Announcement of Morocco Expands Agricultural Credit Services on June 15, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/90 Contact: Fawzi Rihane (202) 473-2675 MOROCCO EXPANDS AGRICULTURAL CREDIT SERVICES WASHINGTON, June 15, 1989 -- A project in Morocco to build up the country's national agricultural credit bank, CNCA, will help farmers increase agricultural productivity and entrepreneurs set up businesses in rural areas. The World Bank is supporting the project with a $190 million loan. CNCA (Caisse Nationale de Credit Agricole) provides about three-fourths of all agricultural credit in Morocco and is virtually the only source of credit for small-scale farmers. As the country moves ahead with an agricultural reform program launched several years ago, the demand for agricultural credit is growing. Private investment in agriculture is currently experiencing a period of dynamic growth. The project will help CNCA provide more loans to farmers, offer a wider range of banking services and streamline its operations to make them more market-oriented. Funds from the World Bank loan will be channeled through CNCA to finance investments by private farmers, enterprises, cooperatives and fishermen. CNCA will also provide loans to industries that process agricultural goods and will finance rural-housing development programs. To strengthen CNCA's operations, staff will be trained and consultants will be hired. Special attention will be given to improving CNCA's lending programs for women and export-oriented agro-processing activities. In addition to boosting production on farms, the project is expected to increase the role of the private sector in agriculture and non-farm activity in rural areas. Additional financing for the project will be provided by the African Development Bank ($70 million), the Arab Fund for Economic and Social Develop- ment ($30 million), the European Investment Bank ($60 million), Kreditanstalt fur Wiederaufbau of the Federal Republic of Germany ($38 million) and the Overseas Economic Cooperation Fund of Japan ($100 million). The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents.