DFC V

closed

The proposed Bank loan would be made to the Banco de la Republica. The proceeds of the loan would be channelled through its Department of Development Credit (DDC), as under previous Bank Financieras loans. In order to strengthen more Financieras and broaden the group of sub-borrowers, the proposed loan would provide for onlending not only to the five Financieras that participated in former Bank loans, but also to three new ones, whose eligibility would be determined on the basis of a financial and management appraisal by DDC. While the role of DDC vis-a-vis the five Financieras would remain unchanged - i.e., it would review their financing requests only from a national economic point of view - under the new loan DDC would assume responsibility for reviewing appraisals and for supervision of the new Financieras. It is hoped that, over the next few years, this experience will help DDC to develop the capability to assume such responsibilities vis-a-vis all Financieras. The project is for financing of development in Colombia through sub-loans to productive, privately controlled enterprises, for specific purposes in accordance with the statutes of the Financieras. The Bank loan would cover the foreign exchange cost of the projects.