In 2010, DemirBank had a gross loan portfolio of USD 324 million and 34,501 active borrowers. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. As of June 2011, MEF reported total assets of USD 163 million and a microfinance investment portfolio of USD 130 million.

About DemirBank
DemirBank, a commercial bank in Azerbaijan, was established as Azjeldorbank in 1989 under license of the USSR State Bank. In 2005, the European Bank for Reconstruction and Development (EBRD) became a shareholder of DemirBank, and as of 2010 EBRD holds 25 percent of its stock. For 2010, DemirBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 418 million, a gross loan portfolio of USD 324 million, approximately 34,500 borrowers, return on assets (ROA) of 1.10 percent and return on equity (ROE) of 7.55 percent.

About responsAbility
Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

About Microfinance Enhancement Facility
Created in February 2009 by International Finance Corporation (IFC), the private investment arm of the World Bank Group, and the German development bank KfW Entwicklungsbank (KfW), the Microfinance Enhancement Facility (MEF) was designed to support the growth of microfinance institutions by providing them with refinancing liquidity. Co-managed by BlueOrchard Finance SA, Cyrano Management SA and responsibility Social Investments AG, the fund has a target size of USD 500 million. As of June 2011, MEF reported total assets of USD 163 million and a microfinance investment portfolio of USD 130 million.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

Trend: “Azerbaijani Bank Draws Microfinance Enhancement Facility Loan,” http://en.trend.az/capital/business/1986857.html

MicroCapital.org story, July 14, 2011, “MICROCAPITAL BRIEF: responsAbility Loans $24m to Microfinance Institutions (MFIs) Inecobank, Agricultural Cooperative Bank of Armenia (ACBA), ACBA Leasing all of Armenia; Demirbank of Azerbaijan; Sekerbank of Turkey,” http://www.microcapital.org/microcapital-brief-responsability-loans-24m-to-microfinance-institutions-mfis-inecobank-agricultural-cooperative-bank-of-armenia-acba-acba-leasing-all-of-armenia-demirbank-of-azerbaijan-seke/

MicroCapital Universe Profile: DemirBank
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DemirBank

MicroCapital Universe Profile: ResponsAbility
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: Microfinance Enhancement Facility
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Enhancement+Facility+%28MEF%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

Byblos Bank Armenia reported a net profit of AMD 330 million (USD 855,000) for the first nine months of 2011. For the year 2010, EFSE reported total assets of approximately USD 681 million with a gross loan portfolio of USD 647 million.

About Byblos Bank Armenia
A unit of Lebanon’s Byblos Bank Group, Byblos Bank Armenia is a financial institution headquartered in Yerevan, Armenia. It offers loans, deposits and other financial services to commercial and retail banking clients. It reported total assets of AMD 36 billion (USD 93.5 million) as of September 2011 and a net profit of AMD 330 million (USD 855,000) for the first nine months of 2011.

About the European Fund for Southeast Europe
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

European Fund for Southeast Europe: “EFSE and Byblos Bank Armenia Sign Loan Agreement to Support Micro and Small Enterprises in Armenia,” http://www.efse.lu/Press-releases—Details—2012-01-27-EFSE-and-Byblos-Bank-Armenia-sign-loan-agreement-to-support-micro-and-small-enterprises-in-Armenia——_nav.52_siteid.134_entryid.399_dir._likecms.html

MicroCapital.org story, January 10, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Lends $24m to AccessBank of Azerbaijan, Kreditimi Rural I Kosoves of Kosovo, Byblos Bank Armenia, Alter Modus of Montenegro,” http://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-lends-24m-to-accessbank-of-azerbaijan-kreditimi-rural-i-kosoves-of-kosovo-byblos-bank-armenia-alter-modus-of-montenegro/

MicroCapital Universe Profile: European Fund for Southeast Europe
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

MicroCapital Universe Profile: Byblos Bank Armenia
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Byblos+Bank+Armenia

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

ACBA-Credit Agricole Bank CEO Stepan Gishyan was quoted as having said, “The new loan will further increase our capacity for lending to micro and small and medium enterprises, including agribusiness.… This is a new stage in our successful cooperation with IFC. With this new loan IFC significantly emphasizes its role as one of our largest lenders. During these challenging economic times, lending to micro and small businesses is very important for both of our institutions.”

