US agency approves $250m for global micro-finance lending
Thursday, 24 September 2009
Siddique Islam
The country's micro-financing operation is likely to get a boost as a US agency has approved US$250 million to expand partnership with Citi in micro-lending worldwide.
The Board of Directors of the Overseas Private Investment Corporation (OPIC), private financing arm of the US government, approved up to $250 million Wednesday to expand a successful partnership with Citi that provides microfinance lending to borrowers in emerging markets worldwide.
Bangladesh is the birth place of micro-credit. Citibank Bangladesh has done large scale transactions for the micro-finance institutions (MFIs) in the country, which include world's first micro-credit securitisation for BRAC, risk sharing programme with OPIC and IFC for BRAC and financing of rehabilitation programme for post cyclone 'sidr' for multiple MFIs.
Citibank has also arranged syndication and first ever backstopped facilities for BRAC, first ever agricultural syndication in Bangladesh.
The US-based Citibank has also signed agreement with MFIs for distribution of remittances across the country.
The project represents the expansion of a $100 million OPIC-Citi micro-financing funding facility launched in December 2006. Under this programme, Citi and OPIC are providing financing to 23 MFIs in 13 countries.
"Citi has long been committed to globally expanding access to financial services to micro-entrepreneurs. Leveraging Citi's emerging markets presence, this new Citi/OPIC $250 million global program will provide incremental funding to achieve our shared objectives of supporting micro-entrepreneurship and stimulating economic growth," Chief Executive Officer of Citi Vikram Pandit said in a statement, received from Washington DC.
"The global economic crisis has significantly curtailed microfinance lending, raising the cost of lending and causing liquidity problems for many MFIs," OPIC Acting President Dr. Lawrence Spinelli said.
"MFIs need access to markets and funding to continue their work. By expanding an existing and successful micro financing facility with Citi, OPIC is working proactively to help address this shortfall," Dr. Spinelli added.
Citi works globally with over 100 microfinance institutions, networks and investors in more than 40 countries including Bangladesh, as clients and partners, with the objective of expanding access to financial services, including savings, financing, remittances, and insurance, on a scalable and sustainable basis.
The country's micro-financing operation is likely to get a boost as a US agency has approved US$250 million to expand partnership with Citi in micro-lending worldwide.
The Board of Directors of the Overseas Private Investment Corporation (OPIC), private financing arm of the US government, approved up to $250 million Wednesday to expand a successful partnership with Citi that provides microfinance lending to borrowers in emerging markets worldwide.
Bangladesh is the birth place of micro-credit. Citibank Bangladesh has done large scale transactions for the micro-finance institutions (MFIs) in the country, which include world's first micro-credit securitisation for BRAC, risk sharing programme with OPIC and IFC for BRAC and financing of rehabilitation programme for post cyclone 'sidr' for multiple MFIs.
Citibank has also arranged syndication and first ever backstopped facilities for BRAC, first ever agricultural syndication in Bangladesh.
The US-based Citibank has also signed agreement with MFIs for distribution of remittances across the country.
The project represents the expansion of a $100 million OPIC-Citi micro-financing funding facility launched in December 2006. Under this programme, Citi and OPIC are providing financing to 23 MFIs in 13 countries.
"Citi has long been committed to globally expanding access to financial services to micro-entrepreneurs. Leveraging Citi's emerging markets presence, this new Citi/OPIC $250 million global program will provide incremental funding to achieve our shared objectives of supporting micro-entrepreneurship and stimulating economic growth," Chief Executive Officer of Citi Vikram Pandit said in a statement, received from Washington DC.
"The global economic crisis has significantly curtailed microfinance lending, raising the cost of lending and causing liquidity problems for many MFIs," OPIC Acting President Dr. Lawrence Spinelli said.
"MFIs need access to markets and funding to continue their work. By expanding an existing and successful micro financing facility with Citi, OPIC is working proactively to help address this shortfall," Dr. Spinelli added.
Citi works globally with over 100 microfinance institutions, networks and investors in more than 40 countries including Bangladesh, as clients and partners, with the objective of expanding access to financial services, including savings, financing, remittances, and insurance, on a scalable and sustainable basis.