Promoting Access to Finance for Productive Purposes for MSMEs

The objective of the Project to Promote Access to Financing for Productive Purposes for Micro, Small and Medium Enterprises for Ecuador is to promote access to financing for productive purposes for micro, small and medium enterprises in the context of the COVID-19 crisis. 19. The Project has four main components. The Institutional Capacity Strengthening component of the National Financial Corporation (CFN) will provide technical assistance and capacity development to the CFN. The Development and Improvement of Financial Products component to Promote Access to Financing for Micro, Small and Medium Enterprises (MSME) will support the CFN in the development of new financial products or in the improvement of existing ones to promote access to financing for productive purposes, especially for MSMEs. The CFN Brokered Credit Line to VTIs for MSME Loans component will support the CFN to establish and expand second-tier lending operations to serve MSMEs through the commercial and cooperative banking sector. Under this component, the Project will finance the provision of credit lines to eligible private PFIs, which will in turn grant subloans to eligible private MSMEs. The project management component will focus on assisting CFN to effectively execute the project.