SME/FINANCE

closed

The principal objective of the Private Small and Medium Enterprise Development Project is to finance the development of small and medium scale enterprises (SME) in the private productive sectors. The project consists of the following components : (i) a line of credit to finance the fixed asset and working capital needs of SMEs in all economic sectors other than agriculture, trading and real estate; (ii) an equipment lease financing component to provide an alternative and flexible source of long term financing for SMEs; (iii) technical assistance for the Fund for Small and Medium Enterprise Development (FUSMED) ; and (iv) a pilot mutualist credit guarantee scheme for microenterprise lending. Also financed under the loan will be an integrated package of technical assistance for SMEs, micro-enterprises and women entrepreneurs. The loan will also finance studies on the equipment leasing industry, technology development, the potential for free trade zones for export promotion, and the regulatory and incentive environment for private sector and small-scale enterprise development.