As of 2010, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 462 million, a gross loan portfolio of USD 261 million, return on assets of 2.34 percent and return on equity of 10.8 percent.

By Kristha Abores, Research Associate

About International Finance Corporation:

A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About ACBA Credit Agricole Bank:

Agricultural Cooperative Bank of Armenia (ACBA) was founded by the Agricultural Cooperative Regional Unions of the three Armenian provinces of Shirak, Armavir and Ararat and obtained a full banking license on March 29, 1996. ACBA was initially created to finance small and medium-sized agricultural enterprises and individual farmers. In the next few years the bank began to finance non-agricultural programs in the agricultural sector. Since 1999, ACBA has extended loans for small and medium-sized business development. In 2006, Credit Agricole SA France, made an investment in ACBA and the bank was reorganized into ACBA-Credit Agricole Bank CJSC. As of 2010, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 462 million, a gross loan portfolio of USD 261 million, return on assets of 2.34 percent and return on equity of 10.8 percent.

Sources and Additional Resources:

[1] “Armenia: IFC Loan Helps Armenia’s ACBA-Credit Agricole Boost Lending to Small Businesses, Farmers,” http://www.syminvest.com/news/armenia-ifc-loan-helps-armenias-acbacredit…

MicroCapital.org article, March 31, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $20m to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to Increase Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs),” http://www.microcapital.org/microcapital-brief-international-finance-cor…

MicroCapital Universe Profile: ACBA Credit Agricole Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACB…

MicroCapital Universe Profile: International Finance Corporation, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

Rural Impulse Fund II, which is managed by Belgium’s Incofin Investment Management, and Triple Jump’s ASN-Novib Microkredietfonds, have acquired an equity stake in Azercredit, an Azerbaijani microfinance institution (MFI) with a rural focus. While the amounts paid and the sizes taken have not been made public, Incofin IM and Triple Jump will have seats in Azercredit’s board of directors.

Azercredit was initially created in 1996 as a program of World Vision, a US-based worldwide relief and development organization. As of June 30, 2010, AzerCredit reports to the US-based NGO Microfinance Information Exchange (MIX) total assets of USD 24.7 million, a gross loan portfolio of USD 22.6 million and 32,827 active borrowers.

As of July 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 22.8 million (USD 32.7 million), while Rural Impulse Fund II has outstanding investments of EUR 26.5 million (USD 37.7 million).

Triple Jump manages five microfinance investment funds, with total assets approximately equivalent to USD 300 million as of March 31, 2011. Its investments span 132 MFIs in 52 emerging markets in Latin America, Eastern Europe, Africa and Asia.

About VisionFund International

VisionFund International was created in the UK in 2003 as a wholly owned subsidiary of US-based World Vision. VisionFund is tasked with managing World Vision’s microfinance institutions (MFIs). As of 2010, VisionFund supported 40 affiliate MFIs, which together held assets of USD 418 million and an aggregate gross loan portfolio of USD 341 million and served approximately 638,000 active borrowers. Based in the US, VisionFund fully owns four MFIs: VisionFund CREDO of Georgia, AgroInvest of Serbia, AgroInvest of Montenegro, and VisionFund Cambodia.

About World Vision

World Vision is a US-based, Christian organization dedicating to reducing poverty through activity providing immediate disaster relief; developing long-term, sustainable development programs; and sponsoring children in need. According to 2008 data from World Vision, the organization served 100 million people across 98 countries. Total operating expenses during 2011 amounted to USD 1.13 billion. In 2003, World Vision created VisionFund International, a wholly owned subsidiary of World Vision with the responsibility for managing its microfinance institutions (MFIs).

About AzerCredit

AzerCredit LLC (AzerCredit), initially created in 1996 as a program of World Vision, is a non-bank financial institution that operates in Azerbaijan. AzerCredit provides individual and group loans and grants to poor people in Azerbaijan. As of June 30, 2010, AzerCredit reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 24.7 million, a gross loan portfolio of USD 22.6 million and 32,827 active borrowers.

About The Incofin Rural Impulse Funds (RIF)

The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages in developing countries. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of July 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 22.8 million (USD 32.7 million), while Rural Impulse Fund II has outstanding investments of EUR 26.5 million (USD 37.7 million).

