Posted on September 28, 2009

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Grameen Trust, Fundacion Carlos Slim Launch $45 Million Microfinance Program

Grameen Trust and the Fundacion Carlos Slim have announced the launch of Grameen Carso, which will work to expand access to affordable microcredit in Mexico.

The organization will focus on Mexico's poorest residents in an effort to create income-generating opportunities and help lift them to a higher standard of living. To that end, Fundacion Carlos Slim has committed $45 million to the effort, with $5 million to be used for grantmaking and $40 million guaranteed for microcredit loans. To date, 195 women have received loans totaling more than $49,000. The organization plans to serve more than 100,000 borrowers during its first five years of operation.

To be managed by Grameen Trust, Grameen Carso will initially focus its operations in the southern state of Oaxaca, where its first office opened in July. Using the continuous group training lending model pioneered by Grameen, Grameen Carso will provide microloans to poor individuals so that they can create or expand small entrepreneurial initiatives. The loans will not require collateral and instead will use a system of mutual support among the borrowers to encourage repayment.

"We are very pleased with the start in Mexico and the enthusiasm and work orientation of our growing number of Mexican employees and borrowers," said Muhammad Yunus, who founded Grameen Bank and shared the 2006 Nobel Peace Prize with his creation. "Through the entrepreneurial initiatives of borrowers and the education and financial training that are provided through the Grameen lending model, borrowers build economic foundations for themselves and for their families and they focus on improving their families' education, health, and general well-being. Grameen has shown that microcredit programs can be an economic success without charging exorbitant interest rates. I am excited by the opportunity to bring the Grameen model of microcredit to Mexico on a large scale and I am very pleased that Mr. Slim and his foundation [are] providing the resources necessary to make Grameen Carso a reality."

“Grameen Trust and Fundación Carlos Slim Launch the $45 Million Grameen Carso Microfinance Program.” Grameen America Press Release 9/24/09.

Primary Subject: Community Improvement/Development
Secondary Subject(s): Women, International Affairs/Development
Location(s): Mexico

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