The Consultative Group to Assist the Poor (CGAP) reports in its list of recent transactions that the Netherlands Development Finance Company (FMO) financed USD 1,103,100 in loans to Fundación Internacional para la Asistencia Comunitaria de Guatemala (FINCA Guatemala) on January 21, 2008.

The FMO was created by the Dutch government in 1970 replacing, and expanding upon, the investment development activities of the previously operating Netherlands Overseas Financing Association. The FMO offers a variety of financial products and programs including the Small and Micro Enterprise Fund (SME Fund) which aims to “contribute to the improvement of financial services for small businesses, micro entrepreneurs and lower income groups” by lending to microfinance institutions (MFIs). Active in 40 countries, the FMO had 2006 total assets of EUR 2.3 billion and a loan portfolio of EUR 1.1 billion. The MIX Market, the microfinance information clearinghouse, reports that as of December 31, 2003, EUR 22.6 million of SME Fund assets were allocated for microfinance investments. The FMO has maintained a “Triple A” rating for long-term financing each year since 2000 from the credit rating agency Standard & Poor’s. MicroCapital reported in November 2007 on FMO’s investments in Indian SMEs.

The Fundación Internacional para la Asistencia Comunitaria de Guatemala (FINCA Guatemala) was founded in 1998 and is a member of the Foundation for International Community Assistance’s (FINCA) worldwide network of MFIs. According to FINCA Guatemala’s web site, the non-governmental organization (NGO) has a loan portfolio of over USD 8.4 million with a 98.9 percent on-time repayment rate. FINCA Guatemala offers individual as well as group loans, the latter of which is distributed through a network of nearly 3,600 Village Banking groups. The organization reports a total of 41,100 clients.

FINCA is a global microfinance network operating in 21 countries with 2006 total assets of USD 252 million and a loan portfolio of USD 166 million. MicroCapital recently published a Who’s Who organization article about FINCA in addition to a Who’s Who individual article about its founder, John Hatch.

By Anthony Busch, Research Assistant

Additional Resources:

Consultative Group to Assist the Poor: Home, List of Recent Transactions

Foundation for International Community Assistance: Home, Guatemala, History, Annual Report

MicroCapital article, March 26, 2008: “The Foundation for International Community Assistance (FINCA)”

MicroCapital article, March 6, 2008: “John Hatch, Foundation for International Community Assistance (FINCA)”

MicroCapital article, November 7, 2007: “Microfinance Investor Netherlands Development Finance Company (FMO) to Establish $125m Fund to Support Small and Medium-sized Enterprises (SMEs) in India”

MIX Market: Home

Netherlands Development Finance Company: Home, Short Background, SME Fund, Countries, Annual Reports, MIX Market Profile, ‘Triple A’ Rating

Standard & Poor’s: Home