Development Finance Corporation Belize

Last updated
Development Finance Corporation
Industry Financial services
FoundedSeptember 27, 1963;60 years ago (1963-09-27)
Headquarters Belmopan, Belize
Area served
Belize
Key people
Henry Anderson (Chairman), Raineldo Guerrero (Deputy Chair)
ProductsFinancing for: Home, Tourism, Renewable Energy, Business, Agriculture and Education
Website www.dfcbelize.org

Development Finance Corporation (DFC) is the only development bank in Belize, Central America. Established on September 27, 1963, the bank provides micro sector enterprise (small business) loans, home loans, student Loans, productive sector loans (agriculture, manufacturing, fisheries, etc.) and from 2016, renewable energy and energy efficiency loans for businesses. [1] [2] [3]

Contents

Between 2009 and 2016, the DFC has invested over $160 million in the people and economy of Belize. DFC is not a cash-deposit Bank. The Corporation accesses financing from larger regional and international lending institutions at attractive rates for lending to Belizeans Citizens, Residents, companies, cooperatives and other bodies with Belizean majority share Interest.

Its purpose is to support the strengthening and expansion of Belize's economy by providing developmental financing on an economically sustainable and environmentally acceptable basis to individuals, businesses and organizations. [4]

History

The Development Finance corporation was established in Belize, Central America on September 27, 1963, under the DFC Ordinance No.2 of 1961 as amended by No. 15 of 1963. It was owned by the private sector. In 1973 DFC was restructured and became a financial institution owned by the Government of Belize. This entity fell under the responsibility of the Ministry of Finance and Defense. The DFC operates under the New DFC Act No. 1 of 2009 of the Laws of Belize.

On September 27, 2013, the Corporation celebrated 50 years of service to Belize, also unveiling its new logo. Always innovating, DFC introduces Renewable Energy and Energy Efficiency Financing for businesses.

Branches

Economic impact

Between 2009 and 2016, the DFC has invested $163 million Belize dollars in the people and economy of Belize. Productive sector lending represent 69.5 per cent of DFC's total loan portfolio. As of August 2016, the DFC hold 6,439 loan accounts.

Related Research Articles

<span class="mw-page-title-main">International Finance Corporation</span> World Bank Group member financial institution

The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.

<span class="mw-page-title-main">European Bank for Reconstruction and Development</span> Financial institution which supports more than 30 countries

The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.

<span class="mw-page-title-main">European Investment Bank</span> Investment bank of the European Union

The European Investment Bank (EIB) is the European Union's investment bank and is owned by the 27 Member States. It is the largest multilateral financial institution in the world. The EIB finances and invests both through equity and debt solutions companies and projects that achieve the policy aims of the European Union through loans, equity and guarantees.

<span class="mw-page-title-main">Overseas Private Investment Corporation</span> Government agency of the United States of America

The Overseas Private Investment Corporation (OPIC) was the United States Government's Development finance institution until it merged with the Development Credit Authority (DCA) of the United States Agency for International Development (USAID) to form the U.S. International Development Finance Corporation (DFC). OPIC mobilized private capital to help solve critical development challenges and in doing so, advanced the foreign policy of the United States and national security objectives.

A financial intermediary is an institution or individual that serves as a "middleman" among diverse parties in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, insurance and pension funds, pooled investment funds, leasing companies, and stock exchanges.

A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive."

<span class="mw-page-title-main">KfW</span> German state-owned investment and development bank

The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe, is a German state-owned investment and development bank, based in Frankfurt. As of 2014, it is the world's largest national development bank and as of 2018 Germany's third largest bank by balance sheet. Its name originally comes from Kreditanstalt für Wiederaufbau. It was formed in 1948 after World War II as part of the Marshall Plan.

<span class="mw-page-title-main">Economy of Belize</span>

The economy of Belize is a small, essentially private enterprise economy that is based primarily on agriculture, tourism, and services. The cultivation of newly discovered oil in the town of Spanish Lookout has presented new prospects and problems for this developing nation. Belize's primary exports are citrus, sugar, and bananas. Belize's trade deficit has been growing, mostly as a result of low export prices for sugar and bananas.

<span class="mw-page-title-main">REC Limited</span> Indian government subsidiary

REC Limited, formerly Rural Electrification Corporation Limited, of which Power Finance Corporation Limited (PFC) is holding company, which in turn is under the ownership of the Ministry of Power, the Government of India. It finances and promotes power projects across India. The PSU provides loans to Central/State Sector Power Utilities in the country, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. On 20 March 2019, PFC signed the agreement to acquire a 52.63% controlling stake in REC for 14,500 crore (US$1.8 billion). On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020. However, REC has maintained that merging PFC-REC is no longer an option.

