Spain-IIC Haiti SME Development Fund
The private sector plays a crucial role in rebuilding Haiti. The country's micro, small, and medium enterprises (MSMEs) are facing numerous hurdles in their quest to grow, create jobs, and generate value, the most serious of which include the lack of access to and high cost of financing. Local financial institutions are finding it difficult to extend credit to this market segment given credit risk and capacity in the market.
With support from the Spanish government, the Spain-IIC Haiti SME Development Fund will co-finance loans for MSMEs, with each party assuming the risk for its portion of a particular loan. MSMEs will benefit from better access to credit in the short term due to loss-sharing by the Fund and in the long term due to the larger loan volumes and capacity that the Fund supports. The Fund will partner with local financial institutions, sharing the risks and disseminating lessons learned on how to better serve the needs of MSMEs.
Role of the IIC
The IIC tailored the Fund’s design to Haiti’s unique circumstances and the goals sought by the Spanish government, combining prudent management with innovative legal and financial structures. The IIC serves as the Fund Manager, applying its credit and asset management expertise and knowledge of Haiti and SMEs. The IIC is making every effort to assist with reconstruction and development efforts in Haiti through its roles as the Fund’s architect, investor, and manager.
This Fund is made possible through generous financing from the Government of Spain.