Peru: US$20mn IDB-Cofide Facility Could Help 6-10 Microlenders

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Mar 2009
Santiago, Chile, March, 16 2009 - The US$20mn that IDB and Peru's state-run Corporación Financiera de Desarrollo (Cofide) plan to provide for Peruvian microfinance institutions to support the country's low-income housing market could help 6-10 microlenders and finance thousands of home loans, private sector specialist at IDB, Susan Olsen, told BNamericas.

On March 12, the IDB said it approved a US$10mn financing facility for Peruvian microfinance institutions and the facility will receive a local co-financing contribution of another US$10mn from Cofide.

IDB said its resources will provide subordinated debt to strengthen the lenders' capital positions and leverage their loan portfolio growth potential, while the senior mortgage and home improvement loans will provide medium and long-term funding for housing solutions.

Some 20 microlenders have signed letters of intent, Olsen said, adding the funds are expected to have a very significant effect on individuals in the C and D socio-economic groups.

People in C socio-economic group earn an average 1,342 soles (US$430) a month while those in D socio-economic group make 815 soles a month, Olsen said.

Mortgages granted under the initiative could amount to between 12,000 and 20,000 soles, while loans for home improvements would be lower, she said.

Peru's low-income housing deficit is estimated at between 1.7mn and 2.1mn units.

There were 36 non-bank microfinance institutions operating in Peru at end-2008, with assets of 9.77bn soles and loans of 8.09bn soles, according to data from financial sector regulator SBS.

Of total loans, 54.1% were to microenterprises, 22.6% consumer credit, 19.8% commercial loans and 3.5% housing loans, SBS data shows.



 

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