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IFC Provides $10 Million for Guatemala’s Fundación Genesis to Expand Access to Finance for Micro and Small Business Entrepreneurs


In Washington, D.C.:
Vanessa Bauza, IFC
Phone: +202-458-1603
Email: Vbauza@ifc.org

In Guatemala City:
Adela Sagastume de Rizzo, Fundación Génesis Empresarial
Phone: +502 5411-9200
Email: arizzo@genesisempresarial.com

Guatemala City, May 29, 2018 — IFC, a member of the World Bank Group, will provide a US$10 million loan to Fundación Genesis Empresarial, Guatemala’s largest non-profit microfinance institution, to support micro and small business entrepreneurs who don’t have access to finance. Genesis serves more than 100,000 clients, nearly 90 percent of whom live in rural areas. IFC’s loan is expected to help Genesis reach an additional 120,000 underserved borrowers within five years. Most of these loans are expected to go to women and indigenous people in rural areas.

“Genesis is committed to providing opportunities for micro and small entrepreneurs to generate income, grow their businesses, create jobs, build assets and improve their living conditions. We are pleased to partner with IFC to increase and diversify our lending,” said Edgardo Pérez, General Manager of Fundación Genesis Empresarial. “These entrepreneurs are essential for our economy. We have made great strides in expanding access to finance, but there is more to be done and we are glad to be taking on new challenges with IFC’s support.”

Guatemala is the largest economy in Central America, however its income distribution is one of the most unequal in the world. Poverty is widespread, especially in rural and indigenous areas. Microfinance institutions like Genesis play an important role in the economy by providing financial services to the country’s 790,000 microenterprises and small businesses, which generate about 85 percent of jobs and around a third of its gross domestic product. Despite their economic importance, most of these enterprises have little or no access to formal credit.

“IFC supports more than 100 microfinance institutions in over 60 countries. They are powerful catalysts that help empower entrepreneurs,” said Luc Grillet, IFC Senior Manager for the Caribbean and Central America. “With this first investment in Genesis, IFC is starting a new relationship with the market leader in Guatemalan microfinance as it embarks on an expansion that will broaden access to finance for micro and small businesses.”

Since pioneering microfinance in the early 1990s, IFC has continued to lead innovation in microfinance, using developments in technology, financial products, and policy to help financial institutions reach a greater number of people in a more cost-effective way. IFC’s loan to Genesis is consistent with its strategy in Guatemala, which focuses on supporting economic growth and ensuring opportunities for poorer segments of society. As of April 30th, IFC’s active committed portfolio in Guatemala, totals US$355 million.

About IFC
IFC, a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org  

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