Santo Domingo.- IDB Invest, a member of the IDB Group, has announced an important initiative to promote the economic empowerment of women in the Dominican Republic.
A subordinated loan of 75 million dollars will be granted to BHD Bank, extendable for up to seven years.
This strategic financing aims to improve access to credit for micro, small and medium-sized businesses (MSMEs) led or owned by women, through loans in Dominican pesos.
These businesses are crucial to the country’s economy; however, a notable gender gap in financial inclusion persists, as evidenced by a 22% lower loan receipt rate for women compared to men over the past year.
Banco BHD collaborates with IDB Invest to promote the WeFinance Code, an initiative led by the private sector in the Dominican Republic. This initiative aims to use sex-disaggregated data to improve support within the financial ecosystem for the women MSME segment.
The WeFinance Code, supported by the Women Entrepreneurs Financing Initiative (We-Fi), focuses on unlocking financing for women entrepreneurs. Banco BHD will receive technical advice from IDB Invest on digitization and use of data to adapt financial offers to women entrepreneurs.
This collaboration aims to automate and scale Banco BHD’s offerings for women-led MSMEs, catalyzing the transfer of knowledge between financial entities and stakeholders in the Dominican Republic.
The project aligns with the United Nations Sustainable Development Goals (SDGs), focusing particularly on gender equality, economic growth, innovation and reducing inequalities.
About IDB Invest:
IDB Invest, part of the IDB Group, is a multilateral development bank dedicated to promoting economic development in Latin America and the Caribbean through the private sector.
Supports sustainable companies and projects for financial success and broad economic, social and environmental development in the region.
With a portfolio of US$16.33 billion and serving 394 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services in various sectors.