In a recent publication of the IDB Invest, in the context of the Sustainability Week 2022, a success story in sustainable banking is highlighted, showing the way for potential competitors and new players in the financial sector.

The case involves Banco Familiar de Paraguay, a niche bank focused on consumer loans to low and middle income people and MSMEs, with more than 50 years of history in Paraguay, which accounts for 4.1% of private banking loans. The institution promotes financial inclusion by focusing on sectors not served by traditional banks. In the last decade it has quintupled its number of clients, and more than half of these were not previously banked.

In year 2017, Banco Familiar received from IDB Invest a partial guarantee of up to 6 years in local currency for an amount equivalent to 5 million dollars for a debt to be issued by the Instituto de Prevision Social (IPS) in Paraguay. The financing allowed the expansion of the bank’s loan portfolio and helped to position the bank as one of the financial institutions with the greatest progress in terms of sustainability and impact in the country.

Finally, as a result of the deal Banco Familiar has also joined the Sustainable Finance Roundtable of Paraguay, where it collaborates with other entities of the financial system in the promotion of initiatives that contribute to the development of sustainable finance in the country.