Peru : MIDE
The context: Nearly half of Peruvian population lives below poverty 
level. Cusco region is among the poorest. Its economy is based on agriculture and cattle breeding which are low-income and high-risk activities as they depend on rather unfavourable climate conditions.
A project to assist the local population: There is only one solution to remediate the extreme poverty: diversify income sources. This has become possible thanks to microfinance services. MIDE (Microcredit for development) provides farmers’ families, women in particular, with microcredit and adequate training.
The success of this enterprise rests on a combination of various factors: loans are always followed by project monitoring and promotion of the social role of women. This way, women can gain self confidence as well as confidence in their ability to decide, anticipate, manage, act and react.
Microcredits which bring results: Support provided by SOS Faim is twofold. On one hand, it offers financial assistance to support loan capital and an international guarantee fund which covers MIDE’s credit line granted by an international financial institution. This guarantee enables MIDE to borrow money from local banks in order to provide its own clients with loans. At the end of 2006, MIDE had nearly 5300 active loans, amounting to around 130 Euros each. On the other hand, SOS Faim also provides consulting services and actively participates in strategic planning process. In 2000 an impact study carried out proved a significant improvement of living conditions of the borrowers and their families (better accommodation and food, higher school attendance rate, decrease in family violence, etc.).
