1) A USAID loan guarantee program in Honduras supported lending to agriculture and microenterprises by guaranteeing loans made by the José Maria Covelo Foundation (FJMC) between 2003-2009.
2) The guarantees helped FJMC expand lending to agriculture from 0 to over $222,000 and increase average loan sizes for microenterprises.
3) By 2007, FJMC had developed agricultural lending expertise and expanded their non-guaranteed portfolio, demonstrating the program's success in developing local capacity.
The document summarizes a Development Credit Authority (DCA) loan guarantee program between USAID and the Bank of Kigali in Rwanda from 2004 to 2007. The key findings were:
1) The guarantee was fully utilized, with the Bank of Kigali issuing over $1.7 million in loans to coffee washing station investors, achieving 86% of the $2 million guarantee ceiling.
2) The guarantee likely increased the Bank of Kigali's agricultural lending, allowing them to expand into this sector at reduced risk.
3) After the guarantee ended, the Bank of Kigali provided some additional working capital loans to borrowers they had experience with, but did not significantly change their lending
The document discusses how development credit programs can help unlock private financing for clean energy projects in Asia. It provides examples of how USAID's Development Credit Authority uses loan guarantees and other credit support mechanisms to catalyze investment in renewable energy, energy efficiency, and other sectors. By mitigating risks for lenders, credit guarantees can help address capital constraints and accelerate the transition to sustainable energy.
There has been a lot of discussion in the media and in the
financial sector, about the state of struggling European
markets, and particularly about the Greek economy. More
broadly, people are concerned about what overall impact
the distressed Euro Zone could have on financial institutions
here in the United States if confidence in the Euro’s stability
continues to deteriorate.
As always, when talking about the future of the international
market, and more particularly about banks and Credit Unions
here in the United States, it’s difficult to say anything with
certainty. In this case, that difficulty is only increased by the
likelihood that banks and Credit Unions would be affected
differently. For more info: www.nafcu.org/bfb
This document discusses climate financing ahead of the Durban climate conference negotiations. It introduces the Green Climate Fund established under the Cancun Agreement to mobilize $100 billion annually by 2020 for developing countries. Climate financing will be streamlined through fast-start financing of up to $30 billion by 2012 and long-term funding through the Green Climate Fund. Sources of funds include national budgets, carbon markets, and private investments. Developing criteria and reporting financing on a "net" basis are important for ensuring funds meet countries' needs.
1) The document summarizes an evaluation of a USAID loan guarantee program with Bank Danamon in Indonesia following the 2004 tsunami.
2) The guarantee helped the bank resume and expand microfinance lending in disaster-affected Aceh and North Sumatra, meeting USAID's primary objective.
3) While the bank significantly expanded lending nationwide during the guarantee period, this was largely due to its aggressive growth strategy rather than the guarantee itself, except for lending increases in Aceh.
The USAID provided loan guarantees to the Bank of Abyssinia (BOA) to encourage lending to Ethiopia's agriculture sector. This increased BOA's agricultural lending from 0% to 2.3% of its portfolio. It allowed farmers access to larger loans than otherwise possible. While the guarantees influenced BOA, other banks also increased agricultural lending due to government policy and potential foreign currency from exports. However, lack of collateral and infrastructure still limit small farmers' access to credit.
If you are struggling to repay your student loan debt, there may be options available that can provide you the relief you need. The options available to you depend on the type of loans you have, your current finances, your student loan history, and even your employment.
The document summarizes the IDB's integrated disaster risk management and finance approach presented at the 4th International Disaster and Risk Conference in Davos, Switzerland. The IDB focuses on risk identification, prevention, mitigation, preparedness, and financial risk management. Key aspects of the IDB's approach include promoting policy dialogue, building institutional capacity, providing flexible tailored solutions, and coordinating with other institutions. The IDB works with academic, insurance, donor, and multilateral institutions to develop contingent credit facilities, risk transfer instruments, and parametric insurance programs to help countries manage natural disaster financial risks. Between 2009-2012, the IDB approved over $700 million in coverage across 7 countries through contingent credit loans and insurance facilities
The document summarizes a Development Credit Authority (DCA) loan guarantee program between USAID and the Bank of Kigali in Rwanda from 2004 to 2007. The key findings were:
1) The guarantee was fully utilized, with the Bank of Kigali issuing over $1.7 million in loans to coffee washing station investors, achieving 86% of the $2 million guarantee ceiling.
2) The guarantee likely increased the Bank of Kigali's agricultural lending, allowing them to expand into this sector at reduced risk.
3) After the guarantee ended, the Bank of Kigali provided some additional working capital loans to borrowers they had experience with, but did not significantly change their lending
The document discusses how development credit programs can help unlock private financing for clean energy projects in Asia. It provides examples of how USAID's Development Credit Authority uses loan guarantees and other credit support mechanisms to catalyze investment in renewable energy, energy efficiency, and other sectors. By mitigating risks for lenders, credit guarantees can help address capital constraints and accelerate the transition to sustainable energy.
There has been a lot of discussion in the media and in the
financial sector, about the state of struggling European
markets, and particularly about the Greek economy. More
broadly, people are concerned about what overall impact
the distressed Euro Zone could have on financial institutions
here in the United States if confidence in the Euro’s stability
continues to deteriorate.
As always, when talking about the future of the international
market, and more particularly about banks and Credit Unions
here in the United States, it’s difficult to say anything with
certainty. In this case, that difficulty is only increased by the
likelihood that banks and Credit Unions would be affected
differently. For more info: www.nafcu.org/bfb
This document discusses climate financing ahead of the Durban climate conference negotiations. It introduces the Green Climate Fund established under the Cancun Agreement to mobilize $100 billion annually by 2020 for developing countries. Climate financing will be streamlined through fast-start financing of up to $30 billion by 2012 and long-term funding through the Green Climate Fund. Sources of funds include national budgets, carbon markets, and private investments. Developing criteria and reporting financing on a "net" basis are important for ensuring funds meet countries' needs.
1) The document summarizes an evaluation of a USAID loan guarantee program with Bank Danamon in Indonesia following the 2004 tsunami.
2) The guarantee helped the bank resume and expand microfinance lending in disaster-affected Aceh and North Sumatra, meeting USAID's primary objective.
3) While the bank significantly expanded lending nationwide during the guarantee period, this was largely due to its aggressive growth strategy rather than the guarantee itself, except for lending increases in Aceh.
The USAID provided loan guarantees to the Bank of Abyssinia (BOA) to encourage lending to Ethiopia's agriculture sector. This increased BOA's agricultural lending from 0% to 2.3% of its portfolio. It allowed farmers access to larger loans than otherwise possible. While the guarantees influenced BOA, other banks also increased agricultural lending due to government policy and potential foreign currency from exports. However, lack of collateral and infrastructure still limit small farmers' access to credit.
If you are struggling to repay your student loan debt, there may be options available that can provide you the relief you need. The options available to you depend on the type of loans you have, your current finances, your student loan history, and even your employment.
The document summarizes the IDB's integrated disaster risk management and finance approach presented at the 4th International Disaster and Risk Conference in Davos, Switzerland. The IDB focuses on risk identification, prevention, mitigation, preparedness, and financial risk management. Key aspects of the IDB's approach include promoting policy dialogue, building institutional capacity, providing flexible tailored solutions, and coordinating with other institutions. The IDB works with academic, insurance, donor, and multilateral institutions to develop contingent credit facilities, risk transfer instruments, and parametric insurance programs to help countries manage natural disaster financial risks. Between 2009-2012, the IDB approved over $700 million in coverage across 7 countries through contingent credit loans and insurance facilities
The AMBCC Financial Service Committee is comprised of financial service professionals representing credit unions, banks, lending institutions, insurance companies, financial planning, private equity, and venture capitalist firms.
The FSC works to represent, educate, and promote its members and ensure them economic opportunities and market presence.
H 4 (Iadb Inter American Development Bank)mcd202dc
The Inter-American Development Bank (IDB) was established in 1959 to promote economic and social development in Latin America and the Caribbean. The IDB provides loans, grants, and technical assistance for projects focused on poverty reduction, environmentally sustainable growth, and issues like renewable energy, sanitation, and transportation infrastructure. Based in Washington, D.C., the IDB has approved over $156 billion in financing for development projects totaling $353 billion.
Credit guarantee schemes aim to improve small farmers' and businesses' access to finance by partially guaranteeing loans and compensating lenders if borrowers default. However, such schemes can reduce incentives for repayment and often rely on subsidies. Effective schemes focus on portfolio guarantees, professional management, and limiting political influence to reduce defaults and costs, thus improving sustainability. Recent innovations include direct funding of partner banks and separating individual and portfolio guarantees.
The credit crunch has prompted a return to fundamental project finance principles in infrastructure markets. Banks are now conducting thorough credit assessments and aligning pricing structures accordingly, rather than the loose lending seen pre-crisis. While the credit crunch has negative impacts, it has corrected the overinflated pricing of loans. The outlook for 2009 and beyond shows signs of growth in infrastructure markets, though confidence will take time to recover fully and social sector projects are seen as less attractive than energy and transport. Private investment in public infrastructure can help maintain GDP in the current economic environment.
We study the credit market implications and real effects of one the largest borrower bailout programs in history, enacted by the government of India against the backdrop of the 2008–2009 financial crisis. We find that the stimulus program had no effect on productivity, wages or consumption, but led to significant changes in credit allocation and an increase in defaults. Post-program loan performance declines faster in districts with greater exposure to the program, an effect that is not driven by greater risk-taking
of banks. Loan defaults become significantly more sensitive to the electoral cycle after the program, suggesting the anticipation of future credit market interventions as an important channel through which moral hazard in loan repayment is intensified.
Presented at a round table of the Commission for Environmental Cooperation and its Trilateral Green Building Construction Task Force during GreenBuild in San Francisco, California, on November 13, 2012.
This presentation by Jim Barborak was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 2, Session 5, Financing tourism concessions)
This document summarizes common debt structures used by state and local governments in California. It describes issuer, security, pledged revenues, examples, risks, and notes for:
1) State of California debt including general obligation bonds, lease revenue bonds, and revenue anticipation notes.
2) City and county debt including general obligation bonds, lease appropriation debt, and tax increment revenue bonds.
3) School district and community college district debt including general obligation bonds and lease appropriation debt.
4) Mello-Roos bonds which are special tax or assessment bonds issued by community facility districts to fund infrastructure for real estate developments.
The Jewish Agency has faced significant budget cuts due to the global economic downturn and fluctuations in the US dollar exchange rate against the Israeli shekel. They have cut over $73 million from their 2009 budget through reductions in administrative costs, personnel, and essential programs. These cuts are jeopardizing their ability to support over 2 million beneficiaries around the world, including new immigrants to Israel, at-risk youth programs in Israel, and Jewish identity-building programs in the Former Soviet Union.
1. The document shows different strategies for reducing the development gap between rich and poor countries arranged on a graph based on their impact on national development and people.
2. The strategies include bilateral aid, multilateral aid, NGO aid, remittances, trading blocs, trade justice, fair trade, microloans, debt relief, conservation swaps, loans, and free trade.
3. Participants are instructed to get into groups based on the column they are assigned to and decide where to place the different development strategies on the graph.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
The document summarizes the evolution of rural financial services in Ghana over three phases:
1) Prior to 1990, the informal financial sector dominated due to lack of regulation and limited state interventions. IFAD introduced SCIMP to build confidence in formal banking.
2) From 1990-2000, RFSP upscaled SCIMP nationwide, achieving sustainability, innovation and increased rural bank numbers. Challenges included low farmer lending and contradicting subsidy approaches.
3) Post-2010, RAFIP continues RFSP's work while disengaging from credit lines and building capacity. Knowledge from failures in Cameroon and Niger informed expanding successful models to Nigeria.
1) Microinsurance in India has grown rapidly in recent years but over 90% of the population remains uninsured. Key developments include the 2005 microinsurance regulation by IRDA and growth of government schemes like RSBY.
