NIBID III (DFC)

closed

As under the previous loan, prior Bank approval will be required for each sub-project requiring a commitment by NIBID in excess of $500,000. The aggregate free limit will also be maintained at 25 percent of the loan amount. A change is proposed in the debt level to which NIBID will be restricted. The debt/equity ratio will be changed from 5:1 to 7:1, a relaxation related in part to a technical change in the definitions of debt and equity, and in part to a considered evaluation of the quality of NIBID's performance and portfolio. The Bank of Greece will continue to cover the foreign exchange risk for NIBID. During negotiations it was agreed that the loan be repaid according to a fixed amortization schedule, which will mirror the estimated composite repayment expected from sub-borrowers. The Third National Investment Bank for Industrial Development will be limited to financing the foreign exchange cost of imports needed for investments supported by NIBID.