Category: Latin America

MICROCAPITAL BRIEF: Grupo Fortaleza Places $17.9m Closed-End Fund on Bolivian Stock Exchange to Finance Small Microfinance Institutions (MFIs)

Grupo Fortaleza, a Bolivian financial services company that caters to small and medium enterprises (SMEs), has placed a BOB 125 million (USD 17.9 million) closed-end fund on the Bolivian stock exchange (Bolsa Boliviana de Valores) with the purpose of financing small microfinance institutions (MFIs). Continue reading

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MICROFINANCE EVENT: FWA 23rd International Business Conference by Financial Women’s Association in San Jose, Costa Rica, March 7-14, 2010

Event Name: FWA International Business Conference 2010

Event Description: This week-long conference includes lectures, panel discussions, and networking opportunities with key government officials and including Costa Rican President and Nobel Peace Prize Laureate, Oscar Arias. The conference is intended for business development officials interested in microfinance, global issues regarding the environment, education, as well as the role of women in economic development. Continue reading

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MICROCAPITAL BRIEF: The Inter-American Development Bank (IDB) Approves $10m Credit Guarantee for Banco de Crédito e Inversiones (BCI), a Commercial Bank in Chile, for Lending to 80,000 Small Entrepreneurs

The Inter-American Development Bank (IDB), which provides multilateral financing in Latin America and the Caribbean, has approved a USD 10 million credit guarantee as part of a program from Banco de Crédito e Inversiones (BCI), a Chilean commercial bank, to provide loans to 80,000 small entrepreneurs [1,2,3]. The program will be carried out by BCI Nova Banca Emergente, BCI’s microfinance arm [1]. BCI will utilize credit histories and background information from some of its corporate clients that have microentrepreneurial client bases [1]. It will also utilize new management and credit technologies including electronic payments and online collection [1]. Additionally, the IDB’s Multilateral Investment Fund (MIF), an autonomous fund administered by the IDB, has provided a USD 600,000 grant to BCI to support training for lending staff [1]. The program will focus on Santiago, the Chilean capital, where an estimated one million people are unbanked [1]. Continue reading

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MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) to Provide $10m Loan to Mibanco of Peru to Help Launch Microfinance Product

As part of its Opportunities for the Majority initiative, the Inter-American Development Bank (IDB) will provide USD 10 million to Mibanco, a Peruvian microfinance institution with a gross loan portfolio equivalent to USD 781 million, according to the MIX Market, the microfinance information clearinghouse. The loan is expected to help Mibanco launch a financial product called Crecer Mi Negocio (To Grow My Business), which will provide women entrepreneurs with medium term investment loans averaging USD 2,000 to USD 3,000. Continue reading

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MICROCAPITAL BRIEF: Eton Park Capital Management Announces Plans to Invest $54.5m in Mexican Microfinance Institution Financiera Independencia

Eton Park Capital Management and Financiera Independencia (FI), a Mexican microfinance institution (MFI), have signed an agreement by which Eton Park will subscribe for 70 million shares of FI for MXN 700 million (USD 54.5 million). Continue reading

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MICROCAPITAL BRIEF: Symposium on Agricultural Risk and Insurance in Guyana Raises Need for Risk Management, Microinsurance

Launched by the Guyanan government in cooperation with the World Bank and the Inter-American Institute for Cooperation on Agriculture (IICA), the Symposium on Agricultural Risk and Insurance was held in Georgetown, Guyana, from December 7th to 9th to address the primary risk factors affecting the agricultural sector of Guyana and to lay out a risk management strategy. The event included 70 participants from the policy, agriculture, risk management, and financial sectors. Continue reading

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MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Provides $5m Loan for Fund Sponsored by Global Partnerships to Invest in 20 Microfinance Institutions (MFIs) in Latin America

The Inter-American Development Bank (IDB), which provides multilateral financing in Latin America and the Caribbean, will provide a USD 5 million loan to a fund that is managed by Global Partnerships, a non-governmental organization (NGO) that supports microfinance institutions (MFIs) in Latin America [1,2,3]. The fund, which totals USD 25 million, will be used to invest in 20 MFIs in at least 12 countries [1]. The other USD 20 million will be provided by other, unspecified private institutions and investors [1]. In turn, the MFIs will lend to microentrepreneurs, mostly in the Central American and Andean regions [1]. Additionally, the MFIs will use the investments to provide the microentrepreneurs with technical assistance, “innovative technologies in areas such as loan management, insurance, evaluation and foreign currency hedging,” and social services such as protection of health [1]. Continue reading