2) Life insurance, especially credit-life, dominates the microinsurance sector in India. New products like Max Vijay are emerging but savings-linked microinsurance remains underdeveloped. Health and crop insurance have also grown but face challenges around implementation and basis risk.
3) Innovations include index-based crop insurance partnerships and programs to expand micro-pensions to informal sectors. However, most microinsurance remains supply-driven and seeks subsidies over designing sustainable customer-centric products. Strategic perspectives and
The document provides an introduction to two Mercer consultants, Michelle Lewis-Blossman and Jim Sowers, and outlines their presentation on keys to success in public sector HR restructuring. It then discusses examining the sources and uses of funds in an HR department and restructuring to reduce costs, increase value, and better align the department with the organization's strategy. Specific approaches covered include conducting a function-by-function budget review, understanding time and cost allocations, benchmarking against peer organizations, and defining core vs non-core services. The goal is to help organizations effectively evaluate and restructure their HR department during challenging economic times.
This document provides a plan for implementing private sector participation contracts for three water and wastewater operations in Alexandria, Egypt: 1) septage collection and disposal, 2) operation of Site 9N, and 3) transport of waste materials. It recommends pursuing the contracts simultaneously and retaining transaction advisors to help. Key activities include enhancing information, selecting advisors, addressing staff impacts, assessing equipment conditions, and implementing pre-transaction tasks like creating an implementation unit and organizing a data room. The timeline is estimated at 9 months and costs at 4.2 million Egyptian pounds.
The document discusses water pricing policies from the study tours to Colombia, Spain, and Europe. Some key points:
- Colombia implements a tiered tariff system with cross-subsidies to support low-income households, determined by a national social stratification system. Tariffs are set in two steps - first a referential cost is established, then final tariffs are set by municipalities.
- In Europe, the Water Framework Directive established principles for water pricing to incentivize efficient use. Most European countries' tariffs needed significant increases to fully recover costs.
- In Seville, Spain, the water company EMASESA implemented an innovative new residential tariff system in 2006 to replace their previous
Root Capital received two loan guarantees from USAID's Development Credit Authority (DCA) totaling $3 million to expand lending to small and medium agribusinesses in Latin America and East Africa. The guarantees allowed Root Capital to provide loans to riskier borrowers and enter new markets. As a result, Root Capital was able to triple its Latin America portfolio and nearly triple its Africa portfolio. Many borrowers received additional, non-guaranteed loans from Root Capital and had increased access to finance from other sources over time. The DCA guarantees helped Root Capital demonstrate the creditworthiness of borrowers in these sectors and markets, contributing to improved access to finance for small agricultural businesses.
Alexandria PSP Feasibility Study - Final Reportnsegura85
This document provides a summary of a feasibility study conducted for private sector participation in the water and wastewater systems of Alexandria, Egypt.
1) The study evaluated options for private contracting in metering, billing, and collections at AWGA and found that a comprehensive contract covering all three functions had the most benefits but AWGA preferred a more limited metering-only contract.
2) For AGOSD, licensing private operators for septage collection and disposal was recommended over service contracts, and a long-term lease of wastewater treatment Site 9N to a private operator was favored over a management contract.
3) Transportation of sludge and other waste was best handled through competitive private service contracts rather
This document discusses policy considerations regarding a feasibility study for private sector participation in the operation and maintenance of Alexandria, Egypt's water and wastewater system. Key points discussed include:
1. Merging the water and sanitation agencies could provide efficiencies but may be difficult due to organizational differences and financial imbalances. A merger is not necessary for reform.
2. Streamlining the over 9,000 personnel across the two agencies could significantly improve productivity but may face political challenges. A phased 50% reduction plan is recommended.
3. Tariff increases are needed but the structure should better target subsidies to the poor.
4. Local agencies should have operational and financial autonomy under the new holding company framework
This document presents the government policy statement for water supply and sanitation services in Alexandria, Egypt. It discusses the challenges facing the water and wastewater systems, including rapid population growth, large investment needs, rigid labor forces, and inadequate cost recovery. It identifies six key policy areas to address: governance, pricing of services, personnel management, financial viability, private sector participation, and regulation. The document provides background and recommendations for each of these areas.
This document provides a conceptual framework and recommendations for pricing water and wastewater services in Amman, Jordan and developing a pricing model. It finds that current pricing does not meet objectives of financial viability, economic efficiency, or fully targeting social goals. It recommends adopting a multi-year strategy to transition tariffs to a financial reference price of 1.42 JD/m3 to improve cost recovery for Miyahuna and WAJ. It also recommends better targeting subsidies to poor consumers through a solidarity charge on non-poor users or linking subsidies to land value as a proxy for income. The document includes an analysis of costs, revenues, subsidy options and a pricing model to evaluate tariffs.
The AMBCC Financial Service Committee is comprised of financial service professionals representing credit unions, banks, lending institutions, insurance companies, financial planning, private equity, and venture capitalist firms.
The FSC works to represent, educate, and promote its members and ensure them economic opportunities and market presence.
H 4 (Iadb Inter American Development Bank)mcd202dc
The Inter-American Development Bank (IDB) was established in 1959 to promote economic and social development in Latin America and the Caribbean. The IDB provides loans, grants, and technical assistance for projects focused on poverty reduction, environmentally sustainable growth, and issues like renewable energy, sanitation, and transportation infrastructure. Based in Washington, D.C., the IDB has approved over $156 billion in financing for development projects totaling $353 billion.
Credit guarantee schemes aim to improve small farmers' and businesses' access to finance by partially guaranteeing loans and compensating lenders if borrowers default. However, such schemes can reduce incentives for repayment and often rely on subsidies. Effective schemes focus on portfolio guarantees, professional management, and limiting political influence to reduce defaults and costs, thus improving sustainability. Recent innovations include direct funding of partner banks and separating individual and portfolio guarantees.
The credit crunch has prompted a return to fundamental project finance principles in infrastructure markets. Banks are now conducting thorough credit assessments and aligning pricing structures accordingly, rather than the loose lending seen pre-crisis. While the credit crunch has negative impacts, it has corrected the overinflated pricing of loans. The outlook for 2009 and beyond shows signs of growth in infrastructure markets, though confidence will take time to recover fully and social sector projects are seen as less attractive than energy and transport. Private investment in public infrastructure can help maintain GDP in the current economic environment.
