MFI Report

Cooperativa Esperanza y Progreso del Valle was founded in 2005 by a group of leading residents in the barrio of Rumiloma is Valle de Los Chillos, the less affluent of the two valleys of urban sprawl adjacent to Quito, Ecuador. The Cooperativa was founded with a joint social and financial mission in response to a larger cooperativa system which focuses solely on financial services. It is not a stretch to say that the Cooperativa is the leading secular institution in the community, with an impact reaching far beyond that of a traditional financial institution. While the Cooperativa has enjoyed steady success since its founding its two principle challenges are: -Bringing its internal systems in line with microfinance industry best practices; and -Improving their financial capacity in order to raise their supply capacity to meet community demand. To expand on the first challenge, about 3/4 of the Cooperativa's loan portfolio consists of microloans yet the systems and methodologies used for microloans and conventional loans are identical. As a result the loan repayment rate hovers around 85%. Given the relatively small size of the Cooperativa's operations we are confident that improving loan procedures would not be terribly difficult. Hide