BNP Paribas granted a $1m equivalent loan to MBK Ventura, an Indonesian Micro Finance Institution (MFI).
MBK Ventura was created in 2003 in order to provide working capital to women from very low income households in Indonesia, to help finance their micro enterprises, enabling them to increase their family’s income and living standards.
The average working capital provided to clients is approximately $100 and the loan by BNP Paribas will allow lending to 10,000 women.
The transaction, granted under commercial terms, took place as part of BNP Paribas global micro finance strategy. In June 2006 the bank created a department dedicated to microfinance.