BNDE VII (DFC)

closed

In an attempt to help BNDE meet a gap in resources totalling DH 1040 million, the Bank is proposing a Seventh Banque Nationale pour le Developpement Economique (BNDE) Project of $30 million for investments in the industrial sector. This amount will fill about one third of the remaining need for resources to finance expected BNDE commitments over the period of August 1974 to December 1976. The sectoral distribution of Bank's approvals has changed little in the past three years and reflects approximately the sectoral breakdown of private industry in Morocco. Textile and food processing account for probably 35 percent of BNDE's approvals, followed by mining and petroleum industries, which account for about 15 percent. About 27 percent of BNDE's total approvals through 1970 were directed to public sector projects, and this share has further decreased in the last three years to about 20 percent. Use of the proposed loan for financing public sector projects eligible for BNDE's financing under its policy statement will be limited to a maximum of 40 percent of the loan amount. There will be a ceiling of $4 million on use of the loan for any single project. The proceeds of the loan will be used to finance direct imports, or the equivalent of 65 percent of the cost of goods, representing the import element of these costs.