WASHINGTON — A $2.4 million grant from the U.S. Agency For International Development will help the World Council of Credit Unions create a new forum for Bolivian credit unions to collaborate with microfinance entities.
WOCCU said it would use the grant money to help form the Association of Financial Sector Trade Associations to unite microfinance trade associations, including World Council member Asociaci?n T?cnica de Cooperativas, to foster cooperation and growth in Bolivia. The new association will participate in shared lobbying efforts, networking and training.
"Our overall objective is to empower Bolivian professionals and financial institutions through training and assistance to extend their outreach," said Rolando Salazar, Bolivia project director for WOCCU. "Ownership is the key to long-term sustainability."
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Since credit unions currently lack a forum for collaboration with microfinance entities outside their movement, WOCCU also plans to distribute Rural Finance Expansion Grants to credit unions and microfinance institutions to help increase their access to rural areas. More than 400,000 Bolivians belong to a credit union, WOCCU said, yet a large number of the rural population and businesses lack access to loan and deposit services.
The microfinance industry in Bolivia collectively offers traditional financial services such as checking, savings, certificates of deposit, loans, credit cards, remittances, foreign exchange and online banking.
There are 23 credit unions in Bolivia with combined savings of $250 million and $231 million in loans. With 82 collective service points, credit unions form one of the largest financial networks in the country. This is the World Council's fifth project in Bolivia. USAID administers the US foreign assistance program providing economic and humanitarian assistance in more than 80 countries worldwide.
World Council's existing project established Bolivia's first shared branching and remittances network, "ServiRed," in 2005. Sixty-two points of service throughout Bolivia now offer IRnet remittance services, savings accounts and loans through national shared branching. The new World Council project will increase the number of ServiRed credit unions and expand card and ATM services.
"The outreach of Bolivian credit unions and ATC has grown significantly," said World Council CEO Pete Crear.
"While introducing ServiRed and IRnet, World Council also helped the movement establish eight rural credit unions in Bolivia in the past two years. It's exciting to be part of such a progressive movement that keeps a keen eye on the needs of the poor," said Crear. –[email protected]
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