IFC, a member of the World Bank Group, is working with AMC, the second-largest microfinance institution in El Salvador, to enhance the availability of financial services for the country's underserved populations, especially in rural areas and for women entrepreneurs.
IFC seeks to strengthen AMC's institutional capabilities and help them better meet the needs of low-income clients in El Salvador. In particular, IFC will reinforce AMC's capacity for strategic planning and credit-risk management, as well as help design a new deposit product. This initiative is supported by the Spanish Fund for Latin America and the Caribbean from the Spanish Ministry of Economy and Finance.
“In partnership with IFC, we expect to transform into a regulated institution that provides a full range of financial services to our clients and deepens the access to finance for low-income households in rural areas,” said Wilson Salmeron, AMC's Executive Director.
AMC operates in 12 of the 14 provinces in El Salvador, and it is expanding into southern Honduras to reach more micro and small enterprises. Its portfolio primarily comprises women and rural borrowers, representing 60 percent and 62 percent of total loans, respectively.
“IFC's engagement in El Salvador aligns with our strategy to promote inclusive growth and increase competitiveness,” said Greta Bull, Program Manager for IFC Advisory Services in Latin America and the Caribbean. “As a partner, we'll work with AMC on its long-term sustainability and to create a savings product specifically tailored to meet the needs of its low-income clients.”