Microfinance roundup: IDB loan, Nicaragua credit crunch, development bank SBD

The Inter-American Development Bank ( IDB) has approved a US$20mn loan to improve and build 8,200 housing units for low-income families in Nicaragua. Additional funding will come from the Central American Bank for Economic Integration ( Cabei) and various NGOs. The program will cover up to 70% of the improvements' costs. Municipalities will contribute 20% and resident families 10%. *** Nicaragua's microlenders are struggling to raise funding from foreign investors, local microfinance association Asomif said. The association members are trying to raise US$40mn this year from Cabei and national banks to complete their US$71mn lending plan. However, a weak economy and the loss of investor confidence in the sector after a voluntary loan default movement in 2009 are complicating the fundraising. *** Costa Rican development bank Sistema de Banca de Desarrollo (SBD), funded by the country's commercial banks, will have a new supervision board comprising two ministry officials, an SME representative and four members of big and small financial institutions. The move aims to make decision-making at the bank more inclusive and is part of an ongoing effort to reform SBD, to boost second floor lending to microfinance institutions.