Support Micro-Enterprises Utilizing a Line of Credit
Through this project, the IDB supported Banco Solidario, a leading regulated microfinance institution that entered the remittances market, in financing the technical infrastructure, training and marketing support needed to establish partnership in a joint initiative with the Spanish Cajas de Ahorro. The agreement focused on building jointly a system to channel directly and efficiently the remittances of the approximately 140,000 Ecuadorians that live and work in Spain. This flow represent 40 of the total remittances sent annually to Ecuador and are growing at an extremely fast pace. Banco Solidario itself has entered into a partnership agreement with the network of credit cooperatives in Ecuador to distribute these remittances throughout the country. The fact the both ends are linked through the formal banking system made it possible for Banco Solidario and las Cajas to process their remittance transaction through a generic transmitting system such as the worldwide recognized Swift system which is a secure/coded data transmitting system, initially designed to send reasonable amounts of money between banks. To make this system affordable for the purpose of sending remittances, las Cajas and Banco Solidario started to use this system to send remittances every other day in order to reach a critical mass of remittances and therefore, lowering the transaction cost considerably. As the amounts of remittances grow bigger, these bulk sending became more frequent and are now made on daily bases.

Project Detail

Country

Ecuador

Project Number

TC0105029

Approval Date

September 19, 2001

Project Status

Closed

Project Type

Technical Cooperation

Sector

PRIVATE FIRMS AND SME DEVELOPMENT

Subsector

PRIVATE FIRMS AND SME DEVELOPMENT

Lending Instrument

Instrumento del Fondo Multilateral de Inversiones

Lending Instrument Code

MIF

Modality

-

Facility Type

-

Environmental and Social Impact Category (ESIC)

-

Total Cost

USD 430,944.00

Country Counterpart Financing

USD 230,944.00

Original Amount Approved

USD 200,000.00
Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/ME-7599-EC Non-Sovereign Guaranteed USD - United States Dollar Multilateral Investment Fund II (MIF) - Nonreimbursable
Operation Number ATN/ME-7599-EC
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Multilateral Investment Fund II (MIF) -
  • Financial Instrument: Nonreimbursable

Can’t find a document? Request information

 Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1139012434-4001
Project Abstract
Project Abstract for MIF project TC0105029 - ATN_ME-7599-EC [1792432].PDF
Dec. 31, 1999
Spanish

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