The overall objective of supporting SME (small and medium-sized enterprise) medium-term lending was only partially achieved. A key success factor lies in the selection of PFIs (participating financial institutions), which should be sustainable finance providers. The development of SME portfolios requires not only exceptional liquidity support at a time of liquidity squeezes, but also a strategic commitment and adequate capacity and technical expertise of PFI staff and their SME clients. While the parallel TA (technical assistance) contributed to this, more targeted assistance could have improved the performance of the project. Additional covenants could have been added to improve its impact. Limited access to finance for SMEs is also linked to other factors, such as financial infrastructure deficiencies, supervisory weaknesses, and the overall health of the financial sector, which could not be addressed through a credit line intervention.
Small and Medium Enterprise Investment Program - Tranche 1