The project concept is to develop a self-sustaining , commercially viable micro credit enhancement facility to support MFIs throughout the world. The facility will provide credit enhancement products at commercial terms to MFIs working through local commercial banks. These enhancements will enable and encourage the local banks to provide loans or to substantially increase the modest support that may be provided to MFIs, where such banks would otherwise not be prepared to make such loans and would do so with primarily local currency. Credit enhancement products will include standby facilities, such as letters of credit, letters of guarantee and direct funded loans or deposits products with local commercial banks. The facility will also provide credits directly or through local commercial banks. Presently many MFIs fund growth of their local currency loan portfolios through hard currency loans. This subjects them to foreign currency risk, which is the greatest risk affecting the microfinance industry globally. The facility directly addresses this issue by filling the local commercial funding gap which strongly limits the growth of MFIs and should result in a stronger and more effective commercial microfinance industry, leading to economic development and increased opportunities for the MFIs and their borrowers. IFC's participation would help facilitate the entry of other investors.