The Inter-American Development Bank (IDB), a US-based financial institution that supports small and medium-sized businesses, reportedly has approved a loan of USD 20 million to Edyficar, a financial institution in Peru that specializes in serving microenterprises, to increase housing loans. The loan will be made through IDB’s Opportunities for the Majority program that aims to promote sustainable business models in Latin America and the Caribbean. Edyficar reportedly is planning to use the loans to expand its Edyvivienda program, which focuses on disbursing loans for incremental housing construction to low-income individuals, particularly small business owners.
As of December 2012, Edyficar has 497,000 borrowers, total assets of USD 1.19 billion, return on assets of 3.61% and return on equity of 37.91%. As of December 2012, IDB reported total assets of USD 92 billion.
By Megan McGowan, Research Associate
About Edyficar:
Established in Peru in 1997, Edyficar is a financial institution that provides services to low-income individuals, in particular small business owners. The institution was acquired by Banco de Credito del Peru (BCP) in 2009. As of December 2012, Edyficar has 497,000 borrowers, total assets of USD 1.19 billion, return on assets of 3.61% and return on equity of 37.91%
About the Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and 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 is headquartered in Washington, DC, with offices also in Japan, France and all 26 member countries in Latin America and the Caribbean. As of December 2012, IDB reported total assets of USD 92 billion.
Sources and Additional Resources:
[1] Andina: “IDB Approves $20mn to Support Finance Program in Peru,” http://www.andina.com.pe/espanol/noticia-idb-approves-20mn-to-support-housing-finance-program-in-peru-482076.aspx
MicroCapital.org, “Inter-American Development Bank Promotes Psychometric Testing for Screening Loan Applicants,” May 14, 2013, https://www.microcapital.org/microcapital-brief-inter-american-development-bank-promotes-psychometric-testing-for-screening-loan-applicants/
MicroCapital.org, “Peruvian Microfinance Institutions Have Received $158m from Spain Since 1998,” December 28, 2011, https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institutions-have-received-158m-from-spain-since-1998/
MicroCapital Universe Profile: Edyficar, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Edyficar
MicroCapital Universe Profile: Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29
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