Productive credit guaranty program

A self-financing fund will be established in the Central Bank (CB) to guaranty 75% of eligible loans made by private financial institutions under the project and will be supported through A.I.D. and CB contributions. The CB will charge a one-time guaranty commission of 4-5% on each loan to maintain the fund and provide for administrative costs and a small capitalization factor, and a one-time fee of 1% to cover the provision of TA and loan supervision to borrowers from participating lenders and from public and private institutions.