by Sarah Knapp -

MICROCAPITAL STORY: Banco Pichincha of Ecuador Receives $75m from Inter-American Development Bank for Microfinance Endeavors

The Inter-American Development Bank (IDB) recently approved two loans worth a total of USD 75 million to Banco Pichincha of Ecuador. The IDB cites that the loan will be directed towards expanding housing finance and lending to micro, small and medium enterprises.

by Emily Liu -

MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $300k to Fundación para el Desarrollo de la Microempresa (FUDEMI), $750k to Fundación para el Apoyo a la Microempresa (FAMA) and $541k to CRAC Profinanzas, Latin American Microfinance Institutions

CGAP (Consultative Group to Assist the Poor) reported in its recent list of transactions, that Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish financial institution, lent USD 300,000 to Fundación para el Desarrollo de la Microempresa (FUDEMI), USD 750,000 to Fundación para el Apoyo a la Microempresa (FAMA) and USD 541,440 to  CRAC Profinanzas, all three of which are Latin American microfinance institutions (MFIs).

by Jennifer Lee -

MICROCAPITAL STORY: Fundación BBVA para las Microfinanzas Will Acquire Edpyme Crear Tacna

The Fundación BBVA para las Microfinanzas (BBVA Foundation for Microfinance) received permission from Peru’s Superintendent of Banks, Insurance, and AFP (SBS) to acquire the Edpyme Crear Tacna. The Fundación BBVA can purchase more than 10 percent of the microfinance institution (MFI)’s capital stocks.

by Anthony Busch -

MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $2m to Financiera Solidaria (FINSOL) and $100k to the Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM)

The Consultative Group to Assist the Poor (CGAP) reports in its list of recent transactions that the second-largest bank in Spain and Latin America, Banco Bilbao Vizcaya Argentaria (BBVA) financed USD 2,017,400 in loans to Financiera Solidaria (FINSOL) on January 25, 2008 and USD 100,000 to Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM) on February 19, 2008.

by Anthony Busch -

WHO’S WHO IN MICROFINANCE: The Foundation for International Community Assistance (FINCA)

Founded by microfinance pioneer Dr. John Hatch in 1985, The Foundation for International Community Assistance (FINCA) has been active in the global microfinance industry since its first microcredit program in El Salvador for low-income women in 1986. Operating in 21 countries with 2006 total assets of USD 252 million and a stated commitment to serving the poorest of the poor, FINCA relies on its grounding in Hatch’s Village Banking methodology, which dictates that local customers are the most knowledgeable regarding the management of their own assets. The model calls for cooperatives of 30 to 60 people to form around their mutual interest in pooling funds for inter-member loans and other financial services. Cooperatives gain access to additional capital by borrowing from financial institutions as a group, and then on-lending the funds to individuals, collateral-free.

by Melissa Duscha -

WHO’S WHO IN MICROFINANCE: John Hatch, Foundation for International Community Assistance (FINCA)

Microfinance-pioneer Dr. John Hatch is the founder of the Foundation for International Community Assistance (FINCA) and the creator of Village Banking, a highly successful method of delivering microfinance services to the poor through neighborhood savings and loan cooperatives called Village Banks.

by Mary Fu -

MICROCAPITAL STORY: United Nations High Commissioner for Refugees (UNHCR) Signs $700,000 Agreement with Venezuelan Microfinance Institution Banco del Pueblo Soberano

According UNHCR (United Nations High Commissioner for Refugees) spokesperson William Spindler at a press briefing at the Palais des Nations in Geneva, the UNHCR has signed an agreement worth USD 700,000 with Venezuelan microfinance institution (MFI), Banco del Pueblo Soberano. The grant will be used by the bank to distribute micro-credits to about 10,000 Colombian refugees and asylum seekers in Venezuelan border states of Zulia, Táchira and Apure, and some 200,000 unregistered Colombians who are seeking international protection in Venezuela from civil conflict.

by Mary Fu -

PAPER WRAP-UP: 2007 Microfinance Information eXchange (MIX) Global 100: Rankings of Microfinance Institutions

Published by Microfinance Information eXchange (MIX), 32 pages, available for viewing here.

MIX recently surveyed a global sample of 820 microfinance institutions (MFIs) that had a combined loan portfolio of USD 24 billion with over 53 million borrowers and 64 million savers. In addition to ranking MFIs along single categories (outreach, scale, profitability, efficiency, productivity, and portfolio quality), the 2007 edition of the report also utilizes new composite rankings to highlight the 100 top-performing MFIs that have achieved high outreach and low transaction costs, while maintaining transparency and boosting profitability. The report concludes that leading MFIs broke performance records on all fronts.

by Sophie Kim -

MICROCAPITAL STORY: Forbes’ Special Feature on Private Investment in Microfinance Includes Top 50 Microfinance Institutions

Forbes, a American business and financial news magazine, presented the list of top 50 microfinance institutions (MFIs) of 2007 in its special feature on the private investment in the microfinance industry.

by Mary Fu -

MICROCAPITAL STORY: International Finance Corporation (IFC) and Wachovia Capital Markets, LLC Co-Arrange USD 40 Million for Mibanco in First International Syndication in Latin American Microfinance

International Finance Corporation (IFC), a member of the World Bank Group, and Wachovia Capital Markets, LLC, a subsidiary of Wachovia Corporation, have co-arranged a USD 40 million syndicated financing agreement for Mibanco (Banco de la Microempresa S.A.), a leading private commercial microfinance bank in Peru. As the first international syndication for a microfinance institution in Latin America, this transaction will allow Mibanco to offer longer loan maturities to its clients, as well as reach more rural customers.

by Steven Craig -

MICROCAPITAL STORY: UPS to Issue Grants Totaling USD $1m to Microfinance Organizations ACCION International, Opportunity International and FINCA International

United Parcel Service (UPS), a global package delivery service founded in 1907, has created a Centennial Grants Fund in honor of UPS’s 100 year anniversary. UPS’s fund has issued USD 1 million to three microfinance organizations that support micro-entrepreneurs across the globe. ACCION International will receive USD 400,000, Opportunity International will receive USD 390,000 and FINCA International will receive USD 210,000. The creation of the Centennial Grants Fund is the first time UPS has dedicated such a large portion of its corporate philanthropy to microfinance and micro-lending.