Microfinance Access to Prodem

cancelled

This Multilateral Investment Fund (MIF) project aims to persuade private investors to help finance the development of the microfinance industry in Bolivia, by helping PRODEM ­ PFF, a nonprofit Foundation for the Promotion and Development of Microenterprise, gain access to local financial markets through issue of stock market instruments. Components fund: (a) MIF provision of a financing line to PRODEM ­ PFF for bonds to be issued on the stock market, pending a contract to be signed with a stockbroker and (b) a technical cooperation grant for the institutional strengthening of PRODEM ­ PFF. This will cofinance: (a) the costs of access to the stock market, including legal fees and risk classification on the initial bond issue; (b) strengthening the PFF's financial management via a specialized risk management advisory service; (c) development of new products and financial services; and (d) appraising and reporting on each security issue, so that the experience gained in this pilot project can be disseminated and applied elsewhere in the region.