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Increasing access to microcredit in Guatemala

Project

Microfinance
Signature date
Location
Guatemala
Financing tool
Loan
Financing amount (Euro)
18436578
Financing details
USD 20m loan
Customer
Fundación Génesis Empresarial
Type of customer
Microfinance
Country of headquarters
Guatemala
Project number
PGT1011
Environmental and social ranking
IF-C
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This project is part of the 2X Challenge initiative.
Mention 2X Challenge UK

This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco has allocated a loan to Guatemala’s leading microfinance institution, Génesis, which is committed to financial inclusion for local entrepreneurs, especially women.

Client presentation

Fundación Génesis Empresarial (Génesis) is a non-profit institution operating in Guatemala. It is the leading microfinance institution in Guatemala and the Central America region (in terms of outstanding loans and client base) and started its operations as an NGO in 1988. Its mission is to support microentrepreneurs and rural communities and contribute to their development. It offers its clients financial services (individual microcredits and group loans) and non-financial services (training and technical assistance). Génesis currently serves 433,821 clients, of whom 72% are women and 79% live in rural areas, through its network of 155 branches in 22 regions of the country and its 3,221 employees. In February 2023, MicroRate, the rating agency specialized in microfinance, assigned the highest ratings to Génesis: institutional (A+) and social (5 stars). The MFI has also been certified Smart Campaign (now Cerise+SPTF) since 2017. This certification was renewed in 2020.

Project description

The project involves the allocation of a USD 20m senior debt, equivalent in Guatemalan currency (the quetzal), to Fundación Génesis Empresarial to support the development of its loan portfolio.

Project impact

The expected impacts of this project are as follows: 

  • Support for responsible financial inclusion in Guatemala. It is estimated that more than 18,000 clients of Génesis will benefit from a microcredit through the project 
  • 63 jobs created and almost 30,000 direct and indirect jobs maintained 
  • The project qualifies 100% for the 2X Challenge, as 72% of its clients are women 
  • Support for an institution financing the agriculture sector and offering technical assistance solutions to address the effects of climate change, which has a significant impact in Central America  

The project will contribute to SDG 1 “No poverty”, SDG 8 “Decent work and economic growth” and SDG 10 “Reduced inequalities”.