Bogotá, Colombia, December 21, 2012—IFC,
a member of the World Bank Group, and Credivalores – Crediservicios are
partnering to expand the access to financial services to Colombian low-income
households and support the overall economic growth in the country.
IFC is providing a $25 million loan
to Credivalores, one of the largest non-banking financial institutions
providing credit to low-income people. The company currently serves more
than 175,000 clients in 24 states. Since 2003, the company has financed
more than 400,000 individuals and about 72% of their clients received access
to credit for the first time.
Although Colombia’s recent economic
performance has been positive, banking penetration remains low with only
6.6% of the total population considered to have access to consumer credit
through commercial banks.
“IFC’s support will allow us to increase
access to finance in rural areas and reduce gaps in the formal financing
for our clients,” said David Seinjet, Credivalores’ CEO.
IFC’s financing is consistent with
the World Bank Group’s strategy in Colombia to expand opportunities to
increase economic growth and competitiveness, reduce poverty and inequality,
and enhance the level of financial services being offered in rural areas.
Giri Jadeja, IFC Manager for Financial
Markets in Latin America and the Caribbean, said, “We are working with
Credivalores to promote lending to the underserved sector of the economy.
Our support advances efforts to ensure that a number of products and financial
services are made available to a key economic sector that do not have access
to formal financing and need it.”
With this investment IFC supports an
emerging business in Colombia and a consumer finance company that offers
an alternative and secure mechanism to reach the underserved segment of
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
Credivalores is the result of the merger of two sister companies in 2009
(Crediservicios S.A. and Credivalores S.A), which were established in Cali,
Colombia in 2003 with the purpose of lending to individuals and small companies.
The Company focuses on payroll-deduction loans, consumer lending collected
through public utility bills, discount of checks and financing of micro
insurance policies to low and middle income individuals. With 36
branches Credivalores has served over 400,000 clients.