ENTERPRISE DEVELOPMENT

closed

The project aims to improve the operating environment for all enterprises, public or private. In addition, reduction of budgetary deficits and generation of a supply response from all enterprises are critical. The private enterprise (PE) sector must be reduced in size, its performance increased, and greater financial discipline should be maintained. The project will finance local and foreign exchange requirements through investment support, financial support, and technical assistance. The "Investment Term Credit Refinance Fund", a $25M line of credit for all enterprises, is to be used for the rehabilitation of PEs after divestiture, and for rehabilitation or new investment for exports or for import substitution. The "Technology Management Fund" ($11M) will be set up to ensure availability of foreign exchange for periodic payments for technology and management contracts. The "Restructuring Fund" ($16M) will address the one-time physical and financial restructuring needs of viable PEs to enable them to seek future financial assistance from commercial banks. The "Credit Guarantee Fund" ($1M), created from the Government's own resources, will support a pilot Credit Guarantee Scheme for small enterprises.