banrural: source of micro-loans in rural guatemalae105/readings/microloans.pdf · banrural...
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BanRural: Source of Micro-loansIn Rural Guatemala
Benjamin Son, PhDEx-vice minister of economySoros Foundation Director, Guatemala
Rigoberta Menchu, Dr.hcNobel Peace Prize 1992
BanRural: Locations
•BanRural: Operating since 1998•Bandesa (state owned) -> BanrRural (community based)•30% state owned (in kind)•Capital contributions:•20% cooperatives•20% Mayan organizations•10% ONGs•10% micro entrepreneurs•10% bank employees
BanRural: Source of Micro-loansIn Rural Guatemala
BanRural: Property Registry
•BanRural:
BanRural: Source of Micro-loansIn Rural Guatemala
BanRural
•Mission: Rural Development•Non-conventional credit guarantees•No land property required for micro loans•Q2,000 average•Purchase: machine, store, inventory•No auctions as of yet, only for larger loans
•Started #32 in assets•2006: #1 in profitability, growth 40%•#5 bank in assets today•Other banks include secondary business and financial instruments,so hard to tell
•BanRural:
BanRural: Source of Micro-loansIn Rural Guatemala
BanRural
•New instruments: Remittances (remesas)•Relatives in the USA as co-signers•Registry of co-signers in ambulant “consulates”
•Savings 85-90% over Moneygrams, wires •typically $5-10•Compared with $30 + 3%
•Cashless small business transactions•Low interest consignments•Win-win situation for distributors•Drivers carry no cash•Shopkeeper pays less interest•Bank makes a profit