Increased support for Mexican microfinance sector

(Caracas, November 8, 2006).- As part of the efforts of the Andean Development Corporation to strengthen the Latin American microfinance system, a line of credit granted to the Mexican bank Compartamos was recently doubled to US$10 million with the purpose of supporting the microenterprise sector in that country, in recognition of the excellent social work, commercial expansion and financial health demonstrated by the Mexican institution.

CAF President & CEO Enrique García explained that with the products and services offered to this sector, the multilateral organization is contributing efficiently to the development and integration of regional financial markets and to the strengthening of one of the most dynamic and strategic sectors of its shareholder countries.

The funds, which until now could only be used in US dollars, will have the innovation of contracting in Mexican pesos starting in 2007, which will increase the capacity for action and improve management of exchange risk of Banco Compartamos, for the benefit of the Mexican microenterprise sector.

The increased line of credit for the Mexican bank also responds to the CAF strategy of expanding its support for the microfinance sector in its shareholder countries, with Mexico being one of the priorities. In 2007 CAF is planning to make new direct operations in microfinance institutions and work jointly with government bodies in the country, always with a commitment to support the development of productive undertakings and improve the quality of life of Mexicans.