INDUS. CR. II

closed

The Second Industrial Investment Credit Project will support the Government's efforts to promote private industrial investment and will help the GOP strengthen the financial markets. It will: (a) assist in development of a more efficient capital market so as to increase the sources of equity finance for industry; (b) stimulate further competition among Participating Financial Institutions (PFIs); (c) ensure a steady flow of term finance to private industry; and (d) continue the institution building programs of the PFIs. The project will stimulate private savings and finance 40 to 45 subprojects, which will be expected to create about 30,000 new jobs. The major project risk is that economic conditions, and hence investor confidence, will be hurt by political and/or economic uncertainties and insufficient Government action to maintain the pace of structural adjustment. Recent GOP policy measures suggest that the Government is committed to a further expansion of the role of the private sector in the economy.