Strengthening Rural Finance through PFIs in Peru

2016-08-31 - 2019-01-31

The objective of the project is to strengthen selected partner financial institutions’ abilities to evaluate credit risk in the rural sector, and to apply methods of risk mitigation specifically adapted to rural MSME lending in Peru. The project will address all aspects of rural lending, but include a specific component to promote rural fixed asset lending. It will also focus on designing financial products based on the existing value chains present in particular crop industries. The project is composed of four phases: (1) selection and analysis of partner financial institutions, (2) training to the partner institutions on rural finance, such as policies and procedures, risk management, (3) strategic planning for the partner FIs, and (4) knowledge management with COFIDE of trainings and tools from the project.
Conducted analysis of the specific credit risks in the relevant regions and determine best approach to, mitigate them, advising the financial institutions on how to grant credit to MSME's efficiently. Developed business units inside the partner financial institutions specifically aimed at rural areas. Ensured the partner financial institutions have their own capacity to be able to train and train specialized personnel in the area of credit to MSMEs in the future. Upon conclusion of the project, helped the financial institutions develop sustainable and successful way of providing MSMEs credit products specifically aimed at short-, medium- and long-term financing for the MSME sector.