development finance company. The loan will provtde BANADE the resources to finance the foreign exchange component of investments in specific industrial projects. BANADE was created in 1970 as successor to Banco Industrial de la F\e-~:,ub 1 i ca Ar9ent i na. The Gove rnn-en L <'f Argentina has 1au nched measures to make BANADE a more efficient 1 ~.nu~·;trial development bank. 1 In addition to pro- • viding scarce long-term funds, th,~ \./odd Bank loan will help to accomplish the following objects: (i) to increase the overall efficiency of the indus- trial sector by helping to finance projects with the greatest potential for exports and import substitution; (ii) to help implement reforms instituted by BANADE's new management aimed at rationalizing resource al location in the in- dustrial sector; (iii) to provide BANADE with technical assistance to improve its lending to the industrial sector; and (iv) to serve as a catalyst for the mobilization of complementary funds from the international capital markets through co-financing arrangements. The Bank loan to BANADE,25 de mayo 145, Buenos Aires, Casilla de Correo 4096, wil 1 have the guarantee of the Government of Ar~entina. The loan will carry interest at 8.2% per annum. The proceeds of the loan, except for $0.25millio~ will • be relent to industrial enterprises at not less than 11%. Repayments will con- form to the aggregate amortization schedule of BANAOE 1 s sub-loans, subject to a maximum term of 15 years. NOTE: Money figures are expressed in U.S. dollar equivalents.