EIB boosts access to finance for small businesses in Dominican Republic

The EIB has committed support to micro, small and medium sized enterprises (MSMEs) in the Caribbean country of the Dominican Republic. Three local banking institutions, Banco ADEMI, Banco ADOPEM and FONDESA will benefit from EIB lines of credit totalling EUR 20 million and up to EUR 2 million in equity participations. EIB funds will be used to finance the banks’ portfolio of loans to the MSME sector.

The EIB has been instrumental in the transformation of ADEMI and ADOPEM from microfinance to banking institutions through previous lines of credit, equity and technical assistance. The new EIB facility will be extended initially to ADEMI, ADOPEM and FONDESA, a third emerging institution; however, the Bank will appraise other microfinance organisations in 2008 and 2009 in a bid to extend access to the funds.

EIB Activity in Africa, Caribbean and Pacific (ACP Countries)

The European Investment Bank (EIB) is instrumental in implementing the EU’s development and economic cooperation policy in countries outside the Union. The EIB has been a development partner in many African, Caribbean and Pacific (ACP) countries since 1963 through a series of lending mandates from the European Council. The current mandate is based on the Cotonou Agreement of June 2000.

EIB loans in the ACP regions support the alleviation of poverty and the development of sustainable economic growth. The Bank lends from two sources – EIB own resources and the Investment Facility, a revolving fund financed by the EU Member States through the European Development Fund. In 2007, the EIB invested EUR 869m in the ACP region.

The EIB has been active in the Dominican Republic since 1992. The Bank has lent over EUR 195 million to support infrastructure, financial services and small and medium sized enterprises in the country.