Overview
- Cofide, Peru’s development bank, approved a permanent subordinated capital tool for cajas municipales and other microfinance institutions, with terms of 60 years or more and Tier 1 loss‑absorbing features.
- The program sets aside up to S/450 million, which Cofide estimates could be leveraged up to ten times to support about S/4,500 million in new loans for micro and small businesses.
- Because the funds count as core capital, lenders can grow their loan books while staying within supervisory rules that tie lending capacity to equity strength.
- Cofide says the instrument was designed with the financial sector, the SBS supervisor, and the MEF, and it will be paired with portfolio guarantees of up to 50% and technical help on digital tools, product design, and operations.
- Cofide reports strong interest from municipal savings banks, with eligibility and first disbursements still to be detailed, which could ease credit bottlenecks for shop owners, market vendors, and other small firms.