These guarantees encompass a broad range of possible risks and are expected to be priced higher than the charges on guarantees with government counter-guarantees. No guarantees were made under this program in 1996. Of the ordinary capital loans approved in 1996, seven received assistance from the Intermediate Financing Facility. The guidelines for eligible operations under this facility during the year permitted an interest rate reduction of up to five percentage points, but to no less than 3.38 percent. Loans for the financing of small projects, which need not be guaranteed, are extended in local currency with maturities of up to 40 years, grace periods of up to 10 years, and are charged a commission of 1 percent per year.
Technical cooperation is extended on a reimbursable, grant, or contingent recovery basis.
Contingent recovery technical cooperation, which accounts for a small amount of the total, is subject to repayment only if as a result of the cooperation a loan is subsequently made by the Bank, or another external financial institution, for the execution of a project or a program.