by Zoran Stanisljevic -

MICROCAPITAL STORY: Mexico’s Fifth-Biggest Bank Grupo Financiero Banorte SAB is Closing its Microfinance Division Creditos Pronegocio after Experiencing Losses of USD 8.4 Million for 2008

The Wall Street Journal (WSJ)/(Dow Jones) reported that Grupo Financiero Banorte SAB (Mexico’s fifth-biggest bank) is closing its microfinance division Creditos Pronegocio.  The bank suffered losses of USD 8.4 million for 2008.  Alejandro Valenzuela, Grupo Financiero Banorte, chief executive stated to the WSJ that the bank has been in liquidation mode since 2008 and that they “feel that right now it is a major distractions from the big challenges we face.”

by Jeffrey Erfe -

PIONEERS IN MICROFINANCE: Six Pioneers in Latin America: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico

Microcapital has identified the following six microfinance “pioneers,” individuals who have made long-standing contributions to the evolution and promotion of microfinance practices and/or technology. While not all of these pioneers hail from Latin America, all have been instrumental to the development of microfinance in that region. These pioneers are: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico. Below are short descriptons of the contributions of each:

by Sarah Knapp -

MICROFINANCE PAPER WRAP-UP: Learning By Association: Micro Credit in Chiapas, Mexico, by Gustavo A. Barboza and Humberto Barreto

Written by Gustavo A. Barboza and Humberto Barreto, published April 2006 in Contemporary Economic Policy Vol. 24, No. 2, 16 pages available at: http://econpapers.repec.org/article/oupcoecpo/v_3A24_3Ay_3A2006_3Ai_3A2_3Ap_3A316-331.htm

by Ipek Kuran -

MICROCAPITAL STORY: ACE INA Foundation, Based in Philadelphia, Makes Three-Year USD 720,000 Grant to Freedom From Hunger’s Credit with Education program in Mexico

ACE INA Foundation, the philanthropic arm of Bermuda-based casual insurance company ACE Limited, announced that it will be making a three-year USD 720,000 grant to US based international development organization Freedom from Hunger (FFH). Established in 1946, FFH works in developing countries to provide self-help programs against hunger and poverty. The organization’s work is specifically targeted to those who live on USD 1 per day or less. FFH will use the ACE grant to bring microfinance and financial education to nearly 3 million Mexican women, through its Credit with Education program.

by Stephen Son -

MICROCAPITAL STORY: New York Times Reports on Controversial Microfinance Giant Banco Compartamos of Mexico

The New York Times has reported on the ongoing controversy surrounding Banco Compartamos, a for-profit microfinance bank in Mexico whose practices have drawn criticism from many traditional voices in the microfinance field.