The OPEC Fund for International Development (OFID) has signed a $25 million loan with Banco Ficohsa, Honduras, for on-lending to small and medium-sized enterprises (SMEs) affected by disruptions caused by the COVID-19 pandemic and two hurricanes that hit the country in late 2020.
Banco Ficohsa will focus on SMEs in sectors including agriculture, manufacturing and textiles. It is the fourth loan OFID has made to Banco Ficohsa, WAM reported.
Previous loans have led to 134 sub-loans to SMEs active in agribusiness, manufacturing and textiles, and helped to strengthen the bank’s capital base.
“Supporting small businesses is key for economic stability and for job creation,” said OFID Director-General Abdulhamid Alkhalifa. “We are pleased to have the opportunity to support Honduran SMEs to have access to finance and provide funding through the local banking system that they need to recover from the unprecedented impact of the pandemic and hurricanes. Banco Ficohsa is in a strong position to expand the reach of this loan and ensure financial sustainability of SMEs in critical sectors.”
Honduras and OFID have been development partners for 45 years, focusing on energy, agriculture, transportation, financial (SMEs), water and sanitation sectors, among others.
OFID was established in January 1976 by the then 13 member countries of OPEC, including Saudi Arabia and the UAE.
