AID grant no. DHR-0017-G-00-0079-00 to the Financial Services Volunteer Corps, Inc. to provide support, advice and assistance to host country efforts to implement democratic principles, free market economies and general development

Volunteers from the U.S. commercial banking and securities industries will provide TA to both public and private sector entities aimed at increasing the availability of capital for investment and the variety of financial instruments and methods of finance. Both the commercial banking/money market sector and the equity markets sector will be assisted. To help expand the supply of securities, FSVC will assist in: developing tax incentives to encourage companies to go public; reducing government involvement in the pricing of public offerings; revising relevant legislation; privatizing profitable parastatals; and promoting debt-equity swaps. To increase demand for securities, FSVC will assist in developing tax incentives for investment in securities, eliminating tax biases against dividends, expanding the role of institutional investors, increasing investor confidence, and promoting foreign investment. Within this context, TA will be provided to both the commercial banking/money market sector and the equity markets sector. TA under the first component will encompass virtually every aspect of commercial banking operations, ranging from central bank policies through operations and functioning of inter-bank and related short-term markets. On the public sector side, volunteers will work primarily with policymakers and central bank officials to reduce sector constraints. On the private sector side, volunteers will work principally with bankers" associations and related professional associations to reach as large a segment of the banking community as possible. The second component, focused on securities markets, will also cover a broad spectrum of activities. For example, volunteer advisors will help governments craft or revise securities laws; develop regulatory and capital market authorities; establish broker/dealer operating practices; and organize exchange management and professional associations. FSVC, which is being established under this project, will be funded by A.I.D. for its first 6 months and subsequently by private and nonprofit organizations. Supervision will be provided by a Steering Committee composed of senior executives from the financial services industry serving in a pro bono capacity. FSVC will be responsible for recruiting volunteers and for providing them technical and administrative support. Targeted outputs for the first 6 months of the program include three lead missions to countries in Central and Eastern Europe to assess financial conditions and identify specific assignments for subsequent volunteers, and a follow-up mission to one of the three countries in response to a specific request for TA. Grant amendment of 8/27/93 funds (1) up to 9 TA/training assignments outside of FSVC"s principal areas of geographic focus (i.e., Central and Eastern Europe, the former Soviet Union, and Mongolia) and (2) U.S. training for five professionals from the new recipient countries. (PD-ABH-975)