EC-L1104 : Credife: Financial Services and Microenterprise Development for the BoP

To achieve the project¿s objectives, the Sector of Opportunities for the Majority (OMJ / OMJ) and the Division of Financial Markets (SCF / FMK) will jointly structure a senior unsecured loan for Banco Pichincha (BP) in the amount of USD $ 40 million for a period of up to six (6) years, with three (3) years grace period. The loan proceeds will be used (i) by CREDIFE¿s Desarrollo Microempresarial of Banco Pichincha in order to expand its credit portfolio, especially for acquisition of fixed assets, associated working capital, and improvements to retail space; and (ii) to finance the investments required by those entrepreneurs who qualify to become banking correspondents (CNB) in order to extend the geographical coverage as well as the range of financial products and services available domestically.