Announcement of IDA Assists Industrial Development in Nepal on May 5, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/52 . MAY 5, 1977 IDA ASSISTS INDUSTRIAL DEVELOPMENT IN NEPAL ------------------------------------------- Development of industry and tourism in Nepal will be assisted by a credit of $4 million from the International Development Association (IDA),an affiliate of the World Bank. The credit will meet, in part, the foreign exchange require- ments of the Nepal Industrial Development Corporation (NfDC)· over the next two years for lendfng to private sector industries and tourism. NIDC was established in 1959 as a government-owned institution with the responsibility for promoting and financing private industry, including tourism. • It expects to conrnit some $17 million equivalent over the next two years. this, the IDA credit will meet about 40% of the foreign exchange requirements of $10 million. The credit will contribute to mobilization of domestic re- Of sources for investment, increased foreign exchange savings~ and generation of employment. The IOA credit to Nepal is for 50 years, includin~ 10 years' grace, and is interest free except for a service charge of 3/4 of 1%. The proceeds of the credit will be re-lent to NIDC (NIDC Building, Durbar Marga, Kathmandu) at 8.2% per annum with repayment over a period of 18 years, inc1udfng 3 years' grace, on the bas is of an amortization s~hedule reflecting the repayment terms of the sub-Joans to be made by N!DC • • --·---~~-~-~--~------~-~------------~ NOTE: Money figures are expressed in U.S. dollar equivalents.