MICROCAPITAL BRIEF: Spanish Fund for Latin America and the Caribbean (SFLAC), International Finance Corporation (IFC) to Assist Salvadoran Microfinance Institution (MFI) Ahorro y Credito AMC de RL in Developing Savings Product, Building Sustainable Business Plan

International Finance Corporation (IFC), the private-investment arm of the World Bank Group, with support from the Spanish Fund for Latin America and the Caribbean (SFLAC), a trust fund of the Spanish Government, recently announced a partnership with Salvadoran microfinance institution (MFI), Ahorro y Credito AMC de RL to build a long-term sustainability plan for the MFI and create a savings product to be marketed to rural, low-income households. Wilson Salmeron, Executive Director of AMC, says that this initiative will allow the MFI to offer “a full range of financial services to our clients and [deepen] the access to finance for low-income households in rural areas” [1].

According to the US-based nonprofit data provider Microfinance Information Exchange (MIX), AMC currently offers loans, insurance and fund transfer services in 12 of the 14 provinces in El Salvador. As of December 31, 2009, AMC had total assets of USD 20.1 million, a gross loan portfolio of USD 16 million, return on assets (ROA) of 1.09 percent, return on equity (ROE) of 5.43 percent and 13,773 active borrowers.

By Rohan Trivedi, Research Associate

About International Finance Corporation (IFC):
A member of the 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 that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.

About Ahorro y Credito AMC de RL:
Ahorro y Credito AMC de RL is a microfinance institution that was established in 2001. As of May 2011, AMC operates in 12 of the 14 provinces in El Salvador. AMC provides a range of financial services to low-income and rural clients, with an emphasis on credit products for growing businesses. As of December 31, 2009, AMC had total assets of USD 20.1 million, a gross loan portfolio of USD 16 million, return on assets (ROA) of 1.09 percent, return on equity (ROE) of 5.43 percent and 13,773 active borrowers.

About Spanish Fund for Latin America and the Caribbean (SFLAC):
Spanish Fund for Latin America and the Caribbean (SFLAC) is a trust fund established by the Spanish Ministry of Economy and Finance and the World Bank Group. SFLAC provides support for technical assistance projects in the region, including a focus on access to finance and public-private partnerships. Financial information on SFLAC is not available.

Sources and Additional Resources:

[1] International Finance Corporation (IFC) Press Release: “IFC, AMC Strengthen Financial Services for El Salvador’s Women and Rural Entrepreneurs”, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=8C7C7A6F3E8A168985257885005986CB

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

MicroCapital Universe Profile: Ahorro y Credito AMC de RL, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ahorro+y+Credito+AMC+de+RL

MicroCapital Universe Profile: Spanish Fund for Latin America and Caribbean (SFLAC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Spanish+Fund+for+Latin+America+and+the+Caribbean+%28SFLAC%29

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