ENT & FIN SECT

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The objective of the Enterprise & Financial Sector Assistance Project is to support the Government's reform efforts in the enterprise and financial sectors, focusing in particular on strengthening the banking system and on the delivery of finance to support the development of private and privatized enterprises. The project comprises a credit line and a technical assistance component. The credit line component will provide resources through qualified participating banks for medium-term loans to private enterprises. The technical assistance component will aim at overcoming deficiencies in: 1) bank regulation and supervision; 2) commercial banks' institutional capacity and appraisal skills; 3) the Government's capacity to reorganize/liquidate inviable state-owned enterprises; and 4) enterprise strategic planning capability. In addition, targeted assistance will be provided to ensure that sub-projects are adequately screened for environmental impact.