IBRD Loan: US$300 million
Terms: Maturity = 28.5 years; Grace Period = 7 years
Project ID: P116011
Project Description: The project's objective is to contribute to increased access to finance for micro and small enterprises on a sustainable and commercial basis, thus promoting growth, job creation, and an inclusive financial system, as well as ease the impact of the global economic crisis on micro and small enterprises. There are two components to the project, the first component being a line of credit for microfinance. The microenterprise line of credit will be channeled through banks and Non-Governmental Organizations, and potential Microfinance Institutions and a service agent lending through post office branches. Product and delivery innovations including Islamic microfinance and mobile phone banking (linked to anticipated regulatory changes), will be supported. The second component is the line of credit for small enterprise finance. The small enterprise finance component will be channeled through direct banks' lending through their branch networks and bank linkages with NGOs and potential small enterprise finance companies set-up under a new microfinance regulation.