SM ENTERPRISE DEV.II

closed

The Second Small Enterprise Development Project consists of: (a) credit to finance 20% of KIK lending for two and a half years from around mid-1981; (b) technical assistance and training to the banking system to plan and implement the KIK/KMKP program; (c) a program to improve the operational capabilities of 26 regional development banks; (d) a program to strengthen SSE technical support services by MOI; and (e) credit impact and demand studies to stimulate labor-intensive industries. Approximately 70,000 subloans will be extended to indigenous SSEs in virtually all economic sectors, creating some 140,000 new jobs at an investment cost per job of about $4,000. The training and actual lending experience gained by handling banks' staff under the proposed project will improve their operational skills in term lending and sharpen their awareness of the financial and technical problems of small borrowers.