Guatemala Needs Standards for Microfinance

A law regulating the microfinance market would open the opportunity to capture savings that currently can only be done through cooperatives and banks.

Wednesday, January 26, 2011


The article by Byron Dardón in, reports that the bill on microfinance is expected this year and has the support of the Financial Inclusion Program of the Treasury of the United States, which promotes the adoption in Latin American countries of market governing rules.

The Guatemalan microfinance market analysis indicates that currently, "the Network of Microfinance Institutions of Guatemala (REDIMIF) has 125.000 customers in 15 affiliated institutions built to handle about 104.000 credits per year."

Walter Reynolds, director of the Network of Microfinance Institutions of Guatemala (REDIMIF) reported that more than half of the Guatemalan microfinance loans are trade (50.2%), housing 19.4%, 14,7% agriculture, 9.3% small industries, 4% services , 0.6% for consumption and the rest for other activities.

More on this topic

Credit to micro-finance institutions increases in Central America

August 2008

Despite a less favorable macro-economic environment, the credit portfolio of the micro-finance sector in Central America grew 28% in 2007 in comparison to the previous year.

Reynold Walter, president of the Central American Network of Micro-Finance Institutions (Redcamif), reported that in 2007 some 99 micro-finance institutions from Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama granted loans worth US$676.6 million to 814,344 micro-businesses.

Microcredit Grows in Guatemala

April 2012

Between 2010 and 2011 the microfinance portfolio increased by 23%, going from $84 million to $104 million, averaging $529 per loan.

From the Journal of the Chamber of Industry of Guatemala:

Microfinance institutions in Guatemala maintain a dynamic support for the development and growth of thousands of micro and small businesses around the country, especially in rural areas.

Growing MFIs in El Salvador

January 2011

Wires received in the most remote areas of the country are a major factor for the growth of microfinance institutions (MFIs).

Where traditional banking does not exist due to operating costs preventing requests for credits of $ 200 or less, there is fertile ground for small banks and credit unions, which now amount to about 250.

Nicaragua: Consensus Achieved on Law for Microcredit

June 2011

In the coming weeks, the bill which has been approved by the public and private sector will be sent to the Assembly.

The committee has already been formed (five members, two from the private sector and three from the public) which will be responsible for overseeing the microfinance sector, as stated in the bill.

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