Decent work and economic growth

The financing gap for MSMEs in Latin America and the Caribbean is the second largest in the world after East Asia, leaving these key economic drivers without access to the capital they need to enhance productivity and grow. The region’s biggest breach is in Brazil, and during the severe economic recession that hit the country from 2014 to 2016, the lending situation for smaller firms became even more dire. In this context, IDB Invest provided financing to Daycoval, a mid-sized Brazilian bank, to expand its SME lending portfolio, including reaching clients outside the country’s main urban centers.

growth in the value of the Daycoval bank’s SME lending portfolio (BR3728A-03).