About Incofin Investment Management

Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries. The six facilities include Rural Impulse Fund I, Rural Impulse Fund II, Impulse Microfinance Investment Fund, VDK Loan Portfolio, and Volksvermogen.

About Triple Jump

Triple Jump was founded in 2006 to support the expansion of microfinance institutions (MFIs) through the provision of capital and advisory services. Triple Jump was established by the NOTS Foundation, a Dutch development organization; Oxfam Novib, a Dutch organization for international cooperation and development; and ASN Bank, a “sustainability-driven” Dutch bank. Its shares are divided among these organizations and Triple Jump’s management team. Triple Jump is comprised of Triple Jump Fund Management (TJFM) and Triple Jump Advisory Services (TJAS). TJFM provides its clients with four investment options: hard and local currency loans, equity, guarantees and subordinated loans. TJAS is an independent foundation that provides consulting services and technical assistance to tier-3 and tier-4 MFIs. Triple Jump manages five microfinance investment funds, with total assets approximately equivalent to USD 300 million as of March 31, 2011. Its investments span 132 MFIs in 52 emerging markets in Latin America, Eastern Europe, Africa and Asia.

By Ariana Malushi, Research Associate

Sources and Additional Resources

Data Submitted to MicroCapital by Incofin, January 2012

MicroCapital.org Story, October 12, 2011, “MICROCAPITAL BRIEF: Incofin Lends $3.6m to Microfinance Institutions Finance for Development of Azerbaijan, Asian Credit Fund of Kazakhstan, Kompanion of Kyrgyzstan”
http://www.microcapital.org/microcapital-brief-incofin-lends-3-6m-to-microfinance-institutions-finance-for-development-of-azerbaijan-asian-credit-fund-of-kazakhstan-kompanion-of-kyrgyzstan/

MicroCapital.org Story, November 17, 2011, “MICROCAPITAL BRIEF: Triple Jump Makes Equity Investments For ASN-Novib Microkreditfonds in Microfinance Institutions (MFIs) in Tanzania, Zambia, Panama”
http://www.microcapital.org/microcapital-brief-triple-jump-makes-equity-investments-for-asn-novib-microkreditfonds-in-microfinance-institutions-mfis-in-tanzania-zambia-panama/

MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29

MicroCapital Universe Profile: Incofin IM
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile: Triple Jump
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triple+Jump

MicroCapital Universe Profile: AzerCredit
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VF+AzerCredit+LLC

MicroCapital Universe Profile: VisionFund International http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+International

MicroCapital Universe Profile: World Vision http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=World+Vision

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

As of 2010, TRM provides loans and saving services to approximately 3,800 clients and has total assets of USD 1.4 million, a gross loan portfolio of USD 921,000, return on assets (ROA) of 10.7 percent and return on equity (ROE) of 17.9 percent as reported to US-based nonprofit Microfinance Information Exchange (MIX).

Arvand is a deposit-taking MFI that provides microcredit, deposit and microleasing services to low-income individuals in urban areas in Tajikistan. As of 2010, Arvand reported to MIX total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers, ROA of 5.49 percent and ROE of 21.7 percent.

Founded in 2004 by the local affiliate of Switzerland-based nongovernmental organization CARE International, Humo and Partners is a microfinance institution that serves micro- and small businesses in Tajikistan. As of 2010, Humo reported to MIX total assets of USD 6.8 million, a gross loan portfolio of USD 5.7 million, approximately 9,300 borrowers, ROA of 7.0 percent and ROE of 24.1 percent.

GCAMF was founded in 2008 with an endowment of EUR 50 million (approximately USD 64 million) provided by Crédit Agricole SA, a French retail bank, and Grameen Trust (GT), a nonprofit microfinance organization affiliated with the Grameen Bank of Bangladesh.

By Nisha Koul, Research Associate

About Tuba Rai Metin (TRM): Tuba Rai Metin (TRM) of East Timor aims to provide “microfinance and allied services for a large number of poor in a sustainable and regulated manner to improve the quality of lives of families and empower women.” As of 2010, TRM reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1.4 million, gross loan portfolio of USD 921,000, approximately 3,800 clients, return on assets (ROA) of 10.7 percent and return on equity (ROE) of 17.9 percent.

