Small businesses in Honduras receive boost

Photo: Vivid imagery _ Shutterstock.com

The OPEC Fund 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 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 Fichosa 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) and water and sanitation sectors, among others.