Growing MFIs in El Salvador

Wires received in the most remote areas of the country are a major factor for the growth of microfinance institutions (MFIs).

Tuesday, January 4, 2011

Where traditional banking does not exist due to operating costs preventing requests for credits of $ 200 or less, there is fertile ground for small banks and credit unions, which now amount to about 250.

The regularity of wires received, in particular from relatives in the United States, enables the concept of "install your business and pay your credit with the wire", as indicated by Mercedes Llort, acting chairman of the Foundation for Microfinance Training and Consultancy, allowing the money coming from abroad to be used in productive developments.

The article by Maria José Saavedra of Laprensagrafica.com, reports that "the approximate number of customers handled by each credit union is as little as 1.000, but there are some cooperatives, the strongest, 10 or 15 of them, which can have up to 5.000 ".

More on this topic

Nicaragua: Recovery in Microfinance

June 2015

Nearly three years after the crisis caused by the No Pago movement, the sector is growing at an annual rate of 12%, driven by traditional credit, micro-insurance, and health services.

The microfinance sector is beginning its gradual and cautious return to agriculture, the sector most affected by the No Payment Movement, and is taking risks in projects by small agritourism farms.

Nicaragua: Microfinancers Leave NO PAGO Movement Behind

January 2013

In 2012 the sector achieved a growth of 5.3%, after three years of consecutive declines, due to an improvement in the business climate.

The entities comprising the Nicaraguan Association of Microfinance Institutions (Asomif) reported last year, in 2012, a portfolio $163.24 million, and a total of 243,066 customers, about 13,030 more than in the year 2011.

$250 Million for Micro-financing Institutions

October 2009

An agreement between international organizations will provide up to $250 million in loans for Latin America's micro-financing entities.

The agreement was signed by Multilateral Investment Fund (Fomin), part of Inter-american Development Bank (IDB), Inter-American Investment Corporation (CII), Andean Development Corporation (CAF), Overseas Private Investment Corporation (OPIC) and Blue Orchard Finance.

Nicaragua: Microfinance Sector Facing Increasing Challenges

September 2009

The Fitch report notes that the negative effects of the global crisis have intensified in Nicaragua.

Fitch Ratings – San Salvador/San José, September 24, 2009. The risks faced by microfinance institutions worldwide have aggravated over the past year. The lesser favorable economic conditions have deeply impacted the populational sectors in developing countries that have managed to overcome poverty and compose an important segment of microfinance institutions.

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