[China Co-Financing Fund] IDB administers 7.5 million USD loan from CHC to Local Currency Fund II for financing to SMEs

On 8 May 2015, the Inter-American Development Bank (IDB) signed a loan contract with Locfund II to support financing in local currency to SMEs, through which the IDB would provide up to 15 million USD from its ordinary capital, and the People's Bank of China would provide up to 7.5 million USD via the China Co-Financing Fund for Latin America and the Caribbean (CHC). Effective 1 January 2016, this operation was managed by the Inter-American Investment Corporation (IIC, now IDB Invest). It is referenced as Project Number RG-L1070 by IDB Invest. Locfund II is a fund, established in 2013, that offers financing in local currency to microfinance institutions (MFIs) in Latin America and the Caribbean. The loans provided by the China Co-Financing fund and the IDB were intended to increase Locfund II's local currency lending capacity to micro- and small-sized enterprises. As of August 2017, Locfund II had provided local currency loans to 47 MFIs that attend more than 1.3 million final clients in 13 countries. On 26 January 2018, IIC agreed to provide an additional loan of up to 10 million USD from the IDB Group's ordinary capital to support Locfund II's expansion. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella project ID #86526.

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