Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced two loans to support the provision of financial services to people with low incomes in El Salvador and Bosnia and Herzegovina.
FMO is lending USD 24 million to Fedecredito, which is based in San Salvador. The institution will use the funds for on-lending to its 55 member cooperatives, which are owned by a total of 934,000 member-shareholders. Fedecredito has about 625 service points and total assets of USD 360 million as of 2015.
Partner Mikrokreditna Fondacija, a microfinance institution (MFI) in Bosnia and Herzegovina that focuses on promoting economic independence in the country’s agricultural sector, is borrowing EUR 5 million (USD 5.3 million) from FMO. For 2015, Partner reports to the US-based Microfinance Information Exchange (MIX) total assets of USD 72 million, a gross loan portfolio of USD 63 million and 44,000 borrowers. US-based nonprofit Mercy Corps founded Partner in 1997, and Mercy Corps retains control of two of the five seats on the MFI’s Board of Directors.
Founded in 1970, FMO is 51-percent owned by the Dutch government. Its other stakeholders are commercial banks, trade unions, employers’ associations and individual investors. FMO supports governments and invests in financial institutions, energy firms and agribusiness operators in developing countries through loans, guarantees and other investment promotion activities, including local-currency investments. As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.05 billion).
Sources and Additional Resources
FMO Invests in Fedecredito
FMO Invests in Partner of BiH
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