Development Partnerships Framework Agreements
More than a decade ago, OPIC created framework agreements as a way to efficiently share risk, provide local currency, and reach highly impactful borrowers for its development work in challenging sectors or countries. OPIC does not have the resources to identify many local small business and entrepreneurs in developing countries and generally does not have the capability to lend in local currency.
Partnerships with mainstream banks and other intermediaries enable OPIC to utilize the resources of the partners to identify borrowers that meet OPIC’s lending and development, provide local currency, and share financial risk to the borrower with the partners. Over the years, the number of these development partnership framework agreements has grown, covering diverse projects such as HIV/AIDS treatment in Uganda, low income housing in several Middle East nations and microfinance in Latin America.