Identifier
Created
Classification
Origin
07LAPAZ3253
2007-12-14 16:06:00
UNCLASSIFIED
Embassy La Paz
Cable title:
LOANS TO MICROFINANCE INSTITUTIONS
how-toVZCZCXRO2218 PP RUEHLMC DE RUEHLP #3253 3481606 ZNR UUUUU ZZH P 141606Z DEC 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 5959 INFO RUEHBO/AMEMBASSY BOGOTA 4789 RUEHBR/AMEMBASSY BRASILIA 8702 RUEHGE/AMEMBASSY GEORGETOWN 0524 RUEHME/AMEMBASSY MEXICO 2159 RUEHMU/AMEMBASSY MANAGUA 0500 RUEHJA/AMEMBASSY JAKARTA 0023 RUEHIL/AMEMBASSY ISLAMABAD 0242 RUEHML/AMEMBASSY MANILA 0156 RUEHLMC/MILLENNIUM CHALLENGE CORP
UNCLAS LA PAZ 003253
SIPDIS
SIPDIS
PASS TO LOREN RODWIN, SENIOR INVESTMENT OFFICER, SMALL AND
MEDIUM ENTERPRISE AT OPIC
E.O. 12958: N/A
TAGS: EINV ECON BL BR CO IN ID MX NU PK RP
SUBJECT: LOANS TO MICROFINANCE INSTITUTIONS
REF: SECSTATE 165106
UNCLAS LA PAZ 003253
SIPDIS
SIPDIS
PASS TO LOREN RODWIN, SENIOR INVESTMENT OFFICER, SMALL AND
MEDIUM ENTERPRISE AT OPIC
E.O. 12958: N/A
TAGS: EINV ECON BL BR CO IN ID MX NU PK RP
SUBJECT: LOANS TO MICROFINANCE INSTITUTIONS
REF: SECSTATE 165106
1. (U) The following is in response to a potential
Overseas Private Investment Corporation (OPIC) program to
support loans to Microfinancing Institutions (MFI) and, in
particular, the Bolivian MFI, Fundacion Boliviana para el
Desarrollo de la Mujer (FUNBODEM). FUNDOBEM is part of the
Women's World Banking (WWB) network and OPIC's proposal to
help support the NGO has the Mission's approval.
2. (U) As of December 2006, FUNDOBEM had reached almost
5,000 borrowers, mostly women in the city of Santa Cruz and
the surrounding area. The institution's financial profile
looks strong; however, since it is a non-regulated
microfinance NGO, external funding is always needed because
they cannot raise deposits directly from the public. The
current GOB initiative to regulate credit unions will not
affect FUNBODEM, so although there are vague GOB plans to
strengthen regulation of NGOs, FUNBODEM will probably not be
affected in the near future. In sum, external financing will
continue to be needed in the medium term to extend outreach.
3. (U) USAID/Bolivia has not worked directly with FUNBODEM
recently, but is in frequent contact with the microfinance
NGO association FINRURAL and there appears to be no reason to
object to this proposal. FUNDOBEM has no know ties to
terrorism, money laundering, corruption, or legal violations.
Post appreciates OPIC's initiative in support of Bolivia's
microfinance sector.
Minimize considered.
GOLDBERG
SIPDIS
SIPDIS
PASS TO LOREN RODWIN, SENIOR INVESTMENT OFFICER, SMALL AND
MEDIUM ENTERPRISE AT OPIC
E.O. 12958: N/A
TAGS: EINV ECON BL BR CO IN ID MX NU PK RP
SUBJECT: LOANS TO MICROFINANCE INSTITUTIONS
REF: SECSTATE 165106
1. (U) The following is in response to a potential
Overseas Private Investment Corporation (OPIC) program to
support loans to Microfinancing Institutions (MFI) and, in
particular, the Bolivian MFI, Fundacion Boliviana para el
Desarrollo de la Mujer (FUNBODEM). FUNDOBEM is part of the
Women's World Banking (WWB) network and OPIC's proposal to
help support the NGO has the Mission's approval.
2. (U) As of December 2006, FUNDOBEM had reached almost
5,000 borrowers, mostly women in the city of Santa Cruz and
the surrounding area. The institution's financial profile
looks strong; however, since it is a non-regulated
microfinance NGO, external funding is always needed because
they cannot raise deposits directly from the public. The
current GOB initiative to regulate credit unions will not
affect FUNBODEM, so although there are vague GOB plans to
strengthen regulation of NGOs, FUNBODEM will probably not be
affected in the near future. In sum, external financing will
continue to be needed in the medium term to extend outreach.
3. (U) USAID/Bolivia has not worked directly with FUNBODEM
recently, but is in frequent contact with the microfinance
NGO association FINRURAL and there appears to be no reason to
object to this proposal. FUNDOBEM has no know ties to
terrorism, money laundering, corruption, or legal violations.
Post appreciates OPIC's initiative in support of Bolivia's
microfinance sector.
Minimize considered.
GOLDBERG