President George Bush signed into law legislation authored by Congressman Chris Smith, Vice Chairman of the House International Relations Committee, that expands and enhances a loan program that predominantly benefits women living in impoverished developing nations.

    Smith’s new law authorizes an increase in funding for the critical microcredit program from $175 million in Fiscal Year 2003 to $200 million in FY 04.  His law also requires the program’s administrator – the U.S. Agency for International Development (USAID) – to develop new poverty assessment techniques by next fall to ensure that the majority of the money is put to work helping the poorest of the poor.

    “I am very pleased that President Bush has signed my law which reauthorizes an absolutely critical aid program that has a proven record of success in helping people in the world’s poorest nations improve their lives,” Smith said.

    “According to USAID, about 70 percent of the loan recipients are women.  More than two million people have benefited from these loans, which average several hundred dollars each.  A remarkable 97 percent of the loans are repaid by the recipients, providing a steady funding stream so the program can continue to help others in need,” he added.

    “While the amount of the loans may seem small by some standards, a few hundred dollars is significant considering that many of the recipients subsist on less than $1 a day.  The money also helps not only the loan recipients, but other members of their community whom they are able to employ as well,” Smith said.

    The law is crucial to efforts aimed at eradicating poverty throughout the world, including in areas where poverty and other poor living conditions help contribute to a climate of instability and an increase in terrorist activities.

    Smith also touted safeguards he built into his law that will help continue to ensure the money goes to the people who are in need, not to corrupt dictators and their henchmen who are solely interested in enriching themselves.