Financial Sector Development TA Grant

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The Financial Sector Development Technical Assistance Grant Project supports the launch and implementation of a comprehensive bank resolution strategy. Specifically, the project supports the rehabilitation and rapid privatization of a limited number of large state banks; and the liquidation and divestitutre of all other insolvent banks that are not selected for restructuring. There are four project components. The first and second components fund technical assistance to 1) support the preparatory work to implement stabilization, rehabilitation, and pre-privatization efforts, particularly management and advisory services; and 2) pro-support rapid privatization on a case-by-case basis using investment banks and sales agents through providing consultant fees for the fixed fee component for an investment bank to undertake bank privatizations and fees for legal advisory services and support. The third component funds technical assistance to support rapid liquidation and work-out of all insolvent banks not selected for rehabilitation and stabilization programs. This support is in the form of management and advisory services and fees. The fourth component supports project implementation capacity.