TZ-FIDP II

closed

The objective of the Second Financial Institutions Development Project, is to improve access by small savers, and micro entrepreneurs, within a sound, and competitive financial system environment. The components are: 1) The restructuring, and privatization of major banks, will provide considerable management expertise support in banking operations, treasury, and micro-finance. Staff training, management information systems, and, research, and development funding for the micro-finance pilots, will be provided. The component will also address bridge compensation payments to redundant staff, bond re-capitalization to fill financing gaps, and, review options for the restructuring, and privatization of remaining state-owned banks. 2) The financial infrastructure strengthening, will upgrade the technical skills of the banking supervision within the Bank of Tanzania, namely, strengthening the financial data integrity, through improved analytical skills, and, accounting standards. In addition, the payments system, Credit Reference Bureau, and, the Capital Markets and Securities Authority, will continue to be supported, through operational financing. 3) Funding will be provided for the establishment, and management - on a pilot basis - of the first three years of the Privatization Trust, to broaden local private participation.