Dominican Republic project 517021402 · 1987 · agriculture

Subproject (SP) to increase the provision of agricultural credit and financial services in the rural areas of the Dominican Republic. The SP will (1) strengthen credit unions (CU's), provide them with financial stability, and help establish a CU Association (CUA); and (2) improve the policy environment for rural banking and increase rural savings mobilization. The SP will strengthen 4-6 rural credit unions (CU's) per year by providing extensive TA to improve financial management, portfolio composition, reserves, etc. Central Bank staff working under A.I.D.'s Rural Savings Mobilization (RSM) project (5170179) will select the CU's according to their economic growth potential, financial health, management capability, etc. CU's that show a willingness to adopt the reforms needed to increase savings mobilization will be allowed to borrow from a local currency-supported Administrative Loan Fund - eventually to be managed by the CUA - for improved facilities and equipment and some operating expenses. In addition, the Stabilization/Reserve Fund (SRF) now managed by the RSM office will be expanded to provide short-term (3-6 months) credit to CU's facing temporary liquidity problems. CU'

Source: DEC abstract, PD-KAK-557 (1987). The source's own text.