IFC Expands Access to Finance for Brazilian Microenterpreneurs with Support to T...

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Oct 2009
Washington, D.C., United States, October, 08 2009 - IFC, a member of the World Bank Group, will provide $15 million to Brazil’s Banco Triângulo S.A. to help expand credit for micro and small entrepreneurs in the underdeveloped areas of Brazil’s north and northeast.

IFC’s local currency financing will have a five-year tenor, unusually long for midsize Brazilian banks under current market conditions.  This will be IFC’s second financing to the bank, known as Tribanco, which received a $10 million loan in 2004.  Tribanco is part of Grupo Martins, a large wholesaler in Brazil.  It was created in 1990 to provide a wide range of financial services for small retailers and is now one of the largest microfinance providers in Brazil.

“We are extremely pleased with IFC’s value added, as it provides a longer tenor than is available normally in Brazil, and further diversifies the bank’s funding sources,” said Tribanco’s Board President Juscelino Martins. “We look forward to building on our long-term partnership with IFC.”

Andrew Gunther, IFC Country Manager in Brazil, said:  “IFC’s financing will strengthen Tribanco’s funding structure, which is essential to expand the bank’s lending to small retail outlets that provide basic goods and services to Brazil’s low-income population in small cities and remote rural areas.  This financing is consistent with IFC’s priority of supporting microfinance development in Brazil.”

As part of IFC’s integrated approach to provide financing and advisory services, IFC is working with Tribanco to develop training material for the bank’s staff and clients to help improve their skills and competitiveness.  One key achievement has been the development of financial literacy modules with the local nongovernmental organization Instituto Akatu, which will be available to clients through booklets and e-learning.

IFC’s strategy in Brazil focuses on promoting access to finance and developing capital markets to reach low-income individuals, microenterprises, and small businesses.  IFC seeks to strengthen infrastructure and public services, including health and education, by increasing private sector participation.  Other key areas include improving the investment climate and helping small businesses join the formal economy.  IFC also promotes socially and environmentally sustainable practices, specifically in the Amazon region. As of June 2009, IFC’s committed portfolio in Brazil was $2.2 billion.



Source : IFC
 

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