DFC II

closed

The loan would be used to support DBZ' commitments for medium-and large-scale industrial, agro-industrial and agricultural projects through March 31, 1982. The proposed line of credit would carry the following terms and conditions: (a) Onlending rate and exchange risk: DBZ would onlend at a minimum rate of 12 percent and review its interest structure annually with a view towards maintaining real positive interest rates; (b) Free limit: the free limit under the first line of credit to DBZ was US$250,000 (aggregate US$3 million). In recognition of the quality of DBZ' appraisals, the free limit will be raised to US$400,000 and the aggregate to US$5 million. This will still permit the Bank to review about 60 percent of projects financed by the Bank loan, which is considered adequate; (c) Amortization schedule: the proposed loan to DBZ would have a flexible amortization schedule conforming to the aggregate amortization schedule of DBZ sub-loans, none of which should, in principle, exceed 15 years; (d) Commitment fees: as a change from the first IBRD loan for which DBZ had concessionary treatment, standard commitment fees would be charged on the US$15 million Bank loan.