Peru: The Cajas Municipales de Ahorro y Credito
Burnett, J. & Cuevas, C. & Paxton, J.
Publication Date: 1999
Published by: World Bank - Sustainable Banking with the Poor (SBP)
Document Type: Case Study
Accessible microfinance for the poor
The network of Cajas Municipales de Ahorro y Credito (CMAC) in Peru offers savings and credit services to areas that are under served by commercial lending.
Study notes that while performance indicators have been favorable, CMACs faces several obstacles entering into the millenium: - Determining an appropriate legal and ownership structure;
- Managing growth while curbing increasing arrears;
- Lessening dependence on subsidized funds;
- Promoting savings.
CMACs have become politicized with their public affiliations, thereby encumbering efforts of privatization. The presence of government, non-profit international donors, local community leaders, private investors and internal staff each with varying ideas about the future development of the CMACs has led to a degree of uncertainty and immobility.
However the CMAC system stands out as one of the leaders in microfinance in Latin America in terms of scale, outreach and availability of both lending and savings services. It provides invaluable lessons for other microfinance institutions worldwide.
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