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### Viewing cable 09SANJOSE385, COSTA RICA'S TAFT REFUGEE FUND PROPOSAL 2009

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09SANJOSE385 | 2009-05-11 14:02 | 2011-03-21 16:04 | UNCLASSIFIED | Embassy San Jose

`

    VZCZCXYZ0021
    RR RUEHWEB

    DE RUEHSJ #0385 1311441
    ZNR UUUUU ZZH
    R 111441Z MAY 09
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0822
    RUEHGV/USMISSION GENEVA 0340

` `

    UNCLAS SAN JOSE 000385

    SIPDIS

    STATE FOR WHA/CEN; PRM/ECA KPONGONIS

    E.O. 12958: N/A
    TAGS: PREF PREL ELAB EAID CS
    SUBJECT: COSTA RICA'S TAFT REFUGEE FUND PROPOSAL 2009

    REF: STATE 14280

    ¶1.  Embassy San Jose would like to submit the project "Promoting
    Refugee Self-Reliance Through Micro-Credit", in partnership with the
    Association of Professionals in Development for the Promotion of the
    Persons in Poverty (APRODE) and the United Nations High Commission
    on Refugees, to the Julia Taft Refugee Fund for funding in 2009.
    Post provided a full text of the proposal to Kate Pongonis, PRM/ECA,
    on May 11, 2009.

    ¶2.  Project Overview: The project will fund APRODE's implementation
    of a micro-finance program aimed at refugee women in Costa Rica's
    refugee community.  Eighteen loans of $500 to $1,000 (US dollars)
    each will be granted to refugee women in urban areas of Costa Rica.
    At the same time the project will allocate funds (15%) for adequate
    pre- and post-lending technical assistance, marketing and business
    development. The project will specifically target and fund small
    loans to work more intensively with "more risky" clients, i.e.,
    potential female entrepreneurs with marketable business ideas, but
    with little to no small business experience.

    ¶3.  Primary Partner Organization: La Asociacisn de Profesionales en
    Desarrollo para la Promocisn de Persona en Condicisn de Pobreza
    (APRODE). This experienced MFI has been working in the field of
    micro credit for more than 20 years. Since 2003 APRODE has been
    working closely together with the United Nations High Commissioner
    for Refugees to support self-employment of mostly Colombian refugees
    residing in urban areas of Costa Rica. For this project APRODE will
    ensure the proper technical support of the micro credit program
    through its experienced loan officers, existing business network and
    extensive knowledge of the Country.

    ¶4. Target Population: For this specific project the direct
    beneficiaries will be eighteen refugee women with specific needs and
    who are considered more 'risky' borrowers due to their lack of
    experience with running a small business. This group would normally
    have more difficulties meeting all the regular requirements required
    to access a credit program. By providing the necessary training and
    technical assistance, this initiative intends to insure that these
    refugee women are on a path towards economic sufficiency.

    ¶5. Budget: The requested budget for the project is $20,000.  Of
    this, $15,000 will be used directly for the distribution of 18 loans
    to women first-time borrowers, and $5,000 will be used to fund
    enterprise development training for the borrowers.

    ¶6. Sustainability: By charging a projected interest rate of 24.9
    percent on loans, as is standard in APRODE's other funds, this
    program aims to be sustainable by the end of 2010, effectively
    allowing the funds to be used as a rotation fund to finance further
    client micro-credit loans.

    ¶7. Sectors Financed: The project will fund small businesses of
    refugees in sectors including commerce, light industry, services,
    arts and crafts production. Some examples of successful enterprises
    in the past include beauty salons, grocery stores, and bakeries.
    Most of the loans will be provided for businesses with low overhead
    costs in order to provide refugee women with genuine opportunities
    for sustainable income generation.

    ¶8. Post has on file APRODE's signed Code of Conduct consistent with
    the six core principals from the Inter-Agency Standing Committee
    (IASC) and can forward the required documentation to demonstrate
    this at PRM's request.

    ¶9. Post also certifies that it has the authority and capacity to
    award a grant to the intended recipient agency prior to the end of
    the fiscal year (September 30, 2009).
    CIANCHETTE

`