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Strengthening Cajas Rurales de Ahorro y Crédito
This technical cooperation (TC) aims to improve access to financial services for low-income Peruvians through two components: program for institutional strengthening of rural credit unions; and support for the privatization of municipal credit unions. The first component has two subcomponents, intended to speed up the improvement of productivity and the financial soundness of the rural credit unions (CRACs): improved management of the CRACs; and reform of their net worth structure. Subcomponent one, which seeks to mitigate the uncertainty of farm income and the risky seasonality of farming by reducing the cost of credit and encouraging the entry of private partners, will make itself felt primarily in the areas of: strategic planning; promotion of the attractiveness of deposits or development of new and redefinition of existing financial products; strengthening of internal controls and auditing of CRACs; development of the technology of lending to rural microenterprises; and development of policies on portfolio management and financial operations with assets and liabilities. Subcomponent two, which seeks to overcome the problem of a dispersed and unstable shareholder base in municipal credit unions and, consequently, a diffuse equity structure, promotes increased private-sector participation by: cleaning up CRAC portfolios; improving indicators of their profitability and productivity; and promoting mergers already taking place and offering shares to microinvestors to supplement the limited investment capacity of present CRAC shareholders. The second component funds several national and regional events for CRAC directors and managers which, in conjunction with financial information obtained from investment banks, will enable them to stay focused on their microentrepreneurial objective and frame a definitive strategy for privatization.

Project Detail



Project Number


Approval Date

September 1, 1999

Project Status


Project Type

Technical Cooperation





Lending Instrument

Instrumento del Fondo Multilateral de Inversiones

Lending Instrument Code




Facility Type


Environmental Classification


Total Cost

USD 2,500,000.00

Country Counterpart Financing

USD 1,000,000.00

Original Amount Approved

USD 1,500,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/ME-6636-PE Non-Sovereign Guaranteed USD - United States Dollar Multilateral Investment Fund II (MIF) - Nonreimbursable
Operation Number ATN/ME-6636-PE
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Multilateral Investment Fund II (MIF) -
  • Financial Instrument: Nonreimbursable

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Implementation Phase
Project Performance Monitoring Reports
PPMR for MIF project TC9905054 - ATN_ME-6636-PE September, 2000 [1784695].PDF
Dec. 31, 1999
Project Performance Monitoring Reports
PPMR for MIF project TC9905054 - ATN_ME-6636-PE June, 2001 [1784696].PDF
Dec. 31, 1999
Donors Memorandum
Fortalecimiento de cajas rurales y municipales de ahorro y crédito [463614].PDF
Dec. 31, 1999
Donors Memorandum
Strengthening of the Rural and Municipal Savings and Loan Institutions [463612].PDF
Dec. 31, 1999

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