Global Partnerships (GP), a US-based nonprofit organization that supports microfinance institutions (MFIs) in Latin America, recently announced that it will lend a total of USD 3.7 million to three microfinance institutions: USD 2 million to FINCA Ecuador, USD 1 million to Credito con Educacion Rural (CRECER) of Bolivia and USD 750,000 of Crediflorida of Peru [1]. The loans will be disbursed from GP’s Microfinance Fund 2008 (MFF 2008) and Social Investment Fund 2010 (SIF 2010).
FINCA Ecuador, subsidiary of US-based nonprofit Foundation for International Community Assistance (FINCA) International, will receive its loan from GP’s MFF 2008. FINCA Ecuador provides financial services to low-income entrepreneurs in an effort to create jobs, build assets and improve living standards. As of 2010, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 31.7 million, a gross loan portfolio of USD 26.8 million, approximately 51,400 borrowers, return on assets (ROA) of 0.47 percent and return on equity (ROE) of 1.34 percent. Affiliates of FINCA International operate in 21 countries.
Credito con Educacion Rural (CRECER), based in Bolivia, will receive its loan from GP’s SIF 2010. CRECER provides loans, insurance and financial training and consulting. As of 2010, it reported to MIX total assets of USD 63.7 million, a gross loan portfolio of USD 58.1 million, approximately 108,300 borrowers, ROA of 5.23 percent and ROE of 14.8 percent.
Peru-based Crediflorida, a saving and credit cooperative, will also receive its loan from GP’s SIF 2010. Crediflorida provides financial services to small and medium-sized coffee producers. As of June 2011 it reported a gross loan portfolio of USD 5.9 million and approximately 1,300 borrowers.
By Nisha Koul, Research Associate
About Global Partnerships: Established in 1994, Global Partnerships (GP) is a US-based nonprofit organization that supports microfinance institutions in Latin America via a microfinance investment fund strategy. The company has staff based in Seattle, Washington, and Managua, Nicaragua. As of June 2011, GP had USD 36.2 million invested in 30 microfinance institutions that serve approximately 972,000 borrowers in seven Latin American countries. It has three active microfinance investment vehicles (MIVs): Global Partnerships Microfinance Fund 2006 (MFF 2006), Global Partnerships Microfinance Fund 2008 (MFF 2008) and Global Partnerships Social Investment Fund 2010 (SIF 2010).
About FINCA Ecuador: FINCA Ecuador, a subsidiary of US-based nonprofit Foundation for International Community Assistance (FINCA) International, was established in 1994 as a credit program. It provides financial services to low-income entrepreneurs in an effort to create jobs, build assets and improve living standards. As of 2010, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 31.7 million, a gross loan portfolio of USD 26.8 million, approximately 51,400 borrowers, return on assets (ROA) of 0.47 percent and return on equity (ROE) of 1.34 percent.
About FINCA International: Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to the world’s poorest families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. In the 2010 fiscal year, FINCA International served approximately 760,000 clients through its subsidiaries in 21 countries. As of 2010, it had total assets of USD 496 million, with an operating profit of USD 10 million.
About Credito con Educacion Rural (CRECER): Bolivia-based CRECER, established as a credit and education program in 1985 by US-based nonprofit Freedom from Hunger, became an independent nonprofit organization in 1999. CRECER’s Credit with Education product, which is based on the village banking methodology, consists of savings and credit associations that serve poor women who do not have access to formal financial services. CRECER also provides education in health, civil rights, empowerment and business development. As of 2010 CRECER reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 63.7 million, a gross loan portfolio of USD 58.1 million, approximately 108,300 borrowers, return on assets (ROA) of 5.23 percent and return on equity (ROE) of 14.8 percent.
About Crediflorida: Peru-based Crediflorida, established in 2003 by coffee cooperative Cooperativa Agraria-La Florida, is a savings-and-credit cooperative. Crediflorida delivers financial services to small and medium-sized coffee producer members in and around the Chanchamayo province of Peru’s Junin state. As of June 2011 Crediflorida reports a gross loan portfolio of USD 5.9 million and approximately 1,300 borrowers. Crediflorida does not report to US-based nonprofit Microfinance Information Exchange (MIX).
Sources and Additional Resources:
[1] Information submitted by Global Partnerships to MicroCapital in October 2011.
MicroCapital.org story, October 8, 2011, “MICROCAPITAL BRIEF: Global Partnerships Lends $2.5m to Colombian Microfinance Institutions Fundación Amanecer, Corporación Nariño Empresa y Futuro,” https://www.microcapital.org/microcapital-brief-global-partnerships-lends-2-5m-to-colombian-microfinance-institutions-fundacion-amanecer-corporacion-narino-empresa-y-futuro/
MicroCapital.org story, April 11, 2011, “MICROCAPITAL BRIEF: Global Partnerships (GP) Microfinance Funds Loan $1m to Enlace of El Salvador, Cafe y Desarrollo of Mexico,” https://www.microcapital.org/microcapital-brief-global-partnerships-gp-microfinance-funds-loan-1m-to-enlace-of-el-salvador-cafe-y-desarrollo-of-mexico/
MicroCapital Universe Profile: Global Partnerships, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships
MicroCapital Universe Profile: FINCA Ecuador, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Ecuador
MicroCapital Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International
MicroCapital Universe Profile: Credito con Educacion Rural (CRECER), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CRECER
MicroCapital Universe Profile: Crediflorida, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Crediflorida
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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