In May 1994, the Governments of the Czech Republic and the United States signed the Programme Agreement designed to finance Czech municipal housing infrastructure. On the Czech side, the state was represented by the Municipal Finance Company (MUFIS), a subsidiary of the National Development Bank created specifically to manage this program. On the US side, the state was represented by the Agency for International Development (USAID).
Financing mechanism was simple. MUFIS borrowed money from US private investors under the Housing Guaranty Loan Program - thus, with a guarantee from the US government to private investors and with a guarantee from the Czech government to its US counterpart. MUFIS then lent money to Czech commercial banks, which offered loans to municipalities. In 1995, MUFIS took first loan of USD 20 million, followed by two other loans in 1997 (USD 14 million) and 1998 (USD 10 million). Originally, four commercial banks participated in this program, but this number eventually increased to eleven banks. By 2000, these banks provided 122 loans to 112 municipalities in total volume exceeding CZK 1.4 bn.
All obligations and liabilities were paid off by MUFIS in January 2012.