United States Supports Credit Guarantees to Benefit SMEs

Bogotá, D.C., October 15, 2010

The United States, through its Agency for International Development (USAID) and Bancamía S.A., signed a Partial Credit Guarantee Agreement to promote access to finance micro, small and medium enterprises (SMEs) in several municipalities throughout Choco, Sucre, Bolivar, Antioquia, Cordoba, Caqueta, Meta, Tolima, Valle del Cauca, Putumayo and Nariño departments, referred by the Colombian National Consolidation Plan (PNC in Spanish) as vulnerable areas. 

The document was signed by USAID/Colombia Director Ken Yamashita and Maria Mercedes Gomez, president of Bancamía S.A.

The agreement allows Bancamía S.A., a microfinance financial institution, to reduce the risk associated with loans for new sectors or clients, strengthening the possibility of granting credit to the PNC’s municipalities that seek to promote economic growth that will benefit vulnerable population.

By means of this guarantee, USAID agrees to cover 50 percent of the capital loan that Bancamía grants under the agreement, until it completes a portfolio balance of up to $25.9 million dollars.

USAID is the U.S. Government’s main agency responsible for the execution and administration of social, economic and humanitarian assistance worldwide. In Colombia, USAID supports the efforts of the people and the private sector to achieve peace by promoting economic prosperity, improving standards of life for the most vulnerable, and promoting social and economic development such as alternatives to illicit crops, in addition to strengthening the presence of the Colombian Government throughout the country.

Bancamía is the first Colombian entity that specializes in microfinance, and it is regulated by the Superintendent of Finances. It provides financial services to micro-businesses. With the support of USAID, Bancamía hopes to provide low-income Colombians with opportunities to gain access to credit and improve their standards of living.