Access to credit.
The project seeks to increase productivity for MSMEs by facilitating access to medium-and long-term credit, and to improve the management of MSMEs and the public sector support they receive;
97% of Dominican enterprises are MSMEs, and these account for 30 percent of the country's gross domestic product and more than two million jobs. By targeting MSMEs, the program will help to increase the country's sustainable economic growth;
The project will create a credit fund supported by a guarantee fund--both second tier vehicles--to facilitate access to medium--and long-term credit through intermediate financial institutions. The credit will finance investment projects, permanent working capital, and technical assistance;
The program will also improve the quantity, quality, and relevance of nonfinancial services for MSMEs and help to solve the problems of lack of coordination of public management support and lack of current statistical information on the sector. It is expected to increase labor productivity and sales among MSMEs, the number of firms that export, and the loan repayment periods MSMEs are able to obtain.