The World Bank’s (WB’s) Board of Directors recently approved a loan of USD 100 million to support the “Financial Consolidation and Inclusion Project” in Mexico. The project seeks to improve the performance of the country’s credit and savings institutions and help them expand into under-served areas of the country. The effort is expected to cost a total of USD 210 million, of which USD 100 million will be financed by the WB, USD 94.3 million will be financed by the Treasury and Public Credit Ministry, and the balance will be financed by the project’s beneficiaries.
The program seeks to improve the performance of the Banco del Ahorro Nacional y Servicios Financieros (BANSEFI), a government agency charged with working with cooperatives and savings and loans to increase financial inclusion. Program FOCI are to include expanding access to financial products and services; providing technical assistance, training and supporting materials; and improving communications systems.
About the World Bank:
A member of the World Bank Group, the World Bank is comprised of two development institutions, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which provide leveraged loans to developing countries for capital programs. IBRD makes loans and grants and provides analytical and advisory services to middle-income countries and poorer countries that are deemed creditworthy, with the aim of promoting sustainable development to reduce poverty. IDA offers interest-free credits and grants to the world’s 81 poorest countries, where a majority of the people lives on less than USD 2 per day. IDA resources and technical assistance support country-led poverty reduction strategies in the following policy areas: increased productivity, better governance and accountability, an improved private investment climate and access to education and healthcare. Also housed in the World Bank is CGAP (Consultative Group to Assist the Poor), an independent policy and research center guided by the aim to promote financial access for the world’s poor. The World Bank was one of the founding donors of CGAP in 1995.
By Ariana Malushi, Research Associate
Sources and Additional Resources
The World Bank: “WB Supports Financial Inclusion in Marginal Areas of Mexico” http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:23059509~pagePK:34370~piPK:34424~theSitePK:4607,00.html
MicroCapital.org Story, November 4, 2011, “MICROCAPITAL BRIEF: Microfinance Bank Compartamos of Mexico Seeking Acquisitions in Microinsurance, Mobile Banking Arenas”
MicroCapital.org Story, May 11, 2011, “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Technology Blog Analyzes Developments in Mexico’s Microfinance and Banking Sectors, Publishes Summary Note Covering Mexico’s Branchless Banking Industry”
MicroUniverse Profile: The World Bank
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