The Inter-American Development Bank (IDB), a US-based multilateral financial institution, has offered the Central Bank of Ecuador a USD 10 million loan.The loan aims to support the National Payments System, a project that seeks to expand financial services to low-income households in remote areas of Ecuador. The terms of the loan include a 12.6-year grace period and a LIBOR-based interest rate.
The National Payments System is expected to help at least 200,000 people and to generate 2.8 million transactions. It will consist of two components, one being a grant fund and the other a co-financing mechanism for projects supporting financial inclusion efforts.
Cristina Pailhe, IDB project team leader, was quoted as saying, “The objective is to provide the population with access to a range of low-cost services such as savings, payments and transfers.”
By: Webster Hughes, Research Associate
About The Inter-American Development Bank: 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. As of 2011, IDB reported total assets of USD 89 billion. The IDB is headquartered in Washington, DC, with offices also in Japan, France and all 26 member countries in Latin America and the Caribbean.
Source and Additional Resources
Central Banking article, “Central Bank of Ecuador receives loan to promote financial inclusion”, http://www.centralbanking.com/central-banking/news/2198738/central-bank-…
MicroCapital.org story, “MICROCAPITAL BRIEF: Multilateral Investment Fund Places $5m in Equity in Fund for Mexican SMEs”, https://www.microcapital.org/microcapital-brief-multilateral-investment-f…
MicroCapital Universe: Inter-American Development Bank, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-A…
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: FSPs in Ecuador to Evaluate Role of Bias in Financial Access for Women-led MSMEs with Support from IDB Invest, RFD
- MICROCAPITAL BRIEF: MSMEs in Amazon to Access $900m Loan Pool from IDB, BNDES of Brazil
- MICROCAPITAL BRIEF: Michael Apel Named CEO of DAI’s MicroVest Asset Management
- MICROCAPITAL BRIEF: IDB Invest, Oikocredit Subscribing to $20m Bond from CJA to Finance MSMEs in Ecuador, Targeting Underrepresented Groups
- MICROFINANCE EVENT: 5th Annual CLIIQ Nexus Latam; September 26-28, 2023; Cuenca, Ecuador
