Third Financial Sector Program Loan

For capacity building, technical assistance grants are likely to be insufficient. An ad hoc approach to training is insufficient and can be counterproductive. Instead, ADB and the government should discuss the possibility of either a project loan to support capacity building or of Ministry of Finance earmarking a portion of the program loan to fund the capacity building initiatives of a structured medium-term program through the government budget process. Given its importance, this can be considered as a policy action in the policy matrix. [Main text, para. 43(ix)]