Photo: IDB Invest
IDB Invest is providing $35 million in financing to Banco para el Fomento a Iniciativas Económicas S.A. (Banco FIE S.A.), in order to promote the segment of Bolivian micro and small enterprises in the trade, industry and services sectors, including enterprises led by women or owned by women.
The deal consists of $20 million committed tranche and an uncommitted tranche of $15 million, each with a term of four years.
The micro-and-small-enterprises segment in Bolivia presents financing gaps, especially in rural areas. By increasing access to credit through Banco FIE S.A., these small production units have the potential to generate a significant impact on the development and reactivation of local communities and the wider post-pandemic Bolivian economy.
IDB Invest will accompany and advise Banco FIE S.A. in the development and implementation of an environmental and social management system that allows strengthening the ability to identify and manage environmental and social risks associated with its credit operations.
This deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Gender Equality (SDG 5), Industry, Innovation and Infrastructure (SDG 9), Reduced inequalities (SDG 10) and Responsible production and consumption (SDG 12).
This article was originally published by IDB Invest.
