MFTransparency launched Transparent Pricing Initiative in Bolivia

MFTransparency launched its Transparent Pricing Initiative in Bolivia.

Microfinance Focus, June 1, 2010: Hosting two workshops in La Paz and Santa Cruz de la Sierra during the first week of May, MFTransparency launched its Transparent Pricing Initiative in Bolivia. Local microfinance networks ASOFIN and FINRURAL are its strategic partners in this effort and the initiative is sponsored by the Ford Foundation and MicroNed to promote fair and transparent pricing in the microfinance industry. The launch of the Transparent Pricing Initiative in Bolivia was attended by stakeholders across the entire spectrum of the Bolivian microfinance sector participated in these events, including representatives of the most prominentmicrofinance institutions in Bolivia, the Central Bank of Bolivia (BCB) and the Supervisory Authority of the Financial System (ASFI).

 Investors including Oikocredit, LOCFUND, Bolivian Investments Management and Alphamundi Group, as well as other industry stakeholders such as the Corporación Andina de Fomento (CAF), World Vision, PROFIN Foundation and Habitat for Humanity were also present. “We really appreciate the overwhelming support for our Initiative in Bolivia and we are delighted that the entire member MFIs of ASOFIN and FINRURAL participated in our workshops,” says Chuck Waterfield, CEO and President of MFTransparency.

MicroFinance Transparency is an international non-governmental organization with the purpose of facilitating transparent markets through the dissemination of true cost information to all market stakeholders. MFTransparency represents an industry movement toward fair practices and responsibility. In the coming weeks, MFTransparency will collect data on interest rates, fees and other costs to the client for each microcredit product in Bolivia in order to calculate the accurate true price (effective interest rate) of these loans. The team will publish this information on its website for the entire Bolivian market.

During the opening ceremony in La Paz, Fernando Prado and Nestor Castro, managers of ASOFIN and FINRURAL respectively, highlighted the importance of pricing transparency in the country. They both signed MFTransparency Endorsement Statement, joining more than 350 endorsers across the globe supporting this Initiative. “We are excited to announce that many other stakeholders of the Bolivian microfinance sector followed suit and signed our endorsement form”, says Chuck Waterfield.

At the workshops in La Paz and Santa Cruz, MFTransparency shared with key stakeholders of the Bolivian microfinance community the new industry standard for calculating interest rates on microcredit products. The group invited all MFIs in the country to actively participate in becoming a member of the MFTransparencyproject. Bolivia was selected as the second country in Latin America for the Transparent Pricing Initiative for its dynamic and globally recognized microfinance industry.