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OPEC Fund’s US$25m loan will help bolster Honduran SMEs
Photo: Vivid imagery _ Shutterstock.com
June 29, 2021: The OPEC Fund for International Development has signed a US$25 million loan with Banco Ficohsa, Honduras for on-lending to small- and medium-sized enterprises (SMEs) affected by disruptions caused by the COVID-19 pandemic and two hurricanes that hit the country in late 2020.
The OPEC Fund’s term loan to Banco Ficohsa will be used for on-lending to SMEs engaged in sectors including agriculture, manufacturing and textiles. This financing is well-aligned with the United Nations Sustainable Development Goal 8 - decent work and economic growth. This is the fourth loan the OPEC Fund has extended to Banco Ficohsa. Earlier proceeds provided circa 134 sub-loans to SMEs active in agribusiness, manufacturing and textiles, and to strengthen the Bank’s capital base.
“Supporting small businesses is key for economic stability and for job creation” said OPEC Fund Director-General Dr. Abdulhamid Alkhalifa. “We are pleased to have the opportunity to support Honduran SMEs to have access to finance and provide funding through the local banking system that they need to recover from the unprecedented impact of the pandemic and hurricanes. Banco Ficohsa is in a strong position to expand the reach of this loan and ensure financial sustainability of SMEs in critical sectors.”
Honduras and the OPEC Fund have been development partners for 45 years. To date, the OPEC Fund has provided financing for public sector projects as well as private sector and trade finance operations. Aligned with the development strategies and priorities of Honduras, the OPEC Fund’s operations focused on energy, agriculture, transportation, financial (SMEs), water and sanitation sectors, among others.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. Our vision is a world where sustainable development is a reality for all.