INDUSTRIAL PROJECTS

closed

Closed

The Maatschappij tot Financiering van het Nationaal Herstel N.V. (Herstelbank) has approached the Bank for a loan of $15 million designed to replenish its working capital. The Second Industry Project for the Netherlands, will be guaranteed by the Netherlands Government. The Herstelbank makes medium and long term loans to Netherlands commerce and industry. In its operations the corporation has not covered its commitments fully, relying on additional borrowings to supplement its availabilities from loan repayments which represent its principal source of funds for lending. The Herstelbank is a well established financial organization with an experienced management and an efficient staff. It maintains close contact with the Government in matters of general policy, but is free from interference in the conduct of its normal day to day credit operations. In its normal banking activities, the corporation has followed sound business principles. The Bank's previous contacts with the Herstelbank show that it subjects the projects it finances to adequate economic, technical and financial study and follows the projects efficiently and in sufficient detail. The Herstelbank may be considered a suitable borrower. Its financial requirements would warrant borrowings of $15 million. Disbursement of a Bank loan within the next nine months in accordance with the requirements of the borrower will be appropriate. The Herstelbank's prospective loan repayment under present loan contracts should be more than sufficient to cover the servicing requirements of the loan.

World Bank Group

Project

Manufacturing (Industrial), Government