Lima, July 17, 2006
-The International Finance Corporation, the private sector arm of the World Bank Group, has signed a financing agreement to help Banco de la Microempresas S.A., or MIBANCO, bring quality financial services to even more microenterprises in Peru.
IFC’s long term loan of up to $29 million was disbursed this month in both U.S. dollars and Peruvian soles, the first soles disbursement in the country by IFC. The blend of local and US dollar financing allows MIBANCO to match its funding needs in each currency with its growing range of financial products. The soles funding allows MIBANCO to provide longer term local currency loans, which protect both the bank and its customers from foreign currency risk.
MIBANCO is Peru’s largest specialized microfinance bank with more than 170,000 clients across the country. To date, MIBANCO has provided more than one million loans to low-income individuals and small businesses in Peru, many of whom had little or no prior access to formal credit institutions. IFC, which has worked with MIBANCO for more than five years, supports microfinance in line with its commitment to broadening the range of financial services offered to smaller businesses.
Atul Mehta, IFC director for Latin America and the Caribbean, said, “Peru’s microfinance market is one of the most vibrant in the region, and MIBANCO has done well in making basic financial services available to those left out of the traditional banking system. We look forward to continuing to support MIBANCO in filling these important gaps in the banking sector.”
According to Ricardo Gordillo, MIBANCO’s finance manager, “This is MIBANCO’s second agreement with the IFC, and we value IFC’s support as a long-term partner and the international expertise they provide.”
About MIBANCO
MIBANCO is the leading private financial institution serving microenterprises in Peru. MIBANCO has 70 offices nationwide and over 850 million nuevos soles en its lending portfolio. In 2005, one in every three microenterprise borrowers was a MIBANCO client.
In 2005, one of every two new banking offices to open belonged to MIBANCO, thus extending financial services to all microenterprises and low-income individuales with limited access to credit. With loans starting at 300 nuevos soles, MIBANCO has enabled thousands of people to access financial services.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
