EIB Targets DomRep MSMEs

The European Investment Bank (EIB) is committing funds to micro, small and medium sized enterprises (MSME) in the Dominican Republic. “Three local banking institutions, Banco ADEMI, Banco ADOPEM and FONDESA will benefit from EIB lines of credit totaling EUR20m and up to EUR2m in equity participations,” says the EIB, which implements EU’s development and economic cooperation policy outside the EU. “EIB funds will be used to finance the banks’ portfolio of loans to the MSME sector,” adds the bank. The EIB has already supported ADEMI and ADOPEM with lines of credit, equity and technical assistance, and says it will consider other microfinance organizations in 2008 and 2009. “We have introduced a high level of flexibility into this facility to address the specific development issues of each organization,” says David Crush, head of the bank’s Caribbean and Pacific division. “We look forward to opening it to other, smaller institutions in the future,” he adds. The EIB has been active in the Dominican Republic since 1992, lending more than EUR195m to support infrastructure, financial services and small and medium sized enterprises.