To help revive economic activities in the earthquake-ravaged southern region of Haiti, the Bank of the Republic of Haiti said it will reduce the credit risk of microfinance institutions, Le Nouvelliste reported Monday. The move will allow those financial institutions to provide more micro loans to small businesses and individuals, as the country explores various long-term recovery options.
The ‘shock mitigation’ measure apply to post-earthquake reconstruction projects, support microfinance institutions affected by the disaster and will help raise capitalization for these institutions.
A Reconstruction Fund is also planned to supervise financial institutions such as banks, microfinance institutions and other credit institutions in granting loans for housing or businesses at lower cost to households, companies struck by the earthquake. Called Reconstruction 5-10-20, the fund also allows homebuyers to provide 5% as a down payment on a loan at 10% interest, payable over 20 years. Families in all parts of the country are eligible to buy a decent house with a 10% contribution under the program. Read more