Abstract
This paper describes a successful housing finance programme in Ecuador through which low-income families can receive technical and financial support to improve their housing. Eligible families, who make their own contribution in the form of savings, are awarded a subsidy that can be supplemented by loans at the usual local interest rate. A state agency facilitates the programme, which is implemented through small construction firms working within the programme on a market basis. In the first four years of the programme, 25,000 families received these subsidies, and almost US$ 69 million was invested. The programme has demonstrated the potential for successful cooperation between the private building sector, financial institutions and government. International funding for the programme will end in 2005 and, despite its success, its future is uncertain.