IFC MLF

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IFC, together with KfW, proposes to rapidly launch a global Microfinance Liquidity Facility (“MLF” or the “Facility”) designed to support sound MFIs worldwide that may face a funding shortfall during this time of unprecedented financial stress. The IFC MLF is a pure “bottom-up” initiative, fully based on specific funding needs of a detailed pre-determined pipeline of MFIs operating globally. The MLF’s objective is not to support the impressive growth rates experienced by MFIs over the last decade, but to serve as a defensive facility to support strong institutions in the current credit freeze. This project will support over 100 MFIs operating in over 30 countries, including over 20 IDA countries. IFC will execute the program through the industry’s largest and most experienced fund managers in order to: - provide a rapid and flexible response to market needs; - achieve maximum possible outreach; and - ensure efficiency.Backed by KfW, IFC proposes to launch the MLF, a two phased Facility to support over 100 MFIs for a total of $500 million. A detailed bottom-up analysis of the market indicates needs of up to $1.8 billion through year-end 2009. IFC and its partners propose to execute the MLF in two phases providing needed funding of $500 million. A key element of the phased approach is how IFC will leverage additional financing and mobilize other partners to participate in funding the Facility.