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KNOW A MICROFINANCE REGULATOR: National Banking and Securities Commission (Comision Nacional Bancaria Y De Valores) of Mexico and Superintendency of Banking, Insurance and Private Pension Funds (Superintendencia de Banca Seguros y AFP) of Peru

The following regulators are profiled in this brief:

Mexico-National Banking and Securities Commission (Comision Nacional Bancaria Y De Valores CNBV), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Banking+and+Securities+Commission+%28CNBV%29

Peru-Superintendency of Banking, Insurance and Private Pension Funds (Superintendencia de Banca Seguros y AFP SBS), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Superintendency+of+Banking%2C+Insurance+and+Private+Pension+Funds+%28SBS%29 Continue reading

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MICROCAPITAL BRIEF: Erste Bank Group of Austria Launches Microfinance Fund

Erste Group Bank (EGB), an Austria-based financial services provider with over EUR 201.4 billion (USD 295.2 billion) in total assets, has launched the ESPA VINIS Microfinance Fund. The fund will focus on microfinance in emerging markets, particularly South-East Asia, South America and Eastern Europe. It will invest directly in microfinance bonds as well as other microfinance funds. Further financial information has not been released. Continue reading

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MICROCAPITAL BRIEF: Fundación BBVA Microfinanzas, Microfinance Arm of Banco Bilbao Vizcaya Argentaria (BBVA), to Begin Operating in Brazil and Mexico

Fundación BBVA Microfinanzas, the microfinance arm of the Spanish commercial bank, Banco Bilbao Vizcaya Argentaria (BBVA), has announced that it “will begin operating in tandem with [unspecified] local partners in Brazil and Mexico in 2010″ [1,2,3]. This comes soon after an announcement that BBVA Microfinanzas will “create a microfinance joint venture” with Credicoop, a Chilean cooperative bank [1,4]. BBVA Microfinanzas has already launched microfinance initiatives in Colombia, Peru, Puerto Rico, and Central America through an agreement with the Central American Bank for Economic Integration (Cabei), “a multilateral bank and financial arm” founded by the nations of Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica [1,3]. It also plans to begin a similar initiative in Argentina [1]. Continue reading

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MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Provides $17.5m Loan Facility to Dominican Commercial Bank ‘Banco BHD’ to Lend to Small and Medium Enterprises (SMEs)

The Inter-American Development Bank (IDB), which provides multilateral financing in Latin America and the Caribbean, has extended a USD 17.5 million loan to Banco BHD, a commercial bank based in the Dominican Republic, in order to “strengthen its capital position and expand its long-term lending to the corporate sector, including small and medium-sized enterprises (SMEs)” [1,2,3]. The facility is made up of a USD 5 million loan with a five-year tenor and a USD 12.5 million loan with an eight-year tenor [1]. The USD 12.5 million loan will be extended in conjunction with an unspecified third party [1]. Continue reading

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MICROCAPITAL BRIEF: Microfinance Information Exchange Releases Benchmarking Reports on Central America, Nicaragua and Azerbaijan

The nonprofit Microfinance Information Exchange (MIX) recently released three of its benchmarking reports. Two of these were produced in Spanish in cooperation with REDCAMIF, the Central American Microfinance Network: the 2009 Central America Microfinance Analysis and Benchmarking Report, which covers 78 microfinance institutions (MFIs) and the 2009 Nicaragua Microfinance Analysis and Benchmarking Report, which includes coverage of the impact of the “No Pago” movement. The 2009 Azerbaijan Microfinance Analysis and Benchmarking Report was produced in English in cooperation with the Azerbaijan Microfinance Association (AMFA). Continue reading

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MICROCAPITAL BRIEF: The International Labour Organization’s (ILO’s) Microinsurance Innovation Facility Opens Fourth Round of Innovation Grants