<span class="mw-page-title-main">Clean Energy Finance Corporation</span> Australian Government-owned Green Bank

The Clean Energy Finance Corporation (CEFC) is an Australian Government-owned green bank that invests alongside private investors, innovators and industry leaders to increase the flow of finance into the clean energy sector, and to help achieve Australia's national goal of net zero emissions by 2050.

<span class="mw-page-title-main">Richard Kauffman</span>

Richard L. Kauffman is the first New York State "energy czar," officially referred to as the Chairman of Energy and Finance for New York in the administration of New York Governor Andrew Cuomo. In this role, Kauffman is New York State's most senior energy official, responsible for all aspects of energy policy and agency operation, and leads the state's "Reforming the Energy Vision" initiative.

<span class="mw-page-title-main">Folk2Folk</span>

FOLK2FOLK is a Marketplace lending platform (MPL) specializing in secured lending for business owners across the rural and regional parts of the UK. It matches businesses looking for capital with individual (retail) and institutional investors who receive a fixed interest rate from 7.5% p.a. secured against UK land or property. Investors receive the same interest rate that the Borrower pays, with FOLK2FOLK making its profit from an arrangement fee and annual renewal fee charged to Borrowers.

Africa Finance Corporation (AFC) is a pan-African Multilateral Development Financial Institution established in 2007 by sovereign African states to provide pragmatic solutions to Africa's infrastructure deficit and challenging operating environment. The Corporation bridges the infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.

A green bank is a financial institution, typically public or quasi-public, that employs innovative financing techniques and market development tools in collaboration with the private sector to expedite the deployment of clean energy technologies. Green banks use public funds to leverage private investment in clean energy technologies that, despite their commercial viability, have struggled to establish a widespread presence in consumer markets. Green banks aim to reduce energy costs for ratepayers, stimulate private sector investment and economic activity, and expedite the transition to a low-carbon economy.

<span class="mw-page-title-main">Bank of Industry</span>

Bank of Industry Limited is Nigeria's oldest and largest Development Finance Institution (DFI) currently operating. It is owned by the Ministry of Finance Incorporated (MOFI) Nigeria (94.80%), the Central Bank of Nigeria (CBN) (5.19%) and private shareholders (0.01%). The bank has 11 members on its board and is chaired by Aliyu Abdulrahman Dikko.

<span class="mw-page-title-main">Honduras and the World Bank</span>

The World Bank Group is a family of five international organizations that has provided leveraged loans and monetary assistance to the Central American country of Honduras in order to assist with the funding of critical tasks needed to ensure security of Honduran access to financing, expansion of social program coverage, and rural development. The country is the second poorest in Central America and its high poverty rate of 66% in 2016 has prompted an increased focus on the importance of diversification of rural income sources, quality education, and targeted social programs as a way of spurring economic growth.

Morocco's involvement with the World Bank primarily focuses on infrastructure, such as road, transport and water sanitation. In addition the bank supports projects across the health sector, youth development, renewable energy, governance and the support of small and medium enterprises (SMEs). 27 projects are ongoing, including three projects initiated in 2017. The World Bank invested over US$1 billion every year from 2014 to 2016.

<span class="mw-page-title-main">National Investment and Infrastructure Fund</span> Sovereign wealth fund of India dedicated to infrastructure

National Investment and Infrastructure Fund Limited (NIIFL) is an Government owned company which maintains infrastructure investments funds for international and Indian investors anchored by the Government of India. The objective behind creating this organisation was to catalyse capital into the country and support its growth needs across sectors of importance.

<span class="mw-page-title-main">U.S. International Development Finance Corporation</span> US federal agency responsible for providing foreign aid

The United States International Development Finance Corporation (DFC) is a development finance institution and agency of the United States federal government. DFC invests in development projects primarily in lower and middle-income countries. First authorized on 5 October 2018 by the BUILD Act, the independent agency was formed on 20 December 2019 by merging the Overseas Private Investment Corporation (OPIC) with the Development Credit Authority (DCA) of the United States Agency for International Development (USAID), as well as with several other smaller offices and funds.

Sustainable finance is the set of financial regulations, standards, norms and products that pursue an environmental objective. It allows the financial system to connect with the economy and its populations by financing its agents while maintaining a growth objective. The long-standing concept was promoted with the adoption of the Paris Climate Agreement, which stipulates that parties must make "finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development." In addition, sustainable finance had already a key role to play in the European Green Deal and in other EU International agreements, but since the COVID-19 pandemic its role is even more important.

References

  1. "Who we are - Our Purpose". DFC. Retrieved 7 March 2017.
  2. "Development Finance Corporation appoints new General Manager". Breaking Belize News. January 28, 2023.
  3. "Government pays in $31 million to Development Finance Corporation". Breaking Belize News. September 6, 2021.
  4. "Will DFC be involved in hemp and marijuana?". Love FM. January 31, 2023.