|
GLOBAL
LOANS TO INTERMEDIARY FINANCIAL INSTITUTIONS - CONTRIBUTIONS BY SUBBORROWERS
Policy
CONTRIBUTIONS
BY SUBBORROWERS to global programs through intermediary financial
institutions will be recognized as part of the LOCAL COUNTERPART
CONTRIBUTION, in an aggregate amount not exceeding 15% of the total
cost of the program.
Basic
Guidelines
This policy is subject to application of the following eligibility criteria:
1. The eligible contribution must have been for NEW INVESTMENTS
in the subproject submitted to the intermediary institution for financing.
Contributions by subborrowers to finance the recurrent costs of labor,
working capital, amounts attributed to investments already made, or
contributions in kind will not be recognized.
2. CONTRIBUTIONS BY THE INTERMEDIARY INSTITUTION and/or the central
government to the program must be equal to or larger than the eligible
contribution by the subborrowers. There must also be assurances that
the contribution of the subborrowers will form part of the local contribution
to the program.
3. The subborrowers must present documentation that enables their contributions
to be verified.
4. The ELIGIBLE CONTRIBUTION of the subborrowers, in the aggregate,
MAY NOT EXCEED 15% of the total cost of the program.
_____________________________________
Prevailing Reference Documents: GP113, March 1986,
to GP1133, April 1987.
*
The operational policies of the Inter-American Development Bank are
intended to provide operational guidance to staff in assisting the Bank's
borrowing member countries. Over the course of the Bank's more than 40 years of
operations, the approach to developing operational policies has taken
various forms, ranging from the preparation of detailed guidelines to
broad statements of principle and intent. Many policies have not been
updated since they were originally issued, and a few reflect emphases
and approaches of earlier years which have been superseded by specific
mandates of the Bank's Governors, the most recent being the
Eighth Replenishment mandates of 1994.
In
accordance with the Bank's information disclosure policy, the Bank is
making all of its operational policies available to the public through
the Public Information Center. Users please note that the Bank's operational
policies are under a process of continuous review. This review process
includes preparation of best practice papers summarizing experience
at the Bank and other similar institutions, and sector strategy papers.
|
|
©
2007 Inter-American Development Bank. All rights reserved. Terms
and Conditions