FMO and Vision Banco in Paraguay have signed a loan agreement of USD 10 mln.
The Hague - FMO, the Dutch development bank, and Vision Banco, the largest microfinance institution in Paraguay and the bank with the largest branch network in the country, have signed a loan agreement of USD 10 mln. The loan has a tenor of four years and has the purpose to finance micro and small enterprises. Half of the USD 10 mln loan is provided in local currency (Paraguayan Guarani).
Support to the micro entrepreneur can be a cornerstone of economic growth in Paraguay. However, currently the level of bankarization is relatively low, with mainly the larger companies gaining access to funding. Vision Banco is proactively increasing the access to finance for micro and small enterprises by opening branches throughout the country.
Vision Banco is a Paraguayan financial institution with banking license and is supervised by the Paraguayan Central Bank. Vision Banco focuses on providing a full scale of services to micro and small enterprises. The funds from FMO will be used for the expansion of the micro and small enterprise portfolio of Vision Banco.
“We are very happy to work with this bank, which is constantly increasing its outreach and searching for new products to better serve their clients. Their strong focus on micro enterprises in combination with the full product range of a bank makes Vision Banco a very interesting partner for FMO,” said Ronald Janse, Investment Officer at FMO.
Beltran Macchi, Executive Director of Vision Banco said: "Having this financing on interesting terms will enable the creation of jobs directly and indirectly and improve the financial structure of these companies, which currently have limited access to financing with tenors exceeding one year. This will permit us to increase the bankarization in the financial system and achieve greater efficiency with lower costs for our clients. "
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
Eveline Schijf, Communications Officer (PR)
T: +31 70 314 9924
E: e.schijf@fmo.nl
