The stated objectives of the project are to increase financial services to low-income populations who do not have access to commercial bank finance by encouraging the government to adopt a policy framework that is appropriate for microfinance institutions (MFIs) and to build the capacity of MFIs, increasing their outreach and sustainability. This first phase of a 15-year Adaptable Program Loan (APL)microfinance program will support achievement of these objectives through the implementation of four components:1. Development of an appropriate legal/regulatory and supervisory framework for microfinance institutions;2. Establishment of MFIs and in particular savings and loan associations (SLAs) in four of Madagascar's six provinces (Antananarivo, Antsiranana, Fianarantsoa, and Toamasina). If studies confirm their viability, programs will be started in the two remaining provinces (Mahajanga and Toliary).3. Design and testing of a pilot national training program;4. Undertaking of studies related to microfinance to expand knowledge in the field.