Since 1999, USAID has been using our Development Credit Authority (DCA) to mobilize local financing through credit guarantees. These guarantee agreements are designed to encourage lenders to extend financing to new sectors and regions, or to improve loan terms. The authority is a flexible tool for opening sustainable sources of financing that support the development objectives of the U.S. government. By encouraging local channels of financing, USAID is empowering entrepreneurs in developing countries to improve their lives at a minimal cost to the U.S. taxpayer.

Last month, USAID released our Development Credit Authority data set containing information on all guarantees signed since the inception of the  program. This data includes the total number of loans, the amount lent under each guarantee, and how much the U.S. government has had to pay in claims due to loan default.

At the recent Fourth High-Level Forum on Aid Effectiveness in Busan, South Korea, Secretary Clinton spoke of the need for donors to be more transparent and we’re doing our part to contribute to that effort.

This data will allow other donors with loan guarantees to see where USAID is working and complement our work with their own guarantees. Entrepreneurs in recipient countries can seek financing in sectors where loans were previously unavailable, and the public can see the effectiveness of a development program that mobilizes local private financing. Moreover, it provides recipient countries with information that can be used in designing programs to fund their own development.

This data is being released in its raw format in the hope that it can be used in conjunction with data from other development partners and that shared tools can be developed showing guarantees from multiple organizations, searchable by both region and sector. Such collaboration and innovative use of technology will allow both donors and recipients to stretch our available resources and accelerate development progress.