In 1995, the banking sector is exposed Haiti reformtwo important aspects, which are the reduction in reserve requirements for banks and lifting the ceiling interest rate on loans. These reforms will give banks the opportunity to expand their lending activities, but who to credit? Some banks are turning to the informal sector, which dominates in the Haitian economy and microfinance as a way to serve entrepreneurs in the sector. Pierre-Marie Boisson, chief economist Sogebank, the largest bank in Haiti, began selling the idea of microfinance in its board of directors in the late 1990s. By 2000, the new affiliate microfinance Sogebank, Sogesol, opened its doors for business. A year later, he has 2,200 active clients and has expanded over 4500 loans. As expected Sogesol will suffer loss, but it was built by a sound operational base with Accion International, which is a co-owner and technical assistance provider. His goal for the coming year is to further improve its performance in order to maximize the number of customers of each of its officers and credit is to go beyond the capital Port-au-Prince in Haiti provincial cities. In addition to these internal problems, Sogesol faces two external threats. Competition from other providers of microfinance threatens not only their market share, but also, more dangerously, risks creating an excessive debt entrepreneurs in the informal sector. The solution is a system of credit bureaus, which allows lenders to share information about their borrowers. But efforts by the central bank in the mid-1990s to institute such a system failed, and it is unclear who will lead the new effort. Other external threats Sogesol persons is uncertain regulatory environment in which it operates. Haiti has no rules and microfinance Sogesol working under the provisions of the Bank's Sogebank. HKS Case Number 1657.0 "Hide
Guy Stuart on 29 pages. Publication Date: July 1, 2002. Prod. #: HKS077-PDF-ENG
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