Project Name：Specialized Financial Intermediary Development Fund—Subproject 1 Promoting Financial Democracy Via a Specialized Microfinance Intermediary (El Salvador)

Project status：Completed projects

Cooperating Country：Central America, El Salvador

Project Description：

1. Provide reimbursable financing to enable Fedecredito to expand its lending operations in support of its first-tier members. 2. Provide non-reimbursable technical assistance to develop and launch new financial products. 3. The Multilateral Investment Fund's (MIF) technical assistance grant will support Fedecredito by providing loans for on-lending to its first-tier members.

Implementation Start Date：2007-07-18

Implementation End Date：2013-01-31

Project Objectives：To increase the total provision of microfinance in El Salvador by supporting a second-tier institution with brad outreach.

Executing Agency：Fedecredito

Implementation Arrangement：1. Lending for agricultural acitivities.
2. Financing via solidarity group methodology.
3. Channeling of remittances towards productive investiments and housing.
4. Development of credit scoring methodology.

Signing Date：2007-07-18

Projected Benefits：To improve the access of lower-income households to financial services, thereby expanding the level of financial democracy in the country and contributing to enhance the incomes and living standards of the population at the base of the pyramid.