Financing Program for Small Financial Intermediaries (“IFIP Program”) in the Region

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Project Number: 
Not applicable
Expected Consideration Date by the Board: 
09/09/2014
Date Posted: 
08/04/2014
Company: 
Various small financial institutions
Sponsoring Entity: 
Not applicable
Financing Requested: 
Program Amount: Up to a total of 18% of IIC net worth, revolving. For 2014, amount equivalent to approximately US$150 million.
Sector: 
Financial Services
Location: 
All Latin American and Caribbean Member Countries of the IIC
Scope Objective: 

This Financing Program for Small Financial Intermediaries in the Region (“IFIP Program”) establishes a framework for IIC Management to directly and efficiently process loan operations—in keeping with certain parameters—of up to US$5 million each for small financial intermediaries (IFIP) in all IIC member countries in Latin America and the Caribbean. This IFIP Program includes regulated and unregulated financial intermediaries, as well as institutions specializing in a specific area such as leasing, factoring, microfinance, and cooperatives. In general, it includes financial institutions whose net worth does not exceed US$70 million in equity; these institutions, in turn, use the funds for loans to small and medium-sized enterprises (SMEs), microcredit, capital goods financing, and/or mortgage loans for low and middle-income housing. The loan operations under this Program will consist of senior loans, subordinated loans, and loan or subordinated loan guarantees.

Environmental Review: 

Environmental and Labor Issues:

To better understand the IIC’s requirements, all financial intermediaries participating in the IFIP Program shall be required to attend the IIC environmental training workshop for financial intermediaries. Each subproject financed by IIC’s FI (financial intermediary) client under the IFIP Program shall be subject to an environmental review and must comply with domestic environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. These FI clients must also submit annual environmental reports to the IIC indicating the progress made and problems encountered in the implementation of these practices.