We study the credit market implications and real effects of one the largest borrower bailout programs in history, enacted by the government of India against the backdrop of the 2008–2009 financial crisis. We find that the stimulus program had no effect on productivity, wages or consumption, but led to significant changes in credit allocation and an increase in defaults. Post-program loan performance declines faster in districts with greater exposure to the program, an effect that is not driven by greater risk-taking
of banks. Loan defaults become significantly more sensitive to the electoral cycle after the program, suggesting the anticipation of future credit market interventions as an important channel through which moral hazard in loan repayment is intensified.
Presented at a round table of the Commission for Environmental Cooperation and its Trilateral Green Building Construction Task Force during GreenBuild in San Francisco, California, on November 13, 2012.
This presentation by Jim Barborak was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 2, Session 5, Financing tourism concessions)
This document summarizes common debt structures used by state and local governments in California. It describes issuer, security, pledged revenues, examples, risks, and notes for:
1) State of California debt including general obligation bonds, lease revenue bonds, and revenue anticipation notes.
2) City and county debt including general obligation bonds, lease appropriation debt, and tax increment revenue bonds.
3) School district and community college district debt including general obligation bonds and lease appropriation debt.
4) Mello-Roos bonds which are special tax or assessment bonds issued by community facility districts to fund infrastructure for real estate developments.
The Jewish Agency has faced significant budget cuts due to the global economic downturn and fluctuations in the US dollar exchange rate against the Israeli shekel. They have cut over $73 million from their 2009 budget through reductions in administrative costs, personnel, and essential programs. These cuts are jeopardizing their ability to support over 2 million beneficiaries around the world, including new immigrants to Israel, at-risk youth programs in Israel, and Jewish identity-building programs in the Former Soviet Union.
1. The document shows different strategies for reducing the development gap between rich and poor countries arranged on a graph based on their impact on national development and people.
2. The strategies include bilateral aid, multilateral aid, NGO aid, remittances, trading blocs, trade justice, fair trade, microloans, debt relief, conservation swaps, loans, and free trade.
3. Participants are instructed to get into groups based on the column they are assigned to and decide where to place the different development strategies on the graph.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
The document summarizes the evolution of rural financial services in Ghana over three phases:
1) Prior to 1990, the informal financial sector dominated due to lack of regulation and limited state interventions. IFAD introduced SCIMP to build confidence in formal banking.
2) From 1990-2000, RFSP upscaled SCIMP nationwide, achieving sustainability, innovation and increased rural bank numbers. Challenges included low farmer lending and contradicting subsidy approaches.
3) Post-2010, RAFIP continues RFSP's work while disengaging from credit lines and building capacity. Knowledge from failures in Cameroon and Niger informed expanding successful models to Nigeria.
1) Microinsurance in India has grown rapidly in recent years but over 90% of the population remains uninsured. Key developments include the 2005 microinsurance regulation by IRDA and growth of government schemes like RSBY.
2) Life insurance, especially credit-life, dominates the microinsurance sector in India. New products like Max Vijay are emerging but savings-linked microinsurance remains underdeveloped. Health and crop insurance have also grown but face challenges around implementation and basis risk.
3) Innovations include index-based crop insurance partnerships and programs to expand micro-pensions to informal sectors. However, most microinsurance remains supply-driven and seeks subsidies over designing sustainable customer-centric products. Strategic perspectives and
The document provides an introduction to two Mercer consultants, Michelle Lewis-Blossman and Jim Sowers, and outlines their presentation on keys to success in public sector HR restructuring. It then discusses examining the sources and uses of funds in an HR department and restructuring to reduce costs, increase value, and better align the department with the organization's strategy. Specific approaches covered include conducting a function-by-function budget review, understanding time and cost allocations, benchmarking against peer organizations, and defining core vs non-core services. The goal is to help organizations effectively evaluate and restructure their HR department during challenging economic times.
This document provides a plan for implementing private sector participation contracts for three water and wastewater operations in Alexandria, Egypt: 1) septage collection and disposal, 2) operation of Site 9N, and 3) transport of waste materials. It recommends pursuing the contracts simultaneously and retaining transaction advisors to help. Key activities include enhancing information, selecting advisors, addressing staff impacts, assessing equipment conditions, and implementing pre-transaction tasks like creating an implementation unit and organizing a data room. The timeline is estimated at 9 months and costs at 4.2 million Egyptian pounds.
The document discusses water pricing policies from the study tours to Colombia, Spain, and Europe. Some key points:
- Colombia implements a tiered tariff system with cross-subsidies to support low-income households, determined by a national social stratification system. Tariffs are set in two steps - first a referential cost is established, then final tariffs are set by municipalities.
- In Europe, the Water Framework Directive established principles for water pricing to incentivize efficient use. Most European countries' tariffs needed significant increases to fully recover costs.
- In Seville, Spain, the water company EMASESA implemented an innovative new residential tariff system in 2006 to replace their previous
Root Capital received two loan guarantees from USAID's Development Credit Authority (DCA) totaling $3 million to expand lending to small and medium agribusinesses in Latin America and East Africa. The guarantees allowed Root Capital to provide loans to riskier borrowers and enter new markets. As a result, Root Capital was able to triple its Latin America portfolio and nearly triple its Africa portfolio. Many borrowers received additional, non-guaranteed loans from Root Capital and had increased access to finance from other sources over time. The DCA guarantees helped Root Capital demonstrate the creditworthiness of borrowers in these sectors and markets, contributing to improved access to finance for small agricultural businesses.
Alexandria PSP Feasibility Study - Final Reportnsegura85
This document provides a summary of a feasibility study conducted for private sector participation in the water and wastewater systems of Alexandria, Egypt.
1) The study evaluated options for private contracting in metering, billing, and collections at AWGA and found that a comprehensive contract covering all three functions had the most benefits but AWGA preferred a more limited metering-only contract.
2) For AGOSD, licensing private operators for septage collection and disposal was recommended over service contracts, and a long-term lease of wastewater treatment Site 9N to a private operator was favored over a management contract.
