The European Investment Bank (EIB) has signed a loan agreement with Fundacion Apec de Crédito Educativo (FUNDAPEC), to boost access to finance primarily for students in the Dominican Republic. The EIB credit line will support up to 8,500 microloans in the Dominican Republic, providing access to credit to disadvantaged populations and students from low income households, which should represent at least 75% of the beneficiaries.

The loan was signed under the Caribbean and Pacific Impact Finance Facility (CPIFF) - a EUR 40 million lending facility which supports microfinance markets in African, Caribbean and Pacific countries, targeting poverty reduction. Last year, the EIB also provided a loan to Banco Adopem de Ahorro y Credito and BANFONDESA two microfinance providers in the Dominican Republic under the CPIFF.

Commenting on the new loan, the EIB’s representative for the Caribbean, René Perez said: “Giving young people an opportunity to study and later to start their own micro-businesses is a crucial factor in reducing poverty. The EUR 5 million loan for FUNDAPEC, a new partner institution for the EIB, confirms our commitment to support private sector development in the Dominican Republic and the wider Caribbean region.”

The President of FUNDAPEC Board of Directors, Antonio César Alma Iglesias, stated that: “The signing of this agreement strengthens the Institution's commitment to continue supporting the development of education for young Dominicans, thus contributing to the economic and social progress of the country.” 

With EUR 75 billion of investments in 2016, the EIB is the largest multilateral public bank in the world and roughly 10% of its lending targets investments outside of the European Union.

The European Investment Bank is the world’s largest international public bank and has supported development and economic activity in the Caribbean with loans and equity investment worth EUR 1,6 billion since its first operation in the region. In the Dominican Republic, the EIB has provided a total of EUR 409 million to projects, including in the energy, small business and transport sectors.