CAF (Andean Development Corporation) recently announced the implementation of a local-currency financing program in the amount of BOB 35 million (USD 5 million) for the micro-, small and medium-sized enterprise (MSME) sector in Bolivia, provided from CAF to support microfinance institutions with medium-term (up to three years) loans in local currency.
The funding will allow CAF’s microfinance institution clients to access medium-term credit without exchange rate risk. Under the financing facility, CAF clients will be able to access credit in Bolivian bolivianos with semi-annual repayments.
The new facility is part of CAF’s local currency program that has delivered the equivalent of USD 34 million to Peru, USD 10 million to Mexico and USD 20 million to Colombia.
By Jennifer Shevock, Research Associate
About CAF (Andean Development Corporation):
The Andean Development Corporation (CAF) is a multilateral financial institution owned by 16 shareholder countries and 14 private banks 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. CAF reported total assets of USD 15.9 billion as of December 31, 2009.
Sources and Additional Resources:
“New program to Support Microfinance Institutions in Bolivia” August 16, 2010. http://www.caf.com/view/index.asp?ms=19&pageMs=69892&new_id=72771
MICROCAPITAL BRIEF: “Andean Development Corporation (CAF) Approves $5m Line of Credit for Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente to Support Micro and Small Enterprises in Peru” August 3, 2010. https://www.microcapital.org/microcapital-brief-andean-development-corporation-caf-approves-5m-line-of-credit-for-caja-rural-de-ahorro-y-credito-crac-nuestra-gente-to-support-micro-and-small-enterprises-in-peru/
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” June 22, 2010. https://www.microcapital.org/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/
MicroCapital Universe: CAF (Andean Development Corporation): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Andean+Development+Corporation+%28CAF%29
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