The Premier Source for Microfinance Data and Analysis This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. Microfinance Information Exchange Panorama 2011 de América Latina y el Caribe December 2011

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 2 América Latina y El Caribe en resumen At the end of 2010, more than half (58%) of the borrowers in the region were concentrated in South America. The market in the region is developed, the MFIs with more than 8 years in the market (Mature) represented 86% of the total of participants. Especially in South America (53% out of the total in 2010). LAC is divided into three clearly differentiated sub-regions: 1. South America 2. Central America and the Caribbean 3. Mexico

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 3 América Latina y El Caribe en resumen The trend toward regulation is not yet strong in Mexico and Central America. 79% of the regulated IMF were South American (which represented 27% of the total IMF participants). How has the micro-financial industry evolved in the region?

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited Credits 2. Deposits 3. Special Cases

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 5 ¿Los mercados urbanos están saturados en la región? Central America and the Caribbean is the sub-region that has the highest incidence of rural population: Honduras (51.2%), Guatemala (50.5%) and Haiti (50.0%). In South America, the country with the largest population in rural areas was Paraguay (38.5%).

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 6 ¿Los mercados urbanos están saturados en la región? America accelerated progress in placements particularly in rural areas (89.0%) between 2008 to 2010 in search of new markets. The growth scale in Central America and the Caribbean was justified in rural areas (18.5%), the urban portfolio has not yet recovered levels reached in 2008.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 7 ¿Dónde se concentró la oferta crediticia? LAC: Micro-enterprise credit remained the most dynamic in Central America (81.1%) and South America (74.6%) were intensive in financing for productive purposes (Micro-enterprise and Commercial).

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 8 ¿Cuál fue el tamaño del crédito ofrecido? South America presented higher than average regional credit balances in retail products. Housing credits in Mexico and Central America focused on financing housing improvements, the opposite of South America, where the IMF offered more products for the acquisition of houses. The advance in the scale of commercial loans (25. 6% in 2010) in Mexico was based on high average balances maintained (USD 76 thousand versus USD 30 thousand in LAC).

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 9 ¿Se redujo la morosidad en las colocaciones? SA: Prudential regulation and self-regulation standards in most countries contributed to the presentation of risk indicators on similar levels. CC: The IMF resorted to penalties and to the refinancing of loans, which maintained high risk portfolio indicators. MEX: Improved indicators of portfolio at risk in However, about 10% is still retained for the group of intensive IMF in sample consumption.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 10 Riesgo de cartera trimestral en 2011 CountryIMFGLP participation Bolivia23100% Colombia572.4% Ecuador961.2% Mexico2065.2% Peru3788.2% Based on quarterly data from a representative sample by the IMF of 5 countries in the region.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 11 Endeudamiento Cruzado en 2010 IndicatorEcuadorPeru IMF Number3825 Participation Borrowers Country (%)88.5%54.7% Total of reported loans737,7562,096,969 Total Borrowers declared650,5721,818,831 Loans per Borrower Borrowers adjusted per cross-indebtedness466,7531,207,326 Loans per adjusted borrower by cross- indebtedness Shared borrowers (%)45.3%55.7% It was not possible to determine a direct correlation between portfolio risk indicators and those of crossed debt. The participation of NGOs and non- regulated COAC in the Ecuador sample, which function in rural zones with limited competitors, allowed for a smaller percentage of shared borrowers. In the case of Peru, the largest indicator of Shared Borrowers was reflected in the intense competition in the country's major cities, among the regulated IMF (Mibanco, CMACs and Financial especially) figures in the sample.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited Credits 2. Deposits 3. Special Cases

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 13 ¿Hacia dónde se enfocaron las captaciones de depósitos? The savings of small depositors constitute the main origin (85%) of deposits received in the region. The savings solutions of the commercial bank seem unknown or unattractive compared to IMF's long-term deposits.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 14 ¿Hacia dónde se enfocaron las captaciones de depósitos? South America (that concentrates 95.6% of the deposits in the region) reaffirmed the tendency to concentrate the receipt of deposits in small savers (atomization).

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 15 ¿Hacia dónde se enfocaron las captaciones de depósitos? The same tendency as South America was also presented in Central America and the Caribbean, where the small deposits grew more than USD 150 million in two years.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited Credits 2. Deposits 3. Special Cases

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 17 Nicaragua: El reto de la recuperación The indicators affected by the "No Payment" movement reached their most critical level during the years 2009 and 2010, after the withdrawal of the international financing for IMF operations and the beginning of the international crisis.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 18 México: Un mercado heterogéneo It is the home of the IMF with the largest scope in the whole region (Share Bank and Independence Financial with the focus on financing the Microenterprise and Consumption, respectively). The SOFOM are non-regulated institutions, the legal form most applied by the IMF, their high accumulated portfolio is mainly based on the placements of Independence Financial (60.4% to December 2010).

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. 19 México: Reduciendo el riesgo Based on a sample of 13 IMF with quarterly information in 2010 and 2011 (represented 57.6% of the total accumulated portfolio to December 2010). The increase of placed balances in the first semester of 2011 (24.8%) already surpassed the similar semester in 2010 (14.3%). For the first time the national median was under the 3% because of the improvement in the indicators of the SOFOMES. The group of Regulated Financial Societies (SOFIPOs as per its initials in Spanish) proved some difficulties to reduce the NPLs, kept at similar levels since September 2010.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. MIX partners with a dedicated group of industry leaders: MIX Global and Project Partners 20

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited. Visit us on the Web:  Contact us: Interested in learning more about MIX? Sign up to receive our free newsletters!Sign up Find us on Facebook Follow us on Twitter: Regional Offices: Baku, Azerbaijan 44 J. Jabbarli st. Caspian Plaza I, 5 th Floor, Baku, Azerbaijan Lima, Peru Jirón León Velarde 333 Lince, Lima 14, Perú Rabat, Morocco Immeuble CDG Place Moulay Hassan BP 408 Rabat Morocco Hyderabad, India Road #12, Landmark Building, 5 th Floor, Banjara Hills, Hyderabad , India Microfinance Information Exchange 21 Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C USA