ES-L1069 : Financing Access for BOP Shop Owners

Project Status
Implementation

The objective of the project is to expand access to finance for micro and small entrepreneurs (mom and pop shop owners) that belong to the base of the pyramid (BoP) in El Salvador, through the provision of productive and working capital financing,. In order to achieve this objective, OMJ will provide a Risk Sharing Facility of up to US$5 million to BA, the FI that will provide loans to these beneficiaries. A technical assistance proposal is being presented to GCM for funding consideration, that aims to improve their business management skills. The Guarantee will provide BA with credit-risk coverage for its downscaling efforts in the BoP segment. The guarantee will be structured as a Risk Sharing Facility (RSF) that will enable BA to introduce and provide new value-added products for BoP microentrepreneurs for: (i) the acquisition of equipment; (ii) physical infrastructure improvements; and (iii) working capital needs. The first loss of the pool of loans will be absorbed by BA, and the IDB and BA will share pari-passu the second loss position.

PROJECT DETAIL

Project Number ES-L1069
Operation Number 2961/OC-ES
Country El Salvador
Sector PRIVATE FIRMS AND SME DEVELOPMENT
Subsector PRIVATE FIRMS AND SME DEVELOPMENT-SMALL AND MEDIUM ENTERPRISE
Project Type Guarantee
Project Status Implementation
Approval Date JUL 3, 2013
Contract Signature Date NOV 6, 2013
IDB Financing * 5.00

PROJECT INFORMATION

Total Cost H USD 10,000,000
Country Counterpart Financing USD 5,000,000
Financing Type Guarantee
Fund Ordinary Capital
Reporting currency USD - United States Dollar
Reporting Date SEP 30, 2017
PORTFOLIO DETAILS
Key Value
H Historical
R Revalued

*For active and closed projects, the IDB financing at Board approval is shown in US$ millions. This does not reflect any cancellations. For projects in Preparation the amount shown is the Estimated IDB Financing. Approved projects shows either Estimated IDB Financing or Historic Approved amount. The IDB financing for projects in the pipeline is indicative and may be modified during the project preparatio

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