Peru's Development Finance Corporation (COFIDE) and German state-owned development bank
Kreditanstalt für Wiederaufbau (KfW) have signed a loan contract worth 250 million euros (about US$296 million) to support micro and small-sized enterprises (MSEs) affected by COVID-19.
According to COFIDE, the second component is intended to finance projects to combat climate change.
The KfW loan has been commissioned by the Government of the Federal Republic of Germany and is part of its global effort to support the fight against the COVID-19 crisis impacts at the international level.
To achieve the first objective, the initiative will allocate resources to FAE-Mype and FAE-Turismo, which are managed by COFIDE, in order to contribute to the recovery of thousands of MSEs affected by the health emergency.
The loan has a maturity of 15 years and a 5-year grace period. Besides, its interest rate is very competitive.
Once the Peruvian economy begins to recover and the credits for these FAEs start to be repaid, the program's second component will begin, thus allocating resources to investments that impact on the care for the environment.
(END) MMG/RMB
Published: 9/21/2020