Microfinance plays a critical role in providing financial services to poor people and fighting poverty. Despite the continued strong performance of the microfinance industry, some microfinance institutions face problems refinancing debt as a result of the global financial crisis.
As a response, IFC and German development bank KfW have launched the Microfinance Enhancement Facility, a short- to medium-term facility of up to $500 million with initial contributions of $150 million from IFC and $130 million from KfW.
The MEF is expected to provide refinancing to more than 100 strong microfinance institutions in up to 40 countries. It will support lending to as many as 60 million low-income borrowers in many of the world's poorest countries.
The facility will be managed by Blue Orchard Finance, Cyrano Management, and ResponsAbility Social Investments, three of the industry's leading fund managers.
For more information on the facility,
e-mail mef@ifc.org.
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Last Updated: 14 Oct 2009 |
