IIC Improves Access to Financing for Some 8,300 Central American Microentrepreneurs
Loan of up to US$3.9 million to provide financing for underserved sectors of the economies most in need in Latin America
Guadalajara, Mexico, September 30, 2013 — Some 8,300 low-income microentrepreneurs from El Salvador, Honduras, and Nicaragua will secure greater access to financing thanks to a US$3.9 million loan from the Inter-American Investment Corporation (IIC) to FINCA Microfinance Holdings LLC (FMH) and its subsidiaries, FINCA S.A. de C.V., FINCA Honduras S.A., and FINCA Nicaragua S.A.
The loan agreement was signed on the occasion of the Inter-American Forum on Microenterprise (Foromic), one of the most important international meetings of the microfinance sector, which opened today in Guadalajara, Mexico, with more than 1,500 participants.
“We are very excited at the prospect of beginning a long-term relationship with the IIC through this agreement, which supports our shared mission in Central America,” declared Rupert Scofield, president and CEO of FINCA International. “It is these types of strategic partnerships that enable us to expand our coverage in the region, increase financial inclusion, and have a significant impact on the world's lowest-income entrepreneurs.”
“Low-income microentrepreneurs in Central America are a group that has been traditionally underserved by the banking system. However, they are an integral part of the economy and require special support if they are to grow and prosper in a sustainable manner,” noted IIC general manager Carl Muñana. “The loan to FINCA is part of the IIC’s strategic effort to promote the private sector in Latin America’s poorest countries, create jobs, and stimulate the productive sectors of the region.”
In addition to increasing entrepreneurs’ access to the financing they need to get their businesses up and running, the loan enables FINCA and its subsidiaries to improve their asset-liability management and diversify their sources of medium-term financing. The operation will emphasize support to women microentrepreneurs in rural areas of the region.
FMH is a subsidiary of FINCA International that leverages the funding of socially-responsible partners who share FINCA’s mission of providing services to low-income people so they can improve their employment prospects and raise their income and standard of living. FINCA’s country-based subsidiaries are held by FMH, creating a global network of shared expertise.
FINCA is a leading international microfinance organization that provides financial services to the world's lowest income entrepreneurs. For 28 years, FINCA has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities. Based in Washington, D.C. with local operations across 22 countries serving over 1 million borrowers, FINCA's outreach is among the broadest and most comprehensive of today's microfinance networks.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Michael C. Apel
Telephone: +1 (202) 623-2521