Mali - Second Line of Credit to BNDA (National Bank for Agricultural Development)

The Second Line of Credit to BNDA (National Bank for Agricultural Development) aims to promote and modernize farms, with a view to making them more market-oriented, while encouraging the intensification of production techniques, mechanization and automation of agricultural equipment, as well as capacity building. This UA 15 million line of credit (LOC) is a continuation of the first LOC of UA 4.6 million granted in 1986 and whose performance was deemed generally satisfactory. From an institutional standpoint, the BNDA has since its inception in 1981 been the main funding institution of the rural sector in Mali. This second LOC, which must be handed over to the producers, should enable them, through farmers' organizations, to acquire the necessary means of production for the implementation of the campaign plans designed by the management structures. The second line of credit to BNDA has two main components: (i) Provision to BNDA of a line of credit of UA 13,969,000 intended to strengthen its cash flow position and support the implementation of its Medium-Term Programme (MTP) for 2001-2005, with special emphasis on the development of cotton and cereals; and (ii) Provision of institutional support amounting to UA 1,061,000 aimed at strengthening BNDA’s information system and establishing an environmental evaluation and monitoring mechanism.