Cuatrecasas counsels COFIDE on structuring of microfinance programme

Cuatrecasas has advised COFIDE on its Programme to Strengthen the Assets of Microfinance Institutions

 Cuatrecasas, through its office in Lima, has counselled Corporación Financiera de Desarrollo (COFIDE) on the structuring and implementation of the Programa de Fortalecimiento Patrimonial de las Instituciones Especializadas en Microfinanzas, to which financial institutions specialised in microfinance, such as the cajas municipales de ahorro y crédito, the cajas municipales de crédito popular and the cajas rurales de ahorro y crédito, can apply.

The programme consists of 3 sub-programmes: Sub-programme 1, which consists of strengthening municipal savings banks, aimed at facilitating the strengthening of the equity of these entities through the temporary participation of the state in their share capital; Sub-programme 2, which consists of strengthening private institutions specialised in microfinance, aimed at facilitating equity strengthening through the temporary purchase by the state of instruments representing subordinated debt; and, Sub-programme 3, which consists of facilitating the corporate reorganisation of companies that have adhered to one of the previous sub-programmes.

The programme, implemented by the Peruvian government through COFIDE, aims to enable the national government to finance the temporary capitalisation and/or purchase of subordinated debt of microfinance institutions, as well as to enable the participation of the Deposit Insurance Fund to facilitate the corporate reorganisation of those companies that require it, with the aim of protecting the public’s savings, preserving macroeconomic stability and maintaining the continuity of the payment chain.

Cuatrecasas’ team consisted of partners Aldo Reggiardo (pictured left), Oscar Trelles (pictured top right), senior associate Kiomi Osorio (pictured bottom right) and associate Alejandro Zorrila.