Banco Ademi, Proparco and the European Union support the financial inclusion of Dominican entrepreneurs
published on 19 March 2024
Banco Ademi, strengthens its partnership with Proparco by granting two ARIZ and EURIZ portfolio guarantees equivalent in DOP to 10 million euros in Dominican pesos, and a technical assistance to the leading Dominican microfinance institution, three months after granting international financing equivalent to US$15 million in Dominican pesos.
Banco Ademi, which began operations in 1983 in Santo Domingo's underprivileged neighborhoods as an NGO, has become one of the largest providers of financial services for micro, small and medium-sized enterprises (MSMEs) in the country. It serves nearly 350,000 clients, provides saving products through a network of 74 branches covering the whole of the Dominican Republic.
These portfolio guarantees will enable Banco Ademi to increase its financing of MSMEs, operating in the Dominican market.
The ARIZ portfolio guarantee is one of AFD Group's emblematic tools, particularly effective in encouraging investment and job creation in MSMEs operating in all Dominican economic sectors.
The EURIZ guarantee, which is supported by the European Union and the African, Caribbean and Pacific Group of States (OACPS), will enable Banco Ademi to support investments by MSMEs with a high development impact by sharing a significant percentage of the credit risk. It specifically targets MSMEs focused on the agriculture, education, sustainability, women and young entrepreneurs sectors.
"Proparco is glad to strengthen its partnership with Banco Ademi, which has been a key player in the microfinance sector for 40 years. The two portfolio guarantees will enable the bank to step up its support for Dominican micro-entrepreneurs. Women entrepreneurs will be a particular focus, thanks to the EURIZ guarantee which is supported by the European Union and targets high-impact sectors. In addition, our technical assistance will support Banco Ademi to improve its client protection practices toward obtaining the Client Protection Pathway certification" said Djalal Khimdjee, Deputy CEO at Proparco.
"For Banco Ademi, the ARIZ and EURIZ portfolio guarantees and the technical assistance provided by Proparco are of great value, with which we will reach a greater number of micro-entrepreneurs of the Dominican Republic and will continue working to protect our clients" said Andrés Bordas, Executive President at Banco Ademi.
The project will contribute to several Sustainable Development Goals (SDGs): SDG 3 "Good health and well-being", SDG 4 "Quality education", SDG 5 "Gender equality", SDG 7 "Clean and affordable energy", SDG 8 "Decent work and economic growth" and SDG 13 "Combating climate change".