About Arvand: Established in Tajikistan in 2002 by ACDI/VOCA, a US-based nonprofit, Arvand was set up to provide microcredit to low-income individuals in urban areas. In addition to microcredit, Arvand provides deposit and microleasing services to its clients. As of 2010, Arvand reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers, return on assets (ROA) of 5.49 percent and return on equity (ROE) of 21.7 percent.

About Humo and Partners: Founded in 2004 in Tajikistan by the local affiliate of Switzerland-based nongovernmental organization CARE International, Humo and Partners is a microfinance institution (MFI) that serves micro- and small businesses. In addition to microcredit services, Humo offers consulting services relating to cash-flow analysis and business plans. In 2010, Humo reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 6.8 million, a gross loan portfolio of USD 5.7 million, approximately 9,300 borrowers, return on assets (ROA) of 7.0 percent and return on equity (ROE) of 24.1 percent.

About Grameen Crédit Agricole Microfinance Foundation (GCAMF): The Grameen Crédit Agricole Microfinance Foundation (GCAMF) was founded in 2008 with an endowment of EUR 50 million (approximately USD 64 million) provided by Crédit Agricole SA, a French retail bank, and Grameen Trust (GT), a nonprofit microfinance organization affiliated with Grameen Bank of Bangladesh. GCAMF offers a range of financing products to microfinance institutions (MFIs), focusing on MFIs dedicated to rural development that primarily serve women and those that prioritize transparency and consumer protection. As of December 31, 2011, GCAMF reports 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund to cover foreign-exchange risk.

Sources and Additional Resources:

[1] Information provided to MicroCapital, January 2012.

MicroCapital.org story, November 22, 2011, “MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Issues $330k Loan Guarantee for Microfinance Institution TIAVO of Madagascar,” http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-issues-330k-loan-guarantee-for-microfinance-institution-tiavo-of-madagascar/

MicroCapital.org story, November 21, 2011, “MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Lends $2m to Microfinance Institutions Hekima of Congo; Findev of Azerbaijan; Chamroeun, TPC of Cambodia,” http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-lends-2m-to-microfinance-institutions-hekima-of-congo-findev-of-azerbaijan-chamroeun-tpc-of-cambodia/

MicroCapital Universe Profile: Tuba Rai Metin (TRM): www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tuba+Rai+Metin

MicroCapital Universe Profile: Arvand, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arvand

MicroCapital Universe Profile: Humo and Partners, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=HUMO+and+Partners

MicroCapital Universe Profile: Grameen Crédit Agricole Microfinance Foundation (GCAMF), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Credit+Agricole+Microfinance+Foundation

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

Microfinance institutions (MFIs) in the Indian State of Andhra Pradesh (AP) reportedly have requested that the Reserve Bank of India (RBI) extend the deadline for MFIs to meet its new capital adequacy ratio (CAR) requirements. Current rules demand that the general CAR of 15 percent be met by March 31, although microfinance companies with more than 25 percent of loan portfolio in AP are already permitted to maintain a minimum CAR of 12 percent through April 2012. Business has been slow in AP since the state’s passing in 2010 of Regulation of Microlending Act, which requires government approval of each microloan.

About the Reserve Bank of India (RBI)
Established in 1935, the Reserve Bank of India (RBI) undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies (NFBCs). The current focus of RBI is to supervise financial institutions, consolidate accounting standards, resolve legal issues in cases of banking fraud, monitor non-performing assets and supervise the rating model for the banking sector. In 1979, the National Bank for Agriculture and Rural Development (NABARD) was formed at the behest of RBI to provide regulatory oversight to regional rural banks (RRBs) and to promote the development of agricultural lenders: tasks that had been the responsibility of RBI. While all microfinance institutions (MFIs) and non-banking financial companies still operate under RBI regulations, the responsibility for inspecting nonprofit MFIs, agricultural lenders, RRBs, state cooperative banks, district central cooperative banks and state cooperative agricultural and rural development banks was transferred to NABARD. RBI maintains these responsibilities for for-profit MFIs. Although RBI was originally the parent organization of NABARD and until October 2010 held a 72.5 percent stake in the outfit, RBI owns a one-percent stake in NABARD as of 2011.

