Expected Development Impact
- Strengthen local SMEs and value chain: 100% of FinDev Canada’s loan proceeds will be used by Promerica CR to on-lend to local SMEs, supporting the local economy and employment.
- Financial products for SMEs: SMEs in Costa Rica often face higher interest rates than larger corporations and shorter tenors, which stunts their potential for growth. Promerica CR supports its SME clients with interest rates that are in line with those offered to larger corporations, and that are significantly lower than the offerings of financial institutions in many countries in Latin America and the Caribbean, where interest rates for SME loans can go up to 20% (OECD, 2020).
- Non-financial services for SMEs: Promerica CR offers an assortment of digital services, reducing the need for in-person banking and promoting financial inclusion, considering men and women have similar access to internet in Costa Rica (80% of men and 82% of women), and that 90% of the country’s population is now using a mobile phone with internet (OECD, 2020). The Bank is part of Costa Rica’s National Financial Education Strategy and offers financial education to its customers.