CARIB-CAP: GOOD PRACTICE INCENTIVE

Microfinance Institutions that have completed their CBPs will be eligible to compete for the Good Practice Incentive (GPI) awards, which is a reward for good performance. The GPI is a cash grant. There are two types of grants. Two grants will be extended to large MFIs and ten prizes to smaller MFIs. The grants for larger MFIs will be for an equivalent of US$70,000 and the grants for the latter will be for an equivalent of US$22,000.

Based on the short-term results of the implementation of the capacity-building plans, MFIs will have access to awards that can be directed towards activities aimed at further expansion of their microfinance business. The activities must be linked to the needs identified by the PA, such as specific technical assistance, design of workshops, and development of microfinance products.

Another facet of this activity will enable MFIs that have completed a CBP to have access to the Caribbean Development Bank's Microfinance Guarantee Programme. This will give the MFIs access to funds through commercial lenders.

Eligibility Criteria:

• MFIs should have successfully implemented a CBP;
• MFIs should experience improvement in Return on Assets (ROA), Return on Equity (ROE), Financial Self
• Sufficiency (FSS) and delinquency; and
• MFIs should have a substantial increase in outreach towards low-income clients.