IDB Invest, a member of the IDB Group, has granted a $60 million loan to Banco de Desarrollo Empresarial de Colombia S.A. (Bancóldex).
The transaction will support the expansion of credit lines or programs developed by Bancóldex to support micro, small and medium-sized enterprises (MSMEs), affected by the economic crisis triggered by COVID-19 in Colombia. These emergency credit lines will provide greater liquidity and longer terms for re-payment, helping to sustain companies and preserve employment.
The one-year financing, renewable for an additional year, will allow Bancóldex, in alliance with the Colombian Government, to reach non-regulated microfinance entities established in regions far from urban centers, which provide financial services to micro-entrepreneurs underserved by local commercial banking.
This operation potentially contributes to three United Nations Sustainable Development Goals (SDGs): End Poverty (SDG 1), Decent work and economic growth (SDG 8) and Industry, innovation and infrastructure (SDG 9).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Bancóldex is a Colombian business development bank that supports productive transformation with an emphasis on MSMEs, boosts exports, and promotes environmental sustainability and the country's creative economy. Amid the pandemic, Bancóldex has developed a support portfolio for companies affected by the economic effects of COVID-19, through 26 special lines under the name ¨RESPONDE¨ that to date has benefited more than 25,000 companies (92% of them micro-companies) throughout the country, with $1.2 billion worth of credit.