Mutual Cartago de Ahorro y Préstamo

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Project Number: 
CR3976A-02
Expected Consideration Date by the Board: 
07/14/2015
Date Posted: 
05/27/2015
Company: 
Mutual Cartago de Ahorro y Préstamo (MUCAP)
Sponsoring Entity: 
Not applicable
Financing Requested: 
Up to US$3 million
Sector: 
Financial Services
Location: 
Cartago, Costa Rica
Country: 
Scope Objective: 

Founded in September 1970 in the province of Cartago, MUCAP is well established in Costa Rica’s financial system. MUCAP is now the second largest mutual savings bank in Costa Rica. As a company authorized by the Banco Hipotecario de Vivienda, MUCAP is overseen by the regulatory bodies of the Costa Rican financial market.

MUCAP has 33 locations in seven provinces and offers its clients an extensive portfolio of products including loans to purchase, build, or repair homes, loans to small and medium-sized enterprises, and consumer loans. The company also offers its clients attractive savings and investment products.

The goal of this IIC operation is to provide long-term financing to MUCAP so that, in turn, it can provide financing for low-income housing and to micro, small, and medium-sized enterprises throughout Costa Rica.

Environmental Review: 

Environmental and Labor Issues:

This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because of the low risk of the subprojects in the financial intermediary’s current or future portfolio. MUCAP will be required to develop an environmental and social management system (ESMS) with a component to ensure that activities financed with IIC funds are not found on the IIC’s list of excluded activities and that they comply with domestic environmental and occupational safety standards. In addition, MUCAP will be required to submit annual environmental reports to the IIC indicating the progress made and problems encountered in the implementation of its ESMS. To enable the borrower to better understand the IIC’s requirements, MUCAP will be required to attend the IIC’s environmental training workshop for financial intermediaries.