Santo Domingo.– The Multilateral Investment Fund (MIF), a member of the US-based IDB (Inter-American Development Bank) group, reportedly has approved a US$2.5 million equity investment in El Fondo para el Desarrollo, Inc. (FONDESA), a nonprofit microfinance institution in the Dominican Republic.
According to press reports, the investment is intended to help FONDESA acquire status as a regulated microfinance institution under the new name Banco de Ahorro y Crédito FONDESA (BANFONDESA).
Becoming a regulated microfinance institution will allow the organization to issue bonds and provide savings, insurance and remittance services. In addition to the equity investment, MIF will provide technical assistance worth up to US$630,000 to help FONDESA make the transition.
MIF reports that the project is expected to expand access to financial services to nearly 100,000 clients, including rural and low-income populations and women.