3) Transportation of sludge and other waste was best handled through competitive private service contracts rather
This document discusses policy considerations regarding a feasibility study for private sector participation in the operation and maintenance of Alexandria, Egypt's water and wastewater system. Key points discussed include:
1. Merging the water and sanitation agencies could provide efficiencies but may be difficult due to organizational differences and financial imbalances. A merger is not necessary for reform.
2. Streamlining the over 9,000 personnel across the two agencies could significantly improve productivity but may face political challenges. A phased 50% reduction plan is recommended.
3. Tariff increases are needed but the structure should better target subsidies to the poor.
4. Local agencies should have operational and financial autonomy under the new holding company framework
This document presents the government policy statement for water supply and sanitation services in Alexandria, Egypt. It discusses the challenges facing the water and wastewater systems, including rapid population growth, large investment needs, rigid labor forces, and inadequate cost recovery. It identifies six key policy areas to address: governance, pricing of services, personnel management, financial viability, private sector participation, and regulation. The document provides background and recommendations for each of these areas.
This document provides a conceptual framework and recommendations for pricing water and wastewater services in Amman, Jordan and developing a pricing model. It finds that current pricing does not meet objectives of financial viability, economic efficiency, or fully targeting social goals. It recommends adopting a multi-year strategy to transition tariffs to a financial reference price of 1.42 JD/m3 to improve cost recovery for Miyahuna and WAJ. It also recommends better targeting subsidies to poor consumers through a solidarity charge on non-poor users or linking subsidies to land value as a proxy for income. The document includes an analysis of costs, revenues, subsidy options and a pricing model to evaluate tariffs.
The $4 million DCA loan guarantee to FinComBank in Moldova successfully increased lending to small businesses in the agriculture sector. The guarantee was almost fully utilized within 18 months and led FinComBank to expand its rural lending network. As a result of its positive experience with the guarantee, FinComBank significantly grew its agriculture portfolio and continued robust lending in the sector after the guarantee. The overall $27 million credit program in Moldova also increased competition among banks for rural borrowers and shifted lending toward smaller farms.
The USAID DCA loan guarantee in the Philippines had 3 objectives: 1) Strengthen the LGUGC's ability to mobilize private capital for local infrastructure projects, 2) Encourage private lending to local governments and water districts, and 3) Expand access to credit for these sectors. The guarantee supported $28.5 million in loans leading to increased private sector confidence in LGUGC and more long-term loans for water districts. While direct impact was modest, the guarantee helped launch private investment in these sectors and informed new programs like the Philippines Water Revolving Fund to continue this progress.
The document discusses two loan guarantees between USAID and EcoBank in Ghana from 2003-2008 and 2005-2012. It finds that the guarantees helped EcoBank expand lending to new sectors and provide longer term loans, but that EcoBank's overall lending growth was driven more by its retail banking strategy than the guarantees. The guarantees had a modest demonstration effect on broader banking sector lending but did not significantly impact total SME lending growth in Ghana.
This document assesses economic conditions and identifies potential development projects in northern Kosovo, with a focus on northern Mitrovica. It finds that the economy can be described as a "kiosk economy" with high unemployment, dependence on subsidies, and supplemental subsistence agriculture. Unemployment is between 70-80%. The private sector is small, with most companies involved in trade. Government and donor support to businesses is limited. The region has weak economic foundations and faces constraints such as limited market access and political uncertainty. In the short term, the report recommends job creation programs and facilitating north-south trade. In the medium-term, it suggests improving economic foundations through training and university linkages. Longer-term options include
Phase One Report: Comparative Evaluation and Recommended Organizational Modelnsegura85
This document provides a summary and recommendations for restructuring the organization that manages water and wastewater services in Amman, Jordan. It analyzes the performance of the current private operator, LEMA, and the Aqaba Water Company. It then considers various organizational models and recommends forming a new mixed public-private capital company to take over management of services in Amman. The report outlines financial arrangements and an implementation plan for establishing the new company.
RCI leverages resources and partnerships to improve IT competitiveness in the E&E region. Through partnerships with organizations like ESI Center Bulgaria/Eastern Europe, RCI develops models for IT training and certification that are implemented regionally. This approach improves the processes of regional IT firms and helps them obtain international certifications while also leveraging co-funding from other donors to ensure sustainability. Initial programs launched in 2005-2007 in countries like Bulgaria, Macedonia, and Moldova have continued with support from other programs, demonstrating the sustainability of RCI's model.
The document discusses a USAID initiative called the Regional Competitiveness Initiative (RCI) that aimed to boost economic growth in South Eastern Europe. RCI provided small grants to establish Centers of Excellence and Innovation (CEIs) focused on sectors like ICT, agriculture, tourism, and manufacturing. This supported the development of 5 initial CEIs in various countries. It later expanded the network of CEIs and helped integrate them regionally. The CEIs worked to stimulate innovation, provide training, and increase competitiveness across multiple sectors in the region.
The document discusses two loan guarantees between USAID and EcoBank in Ghana from 2003 to 2008 and 2005 to 2012. It finds that the guarantees helped EcoBank expand lending to new sectors and industries, provide larger and longer-term loans, and increase lending to SMEs substantially. However, most of EcoBank's lending growth was due to its own strategy rather than the guarantees, which had a modest impact due to representing a small number of sectors. The guarantees gave EcoBank experience that informed but did not dramatically change its lending practices.
- EcoBank implemented two DCA loan guarantees with USAID to increase lending to small and medium enterprises (SMEs) in Ghana.
- EcoBank used the guarantees to gain experience lending to new industries and borrowers, and to provide larger, longer-term loans for capital expenditures.
- While EcoBank significantly increased its SME lending, most of the growth was part of its broader strategy and not directly attributable to the guarantees, which accounted for a small portion of the SME portfolio.
This document summarizes aBi Finance's experience with guarantee schemes in Uganda from 2010-2013. It discusses aBi Finance's products including lines of credit and guarantee schemes that support financial institutions to provide financing to agribusinesses. The guarantee schemes cover up to 50% of loan amounts and had positive impacts like increasing agricultural lending and job creation. While challenges remained around technical skills, gender imbalance, and insurance access, aBi Finance plans to expand coverage, improve monitoring, and introduce new inclusive financing products and mechanisms.
