Consolidation of FIS Empresa Social S.A.

closed

The project has two components: (i) a reimbursable financing component for US$500,000, and (ii) a nonreimbursable technical-cooperation component for US$250,000. The reimbursable financing component (IDB: US$500,000, local US$2,000,000) will be allocated to finance the purchase of inventory, equipment, fixed assets, and other productive assets for 12,500 microentrepreneurs in the southern suburbs of Buenos Aires, i.e. owners of businesses that have been operating for at least one year, who will receive microcredits from FIS under the credit regulations contained in the technical file. Approximately 60% of beneficiaries who receive financing will be women, and at least 20% will be dynamic microentrepreneurs with differentiated patterns of growth in sales, profits, or employment. Credit will be extended for between US$140 and US$650 using a group or individual lending methodology. FIS will supplement the reimbursable financing component with US$2 million in funds from other sources. The technical-cooperation component (IDB: US$250,000) will be allocated for the institutional strengthening of FIS. Specifically, technical assistance activities and the procurement of equipment and systems will be aimed at: (i) improving FIS's business model; (ii) training FIS's credit advisors and middle management; (iii) designing market-based credit products; (iv) implementing financial management tools; and (v) scaling FIS's equipment and systems to the volume of operations.