Sessional Paper No. 03 of 1972 on Government Guarantee for a Loan by the International Bank for Reconstruction and Development (World Bank)

Abstract

In accordance with the provisions of the Guarantee {Loans) Act CAP 461 the following information is laid before the National Assembly relating to a guarantee which the Kenya Government proposes to give jointly and severally with the Governments of the United Republic of Tanzania and the Republic of Uganda, in respect of a loan in various currencies equivalent to eight million dollars (¢8,000,000) or approximately K£2,857,143 at the present rate of exchange, by the International Bank for Reconstruction and Development (World Bank) to the East African Development Bank. The loan will bear the going rate of interest at any given time (at present 7-¼"fa) on the principal amount of loan withdrawn and outstanding from time to time. In addition, there will be a commitment charge at the rate of three-fourths of one percent ( ¾ of 1%) per annum on the principal amo1.mt of the loan not withdrawn from time to time. The loan is repayable over a period of ten years beginning January/July, 1974 in accordance with an agreed amortization schedule, the interest and other charges are payable semi-annually...