Micro Financing Companies Lending Less in Guatemala

In the first three months of the year, micro financing companies lent $80 million, 12.5% less than the same period of 2008.

Wednesday, July 15, 2009

The Central American Micro Financing Network, known is Spanish as Redcamif, is worried by the figure, because credit growth from 2005 onwards averaged 34%.

"The average delinquency rate went from 5.2% in December 2008 to 9.2% in April 2009", said Reynold Wálter, Redcamif director, in a Prensalibre.com article.

More on this topic

Microcredit Grows in Guatemala

April 2012

Between 2010 and 2011 the microfinance portfolio increased by 23%, going from $84 million to $104 million, averaging $529 per loan.

From the Journal of the Chamber of Industry of Guatemala:

Microfinance institutions in Guatemala maintain a dynamic support for the development and growth of thousands of micro and small businesses around the country, especially in rural areas.

Micro-financing in Central America 2009

December 2009

Analysis of the region's micro-financing industry in the past three years, plus the effects caused by local and global crisis in 2008.

A report by REDCAMIF (Central American Micro Financing Network), describes how the industry behaved since prosperous times, when high levels of growth were recorded throughout the region and institutions become more and more self sustainable, up to 2008, when the different international and domestic crisis impacted Central America's economies, its businessmen, its formal financing system and its micro-financing industry.

$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.

Honduras: Delinquency Increases in Micro Loans

August 2009

Delinquency is over 10%, the client portfolio is stagnant, and credits have grown just 5%.

When dealing with this scenario, Aníbal Montoya, vice president of the Honduran Micro Financing Network, recommended companies to be more effective and efficient when granting credit lines.

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