Announcement of IFC Supports Housing Finance Instituition in Colombia on June 21, 1973

· HOLD FOR RELEASE ' ' INTERNATIONAL FINANCE CORPORATION • .318 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 73/15 For use in morning newspapers of I Thursday, June 21, 1973 IFC Supports Housing Finance Institution in Colombia The International Finance Corporation (IFC), a member of the World Bank Group, has signed an equity investment commitment of Co1$7.5 million (approximately US$325,000 equivalent) in Corporaci6n Colombiana de Ahorro y Vivienda (DAVIVIENDA), a savings and loan corporation in Colombia. The investment represents IFC's first direct involvement in a financial institution specifically concerned with the • housing and construction sector • Housing finance in Colombia has traditionally been provided by two go- vernment-sponsored institutions. However, the amount of resources available to these institutions is limited. Therefore, to narrow the country·~ ~ncreasing housing shortage, a shortage which has become especially severe as a result of a rapid rate of urban migration, broader sources of savings became essential. Accordingly, the Government of Colombia, as a part of its National Development Plan, authorized the creation of a system of savings and loan corporations to attract deposit resources directly from the public and to channel these resources specifically towards fin~ncing the hdusing gap. DAVIVIENDA was incorporated as a part of this system in October 1972 and started operations in November 1972. The purpose of IFC's investment, which represents 20% of the company's paid-in capital, is to broaden the company's equity basis and to contribute acti- • vely to t~1e development of the company in the broader framework of the savings and loan movement in Colombia. ME