Small and Medium Enterprise Investment Program - Tranche 1

Damu charged a uniform margin to all PFIs (participating financial institutions). In line with the government's intention that Damu function effectively on a self-sufficient basis, Damu should have priced its loans to PFIs according to risk. This intention was limited both by the project's design and by Damu's capacity. A minor change in the MFF (multitranche financing facility) has given Damu the flexibility to charge market-based margins to improve its sustainability and reward better-performing PFIs.