Emergency Liquidity Facility

Versión en Español

Latin America Financial Institutions with following characteristics:

At least 50% of the loan portfolio corresponding to loans to micro and small enterprises.

Lending track record of at least 3 years.

Good Solvency.

Good loan portfolio.

Profitable.

Good management and governance practices.

Each institution will allow ELF’s staff members to perform an evaluation of its structure and financial situation that will lead to its pre-qualification. During the evaluation, areas of risk would be detected in order to guide the technical assistance once the institution is pre-qualified.

Each pre-qualified institution shall regularly send its financial statements to ELF and allow its staff to perform periodical monitoring of the institution.

ELF will conduct a quick on-site confirmation to determine the liquidity requirements, solvency, and long-term viability of each one of the affected institutions. Once this quick appraisal has been completed, ELF will recommend for credit committee the appropriate loan structure.

ELF could bring its financial services to pre-qualified microfinance institutions except in the following cases:

1. When the damage caused by an economic disturbance and/or natural disaster is of such magnitude that it is estimated that an MFI would not be able to recover within a reasonable period of time

2. The MFI’s financial position deteriorates to such extent that its solvency and long-term viability is compromised.