IIC Loan Of Up To US$3 Million To A Microfinance Institution In Nicaragua Will Benefit At Least 85 Micro, Small, And Medium-Size Enterprises
07/23/2007The loan to Financiera Nicaragüense de Desarrollo S.A. (FINDESA) will fund medium-term loans to micro, small, and medium-size enterprises in Nicaragua (MSMEs)
Washington, D.C.- On July 24, 2007, the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to Financiera Nicaragüense de Desarrollo S.A. (FINDESA), a microfinance institution. The loan will enable FINDESA to provide medium-term financing to its target market.
FINDESA was established in February 2002 upon acquisition of assets and liabilities from Fondo del Instituto Nicaragüense de Desarrollo (FINDESA), a nongovernmental organization that had been operating in Nicaragua's microfinance sector since 1998. FINDESA provides financial services at its headquarters and at twenty-two branch offices throughout Nicaragua. Seventeen of these offices are in rural areas. Of FINDESA's 85,000 clients, 57% are women and 79% are in rural areas.
This is the IIC's second loan to FINDESA. The first loan, in the amount of US$900,000, was granted in September 2004 to support the growth of FINDESA's MSME loan portfolio. That loan was disbursed in full, and it enabled FINDESA to finance working capital for 237 MSMEs.
According to Carlos Roa, IIC's Coordinator, Financial Institutions and Structured Finance, "Generally speaking, access to medium- and long-term funding is scarce in Nicaragua. This operation will enable FINDESA to provide a wider range of financial services to MSMEs, offering medium-term financing while achieving a more appropriate term-matching position."
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, please visit www.iic.int.
Contact: Carlos Roa/Ana Cecilia Savastano
Telephone: (202) 623-3955