UNICEF, the United Nations’ Children’s Fund, has developed a network of 70 bancos comunales (communal banks) in rural Bolivia to deliver microfinance services to excluded and impoverished people. Bancos comunales are intended to serve poor women and families that live 70 km from the nearest paved road or 175 km from the nearest city. In addition to loans, bancos communales will provide borrowers with educational services relating to women’s and children’s rights.
Bancos comunales will offer loans of up to BOB 3,000 (USD 425) at an interest rate of 2 percent per year. Three-quarters of the interest will be used by the bank to increase its loan portfolio and reserves, while the remaining one-quarter will be returned to the borrowers’ savings accounts once the loan has been repaid.
By Rohan Trivedi, Research Associate
About UNICEF (United Nations Children’s Fund):
UNICEF (United Nations Children’s Fund) was established by the United Nations in 1946 to provide emergency relief to children affected by World War II. Today, UNICEF provides humanitarian and development support to women and children in developing countries. For 2009, UNICEF had total expenditures of USD 3.1 billion on operations in 150 countries.
Sources and Additional Resources:
[1] UNICEF News: “Communal banks extend credit, empower women and build equity in rural Bolivia”, http://www.unicef.org/infobycountry/bolivia_58624.html
MicroCapital Universe Profile: UNICEF, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=UNICEF
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