DFC V

closed

At least twenty-five percent of each of the four loans will be on-lent to help finance the foreign exchange cost of imported equipment for investments in industrial sub-projects with a labor-intensive orientation (defined as projects creating employment at a maximum cost per job of US$31,000) and the remainder of each of the four loans will be on-lent for the same purpose (but without the specific labor-intensive emphasis) to small- and medium-sized industrial sub-projects in the Autonomous Province of Kosovo and the Republics of Bosnia-Herzegovina, Montenegro and Macedonia. Normally, the maximum sub-loan will be US$4 million equivalent and only sub-projects costing US$15 million equivalent or less will be financed. There will be no limit on sub-loan or project size for labor-intensive sub-projects. Sub-projects involving domestic joint ventures up to a total cost of US$20 million equivalent may be financed. There are no special risks associated with the loans.