TEXTILES

closed

The proposed project would assist the Government in initiating its textile subsector development plan through a program of policy improvements, and technical and financial assistance. The credit line would be channeled through participating financial intermediaries to support investment and rehabilitation programs of textile enterprises for strengthening their productivity and competitiveness. It also seeks to enhance the ongoing efforts at strengthening appraisal and support capacities of financial intermediaries and technical assistance institutions by upgrading their textile expertise. The project faces moderate risks associated with possible slow utilization of the credit line and lower than expected returns from the enterprise-specific restructuring programs. Appropriate incentives have been introduced to maintain the interest of the participating financial institutions and as well as measures to strengthen the appraisal and support capacities of the financial and technical institutions serving the textile sector. A special incentive has been provided under the project to facilitate the use of expert services in preparation of economically and financially viable investment programs for the beneficiary textile enterprises.