This story comes courtesy of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, from the CGAP-MIX Microfinance Capital Markets Newsletter. The newsletter has reported that Oikocredit, a financial institution of the

The USD 514,028 loan to Hermandad de Honduras is on the smaller scale of loans provided by Oikocredit. The Dutch financial institution allocates loans ranging from USD 50,000 to USD 5 million in size (see “Fund Instruments”).

According to the MIX, Hermandad de Honduras was established in 1977 as a Honduran nonprofit. The MIX reports that 91 to 100 percent of the nonprofit’s operations are comprised of microfinance. Unfortunately, the institution’s microfinance business has a net loss in terms of return on assets: -5.0 percent (see “Financial Data”). Hermandad de Honduras’ return on equity also stands in the negative, at -12.4 percent (see “Financial Data”). The end result is a negative profit margin of -18.3 percent (see “Financial Data”).

By Quentin Ruiz-Esparza, Research Associate

Additional Resources:

CGAP: “List of Recent Transactions.”

Hermandad de Honduras: “Our Beginnings.”

Hermandad de Honduras: “Financial services.”

Oikocredit: “About us.”

The MIX Market: “Profile for Oikocredit.”

The MIX Market: “Profile for HdH.”

MicroCapital: “MicroCapital Monitor.”