Microfinance Focus, September 21, 2011: Grameen Foundation in collaboration with U.S. Agency for International Development (USAID) will be providing a $1.5 million credit guarantee to the Peruvian savings and credit cooperative ABACO. It will support approximately $3 million for local currency financing to Peru’s two microfinance institutions namely Pro Mujer Peru and Arariwa.

The guarantees were arranged through a Grameen Foundation-USAID collaboration that makes up to $162.5 million in local currency financing available to microfinance institutions (MFIs) globally by offering a wider range of financing options from local commercial lenders.

Grameen Foundation and USAID expect to facilitate additional local currency financing under this arrangement with ABACO, helping it to expand its client base to include smaller MFIs that focus on the rural poor. The organizations also plan to use this model in other countries.