Announcement of Morocco to Borrow Two Hundred Million US Dollars for Industrial Development on July 18, 1985

. . FOR IMMEDIATE RELEASE World Bank n;TZ:~t1T.-"~Ir:~· .- 1~ :'· 1 • ! (_:---.-1 ru.:~i.i i 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 0- BANK NEWS RELEASE NO. 86/7 Contact: Fawzi Rihane July 18, 1985 (202) 477-5325 MOROCCO TO BORROW $200 MILLION FOR INDUSTRIAL DEVELOPMENT Morocco will use a World Bank loan of $200 million to finance vital imports during 1985-86. It will support the second phase of Morocco's Industrial and Trade Policy Adjustment Program. The program.aims to improve the productivity and sharpen the competitiveness of Moroccan industry. It will promote exports and expand domestic savings. The program includes a series of steps that will lift protec- tionist measures and reform the financial system. Actions to improve public investment planning and the functioning of the public enterprise sector will also be included. These policies are expected to improve the balance of payments, increase national savings, and progressively improve the general economic climate. In conjunction with these measures, the government plans to implement a stabilization program which will provide the necessary economic framework for the continuation of the adjustment reforms. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 8.82 percent, linked to the cost of the Bank's borrowings. It also carries an annual connnitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.