FIN MRKT OP

closed

The primary objective of the Financial Markets Project is to support further strengthening of Chile's financial markets. Three components are included in the project. First, a policy adjustment component to support a set of measures to strengthen securities markets by: (a) improving the market infrastructure; (b) allowing the development of additional investment instruments; and (c) liberalizing investment restrictions on the main institutional investors. The banks will also be strengthened by permitting them to extend the range of their business and increase their capitalization. The second component is a credit line to benefit the leasing sector. This sector has grown substantially but is now facing a financing shortage that will limit its ability to meet demand. Finally, a technical assistance component to be financed entirely by the Japanese Grant Facility, will strengthen governmental institutions that supervise or interface with the financial sector.