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Opportunities for the Majority of the IDB helps reduce the housing deficit in Peru
The Inter-American Development Bank (IDB), through its Opportunities for the Majority Initiative, approved a loan of 3.8 million in Peruvian Soles (equivalent to $3 million) to Caja Municipal de Ahorro y Crédito SA Ica (CMAC Ica)  to increase financing for low-income families in Peru for housing improvements.

The project's main goal is to help reduce the housing shortage in the country, estimated at about 900,000 homes. The operation is part of an overall $10 million loan to support the regulated micro financial system in Peru, which  seeks to increase housing credit for low income and was designed to complement the Government's "ceiling Proprio" MiVivienda Fund.

"Despite the significant progress Peru has made in housing and the growth of construction sector in recent years, the gap between low-income housing supply and demand remains high," said Susan Olsen, IDB team leader. "With this project, we are seeking to meet the credit demand of a certain segment of the low-income population, helping alleviate the housing shortage, especially in the Ica area, which is still rebuilding after the earthquake of 2007."

Since its inception in 1989, CMAC has served segments of the lower income population without easy access to formal credit. Through this project, CMAC Ica aims to benefit about 1,000 households through the granting of credit to improve or repair their homes.

This operation will be the first IDB private sector loan to be given in local currency and following local laws. The credit structuring was made in coordination with co-lender Blue Orchard Finance SA, which also extended a credit of $2.7 million or its equivalent in Nuevo Soles to the CMAC Ica.