VZCZCXRO2218
PP RUEHLMC
DE RUEHLP #3253 3481606
ZNR UUUUU ZZH
P 141606Z DEC 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 5959
INFO RUEHBO/AMEMBASSY BOGOTA 4789
RUEHBR/AMEMBASSY BRASILIA 8702
RUEHGE/AMEMBASSY GEORGETOWN 0524
RUEHME/AMEMBASSY MEXICO 2159
RUEHMU/AMEMBASSY MANAGUA 0500
RUEHJA/AMEMBASSY JAKARTA 0023
RUEHIL/AMEMBASSY ISLAMABAD 0242
RUEHML/AMEMBASSY MANILA 0156
RUEHLMC/MILLENNIUM CHALLENGE CORP

UNCLAS LA PAZ 003253 
 
SIPDIS 
 
SIPDIS 
 
PASS TO LOREN RODWIN, SENIOR INVESTMENT OFFICER, SMALL AND 
MEDIUM ENTERPRISE AT OPIC 
 
E.O. 12958: N/A 
TAGS: EINV ECON BL BR CO IN ID MX NU PK RP
SUBJECT: LOANS TO MICROFINANCE INSTITUTIONS 
 
REF: SECSTATE 165106 
 
¶1.    (U)  The following is in response to a potential 
Overseas Private Investment Corporation (OPIC) program to 
support loans to Microfinancing Institutions (MFI) and, in 
particular, the Bolivian MFI, Fundacion Boliviana para el 
Desarrollo de la Mujer (FUNBODEM).  FUNDOBEM is part of the 
Women's World Banking (WWB) network and OPIC's proposal to 
help support the NGO has the Mission's approval. 
 
¶2.  (U)  As of December 2006, FUNDOBEM had reached almost 
5,000 borrowers, mostly women in the city of Santa Cruz and 
the surrounding area.  The institution's financial profile 
looks strong; however, since it is a non-regulated 
microfinance NGO, external funding is always needed because 
they cannot raise deposits directly from the public.  The 
current GOB initiative to regulate credit unions will not 
affect FUNBODEM, so although there are vague GOB plans to 
strengthen regulation of NGOs, FUNBODEM will probably not be 
affected in the near future.  In sum, external financing will 
continue to be needed in the medium term to extend outreach. 
 
¶3.  (U)  USAID/Bolivia has not worked directly with FUNBODEM 
recently, but is in frequent contact with the microfinance 
NGO association FINRURAL and there appears to be no reason to 
object to this proposal.  FUNDOBEM has no know ties to 
terrorism, money laundering, corruption, or legal violations. 
 Post appreciates OPIC's initiative in support of Bolivia's 
microfinance sector. 
 
Minimize considered. 
 
GOLDBERG