Proparco supports the financial inclusion of entrepreneurs with Vitas Lebanon
published on 18 July 2024
Proparco is reiterating its support for Vitas Liban, following an initial operation in December 2020. This new partnership, in the form of a €2 million ARIZ TPE MINKA portfolio guarantee, aims to cover 80% of the loans granted by the microfinance institution.
One of the country's leading microfinance institutions, Vitas Liban serves 14,000 active clients. Following an initial partnership signed in 2020 between Proparco and Vitas, this new operation aims to increase access to finance for very small Lebanese businesses, against a backdrop of crisis in the local financial system.
The €2 million ARIZ TPE MINKA portfolio guarantee, a programme to support the private sector in crisis situations, will enable Vitas Liban to cover 80% of its loan portfolio, with amounts ranging from USD 500 to USD 15,000.
In addition to this portfolio guarantee, Vitas will receive technical support on gender issues, as it seeks to provide greater support for its female clientele, which has been hard hit by the crisis, and to increase the proportion of women entrepreneurs in its portfolio.
’ Proparco and Vitas Liban began a first successful partnership, launched in 2020, aimed at vulnerable populations in Lebanon. This second commitment by Proparco is in response to a deteriorated context that considerably reduces the financial inclusion of local entrepreneurs. We are convinced of the capacity of Vitas, a leading player in the microfinance sector, to contribute to strengthening access to finance for small Lebanese businesses, and thus generate positive impacts for entrepreneurs and the country's economy ‘. Sébastien Fleury, Regional Director of Proparco in the Middle East.
