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United States : IFC and ADOPEM Support 140,000 New Loans for Micro-Entrepreneurs in the Dominican Republic.

FC, a member of the World Bank Group, announced today a 450 million Dominican peso (approximately US$10 million) loan for Banco de Ahorro y Credito ADOPEM S.A. to boost lending to entrepreneurs. IFC s support will allow ADOPEM to issue an additional 140,000 microloans over the next seven years, a 70 percent increase from June 2015. About two-thirds of those loans are expected to go to women, enabling them to expand and diversify their enterprises.Access to credit plays a critical role in spurring economic growth and reducing income inequality. Although the Dominican Republic has successful microfinance institutions there is still a significant gap in lending; only about 15 percent of micro-entrepreneurs in the country have access to credit.

We have made great strides in serving our community. Almost 70 percent of our clients have access to financing exclusively through Banco ADOPEM and the bank s average loan size of US$480 is the lowest among Dominican microfinance institutions, said Mercedes Canalda de Beras-Goico, Banco ADOPEM s Executive President. But there is more to be done and we are glad to be taking on new challenges with IFC s continued support.

IFC was the first international investor in Banco ADOPEM, after it became a regulated bank. As a shareholder from 2007 to 2015, IFC provided a total of US$1.2 million, which resulted approximately 60,000 loans for Dominican entrepreneurs over the course of eight years. Since IFC s original engagement, ADOPEM s loan portfolio and customer base have almost quadrupled, while maintaining excellent asset quality.

ADOPEM s success is reflected in the thousands of women and men who have created a path out of poverty. Their small businesses have a big impact on their families and their communities, said Luc Grillet, IFC Senior Manager for the Caribbean and Central America. ADOPEM has been a key partner for IFC. Together we are committed to increasing access to credit for entrepreneurs who are working hard to build their businesses.

IFC and Fundacion Microfinanzas BBVA, ADOPEM s largest shareholder, have been working together since 2008 to boost social and economic development in Latin America through microfinance. This loan to Banco ADOPEM is an opportunity for IFC to consolidate a relationship with Fundacion Microfinanzas BBVA that has spanned many years, not only in the Dominican Republic but also in other Latin American countries such as Peru and Colombia where both institutions have also partnered.

IFC s loan to ADOPEM is consistent with IFC s strategy in the Dominican Republic, which focuses on supporting economic growth and ensuring opportunities for poorer segments of society. At the end of June 2015, IFC had a committed investment portfolio in the Dominican Republic totaling $198 million, including $22 million from partnering institutions. IFC s clients in the Dominican Republic last year supported more than 14,000 jobs.

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Publication:Mena Report
Geographic Code:5DOMN
Date:Nov 17, 2015
Words:487
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