Burundi - Small Enterprise APEX Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4690-BU MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROFOSED CREDIT OF SDR 5.7 MILLION TO THE REPUBLIC OF BURUNDI FOR A SMALL ENTERPRISE APEX PROJECT February 25, 1988 Industry and Energy Operations Division South-Central and Indian Ocean Department Africa Region lids doeument has a resticted distbuion and may be used by recipens only In the perfonance of thei officid dus Its contens ay not oterwise be isdosed without Wodd Bank anthorzation.  CUPRENCY EQUIVALENTS Currency Unit - Burundi Franc (FBU) US$1.00 FBu 125 (June 1987) US$1.00 FBu 114 (Annual Average 1986) US$1.00 = FBu 120 (Annual Average 1985) GLOSSARY OF ABBREVIATIONS BANCOBU - Banque Cormierciale du Burundi BBA - Banque Belgo-Africaine BCB - Banque de Credit de Bujumbura BNDE - Banque Nationale de Developpement Economique BRB - Banque de la Republique du Burundi CADEBU - Caisse d'Epargne de Burundi CAMOFI - Caisse de Mobilisation et de Financement CCI - Chambre de Commerce et de l'Industrie du Burundi CCP - Office des Cheques Postaux CPF - Centre de Perfectionnement et de Formation CFTB - Centre de Formation Technique Bancaire du Burundi COOPEC - Cooperatives d'Epargne et de Credit CPI - Chambre de Promotion Industriel FNG - Fonds National de Guarantie MCI - Ministry of Commerce and Industry PFI - Participating Financial Intermediary SBF - Societe Burundaise de Financement SIP - Societe Immobiliere Publique SOCABU - Societe d'Assurances du Burundi Societe Holding - Societe Holding Arabe Iibyen Burundais UNDP - United Nations Development Program UNIDO - United Nations Industrial Development Organization USAID - United States Agency for International Development GOVERNMENT OF BURUhDI FISCAL YEAR January 1 - December 31  1R OMFCAL USe ONLY BURUNDI SMALL ENTERPRISE APEX PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Burundi Beneficiaries: Banque de la Republique du Bur.indi (BRB), participating financial intermediaries, Chamber of Commerce and Industry, and small enterprises. Amount: SDR 5.7 million, equivalent to US$8 million. Terms: Standax. .A terms. Relending Terms: The Borrower would pass on US$7.2 million equivalent to BRB at 6.5 percent p.a. for 30 years, including a grace period of 10 years. BRB would onlend the funds to qualified participating financial intermediaries at 7.0 percent (or at the treasury bond rate to be established following the introduction of a treasury bonds auction) with a flexible amortization schedule reflecting the aggregate subloans extended by intermediaries. An administrative fee of 0.5 percent would cover the operating cost of a Project Unit within BRB. The onlending rates would be reviewed annual