The board of directors of the Overseas Private Investment Corporation (OPIC) today approved up to $250 million to expand a successful partnership with Citi that provides microfinance lending to borrowers in emerging markets worldwide.
Citi has said that OPIC will risk participate in Citi originated and funded local currency loans to microfinance institutions (MFIs), which in turn make small loans to micro-borrowers in Africa, the Middle East, Asia, Eastern Europe and Latin America. The project represents the expansion of a $100 million OPIC-Citi microfinancing funding facility launched in December 2006. Under this program, Citi and OPIC are providing financing to 23 MFIs in 13 countries.
Lawrence Spinelli, acting president at OPIC, said: “The global economic crisis has significantly curtailed microfinance lending, raising the cost of lending and causing liquidity problems for many MFIs. MFIs need access to markets and funding to continue their work. By expanding an existing – and successful – microfinancing facility with Citi, OPIC is working proactively to help address this shortfall.”
Vikram Pandit, chief executive officer of Citi, said: “Citi has long been committed to globally expanding access to financial services to microentrepreneurs. Leveraging Citi’s emerging markets presence, this new Citi/OPIC $250 million Global Program will provide incremental funding to achieve our shared objectives of supporting microentrepreneurship and stimulating economic growth.”
OPIC helps US businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports US foreign policy.
