VIII - TRADE AND PROJECT FINANCING BRIEF DESCRIPTION OF THE BANKING SYSTEM GABON HAS BEEN A MEMBER OF THE FRENCH FRANC ZONE SINCE 1960, GABON IS ALSO A MEMBER OF THE BANQUE DES ETATS DE L'AFRIQUE CENTRALE (BEAC), WHICH ACTS AS A CENTRAL BANK FOR GABON, CAMEROON, CENTRAL AFRICAN REPUBLIC, CONGO, CHAD AND EQUATORIAL GUINEA. THE BASIC PRINCIPLES OF THE STATES OF THE CENTRAL AFRICAN MONETARY ZONE ARE: - A SINGLE CURRENCY, THE CFA FRANC WHICH IS ISSUED BY THE BEAC HEAD OFFICE IN YAOUNDE. - CENTRAL HOLDING OF MONETARY RESERVES BY THE BANQUE OF FRANCE - FREE CIRCULATION OF MONETARY TRANSFERS WITHIN THE ZONE - FREE CONVERTIBILITY OF THE CURRENCY WITHOUT LIMIT INTO FRENCH FRANCS ON THE BASIS OF A FIXED PARITY OF 1 CFA FRANC EQUALS 0,01 FRENCH FRANC. ALTHOUGH BEAC RULES OF INTERVENTION ARE COMMON TO THE SIX MEMBER COUNTRIES, EACH COUNTRY'S ACCOUNTS ARE MAINTAINED SEPARATELY. THE CONVERTIBILITY OF THE CFA FRANC IS GUARANTEED BY FRANCE THROUGH AN OPERATIONS ACCOUNT LINKING THE BEAC AND THE FRENCH TREASURY. THE BEAC CONTROLS THE LIQUIDITY WITHIN THE ZONE AND WITHIN EACH COUNTRY BY GRANTING REDISCOUNTING FACILITIES AND MONEY MARKET ADVANCES. THE INTEREST RATE STRUCTURE IS COMMON TO ALL MEMBER COUNTRIES OF THE ZONE. FOREIGN EXCHANGE CONTROL AFFECTING TRADING FOR ALL COMMERCIAL TRANSACTION INSIDE OR OUTSIDE THE FRANC ZONE AN IMPORT LICENSE SHOULD BE PRESENTED FOR ALL IMPORTS EXCEEDING CFA FRANC 500,000 (US DOLS 860.00). ALL TRANSFERS NOT EXCEEDING CFA F 5,000,000 (US DOLS 9,000.00) CAN BE FREELY TRANSFERRED TO FRANCE OR TO THE FRENCH ZONE. FOR ALL TRANSFERS EXCEEDING THIS AMOUNT A JUSTIFICATION SHOULD BE PRESENTED. BEAC BILLS CANNOT BE EXCHANGED INTO BCEA0 (BANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST) BILLS OR VICE VERSA. FOR ALL PRIVATE TRANSFERS OUTSIDE THE FRANC ZONE A TRANSFER AGREEMENT SHOULD BE DELIVERED BY THE MINISTRY OF FINANCE. WHAT IS GENERAL FINANCING AVAILABILITY COMMERCIAL BANKS: CREDITS ARE AVAILABLE THROUGH THE GABONESE BANKING SYSTEM. THERE ARE SEVEN COMMERCIAL BANKS IN GABON: BICIG, BRANCH OF BNP FRANCE UGB, BRANCH OF CREDIT LYONNAIS PARIS- BAS GABON, BRANCH OF BANQUE DE PARIS ET DES PAYS-BAS CITIBANK BARCLAYS BANK FIBA BMBG (BANQUE MERIDIEN BIAO GABON) BESIDES THE COMMERCIAL BANKS, THERE ARE: - CREFOGA (CREDIT FONCIER DU GABON - FOR HOUSING) - FODEX, A NEW PARASTATAL ORGANIZATION FUNDED BY THE AFRICAN DEVELOPMENT BANK IN ORDER TO FINANCE SMALL AND MEDIUM SIZED FIRMS OWNED BY GABONESE NATIONALS. - BANQUE GABONAISE DU CREDIT RURAL, GIVES LOANS IN THE AGRICULTURAL FIELD. - BGD (BANQUE GABONAISE DE DEVELOPMENT) MULTILATERAL DEVELOPMENT BANKS: 1. THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD), A