The DCA loan guarantee provided $6 million to support lending to SMEs through the Bank Center-Invest in Russia. While the objective was to expand lending in Krasnodar and Volgograd regions, most loans were provided in the Rostov region due to the bank's risk aversion to new markets. The guarantee helped increase access to credit for 137 SME borrowers and may have influenced the bank to participate in other guarantee programs. However, the guaranteed loans represented only 1% of the bank's total SME portfolio, so the full impact was likely larger but difficult to measure directly. The evaluation found the program generally achieved its goals of expanding credit to underserved businesses.
The document summarizes an evaluation of loan guarantees provided by USAID to Kenya Commercial Bank (KCB) through the Development Credit Authority (DCA) program in 2006 and 2010. The guarantees were intended to encourage KCB to increase lending to small and medium enterprises (SMEs) in underserved areas by covering 50% of the risk. The evaluation found that the guarantees achieved their objectives by enabling KCB to issue over 1,900 loans totaling over $13.5 million to SMEs in sectors like agriculture, tourism, and manufacturing. Borrowers experienced growth in sales, profits, and employment. The guarantees also demonstrated to KCB and other Kenyan banks that lending to SMEs can be profitable.
The document is a report from the Sub-Committee of the Central Board of Directors of Reserve Bank of India that studied issues in the microfinance sector. Some key points:
1) It recommends creating a separate category of NBFCs called NBFC-MFIs to specifically regulate microfinance institutions.
2) It proposes a definition for NBFC-MFIs as non-banking companies that provide small, short-term, unsecured loans predominantly to low-income borrowers.
3) It suggests various regulations for NBFC-MFIs regarding loan size, duration, collateral, and restricting loans to income-generating activities in order to protect vulnerable borrowers.
An audit of a U.S. Agency for International Department program that aimed to boost Haiti's economy by providing loans to business has found that the program failed to award loans to intended targets, train workers and keep accurate records.
This audit report summarizes the results of an audit of USAID/Haiti's Development Credit Authority (DCA) program. The audit found that while one lender, Sofihdes, had met its loan targets, two other lenders, Sogebank and Le Levier, were not implementing the loan program as quickly as planned. Additionally, USAID's internal controls were not adequate to ensure that all loans met the DCA lending criteria or that loans were going to targeted areas and borrowers. As a result, some loans went to prohibited businesses and most loans were concentrated in Port-au-Prince rather than other targeted areas. The audit report provides 16 recommendations to help USAID/Haiti improve implementation and
Determinants of loan repayment evidence from group owned micro and small ente...Alexander Decker
This study examines factors affecting loan repayment among group-owned micro and small enterprises (MSEs) in Mekelle, Ethiopia. The researcher conducted surveys of 62 MSEs financed by a microfinance institution, collecting data on loan repayment performance and borrower characteristics. A binary logistic regression model was used to analyze how sector of operation, group size, group initiation process, and group composition influenced the likelihood of repayment. The results found that sector and initiation process had statistically significant effects, with businesses in services more likely to repay than construction or manufacturing, and self-formed groups more likely to repay than externally formed groups. Group size and composition did not significantly impact repayment. The study aims to provide recommendations to improve MSE loan repayment and economic
This document summarizes a study on credit demand and credit rationing in the informal financial sector in Uganda. It finds that while Uganda has experienced strong economic growth and declining poverty rates since the 1990s, access to formal credit remains limited for most Ugandans. As a result, the poor primarily rely on the informal financial sector for loans. The study uses household survey data to analyze factors that influence credit demand and credit rationing. It finds that expected returns, loan terms, borrower characteristics like relationships with lenders, reputation, and wealth influence whether borrowers receive their full requested loan amounts or are partially or fully denied credit. Understanding these factors could help improve credit access for the poor.
The Association for Enterprise Opportunity (AEO) submitted comments on the implementation of the Community Development Financial Institutions Bond Guarantee Program. AEO believes the program represents an opportunity to expand access to capital for underserved entrepreneurs. However, the design must balance expanding access while managing risks to the government. AEO recommends the program ensure an adequate risk-sharing reserve, allow flexibility for different CDFI models and loan uses, and permit CDFIs to service their own loans. The goal is to get capital to underserved communities throughout the pilot program in a sustainable way.
1 efficacy-of-credit-risk-management and profitabilityMisker Bizuayehu
This document is a research paper that examines the efficacy of credit risk management on bank performance in Nigeria using Union Bank PLC from 2006-2010 as a case study. The author aims to determine if credit risk affects bank profitability and examine the relationship between interest income and bad debt. Secondary data is used and analyzed using time series, trend, correlation and regression analyses. The study concludes that credit risk negatively impacts Union Bank's performance and high interest income requires effective credit risk management and prudent lending practices. It recommends regularly reviewing loans to assess risk levels and ensuring collateral for loans.
This document provides an investor update from GMAC's CFO in June 2006. It discusses GMAC's business lines and financial performance. It also summarizes GM's plan to sell a 51% controlling stake in GMAC to a consortium led by Cerberus Capital Management. The sale aims to strengthen GMAC's capital base, improve its credit ratings and liquidity, while preserving its relationship with GM. It is expected to benefit both GMAC and GM over the long term.
The document discusses how specialty finance firms have filled gaps in credit availability left by major banks since the recession. Specialty finance provides credit to consumers and small businesses through non-traditional means. It plays a critical role by extending credit to higher risk borrowers who cannot access capital through traditional banks. The document outlines different types of specialty finance like consumer loans, asset-based lending, and crowd funding that provide alternative sources of capital for borrowers and investment opportunities.
Factors influencing agricultural credit demand in northern ghanaHudu Zakaria
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This document provides a transaction implementation plan for a private sector participation (PSP) contract to provide metering services for a pilot area in Alexandria, Egypt. The plan involves procuring a contractor through a competitive bidding process over 9 months. Key activities include gathering customer data, replacing outdated meters, conducting a customer census, and installing advanced metering technology. The PSP contract aims to increase revenues an estimated $1 million per year by improving meter accuracy and identifying illegal connections. A transaction advisor will oversee the procurement process and help structure a 10-year performance-based contract. The plan aims to demonstrate the benefits of PSP for metering services to other Egyptian utilities.
