Northeast Microfinance Development Project

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The Northeast Microfinance Development Project for Brazil is part of the World Bank's targeted assistance to the Northeast Region which constitutes the largest concentration of poverty in Brazil. The project addresses the lack of access of the poor to financial services, an important constraint to improved productivity and incomes. The project's overall objective is to improve the access of microenterprises throughout the Northeast Region to sustainable, formal financial services by supporting expansion of the program known as "CrediAmigo" in Brazil. The project has three components. The first provides funds for CrediAmigo to make loans for working capital and investment to solidarity groups and individual solidarity group clients who have "graduated" by virtue of a good loan repayment record. The second component strengthens the capacity of CrediAmigo by hiring consultants to assist it to develop promotional and marketing strategies; build risk management capabilities; enhance loan officer productivity; increase cost-effective geographic coverage using projections, bolstering legal and regulatory requirements, and providing training and support needs; identify and design new loan and savings products; conduct evaluations of the environmental management program; and to support loan administration. The third component finances technical assistance to design, implement, and analyze statistical surveys.