DFC-CDB III

closed

The proposed loan, estimated to cover one-quarter of CDB's total foreign exchange needs between mid-1979 and mid-1981, will be used as follows: (i) relending of $4.0 million to help finance the import content of industrial and tourism sub-projects supporting Government efforts to increase the foreign exchange earning capacity of these subsectors; and (ii) re-lending of $1.0 million, in conjunction with matching Government funds, to continue support for the Small Scale Industries (SSI) program. The SSI component, to cover enterprises employing between 4 to 39 persons, will emphasize the strengthening and modernization of existing SSI, including mergers, to make SSI more competitive internationally, while also supporting the establishment of promising new SSI. Major objectives of the Bank loan are also to help CDB mobilize critically needed additional foreign exchange resources from external commercial sources, and support sub-projects having substantial impact on increasing foreign exchange earnings from manufacturing and tourism.