Alexandria | AWGA Needs Assessment and Feasibilitynsegura85
This report examines private sector participation (PSP) opportunities in water and wastewater services in Alexandria, Egypt. Specifically, it assesses the feasibility of two pilot projects: [1] A metering, billing and collection contract for the Alexandria Water General Authority (AWGA) covering 125,000 customer accounts. [2] Contracts for septage collection and operation of a wastewater treatment site for the Alexandria General Organization for Sanitary Drainage (AGOSD). The report finds that a comprehensive 10-year contract for metering, billing and collection by a private operator could improve revenue collection for AWGA while helping modernize operations. However, issues with Alexandria's water distribution system require larger investments outside the scope
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This document provides an updated project implementation schedule for the Alexandria Water & Wastewater PSP Study from March 2021 to November 2021. The schedule is divided into 4 main tasks: 1) Developing an initial policy statement; 2) Adjusting the scope of work for service contracts; 3) Conducting a feasibility study; and 4) Creating a transaction and implementation plan. Key deliverables include 7 reports providing recommendations and findings, as well as workshops in Egypt to discuss findings and next steps. The schedule notes that Ramadan religious holidays will occur from mid-October to mid-November.
This document provides a needs assessment and pre-feasibility report for increasing private sector participation in water and wastewater services in Alexandria, Egypt. It analyzes three potential service contracts: 1) Collection and disposal of septage, 2) Operation of the Site 9N wastewater facility, and 3) Transport of wastewater by-products. For septage collection, the report recommends a licensing model over a service contract to reduce costs and illegal dumping. It suggests a lease contract for Site 9N to incentivize improved operations. And it recommends separate service contracts for transport of by-products rather than including it in the Site 9N contract. The report provides background on population trends, existing services, and financial analyses
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1. Project implementation has generally been on track, with most targets met. However, results have varied between components, with clusters making better progress than business associations.
2. Impact has included exceeding sales targets for client companies. However, there has been less impact on job creation and export readiness. Efficiency has been positive when comparing costs to increased sales, but costs per beneficiary appear higher.
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Este documento describe el proceso de corporatización de los servicios de agua y saneamiento en las ciudades de Aqaba y Ammán en Jordania. Explica que la corporatización involucró la creación de compañías de propiedad del gobierno para reemplazar las organizaciones existentes, resultando en la Compañía de Agua de Aqaba (AWC) y la Compañía de Agua de Ammán (MIYAHUNA). El proceso fue complejo e involucró negociaciones entre agencias gubernamentales, USAID y consultores. El documento anal
This document provides a summary of Miyahuna's 2007-2011 Business Plan. The plan outlines investments totaling 200 million JDs over 5 years focused on managing water scarcity, improving customer service, and expanding access. Key initiatives include improving water loss control, replacing aging pipes, modernizing customer service centers, and implementing new IT systems to improve operations and service. The goal is to provide reliable water distribution and sewer services to Amman's growing population through sustainable water management and strengthened utility operations.
2. Cover Photo: Water purification was among the sectors that benefited
from loans under the DCA Guarantees. Photo by USAID/Honduras
BACKGROUND Honduras, in 2003 and again in 2005 USAID signed
a partial credit guarantee with the Foundation.
In 2003 more than 60 percent of the Honduran Through DCA, USAID agreed to cover 50 percent
population was living in rural areas. Seventy-five of FJMC’s net loss on principal for guaranteed loans,
percent of rural households fell below the poverty up to defined ceilings. Loans were for micro- and
line, which translates to roughly 442,000 families, small-sized entrepreneurs (MSEs) engaged in any of
encompassing more than 2 million citizens. four sectors: (1) non-traditional agriculture or agro-
ABOUT DCA industry, (2) wood products, (3) specialty coffee,
At the same time, and (4) light manufacturing.
USAID's Development Credit Authority
(DCA) was created in 1999 to mobilize agricultural activities
local private capital through the represented 23 percent EVALUATION OBJECTIVES
establishment of real risk sharing of the country’s Gross
relationships with private financial
Domestic Product In 2009 the Office of Development Credit in the
institutions in USAID countries. The tool
is available to all USAID overseas (GDP) and employed Economic Growth, Agriculture and Trade Bureau
missions and can be used as a vehicle more than 35 percent of (EGAT/DC) commissioned an evaluation of the two
for providing much needed credit to an the workforce. guarantees to determine their outputs, outcomes,
array of enterprises and underserved However, many micro- and impact. Outputs of the guarantee are defined as
sectors. This Impact Brief examines the
findings from an evaluation of two
and small-sized farmers additionality of loans disbursed, as they differ from
guarantees to the same lender in lacked access to credits previously being offered by the partner
Honduras. The evaluation in Honduras affordable credit. lender. Outcomes are sustained changes in the
is part of a set of evaluations that partner lender’s behavior, attributable to the
EGAT/DC is undertaking in different For several years with
countries, to test a series of
lender’s experience using the guarantee. Impact is
developmental hypotheses related to the
support from USAID the demonstration effect on the market, measured
DCA guarantees. and others, the José by how competing financial institutions have been
Maria Covelo influenced by the partner lender. Attribution of
Foundation (FJMC) had played a leadership role in results is influenced by exogenous factors, also
Honduras in providing credit to micro- and small identified in the evaluation.
entrepreneurs (MSEs), primarily in urban areas.
