FINANCIAL INSTITUTIO

closed

The principal objective of the Financial Institutions Development project is to strengthen the banking sector and increase the availability of investment financing to the enterprise sector. The project will consist of three components: 1) a commercial bank development component, including long-term funding and technical assistance; 2) assistance to the North Estonian Bank (NEB) and 3) technical assistance to assist in project implementation. The project will: improve efficient allocation of resources by improving the intermediation capabilities of the banking sector; increase the stability of the banking sector, which will lead to greater mobilization of funds; increase long-term investment by providing critically needed long-term funds to the enterprise sector which will in turn improve the productivity of private enterprises by providing technology and capital goods; and provide an incentive for privatization by targeting investment funding toward private companies.