Microfinance Focus, January 18, 2012: The Dutch development bank, FMO and Vision Banco, one of the largest microfinance institution in Paraguay, have signed a loan agreement of USD 10 million to finance micro and small enterprises. Half of the loan amount is provided in local currency of Paraguay.

Vision Banco focuses on providing a full scale of services to micro and small enterprises. It is proactively increasing the access to finance for micro and small enterprises by opening branches throughout the country.

FMO has also made a syndicated loan to microfinance institution Mol Bulak Finance, Kyrgyz Republic. The loan, arranged by the EBRD (European Bank for Reconstruction and Development), will be for the Kyrgyz som equivalent of USD 9 million comprising an A-loan for the EBRD up to USD 3 million and a B-loan for FMO of up to USD 6 million.

The loan will increase the availability of medium-term local currency lending to micro, small and medium-sized enterprises (MSMEs) in the Kyrgyz Republic, especially in the country’s remote rural areas, and help these companies avoid taking on currency exchange risks.

FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5 billion, FMO is one of the largest European bilateral private sector development banks.