Barclays Bank of Ghana Ltd.

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MIGA has issued $1.33 million (including principal and interest) in guarantees to Société de Promotion et de Participation pour la Coopération Economique of France, covering its $1.2 million nonshareholder loan to Barclays Bank of Ghana Ltd. The loan will enable the bank to provide long-term financing to a local business that manufactures water storage tanks. The guarantee is for a period of four years and covers against the risk of currency transfer restriction (excluding inconvertibility). The guarantee will allow the project enterprise to extend a loan to Polytank Ghana Limited, a plastic container and roto-molded water tank manufacturing business based in Ghana. The loan will be used by the company to purchase machinery to improve its molding business and to diversify into other products like bottle crates. To ensure a continuous and sustainable growth in sales, Polytank sells its products in bulk to customers. Polytank's turnover grew by 62 percent and 69 percent in 2004 and 2005, respectively. The company's sales levels are expected to grow by about 20 percent with the help of improvements made possible by the loan extended by Barclays Bank. Ghana is an IDA-eligible country. MIGA's participation in this project is aligned with several agency priorities, including supporting the poorest in Africa. MIGA's guarantee also complements the World Bank Group's Country Assistance Strategy for Ghana, which aims to eliminate poverty by stimulating private sector development.

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