Stimulus for development of microfinance in Central America and the Caribbean

(Caracas, December 23, 2009).- CAF confirmed its support for SICSA ( Investment Corporation for Microfinance in Central America and the Caribbean) with the approval of investment capital of US$400 ,000 destined to expand the range of innovative financial services for the microenterprise sector in its shareholders countries in Central America and the Caribbean.

CAF supports SICSA as a means of contributing to the sustainability and growth of microfinance institutions and contributing to the generation of equitable economic growth in the region

SICSA is incorporated under the legislation of the Republic of Panama, and authorized to operate in Central America and the Caribbean. Its objective is to become an alternative for the financial strengthening of the region's microfinance institutions and for the microfinance industry, by improving institutional capacities and increasing the industry's visibility, presence and weight in the Latin American context.

There are also plans for SICSA to develop initiatives such as the Natural Disaster Emergencies Fund (FEDEN)to support microfinance institutions affected by this type of event.

SICSA marks an important milestone in the history of the region's microfinance institutions since - by its nature - it differs from previous efforts, and has the characteristics and potential to become an important source of finance for development of microfinance institutions in Central America and the Caribbean.