FJMC officers had been instrumental in forming the EVALUATION METHODOLOGY
Microfinance Network of Honduras
(REDMICROH), and otherwise promoting growth The evaluation team used a mixture of quantitative
of the sector. The FJMC decided improving access and qualitative methods to answer the evaluation
to credit for farmers was an urgent priority for questions, including a review of background
development. However, the organization lacked documents and the CMS database, semi-structured
hands-on knowledge about agricultural credit interviews with FJMC officials and other
products and risks. stakeholders in Honduras, and an email-based
survey of members of the REDMICROH. The team
Seizing the opportunity to help the Covelo created an evaluation framework with indicators
Foundation realize its full potential to generate and interview questions to guide the evaluation.
economic growth and reduce rural poverty in
COVELO DCA LOAN GUARANTEES
Maximum Aggregate
Starting Ending Number of Loans Utilization Average
Authorized Loan Amount of
Year Year (as of 9/2008) Rate Loan Size
Amount Loans
2003 2009 $1,000,000 279 $ 999,926 99.99% $3,584
2005 2012 $2,000,000 565 $ 1,824,669 91.23% $3,230
3. KEY FINDINGS AND CONCLUSIONS nonguaranteed FJMC loans. An FJMC official
explained that this is because, in keeping with
OUTPUT the intent of the DCA guarantees, the FJMC
Conclusions The Covelo Foundation had a clear uses the facility to guarantee investment-
strategy on how to use the DCA facility: to reduce oriented microloans, not microloans for
risk while it entered the agricultural market. working capital.
Guaranteed loans have permitted FJMC to lend to • A sample of nine of the 53 individuals who had
farmers who had less collateral than traditional received at least three credits with the DCA
borrowers, and in the micro-credit sector to guarantee showed average increases to their
entrepreneurs for comparatively larger microloans total income of 46 percent a year.
on longer and more favorable terms than FJMC’s • As of September 30, 2008, the total DCA
nonguaranteed loans. FJMC loans helped at least obligation of $140,800 had leveraged the
some of the borrowers to increase their incomes. equivalent of $2.83 million in loans, for a
Moreover, FJMC managed to leverage guarantee leveraging ratio of 20.1 to 1.
resources obligated by the U.S. Government, at a
ratio of 20.1 to 1.
DCA SUCCESS
Remburto Alonso Betancourth L. began borrowing in March 2005,
Findings in support of these conclusions include: with two guaranteed loans of $2154 each, with tenors of five
• In 2003, prior to the signing of the first DCA months or less. He progressed to larger guaranteed loans,
guarantee agreement, the Covelo Foundation’s including three worth more than $13,000 each, with tenors of 10
months to a year.
lending to the agriculture sector was virtually
zero. By March 31, 2009, outstanding loans to
this sector carrying the DCA guarantee
OUTCOMES
represented more than $222,000 – about 8.5 Conclusions The DCA guarantees to the Covelo
percent of the FJMC’s total active portfolio.
Foundation achieved their goals of increasing
• The FJMC’s General Manager explained that lending to the agriculture sector and helping FJMC
loan officers used the DCA guarantees to to expand and move up market. The DCA
mitigate the risk of lending to what was for guarantee helped both the Covelo Foundation and
them a new sector: agriculture. Bancovelo jumpstart their lending to the agricultural
• In the agriculture sector, FJMC loans carrying sector. They have expanded access to credit in this
the guarantee are generally smaller and of sector for their customers by increasing the
shorter duration than loans that do not carry number of loans available, the average size and
the guarantee. An FJMC official explained that tenor of those loans, while keeping interest rates
this is because they use the DCA facility to low. The FJMC became increasingly confident in
guarantee credits to borrowers who have risking its own capital in the sector without a
relatively less collateral to offer. guarantee. Rapid increases in agricultural lending
• In the microcredit sector, DCA guaranteed have helped them become a significant actor in the
loans are generally larger, have a longer tenor, agricultural microcredit sector.
and carry a lower interest rate than
4. Findings to support these conclusions include: COVELO AGRICULTURAL PORTFOLIO (DEC. 2003 - PRESENT)
• Beginning in 2007, while the Covelo
Foundation continued to expand its
agricultural portfolio, a progressively
smaller proportion of the loans carried
the USAID guarantee.
• According to Covelo officials, by 2007 the
Covelo Foundation had developed
financial products and procedures suited
to the sector and established financial
relations with farmers, which helped it
expand its non-guaranteed portfolio.
• As of the end of March 2009, only 13.2
percent of the combined agricultural
portfolio of the Covelo Foundation and
Bancovelo carried the DCA guarantee.
• The March 2009 average nonguaranteed
agriculture loan from the Covelo Foundation was IMPACTS
more than twice the size of a DCA guaranteed loan. Conclusion The Covelo Foundation’s DCA-supported
• The length of the Covelo Foundation’s average agricultural sector lending helped facilitate the entrance of
nonguaranteed agriculture loan increased 50 percent another microfinance organization (MFI) into the
between December 2006 and March 2009. agricultural sector.
• Average nonguaranteed agriculture loan interest rates
remained below those for microcredit and mostly Findings to support these conclusions include:
below those for SME loans. ADICH, an MFI, began to report offering micro-credit to
• Eight people who initially received a DCA-guaranteed farmers only in June 2005, after the DCA program had
loan from the Covelo Foundation subsequently begun. A representative indicated that a packet of
obtained housing loans from Bancovelo. operational information was an “important factor” in his
• At least one farmer who initially borrowed under the organization’s entrance into the agricultural credit market.
DCA guarantee subsequently obtained a non- The packet, regarding agricultural credit, had been
guaranteed agricultural loan from Bancovelo. developed by the Covelo Foundation and based largely on
• Several individual entrepreneurs have progressively the Foundation’s experience with DCA-supported
worked up to larger loans and/or loans with a longer agricultural lending.
tenor under the DCA guarantee.
• As of June 30, 2008, the Covelo Foundation and
Bancovelo’s combined agricultural portfolio
represented 13 percent of the agricultural/forestry This publication was produced for review by the United States Agency for
International Development. It was prepared by SEGURA/IP3
lending reported by members of the Honduran Partners LLC under SEGIR Global Business, Trade and Investment II – IQC
Microfinance Network, REDMICROH, placing it in Indefinite Quantity Contract, Number EEM-I-00-07-00001-00 Task Order # 04,
Development Credit Authority Evaluation.
fourth place among members of the Network.
CONTACT INFORMATION
U.S. Agency for International Development
Office of Development Credit
1300 Pennsylvania Avenue, NW
Washington, D.C. 20523
http://www.USAID.gov
Keyword: DCA