The need for backing the Colombian financial sector comes from the “lost decade” of the almost-failed-state in Colombia in the 90′s, followed by the 99 banking crisis.

My research confirms that IFC is backing a number of diverse financial institutions and focusing on micro finance and SMEs as well. Credit costs have plummeted in Colombia, which largely avoided the worldwide recession and credit crisis of 08-09. Meanwhile, credit availability is up considerably.

Finandina is a great example. With IFC backing, they provide fleet finance, equipment and vehicle leasing, at attractive rates with full service, and therefore compete effectively with the banks. Without low-cost IFC capital, this could not have happened.