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Mexico

Secretary of State Rice Visits USAID Finance Project
During Recent Trip to Mexico

During her first trip to Latin America as Secretary of State, Dr. Condoleezza Rice visited a USAID micro-finance project in Mexico City that is aimed at broadening access to banking opportunities to Mexican small businesses.

Secretary of State Condolezza Rice recently visited a USAID project site in Mexico City, Mexico. The project helps Mexican small businesses gain access to banking and finance services. (Photo by Cutberto Garcia, USAID/Mexico)

Secretary Rice announced an USAID’s new five-year program that seeks to help finance institutions provide savings, credit and remittance services to Mexican individuals and small businesses. In Mexico, fewer than 40 percent of Mexicans currently have bank accounts.

USAID provides technical assistance to strengthen local Mexican finance institutions, improve regulation and supervision systems, enhance public dialog and expand local microfinance services. It collaborates with Mexican partners, like FinComún, to expand its support for the microfinance sector in Mexico, broadening access to finance, particularly for Mexican micro-enterprises.

“This is a wonderful project…because it empowers people … (and) allows people like these fine people, who are willing to work hard and to take the opportunity afforded by these loans, to expand their businesses or to begin businesses,” Secretary Rice said at the FinComún announcement.

FinComún is a 10-year-old regulated microfinance institution that provides banking services in low income neighborhoods in Mexico City. It has expanded its operation to 30 branch offices, serving over 43,000 clients who operate small businesses. Nearly 80 percent are women.

At the event, Ms. Rice observed the signing of a new loan that will benefit micro-entrepreneur Carolina Fuentes. Having worked since she was a child, Ms. Fuentes’ mother owned a stall in a Mexico City market where she now sells ceramics, party favors and “keepsakes.” The FinComún loan will allow them to expand their business.

Secretary Rice commented on Ms. Fuentes and the other loan recipients present. “I congratulate all these fine people for the hard work that they do and for the businesses that they are creating which will benefit your families, your communities and your country.”

FinComún is a successful USAID partner. As a result of recent changes in Mexico’s microfinance policies introduced by Mexican President Vicente Fox’s Administration along with advisory assistance and a Development Credit Authority (DCA) guarantee from USAID, FinComún has expanded rapidly over the past four years. Since 2000, total assets have nearly doubled to $18 million, total loans outstanding have tripled to $9.3 million, total savings have more than doubled to $13.7 million, and total clients have grown 340 percent to 43,000.

After the event, Ms. Rice visited the U.S. Embassy, where she greeted the staff and made additional comment on the USAID-FinComún public-private partnership.

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