Opportunities for the Majority seeks the approval of the Operational Input related to the loan proposal BR-L1298, to strengthen the "Banorte Every Day" in its entirety, since it can be assumed that a better managerial performance of the "little market" ("mercaditos") will enhance the welfare of low-income population in several ways:a) Training of mercadito owners and their employees will raise the level of professionalism in managing their facilities, which will strengthen them as microenterprises.
Thus, these mercaditos can continue to be the source of income for their owners and employees, who generally belong to the base of the socioeconomic pyramid;b) The strengthening of the mercaditos will allow the low income communities from its surroundings to enjoy the services provided from businesses that are better prepared to meet their needs, specially taking into account the expected increase in demand due to the growth of the middle class in Brazil;c) The management training for owners and employees of the mercaditos which participate in the "Banorte Everyday" program will better prepare them to use the resources of the funding more efficiently and develop a culture of responsible repayments. By doing so, the OI help to ensure the sustainability of the program and its continued expansion into other regions;d) The training program includes other important aspects, such as proper food and waste handling, strengthening the program in social and environmental terms.e) In addition, financial education will bring benefits to both final consumers and to the "Banorte Everyday" program as a whole.
End users will be better prepared to manage their credit and avoid over-indebtedness that can cause financial problems. Therefore, the quality of the portfolio under the "Banorte Everyday" will represent a more manageable risk by having a portfolio with fewer troubled loans and lower expected losses.f) Finally, this operational input can bring other positive externalities to the project, which helps low-income people to behave responsibly with the increasing access to various sources of funding for consumption that are arising as a consequence of their somewhat higher income level.
IDB.BR-T1215:BR-T1215.
