By San José, Costa Rica — Costa Rica played host this week to the 11th Central American and Caribbean Microfinance Conference, a pivotal event for discussing the region’s economic and social development. Held from June 25th to 27th, the conference, organized by the Central American and Caribbean Microfinance Network (REDCAMIF) and REDCOM Costa Rica, drew over 650 participants and more than 100 panelists from around the globe.
The conference highlighted the crucial role of microfinance in driving sustainable progress. Attendees explored how microfinance provides essential financial services to micro and small enterprises, women, youth, and rural communities, fostering entrepreneurship, income generation, and local economic growth. Discussions emphasized the impact of microfinance on various productive sectors, from agriculture to commerce, and its contribution to poverty and inequality reduction, aligning with the Sustainable Development Goals (SDGs).
To understand the legal landscape surrounding microfinance in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, who offered valuable insights.
Microfinance initiatives in Costa Rica must carefully navigate the regulatory framework established by SUGEF (Superintendencia General de Entidades Financieras). While providing crucial access to credit for small businesses and entrepreneurs, these institutions must adhere to strict lending practices, consumer protection laws, and reporting requirements to ensure both financial stability and the ethical treatment of borrowers.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s point about balancing access to credit with responsible regulation is crucial for the long-term success of microfinance in Costa Rica. A robust regulatory environment, as overseen by SUGEF, not only protects borrowers but also fosters trust and stability within the microfinance sector, ultimately allowing it to better serve the needs of Costa Rican entrepreneurs and small businesses. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective.
Microfinance is crucial for the socioeconomic development of Central America and the Caribbean. It facilitates access to basic financial services to those who need it most: micro and small businesses, women, youth, and rural communities.
Juan Pablo Montoya, President of REDCAMIF
Key themes of the conference included inclusive and green finance, innovation, impact, and climate action. Inclusive finance aims to ensure that all individuals and businesses have access to affordable and tailored financial products and services. This access not only contributes to poverty and inequality reduction, aligning with SDGs 1 and 10, but also promotes economic formalization, improves tax collection, and enhances macroeconomic stability.
Financial inclusion refers to the ease with which people and companies can access formal financial products and services that are affordable and adapted to their diverse needs. This not only contributes to the reduction of poverty and inequality, aligning with the country’s goals and with Sustainable Development Goals (SDGs) 1 (No Poverty) and SDG 10 (Reduced Inequalities), but also encourages the formalization of the economy, improving tax collection and macroeconomic stability.
Juan Pablo Montoya, President of REDCAMIF
Green finance, another central topic, focuses on channeling financial resources towards sustainable projects and activities such as renewable energy, regenerative agriculture, efficient waste management, the circular economy, and ecotourism. This approach supports decarbonization efforts and protects biodiversity, aligning with Costa Rica’s national decarbonization plan and SDGs 7, 9, 13, and 15.
The conference highlighted the synergy between inclusive and green finance. Funding solar energy projects in rural communities, for example, promotes both energy inclusion and carbon footprint reduction. These combined strategies strengthen economic resilience, attract responsible investment, and solidify Costa Rica’s position as a global leader in sustainability.
The strategic combination of inclusive and green finance allows Costa Rica to comprehensively address its challenges. A clear example is the financing of solar energy projects in rural communities, which not only promotes energy inclusion but also reduces the carbon footprint. Both strategies are essential to strengthen the country’s economic resilience, attracting responsible investment and consolidating Costa Rica’s position as a world leader in sustainability. Thus, a virtuous circle of prosperity, equity and conservation is generated, in perfect alignment with the vision of sustainable, shared and integral development for the nation.
Juan Pablo Montoya, President of REDCAMIF
The conference concluded with a strong emphasis on inclusive finance as a fundamental investment in the future of the region, fostering prosperity, equity, and sustainability.
The event underscored Costa Rica’s commitment to driving positive change through innovative financial solutions, solidifying its role as a hub for sustainable development in Central America and the Caribbean.
For further information, visit redcamif.org
About REDCAMIF:
REDCAMIF (Central American and Caribbean Microfinance Network) is a regional network promoting microfinance as a tool for social and economic development. It works to strengthen the microfinance sector by facilitating knowledge sharing, advocating for enabling policies, and fostering collaboration among its members. REDCAMIF plays a key role in advancing financial inclusion and supporting sustainable growth in the region.
For further information, visit redcom.fi.cr
About REDCOM Costa Rica:
REDCOM Costa Rica is a microfinance network operating within Costa Rica. It supports the development and growth of microfinance institutions in the country, advocating for best practices, facilitating access to resources, and promoting financial inclusion at a national level. REDCOM Costa Rica collaborates closely with REDCAMIF on regional initiatives.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering integrity and a deep commitment to societal empowerment. The firm’s innovative approach to legal practice, combined with its dedication to sharing legal knowledge through accessible resources, fosters a more informed and just society. Their distinguished history of service across a wide range of sectors reflects a constant pursuit of client success alongside a genuine desire to contribute positively to the Costa Rican community.