By Ariana Malushi, Research Associate

Business Standard: “Andhra MFIs seek time to meet capital adequacy norms”
http://business-standard.com/india/news/andhra-mfis-seek-time-to-meet-capital-adequacy-norms/461433/

MicroCapital.org Story, May 19, 2011, “MICROCAPITAL BRIEF: Confusion Continues Over Regulation of Microfinance Institutions (MFIs) in India, State of Andhra Pradesh May Adjust Law to Reconcile With Federal Rules”
http://www.microcapital.org/microcapital-brief-confusion-continues-over-regulation-of-microfinance-institutions-mfis-in-india-state-of-andhra-pradesh-may-adjust-law-to-reconcile-with-federal-rules/

MicroCapital.org Story, October 11, 2011, “MICROCAPITAL BRIEF: Supreme Court of India Sends SKS Back to Andhra Pradesh High Court to Challenge Microfinance (Regulation of Moneylending) Act of 2010”
http://www.microcapital.org/microcapital-brief-supreme-court-of-india-sends-sks-back-to-andhra-pradesh-high-court-to-challenge-microfinance-regulation-of-moneylending-act-of-2010/

MicroCapital.org Story, November 11, 2008, “MICROCAPITAL EXCERPT: Sa-Dhan Publishes Online Interactive State-by-State Map of Microfinance Institutions in India”
http://www.microcapital.org/microcapital-excerpt-sa-dhan-publishes-online-interactive-state-by-state-map-of-microfinance-institutions-in-india/

MicroCapital Universe Profile, RBI
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+India+%28RBI%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/
]]> http://www.microcapital.org/microcapital-brief-microfinance-institutions-in-andhra-pradesh-request-extension-to-meet-new-capital-adequacy-ratios-imposed-by-reserve-bank-of-india/feed/ 0 http://www.microcapital.org/microcapital-brief-mikrofond-microfinance-centre-citi-foundation-collaborate-on-financial-education-project-in-bulgaria/?utm_source=rss&utm_medium=rss&utm_campaign=microcapital-brief-mikrofond-microfinance-centre-citi-foundation-collaborate-on-financial-education-project-in-bulgaria http://www.microcapital.org/microcapital-brief-mikrofond-microfinance-centre-citi-foundation-collaborate-on-financial-education-project-in-bulgaria/#comments Tue, 24 Jan 2012 22:47:55 +0000 Charlotte Newman http://www.microcapital.org/?p=16549 Mikrofond Aktzionerno Druzhestvo, a Bulgarian microfinance institution (MFI); Microfinance Centre, a Poland-based network of MFIs; and Citi Foundation, a US-based organization supporting financial inclusion prepare 25 Bulgarian microfinance trainers to give financial education workshops and counseling sessions to poor people in both rural and urban areas. Aspects of the sessions include making and using a repayment calendar, calculating savings capacity and creating an emergency fund [1].

The US-based nonprofit Microfinance Information Exchange (MIX) reports data on 25 MFIs in Bulgaria, which hold an aggregate gross loan portfolio of USD 673 million reaching 44,814 borrowers as of 2010 [2].

About Mikrofond Aktzionerno Druzhestvo
Mikrofond Aktzionerno Druzhestvo was established in 1999 with the goal of financing Bulgarian entrepreneurs who do not have access to the traditional banking system. Among Mikrofund’s funders is the European Progress Microfinance Facility, which is managed by the European Investment Fund. In 2010, Mikrofond had 10 branches and a gross loan portfolio of USD 4 million. Mikrofond also had total assets of USD 6.4 million, 1,027 borrowers, a return on assets rate of 0.25% and a return on equity rate of 0.93%.

About Microfinance Centre
Based in Poland, the Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States is an international network of approximately 105 microfinance institutions (MFIs) that aims to promote a socially oriented and sustainable microfinance sector. Its services include knowledge management, policy advocacy, technical assistance and research and development.

