Trade and Project Financing

  DESCRIPTION OF BANKING SYSTEM
  Bahrain is the principal financial services center of the
  Middle East.  Utilizing sophisticated worldwide
  communications, it serves both a regional and a more broadly
  international clientele and provides a complete range of
  financial and banking services, including well-developed
  offshore facilities.  Legal, regulatory, and accounting
  systems in the financial sector are transparent and
  consistent with international norms.

  As of the end of 1996, the assets/liabilities of the 47 off-shore
  banks in the country totaled US$ 66.9 billion,
  according to the Bahrain Monetary Agency's Annual Report.

  In June 1997, in addition to the OBUs there were 19 full
  commercial banks, two specialized banks, 41 representative
  offices, 28 investment banks, six foreign exchange and money
  brokers, and 27 money-changing companies registered in
  Bahrain.  In order to maintain and promote Bahrain's
  pre-eminence as a regional financial center, the Ministry of
  Finance and National Economy has established a Financial
  Markets Unit (address given in Appendix E, Contacts) to
  develop and further diversify Bahrain's international
  financial services sector.

  FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
  There are no foreign exchange controls or other obstacles to
  the free movement of funds.

  GENERAL FINANCING AVAILABILITY
  Bahrain's banking policies facilitate the free flow of
  financial resources, with credit generally being allocated
  on market terms.  Foreign investors are able to borrow on
  the local market, and the private sector has access to a
  variety of credit instruments.

  HOW TO FINANCE EXPORTS/METHODS OF PAYMENT
  Letters of Credit are the preferred method of payment for
  exports, although other means, such as direct transfer of
  funds, may be used with adequate safeguards.

  AVAILABLE EXPORT FINANCING AND INSURANCE
  Ex-Im Bank financing can be used for appropriate exports to
  Bahrain.

  PROJECT FINANCING AVAILABLE
  For project financing, Bahrain is the home to 28 investment
  banks.  The Bahrain Development Bank will also lend funds in
  some cases to local projects that it considers appropriate,
  in principle not limited to projects of Bahraini-owned
  companies.  Credit is allocated on market terms, and is
  available to foreign investors; credit terms are variable,
  but are limited to 10 years.  For major infrastructure
  investments, banks will often offer to assume a part of the
  risk, and Bahrain's banks have shown extensive cooperation
  in syndicating loans for larger risks.  Generally, Bahrain's
  banks are described as "hungry" for solid investment
  opportunities.

  The array of financial institutions in the country provides
  a wide variety of options for export and project financing,
  depending on circumstances of the company's need.

  LIST OF BANKS WITH U.S.  BANKING ARRANGEMENTS
  Most banks in Bahrain have U.S. correspondent banking
  arrangements, and in addition, three U.S. banks have offices
  in Bahrain:

Full Commercial Bank, OBU, and Representative Office:

     Citibank/Citicorp
     P.O.  Box 548
     Manama, Bahrain
     [Tel:  (973) 257124,  Fax:  (973) 250510]

OBU:

     Chase Manhattan Bank
     P.O.  Box 368
     Manama, Bahrain
     [Tel:  (973) 535388, Fax:  (973) 535135]

Investment Bank:

     Merrill Lynch International Bank
     P.O.  Box 10399
     Manama, Bahrain
     [Tel:  (973) 530260, Fax:  (973) 530245]