First international investment
in a caja de compensación in the country
Santiago, Chile, April 23rd,
2018 — IFC, a member of the World Bank Group, is providing a $50 million
loan to Caja de Compensación de Asignación Familiar Los Héroes, one of
the largest cajas de compensación in Chile to help improve financial
inclusion in the country.
This is the first international funding to
a caja de compensación in Chile. IFC’s 5-year facility to Los Héroes
will support the expansion of its social credit lending program to low-income
workers and retirees.
Cajas de compensación, non-profit
financial institutions focused on providing social security services, play
a critical role in helping to reduce the access to credit gap in Chile.
The Cajas system provides services to 7 million members including
5.6 million workers (nearly 63% of Chile’s economically active population)
and 1.4 million retirees, and are the only institutions allowed to offer
payroll loans in Chile. While the World Bank’s 2014 Global Findex Database
indicates that 63 percent of the Chilean adult population hold an account
with a financial institution, only 56 percent of the poorest 40 percent
of Chile’s population have a bank account. This is well below other high-income
OECD countries, where the bank account access indicator stands at 94 percent
"This is the first time an international
loan is granted to a caja de compensación in Chile; this is a sign
of the support from IFC to the Cajas system and opens an opportunity for
the diversification of financing sources", said Alejandro Muñoz,
General Manager of Los Héroes.
“IFC is excited to partner with Los Heroes
in this first international loan to a caja de compensación in Chile,”
said Marcelo Castellanos, IFC Manager for the Financial Institutions
Group in Latin America and the Caribbean. “Through this investment,
IFC is supporting the strengthening of the financial markets in Chile and
helping to expand the access to quality financial services to its population.
Filling the access to credit gap is a strategic priority for IFC as it
is critical to promote inclusive and sustainable economic growth in developing
countries,” he added.
In the past five fiscal years, IFC invested
almost $ 9 billions in the financial sector in the Latin America and the
Caribbean region, in long-term investments, including mobilization. This
financing to Los Heroes is part of IFC’s strategic focus on supporting
local financial markets to achieve development impact. IFC aims to achieve
this goal through the use of innovative financial products and mobilization,
fostering micro, small and medium enterprises, encouraging corporate social
responsibility, protecting natural resources through environmentally-sustainable
business practices, and promoting business expansion into other emerging
markets. For more information about IFC in Latin America and the Caribbean,
About Los Héroes
Caja de Compensación Los Héroes is a non-profit
private corporation, part of the Chilean social security system. Its main
objective is to provide benefits to its 937,851 members; it plays a relevant
role in promoting social inclusion in addition to financial inclusion,
as it is available to people who often have difficulty accessing the financial
market. For more information, visit www.losheroes.cl
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. We work with more than
2,000 businesses worldwide, using 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.