As part of its Opportunities for the Majority initiative, the Inter-American Development Bank (IDB) will provide USD 10 million to Mibanco, a Peruvian microfinance institution with a gross loan portfolio equivalent to USD 781 million, according to the MIX Market, the microfinance information clearinghouse. The loan is expected to help Mibanco launch a financial product called Crecer Mi Negocio (To Grow My Business), which will provide women entrepreneurs with medium term investment loans averaging USD 2,000 to USD 3,000.
The USD 10 million loan will be complemented by a USD 3 million grant from the IDB’s Multilateral Investment Fund (MIF) that will provide business training to microentrepreneurs.
By: Stefanie Rubin, Research Assistant
About the Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) was established in 1959 and provides multilateral financing in Latin America and the Caribbean. The bank works with governments, companies and non-governmental organizations (NGOs) to provide both loans and grants to support small and medium enterprises (SMEs), health, and education, among other sectors. It also provides technical assistance and research in these areas. Its Board of Executives are elected by 48 member countries, including 26 in Latin America and the Caribbean.
Mibanco:
Created in 1998, Mibanco is the largest microfinance institution by gross loan portfolio (USD 781.2 million) in Peru, according to the MIX Market, the microfinance information clearinghouse. As of 2008, Mibanco had an equivalent of USD 957.4 million in total assets, USD 580.1 million in deposits and 380,807 active borrowers.
About the Multilateral Investment Fund (MIF):
The MIF is an autonomous fund administered by the IDB. Founded in 1993, MIF has approved over 1,000 projects worth USD 2.2 billion. The fund has recently started decentralizing its operations, giving IDB country offices more autonomy to distribute “mini-loans,” with the idea that a greater amount of smaller projects will reach more people. The MIF has 38 donating member countries from Latin America, the Caribbean, North America, Europe and Asia. The United States and Japan, each having contributed USD 500 million, play leading roles in the organization.
Additional Resources:
Source Article: IDB Press Release: “IDB loan expands access to finance for women microentrepreneurs in Peru,” http://www.iadb.org/news-releases/2009-12/english/idb-loan-expands-access-to-finance-for-women-microentrepreneurs-in-peru-6129.html
IDB: Opportunities for the Majority Initiative: http://www.iadb.org/topics/om/index.cfm?lang=en
The Multilateral Investment Fund: About Us: http://www.iadb.org/mif/about_us.cfm?language=English#members
IDB: http://www.iadb.org/?lang=en
MIX Market: Mibanco: http://www.mixmarket.org/mfi/Mibanco
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