The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), has recently disbursed a loan of EUR 4 million (USD 5.2 million) to Mikrofin Banja Luka of Bosnia and Herzegovina and AMD 375 million (USD 911,600) to Inecobank of Armenia [1].
Category: Trends/Challenges
MICROCAPITAL BRIEF: IFC, Canadian International Development Agency (CIDA), Atlantic Bank of Belize Extend Effort to Improve Access to Small, Medium-Sized Enterprises, Increase Portfolio to $35m by 2014
The International Finance Corporation (IFC), a member of the World Bank Group, and Atlantic Bank, a Belizean bank majority-held by Sociedad Nacional de Inversiones, SA of Honduras, recently launched the second phase of a project with the aim of improving access to financial services for small and medium-sized enterprises (SMEs) in Belize with support from the Canadian International Development Agency (CIDA).
MICROCAPITAL BRIEF: Inter-American Development Bank Promotes Psychometric Testing for Screening Loan Applicants
The Inter-American Development Bank (IDB), a multilateral institution financing development efforts in Latin America, recently released an article arguing that psychometric testing can be used by financial institutions to reduce defaults on loans by 20 to 40 percent, increase profits by 15 to 30 percent and reduce operational costs associated with traditional credit evaluation and due diligence by approximately 60 percent.
MICROCAPITAL BRIEF: Online Fundraiser Kiva Discloses Delinquencies of Microfinance Institutions Alidé of Benin, FECECAV of Togo
Kiva, a US-based online microlending fundraiser, recently reported on delinquent payments due to Kiva by non-profit institutions L’Association de Lutte pour la promotion des Initiatives de Développement (Alidé) of Benin and Faîtière des Caisses d’Epargne et de Crédit des Associations Villageoises (FECECAV) of Togo.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), European Union Commit $25m to Kyrgyz Sustainable Energy Financing Facility (KyrSEFF)
The UK-based European Bank for Reconstruction and Development (EBRD) recently launched the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF), a USD 20 million credit line supporting energy efficiency projects for households and private enterprises in the Kyrgyz Republic.
MICROCAPITAL BRIEF: Cuba Leases 2,000 State Firms to Private Sector
According to Cuba’s Domestic Trade Ministry, a government body charged with implementing and monitoring domestic wholesale and retail commerce, 2,041 businesses have been leased to 5,479 former employees as part of Cuba’s economic reform plan to introduce non-state management in 47 economic activities.
MICROCAPITAL BRIEF: U’yo’olché, Fondo Mexicano para la Conservación de la Naturaleza (FMCN) Look to Carbon Credits to Finance Improved Cook Stoves to Reduce Emissions, Improve Living Standards, Promote Women’s Rights in Rural Mexico
U’yo’olché, a Mexican environmental non-governmental organization (NGO), and Fondo Mexicano para la Conservación de la Naturaleza, A.C. (FMCN), a nonprofit funder of environmental efforts, are leading an initiative to provide improved cook stoves to families in rural areas of southern Mexico with the aim of reducing wood consumption, eliminating hazardous household smoke, decreasing the risk of accidents, minimizing household expenses and promoting women’s empowerment.
MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) to Loan $16m to ACBA-Credit Agricole Bank of Armenia
The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), has notified MicroCapital that it recently disbursed two loans totaling the equivalent of USD 16 million to Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA), a microfinance bank partially owned by French bank Credit Agricole.
MICROCAPITAL BRIEF: Reserve Bank of India Aims to Increase Financial Inclusion in Unbanked Areas; Number of Indian Villages with Financial Access Tripled to 211k
According to data presented by Deepali Pant Joshi, executive director of Reserve Bank of India (RBI), at the recent International Summit of Skill Development in New Delhi, the number of villages with access to banks has risen from 67,000 in March 2010 to 211,000 in December 2012 out of a total of 600,000 villages in the country.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Opens $112m in Credit Lines to Société Générale Expressbank, Sogelease Bulgaria for On-lending, Leasing to Small, Medium-Sized Enterprises
The UK-based European Bank for Reconstruction and Development (EBRD) has agreed to loan up to EUR 85 million (USD 111.5 million) to two units of French-based Société Générale Group to finance the growth of small and medium-sized enterprises (SMEs) in Bulgaria.
MICROCAPITAL EVENT: European Microfinance Network (EMN) to Host 10th Annual Conference on Innovative Microfinance Solutions in Europe, June 25-26, 2013, Stockholm Sweden
Event Name: European Microfinance Network (EMN) 10th Annual Conference
Event Date: June 25-26, 2013
Event Location: Clarion Hotel, Stockholm, Sweden
MICROFINANCE PAPER WRAP-UP: “Incentives for the Introduction of Agents in Colombia by Banca de las Oportunidades;” by Marulanda Consultores, published by CGAP (Consultative Group to Assist the Poor)
By Marulanda Consultores; published by CGAP (Consultative Group to Assist the Poor); February 2013; 32 pages; available at: http://www.cgap.org/sites/default/files/colombia_agent_subsidy_english.pdf
This report analyzes a set of incentives offered by Banca de las Oportunidades, a government organization in Colombia that aims to increase financial access, to expand networks of “non-banking correspondents” (NBCs) to reach unbanked areas.
MICROFINANCE PAPER WRAP-UP: “Policy Brief: Advancing African Women’s Financial Inclusion;” published by Making Finance Work for Africa, GIZ, New Faces New Voices, East African Community, BMZ
Published by Making Finance Work for Africa (MFW4A), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), New Faces New Voices, East African Community, Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ); 2012; 40 pages; available at: http://www.gbaforwomen.org/images/library/873/Advancing-Womens-financial-inclusion-Final-English.pdf
This report presents an analysis of the potential positive impacts of advancing African women’s financial inclusion, including more inclusive and sustainable economic growth and higher levels of productive investment and asset accumulation.
MICROCAPITAL EVENT: Microcredit Summit Campaign, Microfinance Council of the Philippines to Host 2013 Partnerships Against Poverty Summit, October 9-11, 2013, Manila, Philippines
Event Name: 2013 Partnerships Against Poverty Summit
Event Date: October 9-11, 2013
Event Location: Philippine International Convention Center, Manila, Philippines
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $100m Credit Line for Russian Residential Energy Efficiency Improvements, Center-Invest Bank Borrows $24m
The UK-based European Bank for Reconstruction and Development (EBRD) recently launched an energy efficiency credit line valued at USD 100 million to be on-lent via local private banks to benefit individual Russian households, housing associations, management companies, maintenance service providers, condominiums and energy service companies (ESCOs).
MICROCAPITAL BRIEF: Plays, Postcards Help Indian Microinsurers to Increase Renewals
Microinsurance providers in India have recently implemented strategies such as street plays and handwritten postcards in local languages to increase policy renewals.
MICROCAPITAL BRIEF: US-Based Sequoia Capital Invests $2m in Equity in Electronic Payment Platform, Citrus Pay
Citrus Pay, a Mumbai-based digital payments service provider, and Ezetap Mobile Solutions, a Bangalore-based mobile payments service provider, have developed electronic payment platforms that address internet security and connectivity challenges, both of which have discouraged Indian consumers from using digital payment methods.
MICROCAPITAL BRIEF: Nonperforming Microfinance Loans in Rwanda Drop from 12% to 8.5%
The nonperforming loan ratio of the microfinance sector in Rwanda reportedly has dropped from 12 percent as of December 2011 to 8.5 percent at the end of 2012.