Latin American CUs provide 80% of microcredit

MADISON, Wis. - Latin America's economic growth rates have improved markedly from the 1980's stagnation period, but even so as many as 200 million people are estimated to still live in poverty there. That makes credit unions' microcredit services all the more important. CUs are providing an astounding 80% of all microcredit in Latin America, according to the Inter-American Development Bank (IDB) and World Council of Credit Unions (WOCCU). In "Safe Money," a book recently published by IDB and WOCCU, figures show that credit unions in Latin America provide financial services to small business and low-income households which typically lack fair and safe financial alternatives. In addition, editors Brian Branch, technical services director, WOCCU, and Glenn Westley, IDB senior advisor of microenterprise explain how Latin American credit union performance has improved through aggressive mobilization of savings, stricter attention to controlling loan delinquency and a policy of capitalizing profits. "Being community based, credit unions have a particular advantage in Latin American markets, "said Branch. "financially serving many groups in the lower end of the economic spectrum - enabling members to increase income and wealth with access to microfinance savings and loan programs and providing nearly US$2billion in credit to microenterprises.