Mexico City, October 5th, 2015. International
Finance Corporation (IFC), a member of the World Bank Group, granted a
loan of MXN 43.8 million to FINAE, in order to accelerate its efforts to
provide student loans among young people who are at "the base of the
pyramid" and want to receive an undergraduate degree in Mexico.
FINAE is an entity called Sociedad
Financiera de Objeto Múltiple (SOFOM, multiple purpose financial institution),
created in 2006 and devoted to provide financing through loans to students
attending universities. FINAE was founded by a group of Mexican entrepreneurs
gathered in the Sociedad de Apoyo a la Education (SAE, Society to
Support Education), to help low-income students enroll in private universities.
“To maintain our position as market
leaders in higher education funding, we have entered into several strategic
partnerships, such as the one announced today with IFC”, said Francisco
Vizcaya, chairman of FINAE.
“Quality education is an investment
—said Vizcaya— as it does not only increase income and quality of life
of future professionals and their families, but it also fosters national
development, social equity, and regional stability."
There is a growing demand for higher
education in Mexico. In a population of 11 million young people between
19 and 24 years, there are 8 million who cannot study and have reached
the age to start college. While the government is making efforts to meet
the demand, it is so large that it cannot be meet this demand completely.
Universities are at full capacity and over 70% of the applications are
“IFC loan to FINAE will strengthen
the institution and allow for the financing of 17,500 students by 2020,
whom would not be able to pursue higher education otherwise. With this
partnership, IFC reinforces its commitment to private education as a key
factor for progress for low to middle income families in Mexico”, said
Ary Naïm, IFC Country Manager for Mexico.
IFC’s strategy in Mexico focuses on
supporting private sector investment to accelerate growth, improve competitiveness,
foster social inclusion, and reduce poverty.
FINAE was created in 2006 as a response
to higher education needs at the base of the social pyramid (socio-economic
levels C and D). It is a financial institution aware of the business and
development potential of low-income people. In a little over seven years,
more than 8,100 students have been granted higher-education loans, and
2,000 of them have already got their degree. FINAE currently relies on
a total portfolio over MXN 750 million.
International Finance Corporation (IFC),
a member of the World Bank Group, is the largest development international
institution devoted exclusively to the private sector. We support private
enterprises in about 100 countries, we use our assets, expertise and influence
to help ending extreme poverty, and boosting shared prosperity. In 2014
fiscal year, we provided more than US 22 billion in funding to improve
the quality of life of the inhabitants of emerging countries, and address
the most urgent development challenges.
Further information, www.ifc.org
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