MICROCAPITAL BRIEF: IFC to Advise La Nacional of the Dominican Republic on Strengthening Risk Management, Corporate Governance

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has announced a cooperation agreement with Asociacion La Nacional de Ahorros y Préstamos (La Nacional), a financial institution in the Dominican Republic, to strengthen La Nacional’s risk management and corporate governance practices in an effort to improve its service to its low-income and small and medium-sized enterprise (SME) clients. The support from IFC, which will come in the form of advisory services, is intended to supplement the loan of USD 5 million that IFC disbursed to La Nacional in December 2012, as was reported by MicroCapital at the time.

According to 2011 data reported to the US-based nonprofit Microfinance Information Exchange, La Nacional has total assets of USD 491 million, a gross loan portfolio of USD 299 million, 44,500 active borrowers, 387,000 total depositors with total deposits of USD 420 million, return on assets (ROA) of 1.33 percent and return on equity (ROE) of 11.4 percent. IFC has invested approximately USD 938 million in the Dominican Republic since 1961.

By Brian LeBlanc, Research Associate

About Asociacion La Nacional de Ahorros y Préstamos

La Nacional, founded in 1972, is a financial institution headquartered in Santo Domingo, Dominican Republic. It provides loans for consumption, housing and small and medium-sized enterprise. It has 48 branches throughout the country. According to 2011 data reported to the US-based nonprofit Microfinance Information Exchange, La Nacional has total assets of USD 491 million, a gross loan portfolio of USD 299 million, 44,500 active borrowers, 387,000 total depositors with total deposits of USD 420 million, return on assets (ROA) of 1.33 percent and return on equity (ROE) of 11.4 percent. IFC has invested approximately USD 938 million in the Dominican Republic since 1961.

About International Finance Corporation (IFC)

A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

Sources and Additional Information:

IFC press release, http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/2B035D59F699E93F85257B5000567F1D

MicroCapital article, February 22, 2013, “MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) to Invest $2.5m in Equity in Microfinance Institution FONDESA of the Dominican Republic as it Seeks to Become a Regulated Entity,” https://www.microcapital.org/microcapital-brief-multilateral-investment-fund-mif-to-invest-2-5m-in-equity-in-microfinance-institution-fondesa-of-the-dominican-republic-as-it-seeks-to-become-a-regulated-entity/

MicroCapital article, January 22, 2013, “MICROCAPITAL BRIEF: IFC, Global Agriculture and Food Security Program Invests #10m in Root Capital for Farmers in Africa, Latin America,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-la-nacional-of-the-dominican-republic-for-housing-small-and-medium-sized-enterprise-sme-lending/

MicroCapital article, January 2, 2013, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $5m to La Nacional of the Dominican Republic for Hoursing, Small and Medium-Sized Enterprise (SME) Lending,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-la-nacional-of-the-dominican-republic-for-housing-small-and-medium-sized-enterprise-sme-lending/

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