Source: Inter-American Development Bank (IDB).
Original press release available in English and español.
WASHINGTON, March 20 – The Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF) announced today the approval of a USD 1,750,000 loan and a USD 713,000 technical cooperation grant to design a financial services coverage system for suburban and rural entrepreneurs in Chile.
“The program will penetrate the microfinance market in areas with few financial services through microagencies embedded in local development networks,” said MIF team leader María Victoria Sáenz. “The direct beneficiaries will be 16,000 new microentrepreneurs who will become members of Credicoop over three years, gaining access to specialized financial services through savings and loan products designed for their needs.
The program will consolidate an operating model that can extend financial services to low-income groups in unserved markets, reducing transaction costs. This model represents an opportunity for cooperatives and nonbank financial institutions to develop profitable low-cost services for low-income communities.
Local counterpart funds provided by the executing agency, Cooperativa de Servicios Financieros a la Microempresa, Credicoop Ltda, will total USD 2,871,000.
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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