Featured as chapter 10 in the IDB publication Promising Practices in Rural Finance, this case study examines the microleasing programme that ANED (Asociación National Ecuménica de Desarollo) began in 1997. ANED’s financial leasing programme is an innovative mechanism for small producers of Bolivia’s rural areas to finance investment capital such as tractors, farm ploughs, motorised pumps and other fixed assets. By financing the acquisition of fixed assets, and ANED's practice of purchasing directly from the supplier, this alternative to credit circumvents some of the most important bottlenecks small producers often face in expanding their production and productivity possibilities. Inherent to this financial product is a solution to the lack of collateral that often limit small producers' access to financial services. Financial leasing also lowers portfolio risks for ANED.

The results of this programme are analysed from the perspective of its outreach and financial performance. This case study demonstrates how ANED has succeeded in creating an innovative financial product that was well received and appears to have great perspectives for future consolidation as an alternative for a large sector of small rural producers. The study also identifies challenges to the expansion of this programme (e.g., funding availability, product promotion, market exploration, training for inexperienced clients, legal framework and regulation, insurance mechanisms for leasing products) and draws conclusions based on these challenges.

This chapter is also available, via the link below, in Spanish.