The Colombian loan guarantee fund Fondo Nacional de Garantнas (FNG) is playing a key role in boosting banks' lending to micro, small- and medium-sized enterprises (SMEs), Colombia's deputy minister of business development Carlos Alberto Zarruk told.
"Lending to small businesses has grown to nearly US$800m annually in Colombia, and the backing provided by the fund is integral in expanding access to financing," Zarruk explained.
The official added that although the majority of SME and micro lending comes from banks, there are also banking cooperatives, financial non-government organisations (NGOs) as well as associations and foundations that operate in the segment.
"Bancolombia is the most important bank in micro lending, but also Banco Caja Social and international banks like BBVA are focused on the segment. There are seven or eight banks that are focused on micro lending," Zarruk said.