Growth Guarantee Program

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Linking Poverty Focused Institutions to Local Capital Markets

In 2005, Grameen Foundation launched the Growth Guarantee (GG) program to help microfinance institutions (MFIs) establish credit relationships with local banks and build critical access to local currency financing. 

The GG program was initiated to address a lack of capital supply for MFIs in the face of substantial unmet demand for microfinance loans. Where capital was available, 92 percent of the funding was denominated in hard currency (USD or Euro), which created excessive foreign exchange risk at the MFI level. The GG program was designed to address both of these issues by opening up new local sources of capital, effectively offering both a “credit introduction” for the MFI and a “credit enhancement” for the local bank in the form of a letter of guarantee. 

The Growth Guarantee program is an innovative vehicle structured in partnership with Citi Bank and committed philanthropists who seek to leverage their assets for lasting impact.   

In its first eight years, the program generated more than $200 million in local currency financing for 29 institutions in 12 countries.

Growth Guarantee Portfolio Clients

Bank Andara
Indonesia

Bank Andara seeks to improve the lives of millions of low-income Indonesians by enabling access to a wide range of financial services through productive partnership with Indonesian microfinance institutions on a responsible and financially sustainable basis. They provide loans, savings, and educational assistance to microfinance institutions, particularly those working with rural client bases. 

MBK Ventura
Indonesia

MBK’s mission is to improve the living standards of significant numbers of the bottom twenty five percent of households by income in Indonesia. MBK provides access to working capital for significant numbers of low-income women, particularly those located in rural areas and small towns, in an honest, fair, timely and efficient manner.

© 2014 Grameen Foundation USA. All rights reserved.

Grameen Foundation is approved by the Internal Revenue Service as a 501 (C) (3) tax-exempt organization, and all donations are tax deductible to the extent provided by law. Grameen Foundation's Federal Identification Number (EIN) is 73-1502797.

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