Sessional Paper No. 03 of 1992 on Kenya Government Guarantee of a Loan of US $20 Million Through the U.S Department of Agriculture to National Cereals and Produce Board

Abstract

The National Cereals and Produce Board (NCPB) with full support of the Government has successfully negotiated a loan of US$20 million for purchase of maize in connection with United States Department of Agriculture's Commodity Credit Corporation Export Credit Guarantee Programme - GSM102. The loan of US$20 Million has the following financial terms: (a)Interest rate will be charged at US Libor plus a margin of 0.5% and usual bank charges; (b)Repayment will be made in 3 years payable annually with interest on reducing balance, effective from the date of shipment of the maize; (c)The repayment will be made through the Kenya Commercial Bank Ltd.