INDUSTRIAL CREDIT (D

closed

The Industrial Credit Project's principal objective is to establish an institutional capacity to select, appraise and finance efficient industrial projects. Medium and long term credit, which is in short supply, would be made available to financial intermediaries through FONDEI to finance fixed assets, permanent working capital, related services and preinvestment studies. Financial intermediaries would receive incentives to lend to smaller enterprises. Special features would be provided to facilitate lending for wood industry projects. The project also includes the services of consultants to train and advise various institutions on appraisal and supervision of subloans, and to improve the Industrial Development Center. The project faces no special risks, although close initial supervision may be required since the institutional arrangements for project administration are new.