About Citi Foundation
The Citi Foundation provides grants and guarantees focusing on the areas of microfinance, small and growing businesses, education, asset building and neighborhood revitalization. As of 2009, Citi Foundation reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 65.8 million. Citi Foundation is the charitable arm of US-based financial services provider Citigroup.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

[1] Microfinance Centre: “Mikrofond AD, Microfinance Centre and Citi Foundation Support the Financial Inclusion of Low-Income Individuals in Bulgaria,” http://mfc-highlights.blogspot.com/2012/01/mikrofond-ad-microfinance-centre-and.html

[2] Microfinance Information Exchange: Microfinance in Bulgaria: Country Profile http://www.mixmarket.org/mfi/country/Bulgaria

MicroCapital.org story, August 18, 2011, “MICROCAPITAL BRIEF: Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States’ ‘Financial Education Program’ Reacher 100,000 Low-Income Households in Eastern Europe, Central Asia,” http://www.microcapital.org/microcapital-brief-microfinance-centre-mfc-for-central-and-eastern-europe-and-the-new-independent-states%E2%80%99-%E2%80%9Cfinancial-education-program%E2%80%9D-reaches-100000-low-income-households/

MicroCapital.org story, April 5, 2011, “MICROCAPITAL BRIEF: European Commission ‘s ‘European Progress Microfinance Facility’ Looks to Ease Access to Credit for Small-business, Signs Agreement with Mikrofond AD of Bulgaria,” http://www.microcapital.org/microcapital-brief-european-commissions-european-progress-microfinance-facility-looks-to-ease-access-to-credit-for-small-business-signs-agreement-with-mikrofond-ad-of-bulgaria-2/

MicroCapital Universe Profile: Mikrofond AD http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=mikrofond+AD

MicroCapital Universe Profile: Microfinance Centre http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Centre+for+Central+and+Eastern+Europe+and+the+New+Independent+States

MicroCapital Universe Profile: Citi Foundation
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citi+Foundation

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

As of October 2011, 34 MCOs operate in Uzbekistan under the country’s microfinance law with microloans to individuals amounting to UZS 22.5 billion (USD 12.6 million) and loans to organizations amounting to UZS 2.8 billion (USD 1.6 million). As of December 2010, US-based nonprofit Microfinance Information Exchange (MIX) reports 34 lenders in Uzbekistan – including banks that engage in microlending –  that have microloans of USD 149 million outstanding to 96,500 borrowers.

By Nisha Koul, Research Associate

Sources and Additional Resources:

[1] UzDaily, “Microcredit organizations had to raise charter capitals to 100,000 euros,” http://www.uzdaily.com/articles-id-17006.htm

MicroCapital.org story, December 13, 2011, “MICROCAPITAL BRIEF: 34 Microfinance Institutions Now Operating Under Uzbekistan Microcredit Law,” http://www.microcapital.org/microcapital-brief-34-microfinance-institutions-now-operating-under-uzbekistan-microcredit-law/

MicroCapital.org story, May 23, 2011, “MICROCAPITAL BRIEF: United Nations Development Program (UNDP) Convenes Discussion On Amending Microfinance Regulations in Uzbekistan,” http://www.microcapital.org/microcapital-brief-united-nations-development-program-undp-convenes-discussion-on-amending-microfinance-regulations-in-uzbekistan/

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

By Nisha Koul, Research Associate

About Grameen Bank: Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers.

Sources and Additional Resources:

[1] Yunus Centre, “Yunus Centre Opens at Turkey’s Okan University,” http://www.muhammadyunus.org/Yunus-Centre-Highlights/yunus-centre-opens-at-turkeys-okan-university/

MicroCapital.org story, January 5, 2012, “MICROCAPITAL BRIEF: Dr Muhammad Yunus to Seek Court Review of His Removal as Managing Director of Bangladeshi Microfinance Institution Grameen Bank,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-to-seek-court-review-of-his-removal-as-managing-director-of-bangladeshi-microfinance-institution-grameen-bank/

MicroCapital.org story, October 10, 2011, “MICROCAPITAL BRIEF: Dr Muhammad Yunus to Address Microfinance at Rotary International Convention, Bangkok, Thailand, May 6 – 9, 2012,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-to-address-microfinance-at-rotary-international-convention-bangkok-thailand-may-6-%E2%80%93-9-2012/

MicroCapital.org story, September 30, 2011, “MICROCAPITAL BRIEF: Dr Muhammad Yunus Suggests Microfinance “Misinterpreted” as Charity in the Arab World due to Outdated Regulation,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-suggests-microfinance-misinterpreted-as-charity-in-the-arab-world-due-to-outdated-regulation/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

SKS Microfinance, a microfinance institution (MFI) in India, reportedly will continue to downsize its workforce as it has been since the enactment of the Regulation of Microlending Act in October 2010 in the state of Andhra Pradesh, which requires government approval of each microloan. SKS lost nearly one million borrowers from October 2010 to September 2011, and its net worth eroded by 34 percent as it had to write off many loans. Its return on assets (ROA) fell from 5.5 percent in 2009 to 4 percent in 2010.

