San Salvador, El Salvador, June 16, 2010—IFC, a member of the World Bank Group, will provide up to $30 million of debt financing to Fedecredito using an innovative funding approach that leverages the significant remittances of El Salvadorans working abroad to increase lending to microentrepreneurs and low-income people in the country.
This will be the first funding backed by future remittance flows undertaken anywhere by a financial intermediary focused on low-income clients. Fedecredito is a cooperative owned by 55 El Salvadoran credit unions and workers banks that mobilize savings deposits from 600,000 low-income member owners, who represent close to one-quarter of El Salvador’s workforce. In addition to raising wholesale funding for these credit unions and workers banks, Fedecredito also processes remittances for them. Read more
About Fedecredito
Established over 60 years ago, Fedecredito is a cooperative owned by 55 El Salvadoran credit unions and workers banks located throughout the country. These entities mobilize savings from 600,000 individual member-owners. In turn, they profitably provide credit and other financial services/products to their individual member-owners and microenterprises. One of Fedecredito’s main functions is to complement deposit funding at these credit unions and workers banks to increase the amount of financing made available to their individual member-owners and microenterprises. For more information, visit: www.fedecredito.com.sv.
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