Reporte Final. Periodo 2010 - 2013

The project was funded by the United States Agency for International Development (USAID) and executed by the Rural Financial Network (RFR). The project's purpose was to increase income and contribute to reducing poverty in these areas. To achieve this purpose, the project's main objectives were to provide technical assistance for the formulation of a regulatory framework and mechanisms for supervision of the microfinance sector, its institutions, and operators. Additionally, the project aimed to participate in the design and provide technical assistance for the implementation of a technical plan to apply public policy and promote the expansion of financial services, predominantly microfinance, to rural and urban-marginalized areas. The project also implemented pilot tests of three microfinance products for rural areas: rural savings as a mechanism for capitalization and financing for the establishment of new businesses, rural associative and solidarity credit, preferably related to value chains, and microinsurance to reduce the vulnerability of clients to specific risks. The project's rationale was the lack of an appropriate regulation for the thousands of finance and microfinance organizations that existed in the country, mainly cooperatives of savings and credit, mutuals, non-governmental organizations, and corporations with microfinance activities. The project's hypothesis was that an appropriate regulatory framework, along with efficient mechanisms for supervision and control of microfinance institutions, would promote the efficiency and expansion of the sector. The strengthening of the microfinance sector would effectively contribute to alleviating poverty in these areas. The project began at the same time as the Ecuadorian government decided to start formulating a law that would regulate all productive and finance organizations under a concept of popular and solidarity economy development. Along with the purpose of regulating and supervising all popular organizations, including those dedicated to finance and microfinance, the government's effort also included the collection of records and statistics of these organizations, which was a completely unknown field. The project's challenge was to identify the most efficient way to support the government in formulating a law and regulation that would regulate and supervise microfinance institutions. To achieve this, the RFR formed part of the Technical Committee constituted by the Coordinating Ministry for Social Development and the Ministry of Social Inclusion. The project's methodology involved providing technical assistance to the government in the formulation of a regulatory framework and mechanisms for supervision of the microfinance sector. The project also participated in the design and implementation of a technical plan to apply public policy and promote the expansion of financial services, predominantly microfinance, to rural and urban-marginalized areas. The project's results showed that the regulatory framework and mechanisms for supervision of the microfinance sector were successfully formulated and implemented. The project also demonstrated the effectiveness of the microfinance products implemented, particularly rural savings, rural associative and solidarity credit, and microinsurance. The project's impact was significant, as it contributed to increasing access to financial services for rural and urban-marginalized populations. The project also helped to promote the development of the microfinance sector, which is an important sector of the Ecuadorian economy. The project's results and lessons learned were documented and shared with the government and other stakeholders to inform future policy and program decisions. The project's sustainability was ensured through the establishment of a regulatory framework and mechanisms for supervision of the microfinance sector. The project also contributed to the development of a culture of transparency and accountability in the microfinance sector, which is essential for its sustainability. The project's legacy is the establishment of a regulatory framework and mechanisms for supervision of the microfinance sector, which has contributed to promoting the development of this sector in Ecuador. The project's results and lessons learned have also informed future policy and program decisions in the country.