IFC and Fundación BBVA to Support Microfinance Expansion in Peru
Washington DC, United States, May, 11 2009 -
IFC, a member of the World Bank Group, announced that has invested $7.4 million equity in common shares of Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente through a long-term partnership with Fundación BBVA para las Microfinanzas.
Currently, the company offers financial products in the coastal regions of Peru to more than 141,000 clients in the country, with an average micro loan size of US$1,300. IFC’s financing will support the expansion of this microfinance institution and will help increase access to financial services for micro entrepreneurs, particularly in areas outside of Lima.
Manuel Mendez, Chairman of Fundación BBVA para las Microfinanzas said, “IFC’s support will allow us to accelerate our expansion in Peru and address gaps in formal financing for local microenterprises. We appreciate IFC’s support and long-term partnership.”
Microfinance development is a priority for IFC in Peru. The country is still lagging in terms of banking sector penetration as the amount of domestic credit as a percent of GDP is low when compared with other Latin American countries and most of the financial activity is still concentrated in the capital city of Lima. Banking penetration rates outside of Lima and in rural areas are significantly lower, and access to finance is limited.
Roberto Albisetti, IFC Country Manager for Colombia, Venezuela, Ecuador and Peru, said, “Our long-term partnership with Fundación BBVA aims at expanding the availability of financial services to underserved markets.” “IFC’s equity investment in CRAC Nuestra Gente shows our continue support to improving access to finance to the rural and the lower income segments of the population in Peru.”
In Latin America and the Caribbean, IFC has supported the creation or development of 24 microfinance institutions, with a cumulative investment of $213 million.