October 13, 1999.

The Inter-American Development Bank today announced the approval of a $10.7 million loan to Guatemala to enhance the productivity and competitiveness of small- and medium-sized enterprises through technological innovation.

The program will provide funding for technological innovation, implement a technology extension and information service, and consolidate a medium- and long-term policy framework for the sector.

A component of the program will provide matching grants to meet the demand for technological innovations on the part of small- and medium-sized enterprises (SMEs), improve the supply and availability of technological services by strengthening institutions specializing in such services, and create technology management centers to promote and facilitate commercial dealings between businesses and specialized centers. Another component will improve and expand technological extension workers who serve as brokers between the SMEs and the technology service providers.

Secondary school education in science, mathematics and technology will be improved.

In addition, the program will fund the establishment of a new Technological Innovation Department to strengthen the administrative management of the National Science and Technology Council*, the organization that will carry out the project through the National Science and Technology Secretariat.

*Consejo Nacional de Ciencia y Tecnología