Regional Financial Facility: Response to Climate and Natural Emergencies in Central America

The project seeks to support the creation of a facility to respond to the liquidity and financing challenges faced by households and businesses in vulnerable and poor segments - as well as the providers of inclusive financial service (PIFS) that serve them - as a result of emergencies produced by natural and other disasters in Central America. The project will support Fundacion Covelo in: (i) responding immediately to the emergency financing needs arising from the natural catastrophes that occurred in 2020; and (ii) the creation of a financial vehicle ("facility") with a permanent horizon to respond to crises generated by natural emergencies, financial crises, or of crises of different nature that affect the supply of financial services or that have the effect of reducing economic activity in the countries of Central American in the future. The proposed new vehicle will respond to the emergency financing needs and demands of PIFS that serve the poorest and vulnerable segments of the region (savings and credit cooperatives, rural agricultural cooperatives, and microfinance institutions). With the availability of such financing, it will sustainably strengthen the supply inclusive financial services catering to thousands of individuals, households, and micro and small enterprises with agile and innovative solutions.

Project Detail

Country

Regional

Project Number

RG-T3822

Approval Date

February 17, 2021

Project Status

Closed

Project Type

Technical Cooperation

Sector

FINANCIAL MARKETS

Subsector

FINANCIAL INCLUSION

Lending Instrument

Instrumento del Fondo Multilateral de Inversiones

Lending Instrument Code

MIF

Modality

Facility Type

Environmental and Social Impact Category (ESIC)

Total Cost

USD 600,000.00

Country Counterpart Financing

USD 300,000.00

Original Amount Approved

USD 300,000.00

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Implementation Phase

https://www.iadb.org/document.cfm?id=EZSHARE-1837216431-3

Donors Memorandum

RG-L1152, RG-Q0068 _ RG-T3822 - Project summary.pdf

Feb. 16, 2022

English

https://www.iadb.org/document.cfm?id=EZSHARE-1837216431-4

Donors Memorandum

RG-L1152, RG-Q0068 _ RG-T3822 - Resumen del proyecto.pdf

Feb. 16, 2022

English

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