Through a partnership between World Bank and the International Finance Corporation (IFC), the Colombian government was able to pass a new housing law that included the development of regulatory standards for securitization. Already a middle-income country with a moderately developed government bond market, there was a clear need for off balance sheet finance as the country emerged from financial crisis, and securitization assisted in cleaning up the banking sector. IFC also invested in a secondary market conduit owned by the commercial banks in 2000.
While similar interventions have been made in other countries by the World Bank Group, they were not successful due to market factors – Colombia saw success due to sustained and adequately sequenced support from World Bank Group. As a seven year collaboration between the IFC, World Bank, and Colombian private sector and authorities, this partnership across sectors strengthened market credibility and ability to obtain a favorable credit rating.
Source:
World Bank Group. (2016) World Bank Group Support for Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance