ASUNCIÓN – IDB Invest announced that it will loan 540 billion guaraníes to Banco Familiar for financing Paraguayan microentrepreneurs through the EKO digital wallet. The agreement was signed during the IDB Group Annual Meetings in Asunción.

Through this project, Banco Familiar will broaden the reach of its digital wallet for microentrepreneurs, especially in segments traditionally excluded from the financial system. The operation will boost the financial health of the bank’s clients by helping them to manage their finances, and cover unforeseen expenses, among others.

The operation will be funded with proceeds from the IDB Invest’s local-currency bond issuance program in Paraguay, which has pioneered the participation of multilateral organizations in its local bond market.

“This financing opens new opportunities for thousands of microentrepreneurs to access formal credit and build more resilient businesses. By supporting partners such as Banco Familiar, we contribute to a more dynamic financial system that can accompany Paraguay’s growth, while lowering financing costs for small businesses, which by entering the formal market can avoid the high interest rates of informal lending.” said Sergio Lew, Chief Industries Officer at IDB Invest.

Although microenterprises account for 88% of businesses in Paraguay, they contribute only slightly more than 20% of the country’s GDP, and only 43% of micro, small, and medium-sized enterprises have bank accounts. This financing will foster inclusion and financial resilience and will bolster productivity in a country that recently achieved investment-grade status and economic strength.

In addition to the loan, IDB Invest supported Banco Familiar with an action plan for reinforcing its corporate governance.

About IDB Invest

IDB Invest, a member of the IDB 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 $22 billion in assets under management and over 400 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. Visit our website www.idbinvest.org/en.