FONDEP

completed

The project involves IFC providing Foundation for Local Development and Partnership (FONDEP or the company) with a comprehensive developmental financing and technical assistance package that will complement the company’s strong growth potential and expansion plans in the coming years.FONDEP is a microfinance institution operating in Morocco. It began its microfinance activities in 1997, targeting rural and semi-urban regions in Morocco by providing solidarity group lending. Since its inception in 1996, FONDEP has built a loan portfolio of MAD 41 million as at end of August 2005 divided among more than 25,000 borrowers.The project has two components: - a Partial Credit Guarantee Facility (the “Guarantee”) to enable the company to source much- needed local currency financing from local banks, and - and a technical assistance package (“TA”) to develop the company’s internal controls and risk management system, and strengthen its human resources function. Moreover, the TA is aimed at enabling the company to reinforce its operations and management structure to pre-empt its eventual transformation into a non-bank financial institution.