Microfinance Enhancement Facility

The MEF is a USD 500 million facility that supports microfinance institutions facing difficulties financing as a result of the global financial crisis and ensures that low-income borrowers in developing countries continue to have access to finance.

The Fund is flexible to meet the needs of MFIs as they change with the evolving financial situation and financial sector. These types of vehicles should not crowd out the private sector. The facility was set up to help stabilize funding for systematically important MFIs and their clients.

If fully deployed, it is expected to provide financing to more than 100 microfinance institutions in up to 40 countries. It could support lending to as many as 60 million low-income borrowers in many of the world’s poorest countries. The MEF will provide vital funding and ensure that microfinance continues to stimulate growth, create jobs, and serve as a catalyst to assist entrepreneurs in overcoming poverty in emerging markets.