VZCZCXYZ0001
RR RUEHWEB

DE RUEHBO #3188/01 2811322
ZNR UUUUU ZZH
R 081321Z OCT 09
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 0258
INFO RUEHBR/AMEMBASSY BRASILIA 0069
RUEHBU/AMEMBASSY BUENOS AIRES 0043
RUEHCV/AMEMBASSY CARACAS 0097
RUEHLP/AMEMBASSY LA PAZ OCT MEXICO 0038
RUEHMU/AMEMBASSY MANAGUA 0030
RUEHPE/AMEMBASSY LIMA 0104
RUEHQT/AMEMBASSY QUITO
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS BOGOTA 003188 
 
SENSITIVE 
SIPDIS 
SIPDIS 
PASS TO RICHARD GREENBERG, OPIC 
 
E.O. 12958: N/A 
TAGS: ECON EINT EFIN OPIC CO EINV
SUBJECT: COLOMBIA: REPONSE TO OPIC ON MICROFINANCE GROWTH FUND 
 
REF: 09 STATE 096859 
 
¶1.  (SBU) Summary:  Embassy contacts at Colombia's National 
Association of Financial Institutions (ANIF) described the Women's 
World Banking (WWB) microfinance institutions (MFIs) in 
Bucaramanga, Cali, and Popayan as outstanding lending institutions 
with a solid reputation in Colombia.  Forbes Magazine ranked the 
three institutions in the top 10 in its "Top 50 Microfinance 
Institutions" publication.  Per reftel request, the Embassy has no 
information linking the three MFIs to terrorism, money laundering, 
or corruption.  End Summary. 
 
 
 
--------------------------------------------- ---------------------- 
--- 
 
Background on WWB Bucaramanga, Cali, and Popayan 
 
--------------------------------------------- ---------------------- 
--- 
 
 
 
¶2.  (U) WWB Bucaramanga, also known as Fundacion Mundo Mujer (FMM), 
was established in 1986.  It has over 155,000 clients, 73% of them 
women.  With a portfolio of over $135 million, WWB Bucaramanga 
provides basic loans, individual loans for working capital, 
seasonal loans and very short term loans to meet demand during 
special holidays.  Its clients are primarily low income families. 
In December 2007, Forbes magazine ranked WWB Bucaramanga as the 
fourth best microfinance institution in its publication, "Top 50 
Microfinance Institutions."  WWB Bucaramanga has 35 branches in 
nine departments. 
 
 
 
¶3.  (U) WWB Cali began operations in 1980 and joined the Women's 
World Banking network in 1982.  The microfinance institution has 59 
branches in 12 states serving over 220,000 clients, 68% of them 
women.  WWB Cali has a portfolio of more than $240 million and 
provides basic individual loans for working capital purposes, short 
term seasonal loans to meet the demands of special holidays, 
housing loans, educational loans, and motorcycle loans.  Forbes 
ranked WWB Cali as the tenth best microfinance institution in the 
world.  The World Bank and the Inter-American Development Bank 
(IDB) also highlighted WWB Cali's performance in both transparency 
and portfolio management.  Duff and Phelps, a financial advisory 
and investment banking services company, awarded a rating of AA+ to 
WWB Cali in 2008. 
 
 
 
¶4.  (U) WWB Popayan, also known as Fundacion Mundo Mujer (FMM), was 
established in 1985 as a branch of Women's World Banking (WWB) in 
Cali.  In 1989, WWB Popayan became an independent microfinance 
institution.  The institution has over 223,000 clients, 71% of them 
women.  With a portfolio of over $142 million, WWB Popayan and its 
30 branches throughout Colombia provide a variety of products, 
including business loans, seasonal loans, preferential loans, rural 
loans, secured loans, housing loans, educational loans and car 
loans.  Forbes ranked WWB Popayan as the ninth best microfinance 
institution in the world.  FMM Popayan also won the 2008 
Inter-American Development Bank Award for Excellence in 
Microfinance (Non-Regulated Institutions) for the second time (in 
eight years) and is the only microfinance institution to receive 
this recognition twice.  The IDB praised FMM's economic and social 
contribution and impact.  FMM Popayan has the lowest average 
outstanding balance of any major Colombian microfinance 
institution, and it is exceptionally well capitalized, with more 
than $45 million in equity. 
 
 
 
¶5.  (SBU) Among the three listed MFIs, the Embassy through its 
USAID office has provided technical assistance to WWB Popayan in 
the design and implementation of a microfinance program.  According 
 
to USAID, among the 30 financial institutions that received USAID 
technical assistance, WWB Popayan is one of the best institutions 
in terms of adopting new methodologies, improving accounting and 
reporting standards, increasing financial coverage of targeted 
populations, and adapting to change. 
 
 
 
¶6.  (SBU) WWB's Bucaramanga, Cali, and Popayan are well known in 
Colombia and in international microfinance circles.  Colombia's 
National Association of Financial Institutions (ANIF) gave high 
marks to all three MFIs.  The Embassy found no derogatory 
information linking WWB Bucaramanga, Cali, and Popayan to 
terrorism, money laundering, or corruption. 
 
 
 
 
----------------------------------- 
 
Prospective MFI Candidate 
 
----------------------------------- 
 
 
 
¶7.  (U) Embassy also recommends potential funding for Pro Mujer. 
Although not located in Colombia, Pro Mujer is looking to enter 
Colombia to provide additional microcredit access as well as 
business training, healthcare and health education to poor women 
entrepreneurs.  Founded in 1990, Pro Mujer is an international 
women's development and microfinance organization that alleviates 
poverty in Latin America with current operations in Argentina, 
Bolivia, Mexico, Nicaragua, and Peru. 
BROWNFIELD