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CAF offers local currency financing to Bolivian development organization
Submitted by admin on Thu, 04/28/2011 - 11:55
Microfinance Focus April 27, 2011: Latin American development bank CAF, is offering local currency financing to Credit with Rural Education Civil Association (CRECER), an organization backing development initiatives for women from low-income sectors in rural, suburban and urban areas. Through this program, CAF will reinforce its backing for the development of microfinance sector in Bolivia.
According to the ‘Microscope’ study financed by CAF and published by The Economist Intelligence Un it (EIU), Bolivia is one the countries in Latin America with the best conditions for microfinance.
An official from CAF said that the Latin American development bank aimed at meeting the financing needs of micro, small and medium-sized enterprises in the country by creating solutions designed for their requirements and supporting specialized institutions which, based on their financial structure, preferred local currency loans to reduce potential exchange exposure.
CAF will be implementing this facility for the first time in Bolivia and it is part of a local currency program which the institution has successfully operated in Peru for US$34 million, Mexico for US$10 million, and Colombia US$20 million.
In August 2010, CAF announced this form of financing with a Bs.35-million line of credit for the Bolivian microfinance sector to provide medium-term loans (up to 3 years) in local currency with semiannual repayments at competitive rates. The objective is to meet the needs of sectors which traditionally have limited access to credit.
Founded in 1999, CRECER provides financial and educational services to women in order that they may improve their income and general health of their family. Its portfolio currently holds over 109,000 customers organized into 9,203 community banks, operating through nine regional offices and 53 agencies, located mainly in rural and suburban areas.
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