According to the bank, the up to USD 15 mln 7-year facility is to be on-lent to local SMEs, in line with FMO's definition. This transaction fits FMO’s strategy of financing economic growth as well as FI LAC’s strategy to support the Paraguayan banking system in strengthening E&S risk management. Bancop is categorized as E&S risk B due to its loan portfolio (small average loan size, short tenors & no IFC PS trigger project). An ESAP was agreed to review and upgrade their existing ESMS and to incorporate the E&S sector guides that are developed by the Mesa de Finanzas Sostenibles, with support of FMO.
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism