This report summarizes GAO's findings on the United States Russia Fund and its investment selection process and criteria. The United States established enterprise funds to support private sector development in Central and Eastern Europe and the former Soviet Union as they move from centrally planned to market-oriented economies. Enterprise funds are private, nonprofit U.S. corporations that are supposed to make loans to, or invest in, small, medium, and large businesses in which other financial institutions are reluctant to invest. The Fund is authorized to receive $440 million through the Agency for International Development. As of March 2000, the Fund had invested $114.4 million in 30 projects through its direct investment program which provides loans and equity capital to businesses in Russia. GAO found that the Fund followed its review process and criteria for selecting direct investments.
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