CAF Transferred USD 70+ Million for Microfinance Institutions in Latin America
In 2019, the multilateral agency completed record disbursements for microfinance institutions in Latin America, mainly in Bolivia, Ecuador, Panama and Peru.
CAF—development bank of Latin America—disbursed in 2019 a total of USD 70.7 million to promote and streamline the ecosystems of microfinance institutions, thereby improving financial inclusion and productivity in the countries of the region.
These funds benefited more than 23,000 entrepreneurs, some 60% of which were women. In addition, almost half of the disbursements (USD 32.9 million) were transferred to Bolivia, while the rest was distributed between Ecuador (USD 20 million), Peru (USD 13.8 million) and Panama (USD 4 million).
The case of Bolivia is noteworthy. Disbursements to this country reached USD 13 million in 2017 and some USD 11 million in 2018, and in 2019, a record USD 32.9 million was transferred, i.e., disbursements tripled compared to 2018. Bolivia received 13,324 microcredits, 9,666 of which (73%) were for women,, and 5,862 (42%) were granted in rural areas.
“These results are a clear example of how despite market conditions that sometimes hinder financing, these can open up an opportunity for a virtuous circle for the entire chain, increasing CAF’s disbursements to cover a greater portion of credit demand from microfinance institutions, and supporting the growth of productive activity of final beneficiaries,” said Francois Borit, Director of the Private Sector of the Southern Region at CAF.
Ecuador, Panama and Peru
CAF disbursed USD 37.8 million in Peru, Ecuador and Panama during 2019, with record figures in these last two countries, with first-ever operations with three new clients: CONAFIPS in Ecuador, and the Municipal Savings and Credit Funds of Huancayo and Arequipa in Peru.
These disbursements helped serve more than 10,000 micro-entrepreneurs, of which 4,900 were women. In 2019, two new microfinance institutions were added to CAF’s portfolio, totaling 16 clients: Banco VisionFund of Ecuador (credit line for USD 2.5 million) and Panama’s Centro Financiero Empresarial (credit line for USD 3 million), currently in the formalization stage.
For the first half of 2020, new credit lines are expected to be approved for Colombia and Peru in the amount of USD 32 million, to continue supporting micro and small entrepreneurs in the region.
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