Shelter solutions for low income families in rural areas

Evaluation covers the period 9/79-ll/81 and consists of a consultant"s final report. The project suffered a sharp but needed setback at the outset when the Caja Central de Ahorro y Prestamo para la Vivienda (CACEN) rendered ineligible 25% of the HG loan portfolios of participating Savings and Loan (S&L) Associations (Mutuales). Since 8/81, a deteriorating economy and the apparently imminent devaluation of the Bolivian peso, along with the imminent rainy season, have impeded the loan program, making it likely that CACEN will receive only $ll5,545 of the $1 million disbursement; the balance will go into an escrow account. Nonetheless, field visits to Tarija and Cochabamba proved impressive in terms of loans made and outreach methods used. In other issues, it appears impossible for the Mutuales to follow the guideline that loans be prepared based on variables such as family income, etc. CACEN and USAID/B have decided that establishing a good relationship between CACEN and the Central Bank is basic to implementing three areas for future technical assistance: developing a secondary mortgage market in Bolivia, including provision of rural production credit in CACEN"s activities, and converting the Mutuales from a dollar-dominated portfolio to protect against future devaluations. It is recommended that: A.I.D. encourage CACEN to place loans at a faster rate (before the 12/81 disbursement is placed in the escrow account) and to prepare a list of actual loans and mortgages made so that CACEN can receive funds from the escrow account, review CACEN"s cash flow, monitor interim CACEN goals for Mutuales and CACEN"s adjustments in response to devaluation, and coordinate technical assistance visits to avoid burdening CACEN"s staff while they prepare for the next disbursement; and that final allocations to the Mutuales consider the plan for using funds in the escrow account, activities during the rainy season, possible withdrawal of the Santa Cruz Mutuale, and the amount of loans needed to justify the fifth and last closing.