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Panama, June 21 2021.- The International Finance Corporation (IFC), a member of the World Bank Group, partners with Banco La Hipotecaria in Panama and its subsidiary in El Salvador to support the growth of residential mortgage lending to low- and middle-income families in Panama and El Salvador.
As countries who face high inequality challenges, particularly in the housing market, IFC's US$50 million-dollar funding will expand mortgage financing to Panamanians and Salvadorians who have limited access to commercial lending institutions. Considering the housing finance gap is even larger for women, approximately 50 percent of the investment will be aimed at women, supporting female-headed households.
One in four Panamanians live in deficient housing conditions and much of the housing shortage is in the low- and middle-income segments. IFC studies reveal that only 9 percent of adults have a housing loan in the country. Meanwhile, El Salvador's rapid urbanization has not been consistent with increased homebuilding and mortgage lending, creating a large housing deficit. Inadequate housing is prevalent throughout the country, particularly in cities and towns.
"The pandemic has slowed down economic activity for many and has made it even more difficult to access affordable mortgages when it is most needed. Our partnership with IFC will allow us to offer low- and middle-income families an opportunity to have better housing conditions," said John D. Rauschkolb, CEO of Banco La Hipotecaria.
For Sanaa Abouzaid, Regional Manager for IFC in Central America, "affordable housing is essential to achieve equitable growth and improve quality of life. With a gender focus, IFC aims to empower women and help them gain access to assets that can be used as collateral for loans, therefore granting them the opportunity to start or grow a business."
IFC's investment will be complemented with a training workshop to help Banco La Hipotecaria improve awareness on this gender value proposition.
Banco La Hipotecaria, S.A. in Panamá and its operating subsidiaries in El Salvador and Colombia specialize in the origination of residential mortgage loans to the low to middle income segments. Its relationship with IFC dates back more than two decades, with previous funding aimed at strengthening and broadening the company's home financing program to reach more households.
About IFCIFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org. About Banco La HipotecariaBanco La Hipotecaria is a housing finance bank that specializes in originating, servicing, and securitizing residential mortgages, with a focus on low- to middle-income individuals in Panama, El Salvador, and Colombia. La Hipotecaria has over 230 full-time salaried employees in the three countries. It manages a loan portfolio in excess of US$980 million, consisting of more than 30,000 residential mortgages. Stay Connected:www.ifc.org/lacwww.twitter.com/IFC_LACwww.linkedin.com/company/ifc-américa-latina-y-el-caribewww.facebook.com/IFCwbgwww.instagram.com/ifc_org/www.youtube.com/IFCvideocastswww.twitter.com/IFC_orgwww.ifc.org/SocialMediaIndex
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