P-LS-HB0-001

Project Details
ID: P-LS-HB0-001 Name: 2ND LINE-OF-CREDIT TO LNDC Status: Closed Country: Lesotho
Sector: Finance Approval date: 15-déc-1994 Task Manager: ADENIJI Taiwo Olasupo, PISD2
Total cost: 4500000
Currency: UAC
Source(s) of financing
NTF: 4500000
Implementing Agency: GOVERNMENT OF LESOTHO MINISTRY OF FINANCE

Objectives

The objective of the Line of Credit is to foster small- and medium-scale enterprises development in Lesotho through term loans as well as provision of adequate industrial infrastructure to facilitate further attraction and retention of foreign investment. This is expected to lead to the further expansion of export-oriented investment, and increased domestic aborption of labour in Lesotho. The operation is also intended to contribute to improving the level of industrial skills in the country.

Description

The LOC is to provide LNDC with foreign exchange resources to finance a number of viable small and medium-scale projects from the industrial, agro-industrial, tourism and related services sectors. Financing on a limited basis of industrial buildings is also allowed under the line of credit.

Benefits

The second Line of Credit (LOC) to Lesotho National Development Corporation (LNDC) was approved in December 1994 for an amount of UA 4.50 million from NTF resources. The LOC was to provide LNDC with foreign exchange recources to finance viable small and medium-scale projects from the industrial, agro-industrial, tourism and related services sectors. Financing, on a limited basis, of industrial buildings is also allowed under the LOC.

Rational

The second Line of Credit (LOC) to Lesotho National Development Corporation (LNDC) was approved in December 1994 for an amount of UA 4.50 million from NTF resources. The LOC was to provide LNDC with foreign exchange recources to finance viable small and medium-scale projects from the industrial, agro-industrial, tourism and related services sectors. Financing, on a limited basis, of industrial buildings is also allowed under the LOC.