USAID. BUR. FOR PRIVATE ENTERPRISE. OFC. OF POLICY AND PROGRAM REVIEW
Program to provide financial support for short-term lending to low-income Bolivian households and communities - particularly those in peri-urban areas, small towns, and villages - for the installation of potable water and sanitation services The program will lend $2 million at 10% interest per annum to Banco Central de Bolivia, which will relend the peso equivalent to Caja Central de Ahorro y Prestamo Para La Vivienda (CACEN) at 16% interest.
1983
Abstract
CACEN will then on-lend to the 12 Bolivian private sector savings and loan associations (S&L"s) at 20% interest. The S&L"s in turn will lend funds to clients for 5 years at the highest market rate permitted. Initially, CACEN will use program funds to finance two-thirds of each loan made by the S&L"s, with the remainder financed with S&L resources. As the program progresses, the S&L system will finance a larger percentage of each water and sanitation loan it makes, reaching 100% of each loan by the end of the program. Since a significant proportion of the necessary water and sanitation materials must be imported and are subject to price fluctuations, CACEN will establish an inventory of parts and materials for sale to consumers borrowing from the S&L"s. CACEN will also receive grant-funded TA to develop a Master Implementation Plan for participating S&L"s.
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