US-based Overseas Private Investment Corporation has approved $ 250 million funding to Citibank to give loans to microfinance entities in emerging markets.
OPIC will risk participate in Citi originated and funded local currency loans to MFIs, which in turn make small loans to micro-borrowers in Africa, the Middle East, Asia, Eastern Europe and Latin America, a press release said.
The facility, which is an expansion of USD 100 million OPIC-Citi microfinancing funding facility launched in 2006, is expected to benefit 4.8-lakh borrowers, the release said.
The programme had initially targeted to extend loans to 23 MFIs in 13 countries. MFIs need access to markets and funding to continue their work.