MICROCAPITAL BRIEF: Andean Development Corporation (CAF) and National Mutual Guarantee Fund for Small and Medium-sized Enterprises (FONPYME) Launch ‘Quality Improvement’ Project for Small and Medium-sized Enterprises in Venezuela

The Andean Development Corporation (CAF), a multilateral financial institution based in Caracas, Venezuela, together with the National Mutual Guarantee Fund for Small- and Medium-sized Enterprises (FONPYME), an organization founded by the Venezuelan government to provide financial and technical assistance to small businesses, has launched a new ‘Quality Improvement’ project within the Venezuelan government’s National Reciprocal Guarantee System (SNGR) to increase the efficiency and quality of management of micro-, small and medium-sized enterprises (MSMEs). The project aims to “increase the productive capacity of enterprises, stimulate innovative projects and increase financing opportunities and improvements.” According to Enrique Garcia, President and CEO of CAF, “Support for strengthening MSMEs is a major challenge of the CAF action plan, which is why, in addition to operations in favor of microfinance institutions, CAF is developing innovative mechanisms to finance small- and medium-sized enterprises.” The budget for the project has not been disclosed.

By Conner Brannen, Research Assistant

About Andean Development Corporation (CAF):

The Andean Development Corporation (CAF) is a multilateral financial institution owned by 16 shareholder countries and 14 private banks shareholders from Latin America and the Caribbean, as well as Spain and Portugal. It was established in 1970 in Caracas, Venezuela. It provides loans for purposes such as microfinance, infrastructure, and health in Latin America and the Caribbean. It also provides financial advisory services and technical services. As of the end of 2008, CAF had USD 14.2 billion in total assets and an investment and loan portfolio of USD 10.2 billion.

About the National Mutual Guarantee Fund for Small and Medium-sized Enterprises (FONPYME):

The National Mutual Guarantee Fund for Small and Medium-sized Enterprises (FONPYME) is a corporation that promotes the development and growth of cooperatives, micro- and small enterprises, facilitating their access to banking and allowing them to participate in tenders, through financial and technical bonds. FONPYME is attached to the People’s Ministry of Planning and Finance and is part of the National System of Reciprocal Guarantees (SNGR), which aims to provide new options to strengthen small and medium-sizes enterprises.

Sources and Additional Resources:

CAF: “National Guarantee System and CAF promote improvements in Venezuelan MSMEs,” June 15, 2010: http://www.caf.com/view/index.asp?ms=17&pageMs=45235&new_id=70793

MicroCapital Universe Profile: Andean Development Corporation (CAF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Andean+Development+Corporation+%28CAF%29

MICROCAPITAL BRIEF: The Andean Development Corporation (CAF) Approves USD 400,000 Investment in the Investment Corporation for Microfinance in Central America and the Caribbean (SICSA) to Provide Finance for Microfinance Institutions (MFIs), January 4, 2010: https://www.microcapital.org/microcapital-brief-the-andean-development-corporation-caf-approves-usd-400000-investment-in-the-investment-corporation-for-microfinance-in-central-america-and-the-caribbean-sicsa-to-provide-fina/

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