Category: South Asia, East Asia and Pacific

MICROCAPITAL BRIEF: Amid Concerns of a Bubble In Kyrgyzstan, 94 Microfinance Institutions Are Shut Down, 31% of Borrowers Owe Multiple Loans

According to a quote attributed to Fatima Eshimbekova of the World Bank Group’s International Finance Corporation (IFC), MFIs in Kyrgyzstan have doubled their aggregate loan portfolio since 2010. Continue reading

Share

SPECIAL FEATURE: Absolute Portfolio Management Interviews CEO Nurhayrah Sadava of Microfinance Institution Thaneakea Phum in Cambodia (TPC) Regarding Client Protection Principles

The following text is re-posted with permission from Absolute Portfolio Management.

The microfinance industry has taken big steps forward in the last couple of years to better serve their clients. The Client Protection Principles for microfinance and the accompanying Smart Campaign have been introduced to protect clients, businesses, and the industry as a whole.

Austrian based asset manager Absolute Portfolio Management (APM) offers two “Dual Return – Vision Microfinance” funds, endorses the Smart Campaign and has incorporated the client protection principles into their investment criteria and due diligence. However, APM wanted to double-check how the Principles are employed at the microfinance institutions that the Vision Microfinance funds invest in. Continue reading

Share

MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Allows Microfinance Providers to Accept Funding from Non-Bank Sources

The State Bank of Pakistan (SBP), Pakistan’s central banking authority, recently announced that microfinance institutions (MFIs) may raise local-currency funding from non-bank sources including capital markets under the revised guidelines of the Microfinance Credit Guarantee Facility (MCFG). Continue reading

Share

MICROCAPITAL BRIEF: Indian Microfinance Institution Grameen Koota Raises $5m from responsAbility through Nonconvertible Debentures

Grameen Financial Services Private Limited (Grameen Koota), an Indian microfinance institution (MFI), recently raised INR 25 crore (USD 5 million) in debt funding through the issue of secured, redeemable, non-convertible debentures (NCDs). Continue reading

Share

MICROFINANCE PUBLICATION ROUND-UP: Impact of Property Insurance in Ghana; Priority Issues for the Microfinance Sector; Investment in Sub-Saharan Africa

“’Doing the Math’ with Property Insurance in Ghana;” by Barbara Magnoni, et al; published by the Microinsurance Centre; May 2012; 9 pages; available at: http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/868-milk-brief-10-qdoing-the-mathq-with-property-insurance-in-ghana.html Continue reading

Share

MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $1.6m in Chinese-Mongolian Microcredit Company Urumqi Tianrong

International Finance Corporation (IFC), the private-investment arm of the World Bank Group, is making a CNY 10 million (USD 1.6 million) equity investment in Urumqi Tianrong Microcredit Company, a joint venture of Mongolia-based TenGer Financial Group (TFG), IFC and three unidentified investors from China and Mongolia. Continue reading

Share

MICROCAPITAL BRIEF: Nepal Rastra Bank (NRB) Limits Microloan Interest Rate Changes, Adjusts Provisions for “Deprived-Sector” Lending

Nepal Rastra Bank (NRB), the central bank of Nepal, has reportedly issued a circular mandating that financial institutions permit borrowers to repay loans at the original given interest rate in the event of an increase in the interest rate. Continue reading

Share

MICROCAPITAL BRIEF: Call for Papers: Impact and Policy Conference, Bangkok, August 30 to September 1, 2012, Hosted by Asian Development Bank, Innovations for Poverty Action, Abdul Latif Jameel Poverty Action Lab

Innovations for Poverty Action (IPA), a US-based nonprofit research organization, has issued a call for papers for researchers interested in having their papers included in the Impact and Policy Conference: Evidence in Governance, Financial Inclusion, and Entrepreneurship to be held in Bangkok August 30 – September 1, 2012. Continue reading

Share

MICROCAPITAL BRIEF: VisionFund International Releases Three-Year Plan to Improve Lives of 3.5m Children

VisionFund International, a UK-based nonprofit organization that manages the microfinance institutions (MFIs) of the US-based nonprofit relief organization World Vision International, has announced a three-year strategy to increase the number of lives it impacts from 2.2 million annually to 3.5 million annually by 2015. Continue reading

Share

MICROCAPITAL BRIEF: Incofin, BIO Sign $12m Agreement to Develop Early-Stage Microfinance Institutions in Africa, Latin America, Asia

Incofin Investment Management (Incofin), a Belgian company that develops and manages microfinance investment funds, and the Belgian Investment Company for Developing Countries (BIO in Dutch), a state-owned development finance institution, recently signed a EUR 10 million (USD 12.6 million) agreement intending to assist in developing early-stage microfinance institutions (MFIs) in Africa, Latin America and Asia. Continue reading

Share

MICROCAPITAL BRIEF: Indian Microfinance Institution Basix Sees Assets Fall from $326m to $22m

Indian microfinance institution (MFI) Basix, also known as Bhartiya Samruddhi Finance Limited, now reportedly has INR 124 crore (USD 22.37 million) in assets compared to the INR 1,808 crore (USD 326 million) it in September 2010. The number of borrowers from Basix has fallen to 200,000 from 1.74 million during same time period. Continue reading

Share

MICROCAPITAL BRIEF: Advans Incorporates Advans Pakistan Microfinance Bank, La Fayette Microfinance Bank of Nigeria

Advans SA, a microfinance investment vehicle that mobilizes funds for microfinance institutions (MFIs), recently announced the incorporation of the Advans Pakistan Microfinance Bank in the Republic of Pakistan and the La Fayette Microfinance Bank in Nigeria. Continue reading

Share

MICROCAPITAL BRIEF: Bangladesh Finance Minister: Management Structures in Microfinance Sector Too Dependent on Founders

Bangladesh Finance Minister A M A Muhith reportedly has urged microfinance institutions (MFIs) to adjust their management structures to ensure that the organizations do not destabilize due to the death of a founder. Continue reading

Share

MICROFINANCE PUBLICATION ROUND-UP: Global Microfinance Equity Valuation Survey; Microfinance Governance Indicators; Audio Report: Role of Brokers in Microinsurance

Volume Growth and Valuation Contraction: Global Microfinance Equity Valuation Survey 2012;” by Jasmina Glisovic, et al; published by CGAP (Consultative Group to Assist the Poor) and JP Morgan; May 2012; 16 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.57526/VolumeGrowth.pdf Continue reading

Share

MICROCAPITAL BRIEF: International Finance Corporation, BNP Paribas to Loan $25m to Vietnam’s Orient Commercial Joint Stock Bank for Small and Medium-sized Enterprises, Women-owned Businesses

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to provide a syndicated loan of USD 25 million toVietnam’s Orient Commercial Joint Stock Bank to expand financing to small and medium-sized enterprises (SMEs) and women-owned businesses. Continue reading

Share