Norfund, the Norwegian development finance institution, has invested $10 million in Banco Popular, a Honduran bank specializing in microfinance and lending to small and medium-sized enterprises (SMEs). The investment aims to enhance financial inclusion in Honduras, a country where poverty and unequal financial access remain significant challenges. With 51.3% of the population living below the national poverty line and only 45% having bank accounts, the funds from Norfund will support Banco Popular’s efforts to provide medium-term loans, especially to micro and small enterprises. This is crucial as microbusinesses are essential job creators and key drivers of the local economy. Banco Popular reaches half of its clients in rural areas through its 41 offices, thereby addressing the financial needs of the underserved rural populace. The investment is structured as a senior loan in the local currency, Honduran Lempira, mitigating foreign exchange risks and ensuring stable financial operations. The bank’s current shareholders include Dutch and Belgian Development Finance Institutions, Triple Jump, and Incofin.
Development Finance, Microfinance, Banking,Honduras