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CrediAmigo: Providing Financial Services for the Poor in Northeast Brazil                         December 13, 2005
Northeast Microfinance Development Project "CrediAmigo"

Banco do Nordeste (BNB), a large public bank              President Wolfowitz visits Banco do
active in the Northeast of Brazil, established            Nordeste - Dec. 16, 2005
CrediAmigo in November 1997 with technical                 Photos 
assistance from the World Bank. Given the strong
                                                          President Wolfowitz visits Brazil
commitment of BNB’s senior management to
                                                          Full coverage
develop a sustainable microfinance program, in
May 2000, the World Bank provided a US$50
million loan to strengthen the CrediAmigo program.

The project is part of the Bank's program of
targeted assistance to the Northeast region of
Brazil, which constitutes the largest concentration
of poverty in the country. The project addresses
poor people’s lack of access to formal financial
services, an important constraint to improved             Financing
productivity and incomes.
                                                          Total cost : US$100 million
This objective is being achieved by:
                                                          Sources of funding:
       expanding the microfinance loan portfolio;         IBRD loan amount: US$50 million
                                                          Other: US$50 million

       strengthening the institutional capacity of
       CrediAmigo for sustainable growth; and             Implementing agency

       evaluating the impact of CrediAmigo on             Banco do Nordeste
       microenterprise dynamics and household
                                                          More details
       welfare.
                                                           Full project information & documents
Today, CrediAmigo offers loans to established
micro-entrepreneurs for the financing of their
working capital and fixed asset needs. Loans are
collateral-free, but are extended using the solidarity
group technique to small groups of three to five
borrowers who cross-guarantee each others’ loan.
To cater to the evolving demands of its clients,
CrediAmigo also offers individual loans and
investment loans, and is currently piloting a village
banking model to serve rural clients.

CrediAmigo has about 189,029 active clients and is
active in more than 1,000 municipalities in the
Northeast of Brazil. About 61% of its clients were
women in 2005, up from 50% in 2003.  Half of its
clients have less than 4 years of schooling.
Updated: December 2005