Bogotá, Colombia, March 2, 2010—
IFC, a member of the World Bank Group, is providing Advisory Services to Fundación Mundo Mujer to support its transformation from a microcredit nongovernmental organization to a regulated financial institution specializing in microfinance to increase access to finance for entrepreneurs and low-income households.
IFC’s support focuses on improving the company’s risk management systems, revising credit policies and procedures, reinforcing its training capacity, improving the finance and treasury area, and designing and implementing savings products.
In addition to the Advisory Services provided, IFC is supporting the growth of the company’s portfolio with a $6 million senior loan. “Having IFC accompany us during the transformation process has helped us overcome the challenges that the transformation implies and better understand the risks and benefits of becoming a regulated institution,” said Leonor Melo de Velasco, President of Fundación Mundo Mujer.
“The transformation of Fundación Mundo Mujer into a regulated institution will increase the scope of financial products and services that the company is able to provide to its more than 300,000 clients who all belong to low-income segments of Colombia's population,” said Rachel Kyte, IFC Vice President for Advisory Services. “In addition, Fundación Mundo Mujer will be able to incorporate thousands more microenterprises into the formal financial sector. IFC is committed to supporting the transformation of microfinance institutions in the region.”
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by helping microfinance institutions reach entrepreneurs and low-income households.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing risk mitigation and advisory services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
For more information about Fundacion Mundo Mujer, please visit
www.fmm.org.co
.