SKS has already reduced its manpower from 28,000 in October 2010 to 19,000 in September 2011 and it will continue to make cuts as needed. Personnel expenses account for two-thirds of its operating costs.

In addition, it plans to expand its gold loan business into a separate subsidiary. The gold loan subsidiary is currently piloting in 50 centers across India.

SKS will also cap ROA at 3 percent this year in an effort to focus on attracting social investments and reinvesting in business expansion. SKS Chief Financial Officer, Dilli Raj was quoted as saying that the company will return to profitability by the quarter ending June 2012 “Future write-offs from SKS’s portfolio exposure to Andhra Pradesh, which is currently worth about 4.8 billion rupees (USD 96 million), can be offset by a tax shelter of 5 billion rupees (100 million) that the company has not yet taken advantage of.”

According to 2010 data from the US-based nonprofit data provider Microfinance Information Exchange (MIX), SKS Microfinance held total assets of USD 1.2 billion, a gross loan portfolio of USD 1.2 billion, approximately 6.6 million borrowers, return on assets (ROA) of 6.3 percent and return on equity (ROE) of 22.4 percent.

About SKS Microfinance
SKS Microfinance is a microfinance institution (MFI) that was launched in 1998. It delivers microfinance products through a group-lending model to impoverished women in India as a for-profit, non-banking finance company. SKS converted into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Its equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. SKS currently trades on the Bombay Stock Exchange. As of 2010, SKS Microfinance held total assets of USD 1.2 billion, a gross loan portfolio of USD 1.2 billion, approximately 6.6 million borrowers, return on assets (ROA) of 6.3 percent and return on equity (ROE) of 22.4 percent.

By Ariana Malushi, Research Associate

Sources and Additional Resources

Times of India: ” Troubled SKS to further downsize its manpower”
http://articles.timesofindia.indiatimes.com/2011-12-22/hyderabad/30546457_1_sks-microfinance-microfinance-cfo-dilli-raj-attrition

Livemint.com: “SKS to cap RoA at 3%, plans subsidiary for gold business” http://www.livemint.com/2011/12/07221910/SKS-to-cap-RoA-at-3-plans-su.html?atype=tp

Reuters: “SKS Microfinance CFO says sees turnaround by Q1 FY13” http://in.reuters.com/article/2012/01/19/india-microfinance-idINDEE80I0BX20120119

MicroCapital.org Story, December 12, 2011, “MICROCAPITAL BRIEF: Vikram Akula Resigns from Board of India’s SKS Microfinance”
http://www.microcapital.org/microcapital-brief-vikram-akula-resigns-from-board-of-india’s-sks-microfinance/

MicroCapital.org Story, November 12, 2011 “MICROCAPITAL BRIEF: Shares of India’s SKS Microfinance Fall 10% Following Announcement of $78m Loss During Quarter Ending September 2011”                        http://www.microcapital.org/microcapital-brief-shares-of-indias-sks-microfinance-fall-10-following-annaouncement-of-78m-loss-during-quarter-ending-september-2011/

MicroCapital.org Story, August 29, 2011, “MICROCAPITAL BRIEF: India’s SKS Microfinance Scaling Up Non-Core Businesses of Financing Grocery Stores, Gold Lending”
http://www.microcapital.org/microcapital-brief-india’s-sks-microfinance-scaling-up-non-core-businesses-of-financing-grocery-stores-gold-lending/

MicroCapital.org Story, November 8, 2011 “MICROCAPITAL BRIEF: India’s SKS Microfinance to Raise $184m via Share Sale”    http://www.microcapital.org/microcapital-brief-india’s-sks-microfinance-to-raise-184m-via-share-sale/

MicroCapital Universe Profile, SKS http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

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