MICROCAPITAL BRIEF: International Finance Corporation (IFC), Colombian Federation of Chambers of Commerce, Superintendence of Corporations to Facilitate Lending Based on Movable Collateral

The International Financial Corporation (IFC), the private investment arm of the World Bank Group, has partnered with the Superintendence of Corporations of Colombia, a government agency that regulates corporations, and Confecamaras, the Colombian Federation of Chambers of Commerce, to launch a lending framework that is intended to facilitate financial access for micro-, small and medium-sized enterprises (MSMEs) in the country [1].

The new platform allows borrowers to use movable assets as collateral to secure loans. It has been reported that 104 financial institutions have registered as lenders, and loans worth USD 5 billion have been generated since the framework began operations in March 2014.

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By Nisha Koul, Research Associate

About International Finance Corporation (IFC): The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, 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. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources:

[1] MSME News Network, “IFC and partners launch secured lending framework to boost financing for small businesses,” http://www.msmenewsnetwork.com/index.php/americas/news/item/2794-ifc-and-partners-launch-secured-lending-framework-to-boost-financing-for-small-businesses

MicroCapital Story, May 7, 2014, “Financial Capability in Colombia: Results from a National Survey on Financial Behaviors, Attitudes, and Knowledge; by Rekha Reddy, Miriam Bruhn and Congyan Tan; Published by The World Bank,” https://www.microcapital.org/microfinance-paper-wrap-up-financial-capability-in-colombia-results-from-a-national-survey-on-financial-behaviors-attitudes-and-knowledge-by-rekha-reddy-miriam-bruhn-and-congya/

MicroCapital Story, March 24, 2014, “International Finance Corporation (IFC) Capitalization Fund Invests $170m in Banco CorpBanca Colombia,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-capitalization-fund-invests-170m-in-banco-corpbanca-colombia/

MicroCapital Story, March 20, 2014, “Government of Jamaica Introduces SIPP Registry of Collateral, “Super Form” for Business Registration to Support Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-government-of-jamaica-introduces-sipp-registry-of-collateral-super-form-for-business-registration-to-support-micro-small-medium-sized-enterprises-msmes/

MicroCapital Universe Profile, International Finance Corporation (IFC), www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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