Project Name：Specialized Financial Intermediary Development Fund—Subproject 2&3: Increasing Participation of Rural Microenterprises in the Formal Financial System (Ecuador)

Project status：Completed projects

Cooperating Country：South America, Ecuador

Project Description：

This project is 1 year renewable loan for up to three years. The first disbursement is 1 year loan of up to US$3 million. The second disbursement is 1 year loan of up to US$3 million also and the third disbursement is 1 year loan of up to US$4.5 million.

Implementation Start Date：2009-03-25

Implementation End Date：2010-03-24

Project Objectives：To increase the access to the formal financial system for microentrepreneurs in rual and peri-urban areas in Ecuador through a specialized, regulated institution dedicated to serving the lowerst-income populations through the village banking and solidarity group lending methodologies.

Executing Agency：FINCA

Implementation Arrangement：

1. Village Banking Loans: Typical village bank groups are made up of 10 or more borrowers. The tenor of the loans varies between 3 and 6 months and the amounts range from US$50 to US$3,000. The gruop members are responsible for collecting amounts due. 2. Solidarity Group Loans: The groups are made up of 3-9 borrowers whose credit needs are higher than those of village bank members. The group members are also responsible for the collection of amounts due. The tenor of the loans varies between 3 and 6 months and the amounts range from US$3,000 to US$6,000. 3. Individual Loans: The loans are offered to borrowers who need additional funds to expand their microentreprises. The tenor of loans varies between 6 and 18 months and the amounts range from US$600 to US$10,000.

Signing Date：2009-02-06