IIC approves program for funding microfinance institutions in Peru of up to US$15 million


The program will offer microfinance institutions financing in local currency and in U.S. dollars as well as capital strengthening through subordinated debt

Washington DC - On Februrary 1, 2011, the Inter-American Investment Corporation (IIC) approved a program for funding microfinance institutions in Peru (IMIF Program) to channel funds to individuals, family businesses, microenterprises, and small enterprises for home purchases, improvements, expansions and/or remodeling projects, working capital financing, and general microenterprise and small business expansion.

Possible intermediaries under this program include municipal savings and credit agencies (cajas municipales de ahorro y crédito, or CMAC), rural savings and credit agencies (cajas rurales de ahorro y crédito, or CRAC), and small and microenterprise development agencies (entidades de desarrollo de la pequeña y microempresa, or EDPYMES), as well as financieras and some banks specializing in microenterprises.

According to Sandra Reyes, the IIC investment officer in charge of the operation, "With this initiative, the IIC is supporting and strengthening Peru’s microfinance sector by expanding the reach of microfinance institutions into underserved markets, and thus contributing to job creation and income-generating opportunities for micro and small entrepreneurs. The program is expected to benefit approximately 3,000 small enterprises and microenterprises, at a minimum."

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine transactions channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Sandra Reyes (in Colombia)

Telephone: + (571) 325-7053

Email: sandrare@iadb.org