Announcement of First World Bank Housing Project in Morocco on March 17, 1983

FOR IMMEDIATE RELEASE..,/ •world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.•Telephone: (202) 477-1234 BANK NEWS RELEASE N0.83/52 Contact: Ciro Gamarra March 17, 1983 (202) 477-5320 FIRST WORLD BANK HOUSING PROJECT IN MOROCCO About 13,000 new housing units will be constructed throughout Morocco under a project using a $60 million loan from the International Bank for Reconstruction and Development (IBRD). About one-third of the units will be for families with incomes less than $170 per month, which is the urban poverty threshold for Morocco. The housing shortage in Morocco has particularly affected the low- income groups. By providing affordable housing, the project will help alleviate the development of illegal settlements. • The first IBRD loan for housing in Morocco will provide a $59 million line of credit to Credit Immobilier et Hotelier (CIR). The mortgage bank will finance construction loans to private and public developers to build housing units ranging in price from $5,300 to $13,300. After three years, the construction loans will be converted to mortgage loans for potential buyers. This use of funds will be an incentive to private developers to build low-income housing units. The project will also provide technical assistance to CIR for developing a land-use model, for establishing a computerized data information system, and for a study of the residential construction sector. IBRD has previously financed two urban development projects in the cities of Rabat, Kenitra, and Meknes. Infrastructure and shelters have been provided in slum quarters, benefitting an estimated total of 160,000 low- income residents. The IBRD loan is for 17 years, including four years of grace, at an interest rate ljnked to the cost of borrowing. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.75% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents . •