Small and Medium Enterprise Investment Program - Tranche 1

Up-front disbursement to the PFIs (participating financial institutions) of the entire loan amount was required by the funding mechanism used for the tranche. While this helped avoid problems in the financing of subprojects, it also limited the option to reward better-performing PFIs. In this case, the only available incentive mechanism was participation in future tranches under the MFF (multitranche financing facility).