Ten months after the major earthquake that rattled Haiti in January 2010, microfinance institutions (MFIs) and banks still struggle to regain clients, manage late payments and deal with increasing loan defaults. New industry regulation is also expected after requests to the government from MFIs and banks that are concerned that their clients’ money is not well-protected in case of financial institution default.
Category: Latin America & Caribbean
MICROFINANCE EVENT: Hanson Wade to Host Second Annual Microinsurance Summit Latin America in Miami, Florida, March 28-31, 2011
Event Name: Second Annual Microinsurance Summit Latin America
Event Date: March 28 – March 31, 2011
Event Location: Miami, Florida, USA
MICROCAPITAL BRIEF: Microfinance Investment Manager BlueOrchard Invests $5.5m in Fondo de Desarrollo Local (FDL) of Nicaragua, First Allied Savings and Loans Limited (FASL) of Ghana and AB Microfinance Bank of Nigeria
BlueOrchard Finance SA, a subsidiary of Switzerland-based commercial microfinance intermediary BlueOrchard, reported to MicroCapital the details of three debt investments made to microfinance institution (MFI) Nitlapan’s Credit Program Fondo de Desarrollo Local (FDL) of Nicaragua (MFI), First Allied Savings and Loans Limited (FASL), an MFI in Ghana, and the commercial AB Microfinance Bank of Nigeria.
MICROCAPITAL BRIEF: Venezuela to Implement Universal and Microfinance Banking and De-Commercialize Current Financial System
Venezuela’s new financial infrastructure, recently approved by the National Assembly, will replace the General Law on Banks and establish universal banking, microfinance banking and money exchange offices that will launch at an unspecified date.
MICROCAPITAL BRIEF: Grameen Foundation Announces Creation of Bankers Without Borders (BwB) Alliance Program to Expand Microfinance Institution (MFI) Volunteering Initiative
Grameen Foundation, a US-based nonprofit, has announced the creation of the Alliance Program, within its Bankers Without Borders initiative, which will focus on increasing volunteerism in the microfinance and development technology sectors in Asia and Latin America.
MICROCAPITAL BRIEF: responsAbility Social Investments Makes Debt Investments Totaling $6.5m in Microfinance Institutions (MFIs) COAC Progreso of Ecuador, Pagasa of the Philippines and Vision Banco of Paraguay
responsAbility Social Investments AG (responsAbility), an investment manager based in Switzerland, reported to MicroCapital that it has provided a total of USD 6.5 million in debt financing to COAC Progreso, Pagasa and Vision Banco.
MICROCAPITAL BRIEF: Vice President of the Economic Commission of Nicaragua Urges the Passing of a Microfinance Law in Wake of “No Pago” Movement, Liquidation of Microfinance Institution Banco del Exito’s (Banex)
The Vice President of the Economic Commission of the National Assembly of Nicaragua, Freddy Torres, reportedly warned Nicaragua’s citizens in November 2010 that the country may lose up to USD 400 million if a microfinance law promoting regulation is not approved before year’s end.
MICROCAPITAL BRIEF: Social Investment Company responsAbility Invests $4.3m in Microfinance Institutions (MFIs) Caja Municipal de Ahorro y Crédito (CMAC) Ica, Proempresa and Fair Trade Group Asociación de Comités de Productores Agropecuarios (ACOPAGRO), All of Peru
responsAbility Social Investments AG (responsAbility), an investment manager founded in 2003 in Switzerland, reported to MicroCapital that it made three debt investments totaling USD 4.3 million in microfinance institutions (MFIs) Caja Municipal de Ahorro y Crédito (CMAC) Ica, Proempresa, and Asociación de Comités de Productores Agropecuarios (ACOPAGRO), all of Peru.
MICROCAPITAL BRIEF: Microfinance Investment Manager BlueOrchard Finance Invests $8m in Caja Municipal de Ahorro y Crédito (CMAC) Ica and Crear Arequipa of Peru, Pro Mujer Bolivia and Fundación para el Desarrollo Socioeconómico Rural (FUNDESER) of Nicaragua
BlueOrchard Finance SA, a subsidiary of Switzerland-based commercial microfinance intermediary BlueOrchard, recently reported to MicroCapital the details of four debt investments made during the month of September 2010 to microfinance institutions (MFIs) Caja Municipal de Ahorro y Crédito (CMAC) Ica and Crear Arequipa of Peru, the Bolivian operations of Pro Mujer and Fundación para el Desarrollo Socioeconómico Rural (FUNDESER) of Nicaragua.
