Project assistance completion report : rural savings mobilization project (517-0179)

The project substantially expanded the rural population's access to savings, credit, and other financial services. Approximately RD$29 million in deposits (from more than 70,000 depositors) was mobilized by the 31 BAGRICOLA branch offices and the 4 credit unions. Of these funds, about RD$15 million was reloaned to rural clients. Although important improvements in BAGRICOLA's viability and efficiency were attained, improvements in the credit unions were by comparison far more significant and exceeded expectations. The project also helped the Central Bank establish a Rural Savings Mobilization Office, which completed 16 of 18 targeted studies, with 5 more in progress. It also instilled a level of discipline in BAGRICOLA's lending practices, especially in regard to funds obtained from depositors, and heightened the awareness of many people regarding the importance of positive interest rates. The major lesson learned is that there is an unsatisfied demand for financial services in rural areas. Access, rather than the cost of these services, is the important factor.