IFC Financing to Micro, Small and Medium Enterprises - FY2011
Lack of access to financial services is a key barrier to the growth of micro, small, medium enterprises (MSMEs*). IFC is working to develop solutions to close the MSME financing gap, collaborating with more than 315 financial institutions across 92 countries globally. By partnering with many types of financial intermediaries, including microfinance institutions, commercial banks, leasing companies, and private equity funds, IFC reaches many more small and medium enterprises (SMEs) and micro-enterprises than it could directly.
IFC offers a wide range of financial products, including loans, equity and risk management solutions, to help financial institutions scale up or enter the MSME market. As of June 2011, IFC committed a total of $12.4 billion to MSME finance globally, $11 billion for long-term finance (including $1.4 billion for funds supporting MSMEs), and $1.4 billion for trade finance. In fiscal year 2011 alone, IFC MSME commitments globally were $6.1 billion. In addition, IFC’s microfinance institution (MFI) clients had five million loans outstanding to micro-enterprises globally by end of 2010, totaling $5.2 billion. Similarly, IFC’s SME financial institution (SME FI) clients had over 1.5 million loans outstanding to SMEs by end of 2010, totaling $123.8 billion globally.
IFC Outreach Data and Factsheets communicate achievements and showcase successes in our MSME Access to Finance Strategy. They present aggregated results achieved by IFC supported financial intermediaries with their MSME clients.
MSME Firm Size Definitions: IFC’s Global Financial Markets categorizes its clients’ sub-borrowers according to the following definitions: (1) Microenteprises if loan < $10,000 at origination; (2) Small Business if loan < $100,000 at origination; (3) Medium Business if loan < $1 million at origination ($2 million for more advanced countries).