MICROCAPITAL BRIEF: BBVA Microfinance Foundation (BBVAMF) Offers Repayment Flexibility, New Loans to Clients in 5 Countries in Latin America, Caribbean in Response to COVID-19 Pandemic

The nonprofit BBVA Microfinance Foundation, which was launched by the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) in 2007, recently responded to the COVID-19 pandemic by offering clients of its six microfinance institutions (MFIs) grace periods of two to four months on outstanding loans, rescheduling of outstanding loans and additional funding. They can also access previously existing virtual customer service channels such as “mobile banking applications, virtual office through webpage and direct assistance from loan officers.” Of the MFIs, two are located in Chile, and one is located each in Colombia, the Dominican Republic, Panama and Peru.

BBVA MicroFinanzas CEO Javier Flores expressed support for “low-income entrepreneurs who, in difficult situations like what we are currently facing, need accessible solutions more than ever, so they could move forward with their businesses and improve their lives.”

As of 2019, the MFIs controlled by BBVA Microfinance Foundation serve a total of 2.2 million clients with USD 1.2 billion in credit outstanding and USD 673 million in client deposits. As of 2019, BBVA has EUR 699 billion (USD 756 billion) in total assets and 80 million customers in 30 countries.

By Simrun Kothari, Research Associate

Sources and Resources

Direct contact with BBVA Microfinance Foundation

BBVA Microfinance Foundation press release
http://www.fundacionmicrofinanzasbbva.org/en/las-entidades-la-fundacion-microfinanzas-bbva-establecen-medidas-22-millones-emprendedores-ante-la-crisis-sanitaria/

BBVA Microfinance Foundation performance report, 2018
http://www.fundacionmicrofinanzasbbva.org/en/informes/2018/

BBVA homepage
https://www.bbva.com

BBVA financial report, 2019
https://shareholdersandinvestors.bbva.com/wp-content/uploads/2020/03/AnnualReport2019BBVAGroup_Eng-1.pdf

Previous MicroCapital news on BBVA Microfinance Foundation
https://www.microcapital.org/microcapital-brief-fundacion-bbva-microfinanzas-continues-buying-equity-microfinance-institution-financiera-confianza-peru-purchase-responsability/

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