MICROCAPITAL BRIEF: The Andean Development Corporation (CAF) Approves USD 400,000 Investment in the Investment Corporation for Microfinance in Central America and the Caribbean (SICSA) to Provide Finance for Microfinance Institutions (MFIs)

The Andean Development Corporation (CAF), a multilateral financial institution, has approved a USD 400,000 investment in the Investment Corporation for Microfinance in Central America and the Caribbean (SICSA), a microfinance fund that aims to improve the “institutional capacity” of microfinance institutions (MFIs) [1].SICSA is based in Panama, and will use the investment to further expand the availability of financial services to microenterprises in Central America and the Caribbean [1]. Specific plans for the funds have not been released. The CAF  is owned by 16 shareholder countries and 14 private bank shareholders from Latin America and the Caribbean as well as Spain and Portugal [1].

By Christopher Maggio, Research Assistant

About:
Andean Development Corporation (CAF)

Description:
The Andean Development Coporation (CAF) is a multilateral financial institution owned by 16 shareholder countries and 14 private banks shareholders from Latin America and the Caribbean, as well as Spain and Portugal. It was established in 1970 in Caracas, Venezuela. It provides loans for purposes such as microfinance, infrastructure, and health in Latin America and the Cairbbean. It also provides financial advisory services and technical services.

The CAF does not report to the MIX Market, the microfinance information clearinghouse.

Organization’s Website:
http://www.caf.com

Just the Facts:
-Country of Incorporation: Venezuela
-Year Founded: 1970
-Legal Status: Multilateral Financial Institution
-Total Assets: USD 14.2 billion (as of 31/Dec/08)
-Investment and Loan Portfolio: USD 10.2 billion (as of 31/Dec/08)
-Area of Operation: Latin America and the Caribbean

Contact Information:
Ave. Luis Roche, Torre CAF
Altamira, Caracas – Venezuela
Phone:+58 212 209 2111 (master)
Fax: +58 212 209 2444

e-mail: Infocaf@caf.com

Additional Resources:
CAF Annual Report 2009: http://www.caf.com/attach/17/default/AnnualReportCAF2008BAJAVERSIONIMPRENTA.pdf

MicroCapital’s Microfinance Universe profile: CAF

About:
Investment Corporation for Microfinance in Central America and the Caribbean (SICSA)

Description:
The Investment Corporation for Microfinance in Central America and the Caribbean (SICSA) is a fund that invests in microfinance institutions (MFIs) in Central America and the Caribbean. It is based in Panama. It also has plans to develop a Natural Disaster Emergencies Fund to support MFIs that are affected by natural disaster.

Investment Corporation for Microfinance in Central America and the Caribbean (SICSA) does not report to the MIX Market, the microfinance information clearinghouse, nor does it have a website.

MicroCapital’s Microfinance Universe profile: SICSA

Bibliography:
[1] CAF press release entitled ‘Stimulus for development of microfinance in Central America and the Caribbean’: http://www.caf.com/view/index.asp?ms=17&pageMs=45235&new_id=59584
[2] CAF: http://www.caf.com/

Source Press Release:
Stimulus for development of microfinance in Central America and the Caribbean

(Caracas, December 23, 2009).- CAF confirmed its support for SICSA ( Investment Corporation for Microfinance in Central America and the Caribbean) with the approval of investment capital of US$400 ,000 destined to expand the range of innovative financial services for the microenterprise sector in its shareholders countries in Central America and the Caribbean.

CAF supports SICSA as a means of contributing to the sustainability and growth of microfinance institutions and contributing to the generation of equitable economic growth in the region

SICSA is incorporated under the legislation of the Republic of Panama, and authorized to operate in Central America and the Caribbean. Its objective is to become an alternative for the financial strengthening of the region’s microfinance institutions and for the microfinance industry, by improving institutional capacities and increasing the industry’s visibility, presence and weight in the Latin American context.

There are also plans for SICSA to develop initiatives such as the Natural Disaster Emergencies Fund (FEDEN)to support microfinance institutions affected by this type of event.

SICSA marks an important milestone in the history of the region’s microfinance institutions since – by its nature – it differs from previous efforts, and has the characteristics and potential to become an important source of finance for development of microfinance institutions in Central America and the Caribbean.

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