The FINANCIAL -- The International Finance Corporation (IFC), a member of the World Bank Group, disbursed a loan of S/.167.6 million (approximately US$50 million) to Mibanco, the largest microfinance institution in Peru and Latin America, with the aim of increasing financing to small and medium enterprises (SMEs) and low-income sectors of the population, thus helping boost job creation and economic growth.
The loan represents the most recent commitment made by IFC in Peru, a country where improving access by microenterprises and SMEs to financing is one of its main objectives. Mibanco is the leading institution in the microfinance sector in Latin America and is a pioneer in promoting access to credit in Peru, according to IFC.
With IFC’s support, MiBanco will be able to reach new clients. “Renewing our alliance with IFC, which started several years ago, reaffirms our commitment to continue working to improve financial inclusion in Peru. This loan allows us to continue financing microenterprises, a segment that represents an engine for the development and growth of the Peruvian economy,” said Percy Urteaga, Mibanco’s chief executive officer.
This new IFC investment also confirms its commitment to support sustainable economic growth in Peru by expanding access to financing for underserved SMEs who continue operating in the informal sector. The development of the microfinance sector has been a priority for IFC in Peru in a bid to increase the penetration of the financial sector in this segment.
Carlos Leiria Pinto, IFC Head of the Andean Region, noted that “this financing demonstrates our support for the achievement of greater access by microenterprises in Peru to financial services. The longstanding partnership between IFC and Mibanco helps meet the needs of the low-income population groups and create a more inclusive financial sector in the country.”
Since 1956, when Peru became a member of IFC, the latter has invested a total of US$3.1 billion in the country, including US$1.1 billion in mobilization. The strategy adopted by IFC in Peru is aimed at boosting financing in the form of debt and equity financing, improving the investment climate, and providing support to key private sector actors who can expand the country’s infrastructure.
IFC also offers products and services to the underserved sectors, for example by expanding access by microenterprises and SMEs to financing as well as access to financing for housing, health, and education.