Announcement of IDA Supports National Industrial Development Bank in Madagascar on June 12, 1980

' FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/98 June 12 , 19 80 IDA SUPPORTS NATIONAL INDUSTRIAL DEVELOPMENT BANK IN MADAGASCAR The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of $5 million to the Government of Madagascar for the National Industrial Development Bank--Bankin'ny !ndostria (BNI). The project will support the country's growing industrial sector and BNI 's crucial role in it by providing the foreign exchange needed for capital investment estimated in the next three years at approximately $29 mi 11 ion . The !DA-assisted project will also contain an institution-building • component. it wi 11 provide technical assistance for the training of BNI 's staff, the improvement of its procedures and the setting up of a Promotion Department. BNI, the main institution responsible for industrial financing in the country, wi 11 be strengthened and this is e.xpected to have a sign i fi - cant impact on the sector. The credit will finance medium-scale industrial, agro-industrial and tourism projects as well as some small-scale industrial enterprises and semi-industrial services. The projects assisted are expected to create about 6,000 jobs. Additional finance of about $11 million is being provided to BNI by the Caisse Centrale de Cooperation fconomique, the Italian government and the Kreditanstalt fUr Wiederaufbau. The Government of Madagascar is providing BNI with local funds estimated at $3.14 mi 11 ion. BNI 's own revenues should provide about $10.48 million towards its requirements. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but will bear a service charge of 3/4 of 1% per annum to cover administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents.