Microfinance Banks Eye LatAm Expansion

New York-based BlueOrchard Finance, which recently teamed up with multilaterals MIF, OPIC and IIC to establish a $250m Microfinance Growth Facility to make small loans in the region, could expand in LatAm, says MD Ann J. Miles. “Over time we will consider increasing [our exposure] to LatAm in proportion to fund allocations,” she tells LatinFinance. “We are always examining opportunities to expand in LatAm and are working on another initiative with smaller microfinance institutions in LatAm, Africa and Asia,” she adds, explaining that the average size of loans her institution offers is $1,000-$1,500. Another company focused on microfinance, Bangladesh-based Grameen Bank, is also expanding in LatAm. It recently launched a microfinance bank, Grameen Carso, in Mexico with Mexican tycoon Carlos Slim. Vidar Jorgensen, president of Grameen America, tells LatinFinance that the Mexican bank is starting out offering $5m in grants and $40m in loans. Grameen, which also has operations in Guatemala and Costa Rica, might also expand to other parts of the region. “Other countries in LatAm have expressed interest,” he says. Another bank that has delved into microfinance is Banco del Credito de Peru, which recently purchased Financiera Edyficar from humanitarian organization CARE for about $100m in cash.