Background on CAME and FIRA
Jiutepec, Morelos. The case of the Sofipo Consejo de Asistencia al Microemprendedor (CAME) had a manageable impact on the Fideicomisos Instituidos en Relación con la Agricultura (FIRA), an institution with which Sofipo had commitments, according to the declarations made by its general director, Jesús Alan Elizondo Flores, during the 10th AMS Convention.
CAME’s Situation and FIRA’s Response
Elizondo stated that FIRA took early action to safeguard credit lines, which limited risks. He mentioned that in another vehicle where CAME also had exposure, safeguards prevented the position from becoming significant. As a result, FIRA’s non-performing loans did not exceed half of the total amount granted.
Credit Provision and Institutional Strength
Regarding the strengthening of credit-providing vehicles, Elizondo explained that if an institution defaults, it was initially established that the others would manage the defaulting institution’s portfolio, provided they had access to the capabilities and the portfolio.
“This small detail, I believe, was very important and can be easily reinforced. It’s simply about ensuring that your portfolio is ceded to a trust before anything happens so that others can act,” Elizondo mentioned.
CAME’s Balance and Fintech Development
Elizondo noted that CAME, a consolidated institution when it obtained a credit line with FIRA, might have leaned too heavily on fintech development, which could have affected its balance.
“If you heavily invest in technology services and neglect attention to the population, with good tracking and quality portfolio processes, an imbalance occurs. We carefully monitor our network of intermediaries,” he warned.
Legal Proceedings Against CAME
Regarding the lawsuit that FIRA maintains against CAME, Elizondo stated that they are still waiting for a response from the judicial authority, as other creditors have filed the necessary complaints.
“There are orders to keep accounts frozen until creditors can recover something, and we are on that list,” he explained.
Details of CAME’s Debt
According to former CAME collaborators, the institution faced a debt of approximately 800 million pesos, allegedly with FIRA, along with other commitments CAME maintained with both commercial and development banks.
“We are waiting for the authorities’ decision. It’s important to speak with the National Banking and Securities Commission to see what formal procedure they will follow,” Elizondo emphasized.
Key Questions and Answers
- What is the main issue between FIRA and CAME? FIRA secured its loans granted to CAME, which faced a debt of around 800 million pesos, allegedly with FIRA.
- How did FIRA protect its credit lines? FIRA took early action to safeguard credit lines, limiting risks and ensuring non-performing loans did not exceed half of the total amount granted.
- What caused CAME’s potential imbalance? CAME might have leaned too heavily on fintech development, neglecting attention to the population and quality portfolio processes.
- What is the current status of the legal proceedings? FIRA and other creditors are waiting for a response from the judicial authority, with accounts frozen until recovery.
- What commitments did CAME have besides FIRA? CAME maintained other commitments with both commercial and development banks.
