Belize to Expand Financing for Micro, Small, and Medium-Sized Enterprises with IDB Support

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $15 million global credit program to expand access to financing for micro, small, and medium-sized enterprises (MSMEs) in Belize.

The IDB-backed program will support the establishment of Belize’s first guarantee fund for MSMEs, aimed at mobilizing medium- and long-term financing from local financial institutions for productive investments to support MSMEs' growth, while enabling longer tenors that are better aligned with the businesses' growth needs.

MSMEs account for 90% of businesses in Belize and generate 50% of private-sector employment and income. Yet only 18% of them have a loan or line of credit from a financial institution. The program seeks to address key barriers limiting their access to credit, including insufficient collateral, limited information on borrowers’ credit history, short loan maturities, and risk aversion among local financial institutions.

The IDB, through the program and technical assistance, will also provide capacity building to strengthen the governance and operation of the guarantee fund, which will be setup by the Ministry of Finance, and enhance Belize's Development Finance Corporation’s ability to manage, promote, and monitor the fund.

The IDB global credit program has a maturity period of 25 years, a grace period of 5.5 years, and an interest rate based on SOFR.