Transcript CERF 2 - Loan component E Jul2012

CERF TRAINING
TRAINING
THE CERF LOAN
COMPONENT
SESSION
WORKSHOP
THE CERF LOAN COMPONENT
CERF TRAINING
Why a loan component?
•
Acts as a cash-flow mechanism to permit
eligible organizations rapid access to
funds to address humanitarian needs
•
Used for emergency programmes based
on an indication that donor funding is
forthcoming
•
Loans must be reimbursed within 1 year
•
Advances from the loan element shall,
where possible, be prioritized over grants
THE CERF LOAN COMPONENT
Application procedure
Eligible organization submits a formal loan request to the ERC
and must specify:
•Why the loan is being requested
•How much the organization would like to borrow
•How the loan will be repaid
CERF TRAINING
•When the loan will be repaid
After submission, the ERC determines the amount in each situation,
based on:
•Current amount available in the loan element of CERF
•Anticipated needs in the near future for other loan requests
•Repayment insurances
THE CERF LOAN COMPONENT
Additional information to accompany a loan request
1. Copies of pledge letters from donors
in an amount equal to or greater than
the loan request
CERF TRAINING
2. Budget to show how the loan is to be
used
3. Banking information for the deposit of
the funds
4. LoU signed by agency requesting the
loan advance
THE CERF LOAN COMPONENT
Loan Letter of Understanding (LoU)
CERF TRAINING
The Loan LoU is a legally binding document that summarizes the
agreement between the agency and OCHA, about the use of the advance:
•
•
•
•
•
Recipient organization, country
Purpose for the loan
Loan repayment period: within one year of date of signature
Specify reporting conditions
Banking information
CERF TRAINING
TRAINING
QUESTIONS AND
COMMENTS
SESSION
THANK YOU