The International Finance Corporation (IFC), a member of the World Bank Group, reportedly has disbursed a loan of DOP 195 million (USD 4.8 million) to Asociacion La Nacional de Ahorros y Préstamos, a microfinance institution in the Dominican Republic, to increase its mortgage lending for housing and loan financing for small and medium-sized enterprises. According to Francisco Melo, vice president of La Nacional, “Providing housing loans to low- and middle-income individuals is our mission, especially for those outside large urban centers across the Dominican Republic. With IFC’s support, La Nacional will be able to grow its business in a market where commercial banks operate primarily in the largest urban areas and tend to focus on middle- to upper-income individuals.” According to Jun Zhang, IFC regional manager for the Caribbean, “The housing sector in the Dominican Republic is behind other Latin American peers, particularly the low- and middle-income segments, where access to finance has been insufficient. IFC’s financing to La Nacional will help expand their loan portfolio to low- and middle-income individuals and will positively impact the development of the domestic capital market.”
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 and USD 420 million in deposits collected.
By Lena Phillips, 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 and deposits of USD 420 million.
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 Resources:
International Finance Corporation Press Release: “IFC Loans $5M to Asociacion La Nacional to Expand Access to Low-Income Housing, SME Finance in Dominican Republic”, http://www.ifc.org/ifcext%5Cpressroom%5CIFCPressRoom.nsf%5C0%5CE103151A0F013B4885257AD2005F5DFD
MicroCapital.org article, 29 November 2012: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $5m to Lift Above Poverty Organization (LAPO) of Nigeria”, http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-lift-above-poverty-organization-lapo-of-nigeria/#more-21282
MicroCapital.org article, 30 October 2012: “MICROCAPITAL BRIEF: International Finance Corporation Aims to Boost Entrepreneurship in Romania with $10m Loan to Patria Credit”, http://www.microcapital.org/microcapital-brief-international-finance-corporation-aims-to-boost-entrepreneurship-in-romania-with-10m-loan-to-patria-credit/#more-20769
MicroCapital.org article, 15 October 2012: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Backs Housing Microfinance in Peru with $45m Investment in BBVA Continental”, http://www.microcapital.org/microcapital-briefinternational-finance-corporation-ifc-backs-housing-microfinance-in-peru-with-45-million-investment-in-bbva-continental/
MicroCapital.org article, 14 September 2011: “MICROCAPITAL BRIEF: Dual Return Fund of Vision Microfinance Loans $1.5m to Microfinance Institutions in Columbia, Dominican Republic”, http://www.microcapital.org/microcapital-brief-dual-return-fund-of-vision-microfinance-loans-1-5m-to-microfinance-institutions-in-colombia-dominican-republic/#more-14613
MicroCapital Universe Profile: International Finance Corporation, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: Asociacion La Nacional de Ahorros y Préstamos, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asociaci%E1%BD%B9n+La+Nacional+de+Ahorros+y+Pr%C3%A9stamos
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