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Substantial amounts of medium-term and long-term credits are usually extended in connection with the financing of Sweden's growing exports of capital goods.

3. Foreign aid (S)

IN 1968, the U.N. Conference on Trade and Development recommended that developed countries extend development aid (official and private) to less developed countries in an amount that, by 1975, would be equal to 1% of each donor country's GNP. Sweden, however, adopted a more ambitious goal, in that it agreed to exclude private aid from the computation and to extend official aid equal to 1% of its GNP. It is not likely, however, that Sweden will achieve this goal until the late 1970's. By virtue of successive increases in aid appropriations, the Swedish official aid budget has grown from about 0.2% of the GNP in FY68 to 0.6% in FY72 and is estimated at 0.7% in FY73. The 25% increase in total aid budgeted for FY73 is largely concentrated in bilateral aid, as shown below, in millions of U.S. dollars:

Since 1968 the general tendency has been towards more nonproject bilateral aid for specified economic sectors. Multilateral aid, although rising, has been gradually declining as a share of the total since the mid-1960's and now accounts for about 40% of the total. Official bilateral credits are extended without being tied to imports from Sweden. Standard terms are 25-year maturity, 10-year grace period, and 2%

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7