IFC’s first remittance-secured financing enables credit for El Salvador

IFC, a member of the World Bank Group, will provide up to $30 million of debt financing to Fedecredito using an innovative funding approach that leverages the significant remittances of Salvadorans working abroad to increase lending to microentrepreneurs and low-income people in the country.

According to IFC, this will be the first funding backed by future remittance flows undertaken anywhere by a financial intermediary focused on low-income clients.

Fedecredito is a cooperative owned by 55 El Salvadoran credit unions and workers banks that mobilize savings deposits from 600,000 low- income member owners.

Original source: Finchannel