Posted on January 25, 2010 - by James

ACCION gets green light in Brazil…

BOSTON, Jan. 25 — ACCION® International, a pioneer and leader in global microfinance, announced today that Brazilian President Luiz Inacio Lula da Silva has approved its application to establish ACCION Microfinancas, a new microfinance organization in the state of Amazonas in Brazil’s remote northern region.  It was in Recife, Brazil that ACCION first pioneered the concept of microlending, in 1973.

Joining ACCION as an equity partner in the new venture is the Multilateral Investment Fund (MIF) of the Inter-American Development bank (IDB), which will assume an 18.1 percent stake.  Private investor Luiz Felipe D’Avila and other private investors will assume a total of 8.5 percent.  ACCION will hold 73.4 percent of the organization.

ACCION Microfinancas will begin operations in Manaus, the largest city in Amazonas, with plans to extend services to cities throughout Brazil’s northern region.  The northern region, comprising seven states with a total population of about 14.7 million, is home to an estimated 1.9 million microentrepreneurs, only 8 to 10 percent of whom have received any kind of loan from a bank or microfinance organization.