MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $1m to BancoSol of Bolivia to Support Rural Areas

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently notified MicroCapital that it will provide a loan of up to USD 1 million to Banco Solidario SA (BancoSol), a Bolivian commercial bank that offers microfinance services, in an effort to improve financial access for farmers and poor rural families in the Bolivian cities of La Paz, Oruro and Potosi [1]. BancoSol will also provide technical assistance to help farmers and entrepreneurs improve their productive capacities. Further details of the loan have not been disclosed.

As of March 2013, BancoSol reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 960 million, a gross loan portfolio of USD 770 million, return on assets (ROA) of 1.35 percent, return on equity (ROE) of 18.2 percent and 202,000 active borrowers. As of 2012, BancoSol also reported total deposits of USD 634 million and 547,000 depositors.

As of July 2013, IFC reported an investment portfolio of USD 30 million and a technical assistance portfolio of approximately USD 6 million in Bolivia. As of 2012, IFC has 184 member countries and total assets of USD 76 billion.

By Jennifer Young, Research Associate

About Banco Solidario SA
Banco Solidario SA (BancoSol) is a commercial bank that provides microfinance services in Bolivia. In 1984, it was founded as a microfinance bank and in 1992 was established as a commercial bank. As of March 2013, BancoSol reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 960 million, a gross loan portfolio of USD 770 million, return on assets (ROA) of 1.35 percent, return on equity (ROE) of 18.2 percent and 202,000 active borrowers. As of 2012, BancoSol also reported total deposits of USD 634 million and 547,000 depositors.

About International Finance Corporation
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent.

Sources and Additional Resources

[1] Information provide to MicroCapital by International Finance Corporation.

MicroCapital Story, January 22, 2013, “MICROCAPITAL BRIEF: IFC, Global Agriculture and Food Security Program Invest $10m in Root Capital for Farmers in Africa, Latin America,” https://www.microcapital.org/microcapital-brief-ifc-global-agriculture-and-food-security-program-invest-10m-in-root-capital-for-farmers-in-africa-latin-america/

MicroCapital Story, March 23, 2012, “MICROCAPITAL BRIEF: GABV Report: Microfinance Institutions, “Values-Based” Banks Stronger than Mainstream Banks,” https://www.microcapital.org/microcapital-brief-gabv-report-microfinance-institutions-values-based-banks-stronger-than-mainstream-banks/

MicroCapital Universe Profile, Banco Solidario SA, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Solidario+SA+%28Bolivia%29

MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

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