EU’s Latin America Investment Facility increases access to finance for people on low- incomes and supports green microfinance
The European Union’s Latin America Investment Facility, or LAIF, has signed a financing agreement to provide 5.75 million euros in technical assistance to the Triple Inclusive Finance (TIF) programme in Latin America. TIF will promote access to banking services to people currently lacking such access, and will support green microfinancing for micro-, small and medium enterprises in sustainable agriculture. In doing so, it will contribute to closing the banking gap in the region, particularly in rural areas, for low-income workers and for women, while fostering sustainable development in the farming sector. LAIF’s partners in this blended finance programme are programme leader COFIDES, the Spanish Development Finance Corporation, and the Development Promotion Fund (FONPRODE), run by AECID, Spain’s international cooperation agency. This is the first time that COFIDES has led a LAIF programme.
TIF is the latest example of the European Union and its Member States, together with financial institutions joining forces as Team Europe and working with EU partner countries on shared priorities.