Port au Prince, Haiti, May 19, 2014—
IFC, a member of the World Bank Group, is helping to promote a more inclusive
financial system in Haiti to increase access to credit for micro, small
and medium enterprises. In partnership with the UK Department for
International Development, IFC is supporting the development of the Haitian
leasing market and the modernization of its secured transaction system.
Close to half of Haiti's micro, small and medium enterprises have credit
needs that are not being met by financial institutions, amounting to an
estimated loan financing gap of more than US$2.5 billion. The lack of access
to finance is one of the most significant constraints to the development
of Haiti’s private sector.
Today, IFC, in collaboration with the Association of Professional Bankers
of Haiti, is hosting a workshop for financial institutions and the government
to share expertise on the legal and institutional frameworks that govern
secured transactions and leasing.
Collateral provides the basis for free-flowing commercial and consumer
credit by reducing potential losses lenders face from non-payment. While
land and buildings are widely accepted as collateral for loans, the use
of movable assets, such as inventory and equipment, is restricted in Haiti
due to limitations in the existing legal framework and registries. The
modernization of existing legal structures would facilitate the use of
movable assets to guarantee loans and unleash leasing as a new mechanism
through which micro and small businesses can access term financing to build
thriving companies in key sectors such as construction, transportation,
services, and agriculture.
In parallel, with support from the U.S. Agency for International Development,
over the next two weeks, IFC and La Société Financière Haïtienne de Développement
(Sofihdes) will sponsor training for up to 350 Haitian small and medium
enterprises to deepen their knowledge of leasing. IFC has worked with partners
in more than 58 countries to develop leasing companies and in more than
20 countries to help establish modern, web-based collateral registries
to increase credit for small and medium enterprises.
“A modern secured transaction system and robust leasing market will help
accelerate progress toward financial inclusion in Haiti,” said Ary Naïm,
IFC’s Representative for Haiti and the Dominican Republic. “The objective
is for the Haitian financial sector to be able to offer credit to SMEs
that cannot provide real estate collateral, unleashing new opportunities
for thousands of small entrepreneurs”
IFC’s portfolio in Haiti amounts to $67.9 million, including $24.4 million
mobilized from other partners. We operate in sectors such as hospitality,
energy, financial markets, and manufacturing. Through our advisory programs
with the private sector and the government, we support access to finance,
public-private partnerships, improvements to Haiti’s investment climate,
and programs that make small and medium enterprises more productive. Our
combined investment and advisory projects in Haiti have helped create 5,000
new jobs and safeguard an addition 5,000 existing jobs.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit