Question 1

What is Fondeco IFD?

Accepted Answer

Fondeco IFD (Institución Financiera de Desarrollo) is a non-profit development finance institution operating in Bolivia. As one of nine licensed IFDs in the country, Fondeco specializes in providing financial services to underserved populations, including microenterprises, agricultural communities, and individuals typically excluded from traditional banking systems.

The institution is regulated by ASFI (Autoridad de Supervisión del Sistema Financiero), Bolivia's financial supervisory authority. With over 30 years of experience promoting development in Bolivia, Fondeco has established itself as a trusted provider of microfinance and community-focused financial services.

Question 2

When was Fondeco IFD founded?

Accepted Answer

Fondeco was founded approximately in 1994, marking over 30 years of operation in Bolivia's development finance sector. The institution was established as a non-profit organization dedicated to providing financial inclusion to populations underserved by traditional banking.

Fondeco evolved from being an unregulated NGO focused on microcredit to obtaining its official license as an Institución Financiera de Desarrollo from ASFI. This formalization process aligned with Bolivia's broader regulatory framework that incorporated development finance institutions into the supervised financial system in the late 2000s and 2010s.

Question 3

Where is Fondeco IFD headquartered?

Accepted Answer

Fondeco IFD is headquartered in Santa Cruz de la Sierra, Bolivia's largest city and economic hub. The central office is located at Av. Pedro Ribera Méndez (3er. Anillo Int.) Esq. Chuubi, between Av. Paraguá and Av. Mutualista.

The headquarters serves as the administrative center for the institution's operations across Bolivia. Operating hours are Monday through Friday from 8:00 AM to 12:00 PM and 2:00 PM to 4:30 PM, with Saturday hours from 8:00 AM to 12:00 PM.

Question 4

Where does Fondeco IFD operate?

Accepted Answer

Fondeco IFD operates throughout Bolivia with a network of agencies serving both urban and rural communities. The institution maintains a strong presence in major Bolivian departments including Santa Cruz, La Paz, Cochabamba, and other regional areas.

As of December 2023, Fondeco operates multiple branch offices strategically positioned to reach underserved populations in both urban centers and rural agricultural zones. The institution's geographic coverage reflects its mission to provide financial access to areas with limited traditional banking infrastructure.

Question 5

What services does Fondeco IFD offer?

Accepted Answer

Fondeco IFD provides a range of financial products and services tailored to microentrepreneurs and underserved communities:

Credit Products:
• Fondo Comunal (Community Fund): Group lending products for community organizations
• Créditos Agropecuarios (Agricultural Credits): Financing for farming and livestock activities
• Créditos No Agropecuarios (Non-Agricultural Credits): Loans for small businesses and microenterprises

Deposit Services:
Fondeco has authorization from ASFI to accept public deposits through savings accounts (cajas de ahorro) and fixed-term deposits (depósitos a plazo fijo).

Payment and Collection Services:
• Utility bill payments (electricity, water, telecommunications)
• Insurance collection and SOAT (mandatory vehicle insurance)
• Government benefit payments (Bono Juancito Pinto, Bono Juana Azurduy, Renta Dignidad)
• Money transfer services (Western Union, MoneyGram, Giro Fondeco)
• Collection of other services (Natura, Yanbal, PagosNet)
• Insurance product sales (FONVIDA, ONCOSALUD, Ingreso Protegido)

Digital Services:
Fondeco maintains an institutional website (fondeco.org) that provides information about services, agency locations, financial education resources, and online complaint forms, meeting ASFI's digital security and transparency requirements.

Question 6

What makes Fondeco IFD unique?

Accepted Answer

Fondeco IFD distinguishes itself through several key characteristics:

Focus on Financial Inclusion: As a non-profit development finance institution, Fondeco prioritizes serving microenterprises, agricultural producers, and low-income populations that lack access to traditional banking services. The institution employs specialized microcredit technologies adapted to the economic and social context of its clients.

Regulatory Compliance: Fondeco is one of only seven IFDs in Bolivia authorized by ASFI to accept public deposits, demonstrating its financial stability and regulatory compliance. The institution operates under regulated interest rate caps established by Supreme Decree 2055, applying maximum rates for productive sector financing since September 2021.

Agricultural and Community Focus: With dedicated credit lines for agricultural activities and community lending groups (Fondo Comunal), Fondeco addresses the specific needs of rural producers and organized community groups. This specialization reflects Bolivia's economic structure, where over 85% of the economy operates informally.

Comprehensive Service Offering: Beyond credit, Fondeco serves as a financial hub for underserved communities by facilitating utility payments, government benefit distributions, and money transfers. This multi-service approach reduces financial exclusion in areas with limited banking infrastructure.

Question 7

What type of financial institution is Fondeco IFD?

Accepted Answer

Fondeco is classified as an Institución Financiera de Desarrollo (IFD), or Development Finance Institution, under Bolivian financial law. IFDs are specialized entities recognized in Bolivia's Law 393 of Financial Services.

IFDs operate as non-profit associations or foundations authorized to conduct financial intermediation activities. They are specifically designed to provide access to financial services for microenterprises, peasant economic organizations, and groups underserved by the traditional financial system. Unlike commercial banks, IFDs focus on productive and social financing using non-traditional credit technologies adapted to their clients' economic and organizational contexts.

Fondeco must maintain minimum foundational capital of UFV 1,500,000 (approximately 1.5 million Housing Development Units) and operates under ASFI supervision. As a licensed IFD, Fondeco can grant loans, accept public deposits, trade financial instruments, transfer loan portfolios, and invest in innovative ventures within the framework of development finance.

Fondeco IFD

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About Fondeco IFD in Bolivia