Mexico City, Mexico, October 1, 2012
—IFC, a member of the World Bank Group, will invest $1.9 million in Mexican microfinance institution Financiamiento Progresemos, expanding the company’s microlending portfolio to Mexico’s most remote and underserved regions.
Progresemos provides financial services to low-income Mexicans who live in rural areas and have limited or no credit opportunities. IFC’s investment will allow Progresemos to expand its services by 84 percent to a total of 19,000 microentrepreneurs over the next five years. This will help create jobs and improve income levels in frontier regions.
Most of the nearly 17 million microenterprises in Mexico lack formal access to financial services, with domestic credit to the private sector amounting to only 25 percent of GDP, compared to 90 percent in Chile. By expanding Progresemos, IFC will help address this deficit and build a credit culture among low-income Mexicans, fostering greater demand for microcredit and encouraging more microlenders to enter the market.
"We believe that the strategic partnership with IFC will lead Progresemos to a new level of growth and market recognition, significantly increasing the reach of our microlending to low-income populations in Mexico,” said Rafael Moreno Valle Suarez, Director of Progresemos.
Progresemos began operating in September of 2006 at its headquarters in Mexico City. The company’s unique business model is based on co-lending to partner microfinance institutions that need of additional funding. These strategic partners operate in some of the country’s most rural and undeveloped regions. They have market knowledge and an established client base, but limited funding sources and small capital bases. With IFC’s support, Progresemos is committing funding that will fully leverage the positioning of these microfinance institutions to expand microlending in underserved regions.
“Supporting Progresemos aligns with IFC’s strategy to help broaden and deepen the financial sector, while focusing on reaching out to lower-income segments,” said Roberto Albisetti, IFC’s Country Manager for Mexico. “IFC’s global industry knowledge and long-term financing will help Mexico expand access to credit and create inclusive opportunities for low-income groups.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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