Microfinance program responds to greater demand from maturing market - IIC

- Friday, February 4, 2011

Microfinance program responds to greater demand from maturing market - IIC

A program launched by the IIC in Peru to fund microfinance institutions responds to greater demand from the market's different players as the sector consolidates and matures, IIC investment officer Sandra Reyes told BNamericas.

"In Peru, the microfinance sector is one of the most developed in Latin America," Reyes said. "It's a sector that is reorganizing. It's growing a lot and needs support to grow."

Reyes said the program, which seeks to distribute US$15mn in funds, will be spread out over two years and could be extended if it is successful.

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She said heightened activity in Peru's microfinance sector meant more competition, leading to more demand for funds - both for expanding loan portfolios and for diversifying funding sources.

Earlier this year, Spanish bank BBVA's (NYSE: BBVA) non-profit microfinance foundation announced it would merge its microlender Nuestra Gente with a new acquisition, Financiera Confianza, and seek a banking license for the new entity.

Reyes said funding in the IIC's new program will be available to microfinance institutions of all sizes.