MICROCAPITAL PAPER WRAP-UP: Microfinance Investment Vehicle (MIV) Survey Market Data and Peer Group Analysis: The 2010 CGAP MIV Survey, by CGAP (Consultative Group to Assist the Poor)
By Symbiotics, published by CGAP (Consultative Group to Assist the Poor), August 2010, 42 pages, available at:
http://www.cgap.org/gm/document-1.9.47373/CGAP_2010_MIV_Survey_Report.pd…
CGAP (Consultative Group to Assist the Poor) has recently published its fourth annual survey of microfinance vehicles (MIVs) offering two levels of analysis: (1) key market trends from 90 microfinance investment intermediaries (MII) and (2) market data, benchmarks and performance analysis of 73 MIVs, a sub-group of the MIIs, organized into six peer groups.
MICROCAPITAL BRIEF: Clinton Bush Haiti Fund (CBHF) Releases $1.5m in Grants to Microfinance Institution (MFI) Fonkoze and Gheskio of Haiti
The Clinton Bush Haiti Fund (CBHF), a disaster relief organization founded to alleviate the effects of the 2010 Haiti earthquake, has announced the release of approximately USD 1.5 million in grants to Fonkoze, a microfinance institution established in 1995 in Haiti, and Les Centres Gheskio (Gheskio), an NGO established in 1982 to fight fatal diseases in Haiti.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) and Inter-American Development Bank’s Multilateral Investment Fund Release “2010 Microfinance Americas: The Top 100”
The Microfinance Information Exchange (MIX), the microfinance information clearinghouse, in partnership with the Multilateral Investment Fund, an investment fund administered by the Inter-American Development Bank (IDB), have recently published the “2010 Microfinance Americas: The Top 100”.
MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco Raises $80m With Bond Issue
Compartamos Banco, a microfinance institution (MFI) based in Mexico, announced that it has raised MXN 1 billion (approximately USD 80.6 million) through the public issuance of local bank bonds (‘Certificados Bursátiles Bancarios’) in the local debt capital market.
MICROCAPITAL BRIEF: United States Nonprofit Global Partnerships Closes Social Investment Fund 2010, Will Invest $20m in Latin American Microfinance Institutions Over Five Years
Global Partnerships, a US-based nonprofit organization that supports microfinance institutions (MFIs) in Latin America, recently announced that it has closed Social Investment Fund 2010 (SIF 2010), its fourth social investment fund, at USD 20 million.
MICROCAPITAL BRIEF: responsAbility Social Investments Makes Debt Investments Totaling $3m in Microfinance Institutions (MFIs) Fondesurco of Peru, Fundación ESPOIR of Ecuador and Apoyo Integral of El Salvador
responsAbility Social Investments AG (responsAbility), a social investment company based in Switzerland, reported to MicroCapital that it has provided a total equivalent to USD 3 million in debt financing to Fondesurco (Fondo de Desarrollo Regional) of Peru, Fundación ESPOIR of Ecuador and Apoyo Integral of El Salvador.
MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) Study: Microfinance Lending in Latin America and the Caribbean Increased by 13 Percent in 2009
According to a survey conducted by the Multilateral Investment Fund (MIF), an investment fund administered by the Inter-American Development Bank (IDB), loan portfolios of microfinance institutions (MFIs) in Latin America and the Caribbean rose by 13 percent in 2009.
MICROCAPITAL BRIEF: Peru Remains on Top of “Global Microscope on the Microfinance Business Environment 2010” Survey by the Economist Intelligence Unit
The Economist Intelligence Unit (EIU), the business information arm of the Economist magazine, released its Global Microscope on the Microfinance Business Environment 2010 survey, placing Peru as the country that is most friendly to microfinance businesses for the third year in a row, followed by the Philippines and Bolivia.
MICROCAPITAL BRIEF: Online Microfinance Program Zafèn Raises $140,000 For Haiti in First Six Months of Operation
Zafèn, an online microfinance fundraising program targeting small and medium-sized business in Haiti, has reportedly raised USD 140,000 in its first six months of operation.