The Belgian Investment Company for Developing Countries (BIO), a public-private partnership established by the Belgian government, recently disbursed a technical assistance grant of an undisclosed amount to Banco Solidario, an Ecuadorian microfinance institution (MFI). The grant is meant to facilitate the launch of a financial education course for borrowers entitled “Cuida Tu Futuro, Usa Bien Tu Dinero,” or “Take Care of your Future, Use your Money Well.” The program includes topics such as consumer rights and responsibilities, good and bad debts, budgeting, payment capacity, identifying abusive credit offers and signs and prevention of over-indebtedness. The MFI plans to deliver the program on a prevention basis to approximately 40,000 clients who are not at risk for over-indebtedness and on a rehabilitation basis to approximately 500 clients who are considered at risk for over-indebtedness.
Earlier this year BIO made a loan of USD 8 million to the MFI to increase its loan portfolio.
As of June 2012, Banco Solidario reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 378 million, a gross loan portfolio of USD 260 million, return on assets (ROA) of 3.28 percent, return on equity (ROE) of 25.46 percent and as of 2011 had approximately 135,000 borrowers. As of 2011, BIO had EUR 485 million (USD 632 million) in total assets.
By Charlotte Newman, Research Associate
About Banco Solidario
Established in 1995 in Ecuador, Banco Solidario is a microfinance institution (MFI) that serves rural and urban microentrepreneurs. Its offerings include loans, voluntary savings, insurance and fund transfer services. As of June 2012, Banco Solidario reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 378 million, a gross loan portfolio of USD 260 million, return on assets (ROA) of 3.28 percent, return on equity (ROE) of 25.46 percent and as of 2011 had approximately 135,000 borrowers.
About Belgian Investment Company for Developing Countries
The Belgian Investment Company for Developing Countries, also known by the Dutch acronym BIO, was established in 2001 by the Belgian government to promote the creation of a strong private sector in developing countries in an effort to enable them to achieve sustainable development and prosperity. BIO has invested in approximately 90 private sector projects and is present in nearly 60 countries. As of 2011, BIO had EUR 485 million (USD 632 million) in total assets.
Sources and Additional Resources:
BIO: “BIO to Support Banco Solidario’s Over-Indebtedness Prevention Efforts Through a Financial Education Program,” http://www.bio-invest.be/index.php?option=com_news&view=news&id=50
MicroCapital.org story, June 12, 2012, “MICROCAPITAL BRIEF: Incofin, BIO Sign $12m Agreement to Develop Early-Stage Microfinance Institutions in Africa, Latin America, Asia,” https://www.microcapital.org/microcapital-brief-incofin-bio-sign-12m-agreement-to-develop-early-stage-
microfinance-institutions-in-africa-latin-america-asia/
MicroCapital.org story, November 14, 2011, “MICROCAPITAL BRIEF: responsAbility Lends $4.3m to Microfinance Institutions (MFIs) Banco Solidario of Ecuador, Interactuar of Colombia,” https://www.microcapital.org/microcapital-brief-responsability-global-microfinance-fund-lends-4-3m-to-microfinance-institutions-mfis-banco-solidario-of-ecuador-interactuar-of-colombia/
MicroCapital Universe Profile: Banco Solidario
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Solidario
MicroCapital Universe Profile: Belgian Investment Company for Developing Countries
http://microcapital.org/microfinanceuniverse/tiki-index.php?
page=Belgian+Investment+Company+for+Developing+Countries+%28BIO%29
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