AGRO-IND IV

closed

The Fourth Agro - Industries Credit Project is an integral part of a strategy aimed at transferring dependence from the offical credit system to voluntary commercial lending in the agricultural sector. THe loan funds will be used by the Government to refinance subloans made by accredited participating banks to agroindustrial enterprises to finance the latters investment and associated working capital requirements. The terms on which the Treasury of the Ministry of Finance will refinance these subloans will be designed to enable the Government to recover from the participating banks (PBs) the full costs of obtaining and administrating the Bank loan. The terms on which the PBs would lend to their customers would be a market outcome and, therefore, based essentially on the PB's refinancing costs plus a spread as determined by the market.