42
November 1997.
64
The level of participation varies in the different communes ranging from 36 to 51% in
2001. However it should be noted that in Bang Ca, the initial level of participation amounted to 90%.
Table 4 gives an overview of the coverage in the 3 project communes over the period 1998–2001.
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66
Bang Ca Quang La Dan Chu
May 98 Aug. 00 Sept. 01 May 98 Aug. 00 Sept. 01 May 98 Aug. 00 Sept. 01
# of households 223 263 258 424 490 450 156 180 156
# of participants 202 181 184 267 112 165
Coverage 60% 62% 43% 54% 72% 92%
# of borrowers (hh) 200 171 131 139 231 162 60 61 71
Coverage 90% 65% 51% 33% 47% 36% 38% 34% 45%
Table 4: Coverage in the 3 project commune over the period 1998 - 2001
Over the years, the fund value has increased considerably. From 1999 onwards, there has been an
excess in funds. This was caused by high savings, combined with a decreasing demand of credit.
Table 5 shows the fund value of the 3 project communes from 1997 to 2001.
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68
VND 1997 1998 1999 2000 2001
seed capital from
FAO 229,785,000 330,785,000 330,785,000 330,785,000 330,995,000
inflation fund 11,773,308 42,054,174 59,946,729 63,122,000 94,556,700
risk fund 2,943,327 10,513,543 18,736,683 20,340,000 22,738,008
savings 31,244,200 78,500,550 116,424,472 109,052,000 71,554,617
cash&cash
equivalents
660,200 11,882,346 74,415,455 97,164,000 34,162,131
outstanding loans 277,531,000 440,541,000 444,244,700 404,707,000 434,402,294
Table 5 : Fund Value of the 3 project communes over project duration
The stagnation of the amount of outstanding loans, can partly be explained by the availability of loans
at lower interest rate, including loans from the project itself based on the projects guarantee fund,
through the formal sector. The project cannot lend out all of the funds they collect in savings because
there are competing loan sources.
64
After the start of the second phase of the project, the scheme has scheme has been implemented in 4 new
communes.
65
Evaluation Report on Credit and Savings Activities, December 2000, p. 35.
66
Report of tripartite mid-term review mission, November 2001, annex 5 rural finance component.
67
Evaluation Report on Credit and Savings Activities, December 2000, p.38.
68
Report of tripartite mid-term review mission, November 2001, annex the Rural Finance Component.