MICROCAPITAL BRIEF: EIB to Loan $8.3m to Banco ADOPEM, Targeting Women Microentrepreneurs in Dominican Republic

The EU’s European Investment Bank (EIB) recently agreed to loan approximately DOP 480 million (USD 8.33 million) to Banco de Ahorro y Crédito ADOPEM, a microfinance institution (MFI) in the Dominican Republic, targeting microentrepreneurs as they adjust to the COVID-19 pandemic. The wholesale loan will allow ADOPEM to provide approximately 27,000 retail loans, including 18,000 loans for women.

EIB Vice President Ricardo Mourinho Félix stated, “Boosting support for small businesses helps to stimulate private sector development, productivity and job creation. We are delighted to partner with ADOPEM to help microenterprises affected by the COVID-19 pandemic, while contributing to promoting gender equality by improving access to credit for businesses run by women in the Dominican Republic.”

Established in 1982, ADOPEM was originally known as Asociación Dominicana para el Desarrollo de la Mujer. It provides microloans, savings and insurance products as well as non-financial services, such as training in financial literacy and business skills. As of 2019, ADOPEM reported holding total assets of USD 133 million and serving 395,000 clients of whom 43,000 were receiving financial education. As of 2021, Spain-based Fundación BBVA Microfinanzas holds a 71-percent equity stake in the MFI.

The nonprofit BBVA Microfinanzas was launched by the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) in 2007. As of 2019, the MFIs controlled by BBVA Microfinanzas serve a total of 2.2 million clients with USD 1.2 billion in credit outstanding and USD 673 million in client deposits. These MFIs are located in Chile, Colombia, the Dominican Republic, Panama and Peru.

EIB, founded in 1958, is “focused on innovation, SMEs [small and medium-sized enterprises], infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution “adds value in project implementation and the modernisation of public policies thanks to its technical and financial expertise and advisory services.” During 2019, the institution disbursed EUR 48 billion (USD 57 billion), about 90 percent of which it deployed within the EU.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2021-084-the-european-investment-bank-and-adopem-increase-microfinance-support-for-covid-19-impacted-companies-in-the-dominican-republic

Banco ADOPEM homepage
https://bancoadopem.com.do/

BBVA Microfinanzas homepage
https://www.fundacionmicrofinanzasbbva.org/

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