New loans promote leading microfinance institutions in the Dominican Republic

Press release

Unedited translation:

Santo Domingo, Dominican Republic – Citi today announced, in conjunction with the United States Embassy in Santo Domingo, the launch of a credit facility, which will enable leading microfinance institutions in the Dominican Republic to expand their services to 23,000+ entrepreneurs, of which 14,000 will be women.

In the Dominican Republic, just over half (56%) of adults have a bank account. Access is lower for low-income households across the country, with a 23% gap between high- and low-income people.

ADOPEM, founded to promote the financial and social inclusion of vulnerable populations in the Dominican Republic – namely women entrepreneurs and young entrepreneurs – currently serves more than 400,000 clients. ADOPEM will receive $10 million to expand its microfinance efforts, a move that marks the start of inclusive financial transactions for Citi in the Dominican Republic.

“We are proud to be able to support ADOPEM’s efforts and encourage small businesses to develop and grow. Citi is recognized around the world for its long-term leadership in this area and we believe we have a fundamental responsibility to help grow financial inclusion institutions in our country,” said Máximo Vidal, Citi’s Chief Executive Officer in Dominican Republic.

This transaction is part of the Global Inclusive Finance Framework, an innovative public-private partnership between Citi and the U.S. Government’s Corporation for Private Investment Abroad (OPIC), which enables inclusive businesses and local micro-finance institutions that markets emerging countries are extending microloans to borrowers who need help. Under the Citi/OPIC programs, Citi in-country businesses, the Citi Inclusive Finance division, and the export agency finance unit of the Citi Institutional Clients Group funded $505.5 million in debt capital for 53 inclusive businesses in 26 countries, helping to catalyze the efforts of more than 1.37 million micro-entrepreneurs, 87% of whom are women.

“At Citi, our goal is to leverage our global presence and our innovative partnership with OPIC to meet the needs of unbanked and underbanked households in emerging economies,” said Jorge Rubio Nava, Chief inclusive finance at Citi. “These transactions demonstrate how, by working with local intermediaries such as ADOPEM, we can provide sustainable financial services that enable low-income entrepreneurs to gain greater independence and financial resilience.”

United States Ambassador to the Dominican Republic Robin S. Bernstein said, “OPIC is a key component offered by the United States government to promote foreign direct investment in developing countries. The loan and insurance programs provide better access to finance by micro, small and medium-sized enterprises around the world and promote the creation of infrastructure, business opportunities, housing development for low-income people and other major development projects. ”

In a March meeting with Caribbean leaders to discuss issues related to trade, energy investment and security, President Trump reaffirmed the United States’ commitment to working with its partners in the region to foster economic growth, counter predatory investment practices and strengthen security cooperation. In May, David Bohigian, Acting President and CEO of OPIC, the United States government’s development finance institution, visited the Dominican Republic, following the meeting of the President Trump with President Medina at Mar-a-Lago.

With a portfolio exceeding DOP 8,800 million and a history of over 30 years as a pioneer in microfinance, ADOPEM has transformed the microfinance industry in the Dominican Republic. ADOPEM holds approximately 30% of the microfinance market share in the country through a network of 74 branches and 200 non-bank correspondents, and employs approximately 1,450 people throughout the Dominican Republic.

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