FOR IMMEDIATE RELEASE




World Bank
1818 H Street, N.W., Washington, D.C. 20433, U.S.A.




             BANK NEWS RELEASE NO. 88/92                    Contact:   A.M. Pimenta-Neves
                                                                       (202) 473-8722


                           BRAZIL'S AGRO-INDUSTRIES TO RECEIVE LONG-TERM FINANCING


                      Washington, June 17, 1988 - Brazil will use a $300 million loan
             from the World Bank to finance agro-industrial projects through the
             country's commercial banking system at market interest rates.

                      The total cost of the project is estimated at $600 million. The
             World Bank loan will finance up to 50 percent of businesses' investment and
             associated working capital costs. The balance will be negotiated between
             participating commercial banks and enterprises. No Government counterpart
             funds to match the World Bank loan will be needed.

                      The loan reflects the World Bank strategy in support of
             adjustments that may contribute to sustainable economic growth in Brazil.
             Today there is practically no free market credit for long-term investments
             in Brazil. The only long-term credit available is official, heavily
             controlled and subsidized. Investors looking for term credit must compete
             for the official funds available or try to obtain free market, short-term
             funds at very high rates and roll them over as frequently as possible.
             These conditions discourage efficient investment decisions.

                      By curtailing the use of the official credit system in favor of
             voluntary commercial bank lending, the project will help the country to
             reduce its fiscal deficit -- an important cause of inflationary pressures
             -- and to improve the fairness and efficiency of resource allocation.

                      With this project -- the Fourth Agro-Industries Credit Project
             loans approved by the World Bank since 1973 for agro-industrial credit in
             Brazil total $804 million.

                      The loan is for 15 years, including five years of grace, with a
             variable interest rate, currently 7.72 percent, linked to the cost of the
             Bank's borrowings. It also carries an annual commitment charge of 0.75
             percent on the undisbursed balance.


             NOTE: Money figures are expressed in U.S. dollar equivalents.