The Diplomat in Spain

The loans seek to offer affordable financial conditions to entrepreneurs who do not have access to the traditional banking system.

The Diplomat. 05/08/2018

The Council of Ministers authorized on Friday the granting of loans for a maximum amount of 10 million euros and 10 million dollars in each case for microfinance entities in Morocco and Peru, respectively, from the Fund for the Promotion of Development (FONPRODE).

In Morocco, the beneficiary association is the Albaraka Foundation and the loan of up to 10 million euros is intended to support the expansion of the institution’s portfolio aimed at meeting the financing needs of the Moroccan micro and small enterprises, through the provision of basic financial services. These services include credit operations, loans, deposits, savings, insurance, transfers and remittances to microentrepreneurs and other sectors of the population that are habitually not or inadequately banked.

The Albaraka Foundation is a non-profit association, regulated and supervised by the Central Bank of Morocco, which targets low-income people by offering financial services (mainly micro-credits) and non-financial services (technical support and training) to help them. create or develop your own production or service activity.

With regard to Peru, the credit is a maximum of 10 million dollars and the beneficiary is the microfinance entity Edpyme Acceso Crediticio SA, of Peru. The objective is to support the expansion of this microfinance institution, to give priority to segments and regions with a low level of banking penetration, mainly to micro and small Peruvian companies in self-employment in transport activity. Thus, it seeks to offer affordable financial conditions to entrepreneurs who do not have access to the traditional banking system.