Social Issue

Although Panama is a reasonably rich country with a per capita GDP of 23,014 USD (World Bank, PPP 2016), the poorest people in the country are still not properly attended by the financial institutions.

Our Response

Microserfin started as an NGO called Fundes which coordinated a guarantee and loan program for small businesses. In 2011, the BBVA Foundation entered the capital of the company and is now the sole shareholder. Microserfin has more than 17,600 clients across its 30 branches and covers the entire country, especially in rural areas. Its objective is to improve the quality of life of entrepreneurs with limited resources and the quality of life of their families. Microserfin focuses on giving loans to low-income people in agriculture and other productive sectors. The average loan size is $1,468, well below the country average of 5,600.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that Microserfin will be able to provide 580 microloans in the country, to help the agricultural entrepreneurs with the least resources in Panama.