By allocating a USD 10m credit line to Cooperativa Pacifico, Proparco is building the capacities of the Peruvian institution to allocate loans at competitive rates to SMEs and small cooperatives in the rural sector.
Cooperativa Pacifico was created in 1970 by members of the Japanese community in Peru. It is today the country's leading savings and credit cooperative, with a market share of 15%. As with any cooperative, it can only collect deposits and allocate loans to member shareholders. Cooperativa Pacifico is a strong institution, with a balance sheet of some USD 450m, and the bulk of assets made up of loans, mainly to SMEs.
Proparco has allocated Cooperativa Pacifico a USD 10m senior credit line to finance local SMEs and support a network of cooperatives in the country.
This project will support the local SME base, especially since Cooperativa Pacifico's social purpose puts the development of its members before profitability objectives, which leads to a range of loans at more competitive rates than those of commercial banks. Cooperativa Pacifico has set the objective of supporting smaller cooperatives located in rural areas, by providing them with advisory and training services, but also financing, which our credit line will be able to support. It is expected that the project will help create or maintain some 3,000 jobs in Peru.