The Inter-American Development Bank (IDB), a US-based development finance institution, will provide USD 10 million as a partial credit guarantee to Patrimonio Hoy, a microfinance initiative of Mexico-based building materials supplier CEMEX. Patrimonio Hoy provides microloans for construction materials, labor and technical building assistance, and will use the funding guarantee to scale up lending in the Latin American countries of Mexico, Colombia, Costa Rica, Nicaragua and the Dominican Republic. The target is to reach up to 750,000 low-income families within the next five years, helping these families construct and renovate their own homes with quality inputs and support.
According to the website of CEMEX, since 2000 Patrimonio Hoy has disbursed USD 135 million in microcredit to 265,000 families in Latin America.
By Rohan Trivedi, Research Associate
About The Inter-American Development Bank:
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution established in 1959 that operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. IDB reported total assets of USD 84 billion as of December 31, 2009.
About Patrimonio Hoy:
Patrimonio Hoy is a microlender that was established in 1998 by CEMEX, a Mexico-based cement manufacturer and supplier of building materials that operates in 50 countries. Patrimonio Hoy disburses microloans to families earning less than four times the minimum wage, so that they can build and renovate their own homes. Through the program, participants are provided access to cement, concrete blocks, steel and other inputs at market prices, along with the opportunity to employ local labor. According to the website of CEMEX, Patrimonio Hoy has disbursed USD 135 million in microcredit to 265,000 families in Mexico and Latin America between 2000 and 2011.
Sources and Additional Resources:
[1] Inter-American Development Bank News Release: “IDB to support expansion of CEMEX microfinance program for low-income families”, http://www.iadb.org/en/news/news-releases/2011-06-28/cemex-housing-microfinance,9413.html
MicroCapital.org story, May 16, 2011: “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Establishes ‘Flexible Financing Facility’ for Countries in Latin America, Caribbean”, https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-establishes-flexible-financing-facility-for-countries-in-latin-america-caribbean/
MicroCapital Universe Profile: Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29
MicroCapital Universe Profile: Patrimonio Hoy, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Patrimonio+Hoy
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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