San Jose del Cabo, Mexico – Agrofinanzas, S.A. de C.V., SOFOL (Agrofinanzas) was recognized June 19 by the G20 as one of 15 leading companies in the world on inclusive business innovation (The G20 Challenge on Inclusive Business Innovation), during a ceremony headed by the Executive Secretary of the Mexican Agency for International Development Cooperation and Chair of the G20 Development Working Group, Amb. Rogelio Granguillhome Morfín.

The award was granted to Agrofinanzas because, since its inception in 2006, it has designed and successfully implemented a business model that provides loans for Mexican small farmers and rural producers, enabling them to access the formal credit market from which they were previously excluded. Loans from Agrofinanzas carry affordable interest rates substantially lower than consumer lending and microfinance alternatives.

Referring to this global award, Mr. Francisco Mere, Agrofinanzas’ CEO commented: “We are proud to receive this recognition, but are even more pleased that, thanks to our business model, since our inception we have granted more than 80,000 loans to small agricultural producers, 80% of whom had no prior access to the formal financial sector.” He added, “Today, these producers are able to establish a credit history that gives them the opportunity to obtain other financing products. This way, we provide the tools to empower them to take control of their financial future and thus improve their economic situation in a win-win relationship.”

On the results of Agrofinazas financing system he mentioned: “We are currently the leaders in supply chain financing in the agribusiness sector in Mexico. Our innovative business model, based on technology and strategic alliances, has allowed the company to offer an attractive return to its investors for the past three years, while, according to a study we commissioned in 2011, over 30% of our customers have improved their economic situation since they received a loan from Agrofinanzas.”

The G20 on Inclusive Business Innovation Challenge is a global initiative launched at the G20 Summit ofNovember 2011 in Cannes that recognizes companies that have succeeded in developing innovative, scalable, as well as commercially viable and replicable inclusive business models which work with low-income people living in developing countries as suppliers, distributors, retailers, or customers, becoming in what is known as “inclusive businesses.”

Agrofinanzas is a financial institution in Mexico, dedicated to providing financing to unbanked producers and businesses in the food and agricultural sector in rural and suburban areas, with special emphasis on supporting sustainability and financial inclusion in Mexico. It was established and authorized by the Mexican Ministry of Finance in 2006 and is supervised by the National Banking and Securities Commission. It has investment grade rating by Fitch Ratings Mexico and its debt securities are traded on the Mexican Stock Exchange.

As of April 2012, Agrofinanzas has MxP$1.742 billion in assets under management and a loan portfolio of nearly MxP$1.6 billion, distributed in 22 states of the country and more than 20 supply chains related to agribusiness, aquaculture, forestry and renewable energy. In the first four months of 2012, its loan portfolio grew by 27% when compared to December 2011, while at the end of April 2012 its non-performing loans were 3.1% of its loans’ portfolio.

Image Courtesy of  G20

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Los Cabos, Mexico – G2012 Mexico is partnering with Ashoka Changemakers to launch the G2012 Mexico Financial Inclusion: Innovative Solutions for Unlocking Access challenge, an online competition to find groundbreaking initiatives from around the world that make financial services accessible to under-served and excluded communities.

“Promoting greater financial inclusion is a key focus for the Mexican Presidency of the G20 this year,” said Jose Antonio Meade, minister of finance and public credit of Mexico. “Equipping underserved and excluded households with the basic tools of economic empowerment—such as, affordable loans, secure savings and payments, and insurance—is key to economic development and raising standards of living. Financial inclusion is also critical to the strength and stability of the greater global financial system.”

The competition seeks solutions that create access to valuable, affordable, secure, and comprehensive financial services. Today, 2.7 billion adults—more than half of the world’s working-age population—do not have access to financial services that would allow them to save money securely, borrow money affordably, make payments knowledgeably, and insure themselves against potential hardships or risk.

All private sector individuals, organizations, or partnerships are eligible to enter from now until September 12, 2012 at changemakers.com/financialinclusion. Details about the guidelines and assessment criteria can be found on the website. The best solution will win a 100,000 USD award sponsored by Banco Nacional de Mexico (Banamex) and BBVA Bancomer. ”Ashoka has a long history of expertise in sourcing and scaling-up social innovations that promote economic empowerment and financial inclusion,” said Ashoka President Diana Wells. “We are thrilled to partner with G2012 Mexico and to leverage the experience and tireless passion of our network to support this critical challenge.”

Secretary Jose Antonio Meade announced on June 18 the launch of the G2012 Mexico Financial Inclusion: Innovative Solutions for Unlocking Access competition at the G20 Leader´s Summit in Los Cabos, Mexico.

Under the Mexican G20 Presidency the financial inclusion agenda has focused on the promotion of having more inclusive financial systems and accompany those efforts with actions on financial education and financial consumer protection. In this sense, the most important challenges for moving from ideas to actions are: building a modern regulatory framework, innovation regarding new business models and technology, and strong coordination especially with the private sector.

Image Courtesy of  G20

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Washington, U.S.A. – Argentina’s sagging international reputation has drawn scrutiny from U.S. lawmakers. The American Task Force Argentina reported that on the eve of the G20 Summit in Los Cabos, Mexico, members of Congress have taken the first steps to call for the removal of Argentina from the G20 if it continues to ignore U.S. court judgments and its international economic obligations. A new resolution introduced by U.S. Rep. Chris Smith (R-NJ), expresses the sense of the Congress that the Republic of Argentina’s membership in the G20 should be conditioned on its “adherence to international norms of economic relations and commitment to the rule of law.”

H.Res.686 stipulates that the Republic of Argentina must “fulfill the responsibilities inherent with membership in the Group of Twenty Finance Ministers and Central Bank Governors (G20), in accordance with the principles articulated by this premier forum for international economic cooperation.” In the event that Argentina fails to comply, the Resolution establishes that President Obama and the Treasury Secretary would work with G20 members to “terminate the participation of Argentina in the G20.”

This resolution is the counterpart to Senate Resolution, S.Res.457, introduced by U.S. Sen. Richard Lugar (R-IN) on May 14, which also supports Argentina’s suspension from the G20, unless it meets its obligations to the U.S. and other countries.

Calls to sanction Argentina have been echoed globally, from Spain and Germany to the United Kingdom. Last week, a UK petition urging British taxpayers to stop supporting multilateral development bank loans to Argentina went viral. In the United States, a House Financial Services subcommittee held a hearing that showcased Argentina as a nation that does not respect U.S. or international law.

“Rep. Smith is to be commended for his resolution. His initiative is part of a growing international outcry against Argentina’s bad acts,” explained Robert Raben, co-chair of American Task Force Argentina.  “Argentina has repeatedly refused to adhere to the spirit and the letter of G20 declarations, and at a time of financial instability, this lawlessness should no longer be tolerated.”

ATFA an alliance of diverse organizations advocating a fair and final resolution to Argentina’s financial and legal obligations to U.S. citizens is led by Executive Director Robert Raben, a former Assistant Attorney General at the U.S. Department of Justice, and co-chaired by The Honorable Robert J. Shapiro, former Under Secretary of Commerce for Economic Affairs in the Clinton Administration, and Ambassador Nancy Soderberg, Ambassador at the U.S. Mission to the United Nations in New York from 1997 to 2001.

Image Courtesy of  Casa Rosada

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