Financing for microenterprise sector promoted with Banco Delta

(Panama, December 2010).- CAF, Latin American development bank, and Banco Delta signed an agreement under which the multilateral institution becomes a shareholder of the bank, with the objective of improving access to finance by micro and small entrepreneurs in Panama.

The agreement - which includes an initial investment of US$500,000 - was signed by Rubén Ramírez, CAF director representative in Panama, and Arthur Muller, president of Banco Delta.

According to Ramírez, strengthening microfinance in the region is one of CAF’s priorities since it is a fundamental pillar for generating wealth among the less-favored levels of society in the effort to reduce poverty and generate social inclusion and economic development. "The opportunity to have a strategic partner such as Banco Delta - the second microfinance bank set up in Panama - is a guarantee for achieving the country’s development goals. The bank shares our interest and has proven capacity for executing programs focused on improving financial conditions for microenterprise", Ramirez added.

Muller said the partnership with CAF represents a firm and important step which will stimulate Banco Delta to increase its presence in the continuing development of micro and small enterprise in Panama. "The signing of this agreement is much more than receiving an investment; with this step, we are welcoming a new partner and strategic ally which brings extensive and diversified experience to the development of the region."

Since 1995, CAF has been serving the financing needs of Latin American micro-entrepreneurs through its backing for specialized financial institutions, in the conviction that they are keys to achieving sustainable and equitable economic growth in the region. This support for the Panamanian microfinance industry reflects the catalytic role that CAF plays in Latin America by strengthening institutions which promote the activity of micro and small enterprises, as a vehicle of change which stimulates the harmonious and inclusive development of our societies.