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Profund International s.a.
PROFUND WAS CREATED BY ACCION INTERNATIONAL AND THREE NGOS TO HELP CREATE OR STRENGTHEN INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO MICROENTERPRISES IN LATIN AMERICA. IT WAS ESTABLISHED IN PANAMA IN 1993 TO OPERATE ON A FOR-PROFIT BASIS TO PROVIDE EQUITY AND LONG-TERM DEBT FINANCING TO ELIGIBLE FINANCIAL INSTITUTIONS IN ORDER THEY MAY EXPAND THEIR OPERATIONS ON A SUSTAINABLE BASIS. PROFUND WILL PROVIDE TECHNICAL ASSISTANCE AS EQUITY.

Project Detail

Country

Regional

Project Number

TC9404170

Approval Date

December 14, 1994

Project Status

Closed

Project Type

Equity

Sector

FINANCIAL MARKETS

Subsector

BANKING MARKET DEVELOPMENT

Lending Instrument

Instrumento del Fondo Multilateral de Inversiones

Lending Instrument Code

MIF

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 3,000,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 3,000,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
EQU/MS-0004-RG Non-Sovereign Guaranteed USD - United States Dollar MIF-Small Enterprise Investment Fund Equity Financing
Operation Number EQU/MS-0004-RG
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: MIF-Small Enterprise Investment Fund
  • Financial Instrument: Equity Financing

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Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-2049106384-4135
Donors memorandum for MIF project TC9404170 - EQU_MS-0004-RG [1805103].PDF
Published Dec. 31, 1999
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Other Documents
https://www.iadb.org/document.cfm?id=EZSHARE-2049106384-11256
PE IN C 97001_14 [397655].JPG
Published Dec. 31, 1999
Download
https://www.iadb.org/document.cfm?id=EZSHARE-2049106384-11260
PE IN M 97004_17 [397738].JPG
Published Dec. 31, 1999
Download
https://www.iadb.org/document.cfm?id=EZSHARE-2049106384-11267
PE IN S 97003_18 [397839].JPG
Published Dec. 31, 1999
Download

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Publications
Published 2024
Financial Development, Growth, and Inequality: The Role of Institutions in Latin America and the Caribbean
This publication explores the relationships between institutions, financial development, and income inequality. It assesses the extent of reforms that can promote financial development and argues that institutional improvements capable of increasing financial development can simultaneously mitigate income inequality. This work, focusing on the Latin American and Caribbean region, uses a broad set of measures of financial development, financial institutions, and capital markets. It employs a comprehensive set of inequality indicators and income definitions, as well an econometric model of the financial possibility frontier, to demonstrate that institutions contributing to financial development also help reduce income inequality.
Publications
Published 2024
Taxation when Markets are not Competitive: Evidence from a Loan Tax
We study the interaction of market structure and tax-and-subsidy strategies utilizing pass-through estimates from the unexpected introduction of a loan tax in Ecuador, a quantitative model, and a comprehensive commercial-loan dataset. Our model generalizes bank competition theories, including Bertrand-Nash competition, credit rationing, and joint-maximization. While we find the loan tax is distortionary, neglecting the possibility of non-competitive lending inflates estimated tax deadweight loss by 80% because non-competitive banks internalize some of the burden. Conversely, subsidies are less effective in non-competitive settings. If competition were stronger, tax revenue would be 10% lower. The findings suggest that policymakers should consider market structure in tax-and-subsidy strategies.
Publications
Published 2024
The Promises of Digital Bank Accounts for Low-income Individuals
The push for adopting digital modes of payment rests on three promises: increased efficiency of transactions, increased financial inclusion, and improvements in the financial well-being of low-income individuals. We experimentally test the extent to which these promises are fulfilled. We exploit the random assignment into an intervention to encourage direct deposits of recurrent government benefits into digital bank accounts in Colombia. Switching from cash to direct deposits reduces disbursement errors and increases access to benefits among eligible beneficiaries. It also increases the ownership of bank accounts, the demand for formal loans, and loan take-up among individuals without a financial history. However, we do not find evidence of improvements in financial well-being across any of our metrics.
Blogs
Published 2023
Impulsando la creatividad y la conectividad en la región Sur-Sureste de México
El potencial creativo de la región Sur-Sureste de México La región Sur-Sureste de México se configura como un clúster creativo al reunir una amplia gama de actividades económicas culturales (por ejemplo: gastronomía, sector audiovisual, publicidad, artes escénicas, diseño, entre otros) que tienen el potencial de complementarse debido a su cercanía geográfica, lo que podría generar
Blogs
Published 2023
Examining the Effectiveness of a Financial Inclusion Reform in Uruguay
In 2014, Uruguay launched an ambitious financial inclusion program, joining other countries in the region that have sought to give citizens greater access to banking and financial services and encourage the use of electronic payments instruments that avoid the need for cash. Unbanked people in Uruguay, as in other countries of the region, had traditionally lacked
Publications
Published 2023
President's Report 2023
IDB Report of the President 2023.
Blogs
Published 2024
Impulsando la inclusión financiera entre los vulnerables
En 2021, sólo el 31% de la población mayor de 15 años en Chile había ahorrado en una institución financiera, con tasas especialmente bajas entre los más pobres, lo que les priva de los beneficios de una serie de servicios financieros, como cuentas de ahorro, crédito y productos de seguros. La importancia de aumentar la
Blogs
Published 2024
Seis lecciones para potenciar las habilidades digitales de las microemprendedoras
En la era digital, las oportunidades para el progreso social y económico en América Latina son enormes. Sin embargo, para garantizar un avance equitativo, es crucial abordar una brecha persistente: la brecha de género en el acceso y uso de las Tecnologías de la Información y Comunicación (TIC). Más mujeres deben participar activamente en el
Publications
Published 2024
Latin America and the Caribbean Standardized Public Debt Database: Data as of June 2023
This database compiles current standardized statistics on sovereign debt issuances for the Latin American and Caribbean (LAC) region and contains biannual data starting in 2006 through June 2023. Sovereign debt data is classified by legislation, creditor, currency, and maturity, among other areas, for 26 LAC countries. The availability of valid, comparable, and standardized public debt data is essential for the implementation of sound policies. As such, at the core of the LAC Debt Group initiative is the development of a standardized sovereign debt database to help debt managers, policymakers, and other actors of financial markets analyze the evolution and composition of public debt in the region and conduct cross-country comparisons. LAC public debt offices provided the data in response to a questionnaire specifically designed to allow comparability. The questionnaire, whose response is non-compulsory, is intended to compile current standardized statistics for objective and homogeneous definitions of public debt.
Publications
Published 2021
Research Insights: How Can Macro-Prudential Policy Control the Impact of Cross-Border Bank Flows on Emerging Market Economies?
Advanced economies (AEs) transmit economic crisis to Emerging Market Economies (EMEs) through cross-border bank flows, impacting their output, credit, and assets prices. Empirical evidence suggests that the transmission of the crisis from AEs to EMEs is higher in the absence of macro-prudential policy. A macro-prudential policy in the form of a levy on EMEs banks, when credit grows faster than deposits, reduces the propagation of AEs crisis to EMEs: the consumption drop is 12 percent lower, and the reaction of the labor market smoother, so consumers are better off with the policy than without it.
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