FIN SECTOR/APEX

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The rationale for IDA's involvement in this project is to help maintain the momentum of the reform process in the financial sector. The credit will allow more private sector initiatives not only in the financial sector but in the industrial and other productive sectors. The principal project objectives are : 1) support of SMEs through technical assistance and support of the government's ongoing restructuring efforts of the economy; 2) improving financial sector efficiency through resource mobilization, improved allocation, and interest rate liberalization; 3) strengthening institutions operating in the financial and SME support sector; 4) generating new employment opportunities. The project is comprised of the following components : 1) investment of US$45 million to finance projects in productive sectors promoted by private enterprises; 2) technical assistance to support SME development, staff training, strengthening of Central Bank supervision and monetary management capacities; and 3) establishment of policy conditions concerning the financial sector.