To spur the development of innovative microinsurance products, the International Labour Organization’s (ILO’s) Microinsurance Innovation Facility has opened its fourth round of grant funding. Since “insurance providers often lack the know how to reach this market and need to experiment to develop sustainable business models…[these] grants are there to support those risk takers, cover their start up costs and harness lessons learnt,” said Craig Churchill, team leader of the Microinsurance Innovation Facility. Since its founding in 2008, the Facility has provided 34 innovation grants, ranging from USD 20,000 to USD 600,000, to insurance companies, cooperatives, non-governmental organizations (NGOs) and other microinsurance providers. The deadline for the fourth round of grant proposals is March 2nd, 2010. More information can be found at www.ilo.org/microinsurance. Continue reading

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MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Provides $25m Loan to ProCredit Holding to Lend to Micro, Small, and Medium Enterprises (MSMEs)

The Overseas Private Investment Corporation (OPIC), an “independent U.S. government agency” that provides services to facilitate foreign investment to “less developed countries,” has approved a loan of USD 25 million to ProCredit Holding, “a [German] parent company of 22 development-oriented banks” operating in Latin America, Eastern Europe and Africa with a gross loan portfolio of EUR 3.3 billion, the equivalent of over USD 4.9 billion, as of the end of 2008 [1,2,3]. This loan will be used by ProCredit to expand their loan provision to micro, small, and medium enterprises (MSMEs) [1]. MicroCapital reported on a 2005 loan from OPIC to ProCredit worth USD 30 million [4]. OPIC also made a USD 3 million loan to a ProCredit microfinance institution (MFI) in Moldova in 2005, and a USD 5 million loan to ProCredit Bank in Ukraine in the same year [5,6]. OPIC Acting President Dr. Lawrence Spinelli has commented on the importance of the latest loan in terms of allowing ProCredit to “diversify its capital base” [1]. Continue reading

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KNOW A MICROFINANCE REGULATOR: Regulators of Microfinance in Bangladesh, India, Brazil, Bolivia, Egypt And Kenya

The following regulators are profiled in this brief:

Bangledesh – Microcredit Regulatory Authority (MRA), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microcredit+Regulatory+Authority+%28MRA%29

India – National Bank of Agriculature and Rural Development (NABARD), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Agriculature+and+Rural+Development+%28NABARD%29

Brazil – Central Bank of Brazil (BCB), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Brazil+%28BCB%29

Bolivia – Superindendent of Banks and Financial Entities (SBEF), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Superindendent+of+Banks+and+Financial+Entities+%28SBEF%29

Egypt – Central Bank of Egypt (CBE), located at: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Egypt+%28CBE%29

Kenya – Central Bank of Kenya (CBK), located at: http://docs.google.com/Doc?docid=0Adr0wzXJKlP0ZGZiN3dwYnFfMzlocDhnZHZmNQ&hl=en Continue reading

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MICROCAPITAL EVENT: MicroInsurance Summit 2010: Evaluating Stategies for Delivery, Partner-Agent Models and Scalability, February 23-25, 2010, Le Meridien Piccadilly, London

Event Name: MicroInsurance Summit 2010: Evaluating Stategies for Delivery, Partner-Agent Models and Scalability

Event Date: February 23-25, 2010

Event Location: Le Meridien Piccadilly, London

Event Website: http://www.hansonwade.com/events/microinsurance-summit-2010/index.shtml

See Our Comprehensive Event Calendar Here:
http://microfinanceassociation.ning.com/events Continue reading

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MICROFINANCE PAPER WRAP-UP: Insurance in Developing Countries: Exploring Opportunities in Microinsurance, by Lloyd’s 360 Risk Insight and MicroInsurance Centre L.L.C.

Published by Lloyd’s 360 Risk Insight and the MicroInsurance Centre in November 2009, 38 pages, available at: http://www.lloyds.com/NR/rdonlyres/5CFE7CAF-0075-415C-B0F2-BEBF0323059E/0/Microinsurancereport_Nov2009.pdf

Produced by Lloyd’s, an insurance and reinsurance market, and the MicroInsurance Centre, a consulting and advocacy company, this report describes the current landscape of microinsurance and lays out the means and benefits of entering this emerging market. Continue reading

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