Current Operations - Investments
During ProFund’s run, another gap in Latin America’s capital markets was identified: lack of emergency liquidity. During ProFund’s ten years, Latin America experienced many local liquidity crises due to natural calamities and political or economic upheavals which often took weeks to address. In response, several ProFund shareholders and other investors created the Emergency Liquidity Facility (ELF) along with its Technical Assistance Facility (TSF) . ELF began operations in 2005.
ELF quickly provides emergency liquidity to well-managed and solvent microfinance institutions during times of crisis when low-income borrowers are most affected. The Facility serves as a lender of last resort for pre-qualified MFIs located throughout Latin American and the Caribbean and is prepared to disburse a loan in just two weeks after the onset of a crisis to a pre-qualified institution. ELF pre-qualifies MFIs thorough institutional evaluation and monitoring of their financial performance to assure solvency and institutional health.
As of August 31st, 2012, ELF had disbursed a total of US $36.6 million to 37 different institutions (with an average loan size close to US $1 million).