IDB fund will finance program to consolidate private microfinance institutions i...

Feb 2007
Peru , February, 02 2007 - The Inter-American Development Bank’s Multilateral Investment Fund (MIF) announced today the approval of $1.1 million for the consolidation of private microfinance institutions in Perú.

The goal of the project is to improve access to quality financial services for underbanked rural sectors in Perú by strengthening the capacity of the rural savings and loan banks (CRACs for their acronym in Spanish) and the small business and microenterprise development agencies (Edpymes, acronym in Spanish).

Perú has about 3.1 million microenterprises and small businesses that employ about 70% of the working population and generate approximately 42% of gross domestic product. Although there are many financial entities that serve the microenterprise sector, much of the low-income population remains without access to financial services.

CRACs and Edpymes have undertaken a joint program to strengthen their technical, operational and management capacities in order to increase the supply of microfinance services to this underserved population, strengthen the quality of current services and become more competitive.

“This is the first time that two microfinance competitors have formed an alliance to find a common solution to a shared problem, seeking to transform the sector over the long term,” said Dieter Wittkowski, IDB project team leader. “The operation will allow these two competitors to share lessons learned and best practices in their respective areas of specialization.”

The grant will be executed by the Association of Edpymes of Peru (ASEP for its acronym in Spanish) and the Association of Rural Savings and Loan Banks of Peru (ASOCAJAS).

MIF, an autonomous fund administered by the IDB, supports private sector development in Latin America and the Caribbean, focusing on microenterprise and small business.


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