Seattle-based Global Partnerships, which provides capital and expertise to "social enterprise" MFIs that are financially sound, competitive, and focused on reaching those who have traditionally had no access to financial services, has announced an expansion into Mexico.
In October, GP issued a $500,000 loan to Fundaciòn Realidad (FRAC), a microfinance institution that primarily serves rural women clients in eleven Mexican states. Having made the initial loan, Global Partnerships will work to make microfinance more affordable in Mexico, where the lack of competition has kept interest rates high. With seventeen branches in some of the poorest areas in the country, FRAC offers loans with an interest rate 12 percentage points below the Mexican microfinance industry median.
"Although the initial loan to FRAC is relatively small, our expansion to Mexico is an important step because of the need for affordable, mission-focused microcredit in Mexico," said Global Partnerships president and CEO Rick Beckett. "FRAC shares our commitment to reaching poor families with affordable credit and other services that can help them break the cycle of poverty."