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Proparco renews its support to BANFONDESA to advance women's financial inclusion in the Dominican Republic

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• Proparco is providing a DOP-denominated financing package to the microfinance institution Banco de Ahorro y Crédito FONDESA, S.A. (BANFONDESA), comprising a senior loan equivalent to USD 15 million and a DOP-denominated EURIZ portfolio guarantee providing coverage of up to EUR 5 million.
• The financing will support the growth of BANFONDESA's loan portfolio, with a particular focus on women entrepreneurs.

A leading microfinance institution in the Dominican Republic, BANFONDESA expands access to financial services for populations traditionally excluded from the banking system. With 71% of its borrowers located in rural and suburban areas, the institution plays a key role in reducing territorial and socio-economic inequalities by fostering local economic development, supporting job creation and improving the living conditions of rural communities.

This new operation builds on a long-standing partnership between the AFD Group, Fondo para el Desarrollo, Inc. (FONDESA) and BANFONDESA. Since 2013, the AFD Group has supported FONDESA and BANFONDESA in expanding their student loan activities and financing for rural microentrepreneurs. Over the period, the AFD Group provided three credit lines totaling EUR 12 million, including one facility transferred to BANFONDESA following the creation of its banking subsidiary. In 2020, Proparco further strengthened this partnership by providing a EUR 5 million EURIZ portfolio guarantee to support entrepreneurs affected by the Covid-19 crisis. This transaction marks the Group's sixth operation with the institutions, reflecting a long-term partnership dedicated to promoting more inclusive finance.

The project is expected to sustain 764 jobs and provide financing to nearly 12,000 microenterprises.

"We are pleased to strengthen our partnership with BANFONDESA through this new long-term financing, converted into Dominican pesos through TCX. This operation will support the productive investments of nearly 12,000 low-income microenterprises, primarily located in the most disadvantaged rural areas of the Dominican Republic. By expanding access to financing tailored to their needs, we reaffirm our commitment to strengthening financial inclusion and promoting more equitable development for the benefit of the country's most vulnerable populations."

Valéry Vicini

  • Proparco Regional Director for the Dominican Republic and Haiti

"This new financing marks another important milestone in the strong and enduring partnership we have built with AFD Group and PROPARCO over more than a decade. Their continued trust in BANFONDESA reaffirms the relevance of our mission to expand opportunities for those who have traditionally been excluded from the formal financial system. Through this operation, we will continue supporting thousands of microentrepreneurs—particularly women and families in rural communities—by providing access to the financial solutions they need to grow their businesses, create jobs and improve their quality of life. Together, we are helping build a more inclusive, resilient and prosperous Dominican Republic, where economic development reaches every corner of the country."

Cristian Reyna T.

  • BANFONDESA´s President

The EURIZ guarantee is implemented with the support of the European Union and the Organisation of African, Caribbean and Pacific States (OACPS).