LOAN COMPLETION REVIEW REPORT - LOAN NO. 524-L-018

THIS FINAL REPORT WAS PREPARED BY INFONAC AS OF 10/24/74. DURING THE COURSE OF THE PROJECT, 84 SUBLOANS AMOUNTING TO $7.4 MILLION WERE LENT TO FINANCE US IMPORTED MACHINERY AND EQUIPMENT AND PROVIDE WORKING CAPITAL TO MANUFACTURING INDUSTRIES. IN TURN, THE BORROWERS GENERATED $28.2 MILLION IN EXPORT VOLUME AND CREATED 4,300 JOBS. APPROXIMATELY $1 MILLION ASSISTED INFONAC'S EQUITY INVESTMENT PROGRAM FOR FINANCING NEW, HIGH-RISK ENTERPRISE. OF SIX SUCH COMPANIES, 5 ARE CONTRIBUTING TO THE NATIONAL ECONOMY, HAVING STRONG MARKETS AND PROSPECTS. THE REMAINING COMPANY IS EXPECTED TO PROGRESS IN THE DOMESTIC AND FOREIGN LUMBER INDUSTRY, WITH ASSISTANCE FROM PRIVATE SOURCES PROVIDING ADDITIONAL EQUITY FUNDS. INFONAC RECEIVED TECHNICAL ASSISTANCE AND CONSULTING SERVICES AMOUNTING TO $250,000 TO IMPROVE ITS ORGANIZATION, ADMINISTRATION, AND STAFF CAPACITY TO SELECT, ANALYZE, AND IMPLEMENT SUBPROJECTS. NEW DATA PROCESSING EQUIPMENT HAS BEEN SELECTED TO ASSIST INFONAC IN EFFICIENT HANDLING OF LOAN AND INVESTMENT PORTFOLIO DATA. INSTALLATION OF THIS EQUIPMENT IS EXPECTED SOON. INFONAC'S ANNUAL REPORT OF 12/73 INDICATES A RECORD EXPANSION OF THE LOAN PORTFOLIO AND SHARP REDUCTION IN NET LOSSES DURING THE PAST SEVERAL YEARS. GON IS COMPLYING WITH A CONTRACTUAL AGREEMENT TO REIMBURSE INFONAC FOR LOSSES INCURRED DURING THE LIFE OF THE LOAN. FURTHER, ANY PROFITS REALIZED BY INFONAC ARE NOT TO BE REVERTED TO THE GON. TO DATE, INFONAC SHOWS NO PROFITS. USAID WILL MONITOR GON COMPLIANCE OF THESE COVENANTS THROUGH MANDATORY, ANNUAL AUDIT REPORTS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM.