AGRIC.CREDIT I

closed

The project would make funds available to VB (for Vojvodina) and through VB, to one participating bank in each of the other seven Republics and Provinces, for credit to social sector enterprises and private farmers, for investments in agriculture. The funds would support the objectives of the agricultural development plan to increase production, improve product quality and raise productivity and income, especially on private farms. The more developed Republics and Provinces would receive the bulk of the loan - 73 percent compared with 27 percent for the less-developed. Forty-three percent of the proposed loan would be allocated to the private sector and a significant part of that percentage would reach the poorer farmers in whatever part of the country. The proposed project woud cover investments in livestock, vegetable and fruit production, land reclamation and development, agro-industries including grain drying, cold storage and milk collecting, and on-farm mechanization.