Panama becomes international showcase for analysis of microfinance

(Panama, June 20, 2011).- With the question: The end of the "golden years" of microfinance? the Fourth Microfinance Forum was held in the Sheraton Hotel in Panama City. The event is a space for discussion and analysis organized by CAF – Latin American development bank – to strengthen microfinance in the region.

The Forum was attended by the Minister of Economy and Finance, Alberto Vallarino; Minister of Micro, Small and Medium Enterprises, Gisselle Burillo; and CAF president & CEO, Enrique García. Over 50 managers and presidents of microfinance institutions related to CAF from all Latin America and special guests participated in two days of discussion and analysis.

The event was part of the CAF strategy to support micro-, small- and medium-sized businesses as an essential pillar of its Integrated Agenda, aimed at achieving equitable economic development in shareholder countries. It is the fourth such event promoted by CAF which assembles a wide range of key actors in the microfinance sector, together with international experts on the area.

In his remarks Minister Vallarino said "promoting microfinance is not only social justice but also a fiscally responsible strategy. Reducing informal employment and providing capital for creation of micro and small businesses creates jobs, increases tax revenues and reduces the fiscal burden of social problems resulting from low living standards. It is imperative to promote microfinance in order to have more productive, prosperous and secure nations," he said.

CAF President García reaffirmed the multilateral financial institution’s commitment to developing the microfinance sector and called for a close dialogue with the institutions of the region to find creative solutions which meet the needs of organizations that support micro-enterprises.

"For over 15 years in CAF, we have made a big commitment to microfinance and are pleased that we have achieved a significant presence in the region, with the participation of 14 shareholder countries and over 40 entities of different types. This support is not only for credit but also for innovations in products and services and/or partnerships, in the effort to build microfinance institutions," Garcia said.

The Panamanian MSME minister said "we are very enthusiastic about the contribution of various multilateral financial institutions to the development of our country, including CAF, which is participating in the partial financing of the macro-project to widen the canal; expanding the capital market with a significant bond issue, which was very well received; and on this occasion, in this IV Forum in Panama with concerns about microfinance, which is an effective tool for creating wealth and improving the poverty rate among our vulnerable population."

The CAF Microfinance Forum is held every two years as a strategic workspace involving experts from around the world, as a call for commitment to action by all participants.

This event was attended by Sanjay Sinha, managing director of EDA Rural and M-CRIL (India); Todd Farrington, Latin America director of Symbiotics; Alex Silva, president of the Board of Calmeadow; Aldo Moauro, executive director of Microfinance Rating; and Leonardo Villar, CAF vice president of Development Strategies and Public Policy, among other personalities from the international economic sphere.

For two days the participants evaluated issues of importance for the sector, including:

• The microfinance crisis in Andhra Pradesh (India): Lessons for the Latin American market
• The microfinance situation in Nicaragua
• Recalibrating Microfinance
• Rural self-financing as start of financial inclusion
• Corporate governance in microfinance
• Transparency in microfinance and customer protection