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