IN MEXICO
MICROCREDIT
By Juan Fernando Perdomo *
MICROCREDIT
By Juan Fernando Perdomo *
For many of us it is impossible to believe that interest rates to boost small businesses in Mexico are the 120%, but this is what an investigation by Geri Smith, BusinessWeek magazine, he discovered and expressed in his article, the ugly side of micro credit.
According to Wikipedia (Encyclopedia open on the website): "Micro loans are small loans made to borrowers too poor to give them a loan at a traditional bank. The micro credits possible ... that many people without resources to finance industrial projects on their own income reverse them. "
Worldwide the average interest paid by a micro credit is the order of 31% per annum, when in Mexico is 81% and the bank Compartamos, originally nonprofit, takes up to 5% per month.
And people with low incomes, and often little preparation, does not understand interest rates, but how much I can pay a week? That is, if you have the ability to pay 100 pesos a week, so, although the annual interest rate exceeding 100%.
For example: A person who buys a TV or stereo to two years, considering that you can pay the weekly amount in the ad, does not look at it will end up paying up to twice the value of the equipment purchased. And that companies are required to disclose their total annual costs (TAC) but people think that no one cares.
When I had the opportunity to serve Veracruz as Secretary of Economic Development (Industry, Trade and Tourism), we had three funds for this purpose, the amount of resources to be managed, at least, back then, not be justified three different structures. So we decided to create the CEDIM (Comprehensive Center for Microenterprise Development), merging the operation of all funds and becoming more cost efficient.
funds had different intentions and credit policies. Some of them required collateral, but others were credit to the word. But the loans, which in those days ranged from 5 to 10 thousand pesos, average, were usually covered by employers timeliness of those companies that were born or entered the expansion phase.
To broaden the vision of CEDIM, I should mention that it was this body that was responsible for training and micro finance and thus qualified to participate in the EXPO VERACRUZ PRODUCE WHAT WE CONSUME. Recently the newspaper
REFORM (Ma Dolores Ortega) published a critique of administrative duplication of programs Federal Government support for small businesses, under the title "Merman resources to SMEs." There
, Ortega reveals annual expenditures on personnel administration development programs which are: FONAES ($ 200 million pesos), Ministry of Finance ($ 1.224 Mdp Through FOMMUR, Global SME and Pronafim) PROMUSAG ($ 382 million pesos) Fomagro ($ 3.193 million pesos), and there are more than 113 federal programs that are attended for directions and different personnel. Not to mention the more than 500 government programs that generally are uncoordinated with the Federation.
Y refers to that in the United States, the Small Business Agency (SBA) concentrates more than 70 federal and independence.
But back to cost. The rates of micro-credit institutions, non-profit are similar to bank rates, or even at the rates American banks give their clients with a history debtor. This has enabled the Bank to transform itself from an institution SHARE nonprofit to a commercial bank in 2006, says Geri.
But the fact is that lack financial education in Mexico. Well, I could argue, is needed EDUCATION! Since the average country in our study is only 7 years.
even with all the controversy that is Banamex, for sale to Citigroup, through the foundation material information Banamex performed as comic or cartoon, videos and brochures to publicize financial terms in the language to make it accessible to the public.
For his part, President Calderón said that his goal is to reach 1.5 million micro-credit in 2009 and three million in 2012, the last year of his administration.
"The engine of an economy that creates jobs, are Mexican men and women who decide to work, to undertake, to open a business," said the man who has promised to become the president of employment, at a ceremony in presidential residence in the capital, where the president signed an agreement establishing a Mexican commission of micro, small and medium enterprises, to coordinate everything having to do with these credits.
National President of the Chamber of Commerce Small (CANACOPE), Javier Leal, said in an interview: "One of the things we're trying to push now ..., is financial support, call loans by the authorities. That itself will help us because we are going to strengthen, to increase our inventory and buy at better prices and be more competitive. "
This Leal said in 2002, 6 years ago!
I guess it changed things. How do you see?
* Juan Fernando Perdomo is a graduate of Tec de Monterrey.
public servant, businessman and politician ( jperdomo@infosel.net.mx )
www.perdomo-blog.blogspot.com
