DFC IV

closed

The proposed project would consist of a line of credit of US$30.0 million of Bank funds to cover part of IDB's foreign exchange requirements finance medium and large scale enterprises from mid 1980 to end 1982. The free limit for a subproject would be raised from US$600,000 to US$800,000 (similar, in real terms,for the previous loans) and the aggregate free limit to US$7.0 million. Disbursements from the Bank's loan would be made against 100% of the foreign cost of direct imports, 65% of the invoice price of goods previously imported into Kenya and 40% of the cost of civil works. IDB would be charging an interest rate of no less than 12% on foreign funds (from 11%), and 13% on local funds (from 12%). Sub-borrowers will continue to bear the foreign exchange risk on foreign funds. The loan would carry an interest rate of 8.25% per annum and the amortization schedule would conform substantially to the aggregate of the amortization schedules of subloans and equity investments made by IDB, with a maximum maturity of 15 years, including a grace period of three years.