Event Name: SOCAP09 – At the Intersection of Money and Meaning

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Cost: Individual Rate USD 1,195; Corporate Rate USD 1,395 (includes acknowledgement of organization on website). Early Bird Discount of 30% by Friday 31 July using the code SR30.

Summary of Event: Experts will deconstruct issues and explore new strategies for success in the changed financial environment, including how to create effective partnerships, learn from best practices, and how to tap into new resources. The first two days will include plenaries, break out sessions and workshops. This will be followed by a third day of participant-led sessions.   Continue Reading »

For discussion of this topic click here:  http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

The Bangladesh Rural Advancement Committee (BRAC), an international non-government organization (NGO), will lead a partnership worth USD 15 million in Sierra Leone and Liberia to provide microfinance, healthcare and agricultural support [1, 2]. The Soros Economic Development Fund (SEDF), Open Society Initiative for West Africa (OSIWA), Omidyar Network and Humanity United are funding this project through a combination of grants and equity [1, 3, 4, 5, 6]. BRAC has opened 20 new microfinance branches since March 2009 in Sierra Leone and Liberia, with the first loan being issued in June, and aims to open 20 more by the end of the year [1]. During the two year pilot program it aims to provide loans to tens of thousands of women in these two West Africa countries [1]. Furthermore the project will provide agricultural supplies, training to farmers and 400 community based health volunteers [1].   Continue Reading »

Written by Paula Kantor, published June 2009, by Afghanistan Research and Evaluation Unit (AREU), 74 pages, available at: http://www.microfinancegateway.org/p/site/m/template.rc/1.9.36446/

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/papers-and-research-reviews

This paper presents the Afghanistan Research and Evaluation Unit’s (AREU) findings on the impact microcredit has had on existing informal credit systems and rural livelihoods. The development of microfinance in Afghanistan from subsidized government programs to the development of Microfinance Investment Support Facility for Afghanistan (MISFA) in 2003 is discussed. Since 2003 over USD 569 million in microloans has been disbursed to 440,000 clients through partners of MISFA. For a detailed discussion on MISFA refer to this MicroCapital story [1].   Continue Reading »

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/rural-microfinance

Centenary Bank of Uganda, a commercial bank with a focus on rural microfinance, has announced that it will increase its loans to farmers, further increasing its agricultural lending [1, 2]. The loans will enable farmers to buy tractors and other machinery up to a maximum of UGX 200 million (USD 95,000) [1]. Farmers owning 100 acres of land will be targeted. Recently the government declared in its 2009-10 budget that a UGX 30 billion (USD 14.2 million) loan guarantee will be made available to banks that extend loans to the agricultural sector this financial year [1]. The government believes this investment will help Uganda recover from the global recession as the agricultural sector employs 85 percent of the labor force. Centenary Bank will also seek to access part of the UGX 88 billion (EUR 30 million) credit facility that the European Investment Bank (EIB) is extending to several Ugandan commercial banks [1].   Continue Reading »

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

Faulu Kenya, the International Finance Corporation (IFC) and the Standard Chartered Bank of Kenya have entered into a partnership to finance Faulu operations in Kenya with a KES 450 million (USD 5.9 million) loan [1, 2, 3, 4]. The IFC, a World Bank member, will provide a partial credit guarantee for 80 percent of the loan from Standard Chartered Bank to Faulu, a local microfinance institution (MFI) [1, 5]. The partnership aims to help Faulu reach more Kenyans by broadening its products and services. The IFC and Standard Chartered Bank will also provide advisory support to Faulu in relation to its recent license to become the first deposit taking MFI in Kenya [1, 5]. Continue Reading »

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/crash-of-2008-and-microfinance

The number of loans extended to clients by microfinance institutions (MFIs) declined during the first half of 2009 in Cambodia, according to an article in the Phnom Penh Post [1]. MFIs reported that they are being more cautious in their lending and clients are more nervous about taking out loans. Both factors are being attributed to the downturn in the global economy. The rate of non performing loans (NPLs) also increased during this period and the Cambodian Microfinance Association forecasts this to increase to three percent by the end of the year [1, 2]. A recent MicroCapital story discussed this trend and the increased credit risk rating that the Economist Intelligence Unit has assigned to Cambodia [9].   Continue Reading »

The International Fund for Agricultural Development (IFAD), a United Nations agency, has announced a grant of USD 23.9 million to create the Rural Microfinance and Livestock Support Program in Afghanistan. This is the first IFAD program in Afghanistan and will be implemented in the northern region. The microfinance portion of the program will tailor microfinance services to the rural population, especially farmers who lack access to microcredit. It will be implemented in partnership with the Microfinance Investment Support Facility for Afghanistan (MISFA).The Ministry of Agriculture, Irrigation and Livestock (MAIL) will be the lead agency for the livestock part of the program which will focus on women headed households and pilot various private-public partnership models. It is not clear how the funding will be split between the two sections of this program.   Continue Reading »

Event Name: 8th Africa Microfinance Network (AFMIN) Annual Conference & General Assembly

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Cost: No details regarding cost have been provided.

