Mumbai: US-based Overseas Private Investment
Corporation (OPIC) has approved USD 250 million funding to
Citibank to give loans to micro finance entities in emerging
markets.
OPIC will risk participation in Citi originated and
funded local currency loans to MFIs, which in turn make small
loans to micro-borrowers in Africa, the Middle East, Asia,
Eastern Europe and Latin America, a release said.
The facility, which is an expansion of USD 100 million
OPIC-Citi micro financing funding facility launched in 2006,
is expected to benefit 4.8-lakh borrowers, the release said.
The programme had initially targeted to extend loans to
23 MFIs in 13 countries.
MFIs need access to markets and funding to continue their
work. By expanding an existing and successful micro financing
facility with Citi, OPIC is working proactively to help
address this shortfall, OPIC Acting President Lawrence
Spinelli said.
Citi has operations with over 100 MFIs globally in more
than 40 countries and provides services like access to
financial services, including savings, financing, remittances,
and insurance, on a scalable and sustainable basis.
Citibank has approximately 200 million customer accounts
and does business in more than 140 countries.
Bureau Report
First Published: Thursday, September 24, 2009, 19:09