Banrural Partners with Grameen
Asociacion Civil Guatemalteca Grameen Credit (ACGGC) is a Grameen Trust Build-Operate-Transfer (BOT) project that was set up in December 2005 to provide microcredit for poverty alleviation in Guatemala with financial assistance from Whole Planet Foundation. Over the next two years ACGGC performed exceptionally well, reaching 6,617 clients against the target of the 4,500 poorest in the community. ACGGC disbursed US$ 1,489,414 in micro loans and maintained 100% repayment rate.
Ms. Wendy W. de Berger the then First Lady of Guatemala visited the Panajachel branch of ACGGC in April of 2007. During the visit she proposed a partnership between ACGGC, Creciendo Bien and Banrural, the largest bank in Guatemala. On November 17, 2007, a Memorandum of Understanding (MOU) was agreed between Banrural, Whole Planet Foundation, ACGGC, and Grameen Trust to formalize the partnership. The signing ceremony was held at the Presidential Palace on December 11, 2007, during Professor Yunus' visit to the country. Following the agreement Banrural set up a Banrural
A borrower in Guatemala shows her work
Grameen Division to implement the Grameen microcredit program nationwide. Mr. Alomgir Hossain, the former Project Director of ACGGC, became the Director of Banrural Grameen microfinance program . The four Grameen resource persons of ACGGC became trainers and regional managers in the new initiative.
Banrural will provide the financial resources to this initiative and Grameen Trust will provide technical assistance and manage the operations through the Grameen resource persons on the ground. Banrural Grameen hopes to serve 100,000 borrowers with Grameen microcredit by 2010.
Success of Grameen Continues
A borrower bought a tractor with SME loan
centers in the area, it has been working hard to overcome these challenges and finding ways to remain successful. As of May 2008, KGMAMF had cumulatively disbursed more than 30 million Euros in loans to more than 11,000 members. KGMAMF enjoys a 100% repayment rate.
GT has long hoped to convert KGMAMF into a microfinance bank in Kosovo. It is hoped that the new government of the independent country would create an enabling environment and the appropriate legislative framework for promoting microfinance institutions serving the poorest in a sustainable manner.