MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $4.8m in Fondo Para el Desarrollo (FONDESA) to Support Financial Inclusion in Dominican Republic

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has disbursed a three-year, DOP 200 million (USD 4.8 million) loan to Fondo Para el Desarrollo Incorporated (FONDESA), a nonprofit microfinance institution in the Dominican Republic. The wholesale loan, which is specifically intended to increase the availability of funds for microentrepreneurs residing in rural areas, is expected to enable 15,000 retail microloans.

As 2012, FONDESA reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 49.7 million, a gross loan portfolio of USD 39.4 million and 49,047 active borrowers. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By Meraj Husain, Research Associate

About Fondo Para el Desarrollo, Inc. (FONDESA)

Fondo Para el Desarrollo, Inc. (FONDESA) is a nonprofit microfinance institution operating in the Dominican Republic. Established in 1982, FONDESA provides micro- and small enterprises with credit and technical support services. As 2012, FONDESA reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 49.7 million, a gross loan portfolio of USD 39.4 million and 49,047 active borrowers. FONDESA does not accept deposits. As of 2013, FONDESA is in the process of applying for status as a regulated institution.

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] International Finance Corporation: With New Financing FONDESA, IFC Continue to Support Financial Inclusion in the Dominican Republic

MicroCapital, May 6, 2013, IFC to Advise La Nacional of the Dominican Republic on Strengthening Risk Management, Corporate Governance

MicroCapital, February 22, 2013, Multilateral Investment Fund (MIF) to Invest $2.5m in Equity in Microfinance Institution FONDESA of the Dominican Republic as it Seeks to Become Regulated Entity

MicroCapital, October 7, 2008, Fondo Para el Desarrollo, Inc. (FONDESA) and the Cisneros Foundation Team Up to Advance Microfinance in Miches, Dominican Republic

MicroCapital Universe Profile: Fondo Para el Desarrollo, Inc. (FONDESA)

MicroCapital Universe Profile: International Finance Corporation (IFC)

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