Microfinance outfit FINCA Haiti last week Monday, August 24, announced that it has secured a 100 million-gourde (approximately US$1 million) loan facility from Banque Nationale de Crédit (BNC), Haiti’s largest financial institution, with a one-year renewable tenor.
Having secured the loan, FINCA Haiti will, as a result, boost its ability to on-lend funds to over 50,000 microentrepreneurs and small businesses across the country through its 12 branches and digital services.
“We appreciate the confidence of Banque Nationale de Crédit, which recognises the strength and potential of FINCA Haiti to expand access to affordable, accessible financial services,” Hamidine Bako, CEO of FINCA Haiti, said.
In fact, this is the first time that FINCA Haiti has been able to source a credit line in the local market its 30 years of operation, rather than opting for credit enhancement from its parent company. By doing so, FINCA Haiti has gained stable liquidity from the credit facility with the flexibility and cost efficiency that will protect it against foreign exchange fluctuations without costly foreign currency hedging instruments.
“With this stable source of local funding, FINCA Haiti will be well-positioned to expand our product offerings and provide vital support to businesses and entrepreneurs emerging from the COVID19 pandemic,” Bako further pointed out.
One of the nation’s first microfinance institutions, FINCA Haiti has increased its loan portfolio by 42% to 762 million gourde and its client base by 13 per cent to over 51,500 since January 2017.
Just two years earlier, in 2015, FINCA Haiti partnered with mobile operator Digicel to launch MonCash, an e-wallet solution offering mobile loan repayment and disbursements. Mobile banking now accounts for 57 per cent of all transactions processed by the FINCA Haiti, as it provides critical solutions for customers who face limited transportation options amid challenging infrastructure.