MEMBER OF THE WORLD BANK GROUP MAKES LONG-TERM LOANS AT MARKET- RELATED RATES PRIMARILY TO DEVELOPING NATIONS. THE INTERNATIONAL DEVELOPMENT AGENCY (IDA), THE SOFT LOAN WINDOW OF THE WORLD BANK, LENDS TO THE POOREST OF THE DEVELOPMENT COUNTRIES. BOTH THE IBRD AND IDA WORK TO PROMOTE BROADLY BASED ECONOMIC GROWTH AND FREQUENTLY FOCUSES ON STRUCTURAL ADJUSTMENT, SECTORAL REFORM AND INDIVIDUAL PROJECT LENDING AND OPERATE UNDER THE SAME SET OF PROCUREMENT GUIDELINES. TYPICALLY THE WORLD BANK DOES NOT FINANCE THE ENTIRE COST OF A PROJECT. RATHER, IT FINANCES THE COMPONENTS OF A PROJECT PURCHASED WITH FOREIGN EXCHANGE, WHICH ON AVERAGE IS ABOUT 40 PER CENT OF THE TOTAL PROJECT COST. EACH PROJECT MAY COVER A WIDE VARIETY OF SECTORS AND CAN INVOLVE ANYWHERE FROM ONE TO HUNDREDS OF SEPARATE CONTRACTS PROVIDING EXPORT BUSINESS OPPORTUNITIES FOR SUPPLIERS WORLDWIDE. CONTACTS: U.S. DEPARTMENT OF COMMERCE LIAISON TO THE U.S. EXECUTIVE DIRECTORS OFFICE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H. ST., NW WASHINGTON D.C. 20433 TELE: (202) 458-0118 FAX: (202) 477-2967 OFFICE OF MULTILATERAL DEVELOPMENT BANKS U.S. FOREIGN COMMERCIAL SERVICE U.S. DEPARTMENT OF COMMERCE ROOM H-1107 WASHINGTON D.C. 20230 TELE: (202) 482-3399 FAX: (202) 273-0927 2. THE AFRICAN DEVELOPMENT BANK (AFDB), HEADQUARTERED IN ABIDJAN, COTE D'IVOIRE, IS AN INTERNATIONAL FINANCIAL INSTITUTION CREATED BY AFRICANS IN 1963 TO PROMOTE THE ECONOMIC AND SOCIAL DEVELOPMENT OF ITS MEMBER AFRICAN COUNTRIES. FOUNDED WITH INITIAL CAPITAL RESOURCES OF USD 250 MILLION, IT HAS AUTHORIZED CAPITAL TODAY OF OVER USD 22.3 BILLION. THE BANK BELONGS TO THE AFRICAN DEVELOPMENT BANK GROUP (ADBG) WHICH ALSO INCLUDES THE AFRICAN DEVELOPMENT FUND (ADF) AND THE NIGERIAN TRUST FUND (NTF). THE AFDB MAKES LOANS TO DEVELOPMENT PROJECTS IN 51 COUNTRIES IN AFRICA. THE ADB PROVIDES DEVELOPMENT FINANCING ON CONCESSIONARY TERMS TO THE POORER AFRICAN MEMBER COUNTRIES. THE NTF WAS ESTABLISHED BY THE GOVERNMENT OF NIGERIA IN 1976 TO ASSIST IN THE DEVELOPMENT EFFORTS OF THE POORER ADB MEMBERS. THE ADFB HAS 21 NON-REGIONAL MEMBERS. THE UNITED STATES JOINED IN 1982. CONTACTS: U.S. DEPARTMENT OF COMMERCE LIAISON OFFICE TO THE U.S. EXECUTIVE DIRECTORS OFFICE AFRICAN DEVELOPMENT BANK AVE. JOSEPH ANOMA 01 B.P. 1387 ABIDJAN 01, COTE D'IVOIRE TELE: (225) 21-46-16 FAX: (225) 22-24-37 OFFICE OF MULTILATERAL DEVELOPMENT BANKS U.S. & FOREIGN COMMERCIAL SERVICE U.S. DEPARTMENT OF COMMERCE ROOM H-1107 WASHINGTON, D.C. 20230 TELE: (202) 482-3399 FAX: (202) 273-0927 HOW TO FINANCE EXPORTS/METHODS OF PAYMENT PAYMENT ARE USUALLY MADE BY IRREVOCABLE DOCUMENTAL CREDIT.