US$95 thousand to promote transparency and responsible financing in Honduras
An agreement has been signed with support from the EU, the German Government (through KfW) and CABEI in order to benefit Honduran Microfinance institutions.
Tegucigalpa, May 25, 2017- . CABEI, which is the executing unit of the Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA) signed a non-reimbursable technical cooperation agreement for up to US$95,000.00 with the Microfinance Network of Honduras (REDMICROH).
The agreement seeks to promote access to and use of financial services with a gender approach by means of a Financial Education Program and the implementation of Client Protection Principles (Smart Campaigns).
The cooperation agreement involves supporting three Honduran microfinance entities in order for them to develop integral gender-focused financial education programs and to establish client protection principles; this will lead to solid and lasting relationships with clients, increased customer loyalty and less financial risk for microfinance institutions.
The project will have resources from the European Union, through its Latin American Investment Facility (LAIF), which has donated technical assistance resources to promote the development of financial products aimed at new, young and/or innovative Micro, Small and Medium Enterprises (MSMEs) and to foster transparency and responsible financing in financial institutions at a regional level.
The technical cooperation agreement was signed by CABEI Country Manager for Honduras, Mr. Pedro Emilio Banegas, and REDMICROH Executive Director, Ms. Martha María Salgado. Representatives from the German KfW Development Bank and a delegation from the European Union served as honor witnesses at the agreement signing ceremony.
DINAMICA Initiative; an Initiative to strengthen the region’s MSMES
DYNAMICA is a tripartite Initiative of CABEI as executing agency, the Government of Germany through its KfW Development Bank and the European Union as part of its Latin American Investment Facility (LAIF). Its main objective is to strengthen the MSME business ecosystem, especially for new, young and/or innovative MSMEs. Its approach also includes strengthening the financial sector at a regional level to promote adequate access to financial services for these MSMEs.
In order to achieve these objectives, the DINAMICA Initiative has (1) reimbursable resources amounting to EUR50 million from Germany, through its KfW Development Bank, and CABEI, which are channeled as loans to MSMEs in the region, through CABEI’s network of intermediary financial institutions (IFIs). In addition, it has (2) a EUR3.8 million donation from the European Union to be used for technical assistance and training of Dynamic Business Development Centers, MSMEs affiliated to these centers and CABEI’s IFI network.
Currently, the DINAMICA Initiative is being implemented in the following Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.
