Banesco is a universal bank that plays a major role in financial intermediation for individuals and companies in Panama. Banesco S.A. is part of a financial group that operates in 16 countries in Europe, Latin America and North America. The bank is based in Panama and has two subsidiaries, one in the Dominican Republic and another in Curaçao. Banesco is Panama’s 9th largest bank in terms of assets and capital and the 7th largest in terms of deposits.
The operation is a Friendship Facility led by DEG and will not only allow us to enter inter relations with a new counterparty in Panama, but also to contribute to reducing gender inequalities, as half of the amount of our financing will target women’s entrepreneurship. This marks our first allocation of a project that contributes to the achievement of the objectives of the 2X Challenge initiative. This credit line will support growth in the SME financing activity via a range of products tailored to their needs and the diversification of long-term loans.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
On the economic front, positive impacts are expected on the development of Panamanian SMEs, with some 600 SME loan beneficiaries expected over the next 5 years for a credit volume amounting to double the bank’s current outstanding SME loans.
On the social front, the project should support 1,400 jobs at Banesco with, in addition, some 5,500 indirect jobs (in the SMEs financed by Banesco) over the next 5 years. There are a majority of women in the bank, who hold 64% of senior management positions.
The project will also have a positive impact on the reduction of gender inequalities, as 50% of Proparco’s credit line will be earmarked to finance SMEs managed or owned by women and SMEs with women’s leadership or which offer products and services for women.
This project is part of the 2X Challenge initiative
This information is given at the time of signature, without prejudice to any developments in the operation/project