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IDB Invest and Caja Arequipa Promote Access to Credit for Vulnerable Populations in Peru

IDB Invest provided a loan to Caja Arequipa of up to $50 million equivalent in Peruvian soles. IDB Invest will finance $30 million, equivalent in Peruvian soles, and the Eco Business Fund managed by Finance in Motion (FiM) will finance the remaining $20 million equivalent in Peruvian soles.


The financing will expand access to credit for micro and small businesses, and micro and small enterprises (MSEs) owned or led by women, promoting financial inclusion in Peru.


Micro and small businesses generate 85% of employment and contribute approximately 25% of GDP in Peru; yet, they present a significant gap in access to financing and productivity. The segment of women, owners and leaders of MSEs, has been consolidated and shows significant results in Peru, thus 60% of formal MSEs are directed by women, and 70% of informal MSEs have women in charge.


Financing through working capital and investment credits is crucial for this sector, to strengthen its production capacity, employment, competitiveness, and economic development. Likewise, its strengthening and incorporation into the production chain as part of value chains.


Municipal Savings and Credit Banks (CMACs) promote financial inclusion, especially in urban and peri-urban areas, and now expanding to rural areas. The CMACs grant around half of the country's microcredits and mainly serve micro and small businesses. Due to their social nature, they have an important focus on credit and microcredit with a gender lens and other vulnerable segments such as diversity, especially in indigenous populations, and inclusion of the unbanked population, migrants, among others.


IDB Invest will complement the financing with technical advice that involves the development and implementation of an impact monitoring system with the purpose of creating the basis to monitor, and thereby better serve the micro and small business clients of Caja Arequipa, and its different subsegments (MSEs, unbanked, women, among others). It also aims to identify productive chains with the participation of MSEs, which will allow Caja Arequipa to develop a financing strategy for productive chains, increasing inclusion and sustainability in its portfolio.


The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), and Partnerships for the Goals (SDG 17).


About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.


About Caja Arequipa

For 37 years, Caja Arequipa has been the leading institution of the CMAC system (since October 2007), and has a portfolio of $2.2 billion (Sept. 2023), providing microcredit services to micro and small enterprises, also supporting the population without access to traditional banking. It is the only savings bank with a financial strength rating of rank A; with adequate levels of solvency: Global Capital Ratio (“CAR”) of 14.55% (September 2023), which reflects solidity and support for its more than 580,000 credit clients and 1.3 million people in savings, served in 180 agencies own at the national level. Its efforts and leadership in digital transformation keep it at the forefront, having the best financial application in Peru (2022 and 2023), achieving first place this year in the Latin American financial innovation competition organized by the Latin American Federation of Banks (FELABAN).