Microfin II

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Project Number: 
UR3798A-02
Expected Consideration Date by the Board: 
05/25/2011
Date Posted: 
04/25/2011
Company: 
Microfinanzas del Uruguay S.A.
Financing Requested: 
US$500,000
Sector: 
Financial Services
Location: 
Montevideo
Country: 
Scope Objective: 

The purpose of the IIC loan is to finance eligible projects via subloans to eligible enterprises in Uruguay that meet IIC and Microfinanzas del Uruguay S.A. loan eligibility criteria and environmental and labor requirements. The financial institution has a countrywide presence. Its primary activity is to provide financial services to micro and small enterprises and other segments of the population that are underserved by the traditional financial system, to promote the social and economic development of low-income individuals nationwide.

Financing on appropriate terms will make it possible to generate direct and indirect jobs and will improve the financial structure of micro and small enterprises. Microenterprise financing is underdeveloped in Uruguay, with few institutions that specialize in this segment.

Microfinanzas del Uruguay S.A. has the support of Grupo Acción Comunitaria del Perú, which is internationally recognized as a top-line company that specializes in the microfinance sector.

Environmental Review: 
Environmental and Labor Issues:

This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. Two Microfinanzas del Uruguay S.A. representatives have already attended the IIC financial intermediary environmental training workshop. Each subproject must comply with national environmental and labor laws, regulations, and standards as well as IIC environmental guidelines.