Private sector export credit, COFISA

PES covers the period 9/82-7/86 and is attached to (but does not summarize) an external final evaluation (XD-AAU-980-A). The project was successful. The major lesson learned is the importance of working with an entity which, like COFISA, has a long track record as a successful financial institution. COFISA has qualified staff at all levels (another prerequisite for a successful project), and the manager fully understood project objectives; in contrast, the Bank for Export and the Private Investment Corporation - the other AID-supported intermediate financial institutions in Costa Rica - had to mature as organizations before being able to pursue specific objectives. Project experience also teaches that in future projects A.I.D. should reserve the right to approve not only the manager, but also the middle- and lower-level executives. It must also be noted that an intermediate financial institution project does not end with the PACD, but needs continued supervision, especially after the PACD, to ensure that the institution adheres to objectives and uses loan reflows and net interest earnings for the purposes originally intended. The evaluators" recommendations were very general and not for corrective actions, but rather for operational and organizational improvements. Some recommendations were not accepted due to the evaluators" lack of understanding of A.I.D. procurement procedures. The remaining recommendations are reflected in action decisions that: (1) COFISA submit to A.I.D. by 3/31/87 a revised credit manual, new credit limits and delegation authorities, and a detailed Portfolio monitoring and managing system which will include recommendations made by the evaluation; (2) COFISA"s profit center accounting system be fully functional by the end of the 1986/87 fiscal year; and (3) USAID/CR closely monitor the 75%/25% requirement regarding long- and short-term loans. COFISA has already fulfilled a recommendation to show more initiative in taking charge of foreign exchange registration at the Central Bank and in processing its loans.