AGRICULTURAL CREDIT I

closed

The Agricultural Credit Project for Jordan will supplement the financial resources of the Agricultural Credit Corporation (ACC) to enable it to expand its lending for agricultural development. The ACC provides financial assistance to the Central Cooperative Union which makes loans to agricultural cooperative societies which in turn extend short-term seasonal loans to their members. The project components are: 1) Land reclamation and improvements; 2) Establishment of tree crop plantations; 3) Development & improvement of farm water supplies; 4) Procurement of farm machinery; 5) Livestock production; 6) Farm building & storage; 7) Construction of the East Ghor canal project for on-farm development; 8) Cost of expatriate advisors for the reorganization of ACC's accounting department and new mechanized bookkeeping equipment which will provide prompt information for effective management control of ACC's lending program. Investments under the new ACC's lending program will increase the domestic production of food crops and dairy products, and the production of export crops, mostly olives and vegetables. This should assist Jordan in reducing agricultural imports which represent an important part of Jordan's trade deficit with neighboring countries.