| Contact: |
Monica Echeverria-Cota (202) 473-1315 |
|
To obtain project documents please contact the World Bank's Infoshop
at tel: 202-458-5454, fax: 202-522-1500, email: Enquiries |
WASHINGTON, January 7, 1999 — The World Bank today approved a US$23 million loan to Guatemala to facilitate access for rural poor communities to land and to improve the efficiency of land markets.
A fairer distribution of land is necessary for rural development and the consolidation of peace in Guatemala, where a skewed concentration of land has resulted in a history of related conflicts. A Land Fund program is a priority for the Government of Guatemala and is specifically addressed in the Peace Accords.
Improving access to land is key to the alleviation of poverty, which afflicts about 75 percent of Guatemalans, especially the rural and indigenous populations.
This project will benefit 7,500 poor rural families. The benefits of the Land Fund derive from production improvements and asset distribution. Current productivity of poor communities is limited by the availability of capital, technical know-how, and infrastructure.
"The Land Fund will not only facilitate access by the rural poor to land, but will also foster improvement in the productivity of acquired lands as well as diversify communities' sources of income," says Task Team Leader Cora Shaw.
The total cost of this project is US$77.2 million. The US$23 million IBRD loan is a single-currency, LIBOR-based, adaptable program loan with a maturity of 20 years, including a 5 year grace period. The Government of Guatemala will contribute US$52.5 million and project beneficiaries will contribute US$1.7 million. |
RSS