CGAP (Consultative Group to Assist the Poor), an independent policy and research center housed at the World Bank Group, recently published a technical guide entitled “Performance-Based Agreements: Incorporating Performance-Based Elements into Standard Loan and Grant Agreements”.

While many funders wish to hold their partners accountable through measurable targets and indicators, they often struggle to incorporate performance targets – and sanctions for poor performance – into loan agreements. This technical guide is intended to help funders build performance-based agreements that reduce the frequency of misunderstandings and incentivize better performance.

About CGAP (Consultative Group to Assist the Poor):

Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources & Resources:

Technical Guide: “Performance-Based Agreements: Incorporating Performance-Based Elements into Standard Loan and Grant Agreements”: http://www.cgap.org/p/site/c/template.rc/1.9.43934/

MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

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