LATIN AMERICAN CONFEDERATION OF CREDIT UNIONS (COLAC)

This joint COLAC/A.I.D. evaluation covers the period 8/77-2/80 and is based on document review, site visits, and interviews with project personnel. The validity of certain assumptions must be reexamined, especially regarding continued host government support and sociopolitical stability. COLAC"s ability to charge commercial interest rates and to maintain high eligiblity criteria is also questionable. Nonetheless, over 50% of the $4 million loan has been disbursed; the remainder will be disbursed prior to 6/30/80. Five national cooperatives and seven country federations have benefitted directly. Almost 90% of technical assistance (TA) grant funds have been disbursed. COLAC has provided prompt, high-quality TA and training to its clients and has established a non-profit educational foundation, FECOLAC, in addition to its loan and TA programs. COLAC"s major failing is its lack of a supplementary marketing program and policy. COLAC has made good progress towards end-of-project institutional conditions. Total assets increased 182% million and loan activity 166% from 1977-79. A 260% ($2 million) increase in capitalization is projected by 1982, bringing COLAC to the break-even point. COLAC"s ability to prepare and process field projects and to mobilize both member savings and external capital also grew. The planned statistical system to collect baseline data (economic, social, financial, etc.) on COLAC"s organization is not yet established; it should be implemented on a pilot basis. It is recommended that COLAC gather benchmark data on farm economic conditions prior to loan disbursement; provide a comprehensive marketing policy; establish country-specific maintenance of value procedures, while obtaining capital reserves from the Credit Union National Association (CUNA) and others; and conduct with the International Development Bank an indepth evaluation of the project prior to its termination in 8/80.