Thanks to its multiplicative effect, LA-CIF has a great potential to influence the development of microfinance and microenterprises in Latin America.  

LA-CIF’s impact can be seen on three levels:

1)  Discipline of the financier

Financial market development is a function of the quality of disciplined management that exists in the chain of the various agents that operate in it.  For example, in the case of LA-CIF, the chain is constituted by the relationships  between the investors and LA-CIF; and the MFIs, and MFIs and microenterprises.  All levels of the chain require information transparency, prudential management and solid financial results.  LA-CIF finds itself in the middle of this chain and, as such, its responsibility and impact is very important.

2)   Liability structure of microfinance institutions

LA-CIF’s objective is to promote MFIs’ access to private sources of capital by structuring attractive financial instruments. Syndicated debt, bonds and credit lines create stronger liabilities for MFIs and attract high-quality investors.  In this way, the supply of financial services to microenterprises can evolve in terms of the breath of instruments being offered and the terms and financial cost of each.

3)   Better and greater resources for microenterprises

The consolidation of MFIs, in terms of their financial structure and the quality of services they provide, will lead to greater growth possibilities for microenterprises in Latin America.  As the primary source of employment, MFIs will drive the possibilities for regional development.