Summary of Event: This event will focus on recommending strategies to boost economic growth in Africa with the view to building strong and inclusive rural financing systems that create employment, wealth and increase income of the poor in rural areas. Continue Reading »

In 2004 the Philippines Government and private microfinance institutions (MFIs) agreed to increase microfinance lending across the country. At the 11^th anniversary of the Filipino National Anti Poverty Commission (NAPC), data was released indicating that loans totaling PHP 161 billion (USD 3.3 billion) have been made to 5.8 million microfinance clients from July 2004 to April 2009. The NAPC, a government body, estimated that 2.7 million jobs have also been created through this investment. In 2007 PHP 25.9 billion (USD 537 million) in loans were made and this grew to PHP 64.8 billion (USD 1.3 billion) in 2008. From January to April 2009 PHP 9.7 billion (USD 201.1 million) microfinance loans have been created. It was not clear how this data was collected or the methodology behind it.   Continue Reading »

ProCredit Bank Albania has received a EUR 5 million loan from the European Fund for Southeast Europe (EFSE), a Luxembourg based microfinance fund. The loan is split into two components with EUR 2 million for Energy Efficiency Housing Loans and EUR 3 million for Rural Loans. ProCredit Bank will be the first bank in Albania to offer these specialized energy loans which are aimed at helping families and businesses reduce their energy costs by financing energy-saving technologies. The bank also hopes to extend its outreach to small and medium enterprises (SMEs) in rural areas as the Rural Loans will be targeted towards small-scale agricultural clients.   Continue Reading »

Six microfinance institutions (MFIs), Lazika Capital, Alliance Group, CREDO, Crystal, FinAgro and Finca, and Constanta Bank have been selected to receive grants from a joint project funded by the United Nations Development Program (UNDP) and European Union (EU). The seven organizations were selected based on their current loan portfolios, experience in the target region and reporting to the MIX Market, the microfinance information clearinghouse. Each organization will receive USD 99,000 in the first tranche of funding. The total cost of the project is USD 2.6 million and is part of the UNDP early recovery program for Georgia which received EUR 4.4 million (USD 6.1 million) in funding from the EU.   Continue Reading »

The European Bank of Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment, will provide a USD 4 million line of credit to the Demir Kyrgyz International Bank (DKIB). DKIB will use the line of credit to extend loans to micro, small and medium enterprises (MSME) in the Kyrgyz Republic. In addition to the line of credit, the EBRD will offer training in credit appraisal to DKIB staff and technical assistance. The loans made by DKIB to MSME’s will range from USD 10,000 to USD 400,000.   Continue Reading »

The theme of the recent Gambia Association Accountants (GAA) conference was ‘Development of Microfinance Capability in the Gambia’.  Extracts of a discourse delivered at the conference discussed how the government of the Gambia has taken measures aimed at ‘further deepening and building more resilient and sustainable microfinance institutions (MFIs)’ in recent years. The government has drafted a bill to regulate and supervise microfinance activities, reviewed microfinance policy guidelines and the Financial Institutions Act, and approved various microfinance projects.   Continue Reading »

Event Name: Rural Microfinance: Strategies for Reaching the Underserved

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Cost: Participants pay 2,000 Mexican pesos + VAT. This event is free for donor agency representatives, however they must still register.

Summary of Event: This conference will bring together Mexican credit union practitioners and donor agencies from around the worldwide to discuss the role of microfinance in fighting rural poverty. It will also showcase the outreach efforts of rural credit unions and how adaptable these are to other regions.   Continue Reading »

The Rizal Commercial Banking Corporation (RCBC) has announced that it will continue to further develop its microfinance operations through additional acquisitions of rural banks. It is looking to buy rural banks in the northern Luzon and Visayas regions of the Philippines. RCBC president and chief executive Mr Lorenzo Tan said that “we’re looking to expand microfinance and we started this month. It can contribute five to ten percent to our bottom line in five years”.   Continue Reading »

The Islamic Solidarity Fund for Development (ISFD), a program of the Islamic Development Bank (IDB), has released its first annual report. The report describes the first year as being spent setting the basic foundations for the ISFD including establishing procedures and developing guidelines. The original target of the fund was USD 10 billion with contributions to be made by IDB and IDB member countries. As at the end of 2008 USD 2.61 billion had been pledged.  This comprised of USD 1.61 billion from 36 member countries and USD 1 billion from the IDB. Saudi Arabia had committed USD 1 billion, Kuwait USD 300 million and Iran USD 100 million. MicroCapital first reported on the launch of this fund in March 2008.   Continue Reading »

The Indian government is considering increasing its credit guarantee scheme for micro and small enterprises (MSE) in the upcoming 2009-2010 budget through its Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). The existing guarantee for member lending institutions of this scheme does not cover bank loans to MSEs that are secured by collateral. A finance ministry source claims that the Reserve Bank of India (RBI) has put forward this proposal and is working on it with the ministry. Continue Reading »

Written by Julia Abakaeva and Jasmina Glisovic-Mezieres, published June 2009 by the Consultative Group to Assist the Poor (CGAP), 4 pages, available at: http://www.cgap.org/gm/document-1.9.34820/CGAPBrief_Deposits.pdf

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