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Summary sheet
- Credit lines - Credit lines
Operation to finance micro, small and medium sized enterprises in the Dominican Republic. The EIB loan will contribute to two Global Gateway Investment Agenda priorities, namely, women empowerment and gender equality by financing small-scale projects by micro-entrepreneurs with a focus on women borrowers (50%), and combat sargassum, a seaweed whose proliferation in the Caribbean has negative impact on the marine ecosystem, fishing and tourism. It is proposed to allocate 30% of the EIB loan to sargassum-related projects.
Financing of micro-entrepreneurs and small and medium sized enterprises in the Dominican Republic with a focus on women borrowers (50%). A third (30%) of the operation will be allocated to borrowers making use of sargassum, a seaweed whose proliferation in the Caribbean has negative impact on the marine ecosystem, fishing and tourism.
The proposed operation comprises two EUR 15m loans to two local microfinance institutions in the Dominican Republic to target three EIB Global key objectives: i) gender equality, ii) climate action, and iii) access to finance.
With half of the adult population excluded from financial services, many of which women, the operation (100%) is to be allocated to micro borrowers and half of the EIB loan would be allocated to women. Until today, perceived higher risk of micro borrowers created barriers for the growth of this segment. The EIB loan will help both institutions to strengthen the diversification of their funding resources and make them more long term.
The Dominican Republic is a Small Island Developing State ("SID") suffering from physical climate risk. Accordingly, 30% of the operation will be allocated to sargassum-related projects. The EIB will provide substantial support and technical assistance to finance the Sargassum value chain.
The project aligns with the strategic priorities set at the national, regional and EU level by addressing market failures and complementing objectives such as inclusive growth, affordable finance, equal participation of women, climate resilience and also advances several SDGs.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Under EFSD+ Guarantee