IDB loan to Visión Banco will increase access to financing and enable homes to carry out improvements and connect to water and sewer systems
The Inter-American Development Bank (IDB) has approved a $10 million loan from its Opportunities for the Majority Sector to Visión Banco SAECA of Paraguay, designed to improve and broaden access to potable water and sanitation services for families living in small cities and suburban areas, through investments in water and sanitation councils (juntas de agua y saneamiento) and loans to families at the base of the pyramid.
With these funds, Visión Banco will create a new line of financing focused specifically on the water and sanitation sector, and designed so that the councils can improve, repair and expand their water systems. Homes at the base of the pyramid will also be able to connect to the water and sewer systems, and carry out other improvements related to water and sanitation.
The financing offered by Visión Banco to the councils will be the first line of credit of its type offered in Paraguay.
“The market has a great need for a credit product adapted to the requirements and realities of the Councils, and for a product for home improvements related to water and sanitation adapted to the base of the pyramid,” said Luis Ros, manager of the Opportunities for the Majority Sector at the IDB. “Visión Banco is an ideal partner to design and offer these types of credit products, because of its start in the area of micro-finances, its traditional focus on the base of the pyramid families, and its extensive network of branches all over the country,” Ros added.
The project is expected to benefit about 10,000 homes, including those in areas managed by the councils and those that will receive direct financing. It also includes a technical assistance component that focuses on the design of Visión Banco’s credit products offers the Councils training on operational, commercial and financial issues.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.