The president of the board of directors of the National Popular and Solidarity Finance Corporation (Conafips), Roberto Romero, explains the good results achieved in the implementation of the Environmental and Social Risk Management System (Saras) that this entity has executed, with the technical help of the United Nations Development Program (UNDP) and CAF, in 165 cooperatives nationwide. This is one of the largest interventions to strengthen inclusive, sustainable and green finance. Conafips has important projects to obtain funds from multilaterals; the last one, already approved, is from the Asian Infrastructure Investment Bank (AIIB). Last Thursday all the advances were announced in an official event.
What were the results of the implementation of the Environmental and Social Risk Management System (SARAS) in the last year and a half?
We are at the culmination of a great stage that has identified us worldwide as managers of one of the most important interventions for the strengthening of green finance and the entire concept of sustainable credits. With this strategic alliance and support from UNDP and CAF, we have built together, through non-reimbursable funds, with technical assistance and training, the Environmental and Social Risk Management System (SARAS).
Why do you say that it is one of the greatest interventions?
Because it has been possible to implement, between January 1, 2021 and April 2022, the Saras system in 165 savings and credit cooperatives, of which 76 cooperatives already have an environmental approach, while the rest have a general social approach. In terms of money, Conafips has managed to place a total of credits for $473 million, to the 165 cooperatives. However, of this total, $108 million of credits have been managed for 46 of the 76 cooperatives with environmental responsibility. Additionally, out of every ten credits, five are destined for women. This is how we manage to reduce inequities.
What emblematic projects have been financed with these green and inclusive funds?
I can refer to two very interesting examples. For the Saras component with environmental responsibility, through the cooperatives we have strengthened microcredit for the agricultural sector. Currently, in operations, the rural sector represents 37% of the total. Partners have been trained to take care of the environment and mitigate environmental impacts. The man who receives the credit and works with the land already applies the national and international recommendations on the subject. Another example is the social responsibility work we have with the United Women Savings and Credit Cooperative (Cacmu). This cooperative supports women entrepreneurs: a seamstress, restaurant owner, pharmacy owner, thousands of productive businesses led by women.
What has been the role of UNDP and CAF as part of this program?
The United Nations Development Program (UNDP) seeks to implement strategic alliances with institutions and with different governments worldwide to promote sustainable development in economies. Thus, he has seen in Conafips a development engine, because we reach 8.5 million members through savings and credit cooperatives. Thus, both UNDP and CAF gave us non-reimbursable capital for technical assistance and training of $430,000; these were intended to build the architecture of the Saras.
Where does the money come from to finance the loans, then?
The $473 million also come from multilaterals. In our operation we have knocked on the doors of the IDB (Inter-American Development Bank), which gave us a loan for intermediation for $93.8 million; CAF gave us $100 million in December; the French Agency for Development (AFD) gave us $35 million. We are also negotiating a new line with CAF for $75 million, which should arrive at the end of the year. The Asian Infrastructure Investment Bank (AIIB) is going to carry out its first operation in Latin America for $100 million, with Conafips, in the middle of the year. Finally, the Global Climate Fund (GCF) has already approved a line for $50 million. Our good reputation and results, which show that a public bank can do things efficiently and technically, have opened doors for us.
How much do you plan to place until the end of 2022?
We hope to reach $355 million. Additionally, I would like to highlight as good results of the bank the level of non-performing loans, which is almost non-existent, and that in 2021 it reached 0.000027%. We are also proud of our rating, since we have AA-, although we hope to continue improving until we reach AAA. (I)
Source: Eluniverso
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