Productive credit guaranty program

Evaluation covers the period 7/78-3/81 and is based on site visits, document review, and interviews with project personnel. Despite political turbulence, initial delays in preparing manuals and in training, and slow acceptance of the project by intermediate credit institutions (ICI), project targets have been exceeded. Although emphasizing agriculture less than expected, 36% of the 850 guaranties approved (661 disbursed) went for agriculture, 58% for rural enterprises and artisanry, and 6% for rural housing. Also indicative of the project"s success were the fact that 80% of a targeted 100% of the loans went to new borrowers and 21.3% of a planned 35% were provided by lending institutions; no loans were delinquent; most borrowers increased production 40-100%; and 230 jobs were generated. A global plan for the technical assistance fund (TAF) was approved 3/81. Funds will be used to contract added personnel and support for TAF activities. Since 1978, 285 TAF advisors have been certified by the Bolivian Central Bank (BCB), and although they are not adequately prepared or equipped, 38% of borrowers reported receiving TAF assistance. In addition to the TAF advisors, 190 ICI loan officers and other personnel were trained as of 6/79. It is recommended that the BCB: (1) give Regional Technical Offices authority to approve loans and make operational the Automatic Rediscount System; (2) submit a loan promotion plan making greater use of native language radio broadcasts, support institutions, and publications distribution; (3) schedule regular training courses for BCB, ICI, and TAF personnel and revise and distribute the TAF Operating Manual; (4) advise ICI"s that commissions on subloans are allowed and should be added to the subloan amount; (5) contract legal assistance to advise borrowers on applying for loans; and (6) submit a new schedule for ICI and TAF training courses.