DFC VII

closed

The Seventh Industrial Credit Project is designed to assist labor intensive and export oriented industries through the provision of foreign exchange. Besides, the project involves preparation of studies to identify and develop projects in labor intensive and export oriented industries in order to help KBP and IBT increase their future role in the promotion of such industries. The aggregate direct employment creation is expected to be about 10,000 jobs. Other objectives of the project are to contribute to the institution building of the borrowing banks, and to encourage joint ventures and cofinancing. The project also includes a technical assistance component of $670,000 ($400,000 for KBP and $270,000 for IBT), for preparation of above-mentioned studies, staff training, and procurement of office equipment. The risks associated with the loans relate to meeting the employment and export targets by beneficiary enterprises. However, provisions included under the loans and Yugoslavia's policies to foster industrial exports should reduce the risk to within acceptable limits.