LocFund organises training at Foromic on operational risk and internal control

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Through its Technical Support Facility (“TSF 2”), sponsored by Norfund and BIO, LocFund organises a training on operational risk and internal control at the Foromic Conference on 4 October 2012. The seminar aims to increase awareness about the need to implement strong internal control systems within MFIs.

LocFund is an Investment Fund providing financing in local currency to microfinance institutions in Latin America and the Caribbean. Widely focused on institutions with limited access to funding and less opportunities to optimize their financing structure, LocFund provides local currency financing reducing local currency devaluation risks.

While providing financial services, it is fundamental to ensure microfinance institutions understand the structure and tasks of risk areas and the key operational risks and its controls. It is essential they understand and identify their operational and reputational risks and measure adequately clients’ repayment capacities. Over-indebtedness may have drastic negative consequences. All possible efforts must then be undertaken to prevent markets from overheating, without holding back the desired market development in general.

About LocFund

LocFund provides local-currency loans to microfinance institutions (MFIs) in Latin America and the Caribbean. LocFund loans amounts between USD 250,000 and USD 1.5 million. LocFund’s managing offices are in La Paz, Bolivia, and San Jose, Costa Rica. LocFund includes a technical assistance facility that aims to manage the risks realting to assets/liabilities management.

About Foromic

The Foromic is the region’s leading forum for supporting and financing microenterprises, SMEs, and small farmers in Latin America and the Caribbean. The Foromic provides an essential meeting place for networking and business deals between private sector investors and financial institutions making the conference their primary business event of the year.