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IDB Invest, Locfund Next to promote financial inclusion through microfinance institutions
03/29/2023 Since 1 year

The credit gap for micro, small and medium-sized enterprises (MSMEs) in Latin America and the Caribbean (LAC) is estimated at approximately 1 trillion dollars. Locfund Next, a closed-end fund managed by Bolivian Investment Management Ltd (BIM) that finances small and medium-sized microfinance institutions and promotes their access to national capital markets in LAC, has received a loan from IDB Invest with the aim of expanding its local currency lending capacity to MSME companies.

The 20-million-dollar loan granted by IDB Invest has 6-year term maturing in 2029. It is estimated that nearly 50% of the final beneficiaries of the financing by Locfunt Next are rural businesses and/or led by women. Additionally, IDB Invest will provide Locfund Next and BIM with advisory services to develop a Gender and Diversity strategy within the Fund and its portfolio of microfinance institutions.

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