MICROCAPITAL BRIEF: Bank for Agriculture and Agricultural Co-operatives, Habitat for Humanity Thailand, Citi Foundation Launch “Microsavings Program for Home Improvement”

Executive Vice President Somsak Kangteerawat of the Bank for Agriculture and Agricultural Co-operatives (BAAC), a government-owned bank in Thailand that extends credit to farmers, and Board Chairman Piriyah Wisedjinda of Habitat for Humanity (HFH) Thailand, a branch of the US-based NGO HFH International, have signed a memorandum of understanding establishing the “Microsavings Program for Home Improvement”, which is intended to support home improvements for low-income families living in areas of Thailand that are prone to flooding. The program will be funded by the Citi Foundation, a charitable arm of US-based financial services provider Citigroup that provides grants and guarantees focusing on microfinance, small and growing businesses, education, asset building and neighborhood revitalization.

Details on how the program will work in Thailand are not yet available, however a similar program that was launched by Citi Foundation and Habitat for Humanity in the Philippines in 2012, entitled “Citi-Habitat Home Improvement Microsavings Program,” allowed homeowners to attend home improvement and finance training sessions and open a savings accounts with a minimum balance of PHP 200 (USD 4.50) at community-based financial institutions. Participants in the program receive unspecified incentives for every PHP 1,000 (USD 23.00) saved for strengthening their homes such as through roof repair, cementing or tiling floors, or building additional stories. Habitat for Humanity provided technical assistance for these home improvements. The program aimed to help 3,000 low-income homeowners strengthen their homes against natural disasters and save USD 2 million in prevented damages. The program engaged savings institutions to provide loans and financial support to participating households.

HFH Thailand was founded in 1998 in the Udon Thani province of northeastern Thailand. The organization operates through its central office in Bangkok and regional offices throughout Thailand. HFH Thailand works with low-income families to build homes while partnering with various organizations to provide community programs involving improved access to clean water, sanitation facilities, education and health care.

Citi Foundation’s annual giving was USD 78 million in 2012. As of 31 March 2010, BAAC reported total assets of THB 764 billion (USD 24 billion), a gross loan portfolio of THB 504 billion (USD 16 billion), return on assets (ROA) of 1.1 percent and return on equity (ROE) of 11.4 percent. As of 2012, Habitat for Humanity reported total net assets of USD 253 million and served approximately 100 countries.

By Makai McClintock, Research Associate

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. Citi Foundation is the charitable arm of US-based financial services provider Citigroup. The foundation’s annual giving was USD 78 million in 2012.

About Bank for Agriculture and Agricultural Co-operatives (BAAC)
Established in 1966 by the government of Thailand, the Bank for Agriculture and Agricultural Cooperatives (BAAC) operates under the jurisdiction of Thailand’s Ministry of Finance. BAAC was set up to extend to credit to individual farmers and farmer institutions. Its services include savings, credit and other services such as money transfer facilities, payment of utility bills and gift checks. As of 31 March 2010, BAAC reported total assets of THB 764 billion (USD 24 billion), a gross loan portfolio of THB 504 billion (USD 16 billion), return on assets (ROA) of 1.1 percent and return on equity (ROE) of 11.4 percent. Newer data is not available, and BAAC does not report to the US-based nonprofit data provider Microfinance Information Exchange (MIX).

About Habitat for Humanity International
Habitat for Humanity is a nonprofit, ecumenical Christian ministry whose mission is to provide poor people with clean, safe and affordable places to live. Since its inception in 1976, Habitat for Humanity has engaged the services of homeowners and volunteers to build houses under the supervision of trained builders. In the United States, the organization offers no-interest mortgage loans directly to low-income families, and outside of the United States it partners with microfinance institutions to distribute and service home loans. Habitat for Humanity operates in all fifty US states and 100 other countries. As of 2012, Habitat for Humanity reported total net assets of USD 253 million.

Sources and Additional Resources
Habitat for Humanity Announcement, “Habitat for Humanity Thailand Launches Home Improvement Microsavings Program,” http://www.habitat.org/asiapacific/news/2012/13_05_29_Habitat_Thailand_launches_home_improvement_microsavings_program.apsx

Citigroup Announcement, “Citi Philippines and Habitat for Humanity Launch Home Improvement Microsavings Program,” http://www.citigroup.com/citi/news/2012/120720a.htm

4-Traders Article, “Citigroup Inc.: Citi Philippines and Habitat for Humanity Launch Home Improvement Microsavings Program,” http://www.4-traders.com/CITIGROUP-INC-4818/news/Citigroup-Inc-Citi-Philippines-and-Habitat-for-Humanity-Launch-Home-Improvement-Microsavings-Prog-14424700/?wvsessionid=wv012e3f6add494872b1f58c0dd8cc53a8

MicroCapital.org story, January 25, 2012, “MICROCAPITAL BRIEF: US Government’s Overseas Private Investment Corporation (OPIC) Inks $45m Investment in Habitat for Humanity Housing Initiative, Microbuild Fund,” https://www.microcapital.org/microcapital-brief-us-governments-overseas-private-investment-corporation-opic-inks-45m-investment-in-habitat-for-humanity-housing-initiative-microbuild-fund/

MicroCapital.org story, July 31, 2012, “MICROFINANCE EVENT: 2012 Small Enterprise Education and Promotion (SEEP) Annual Conference: Building Inclusive Markets, Arlington, Virginia, USA, November 4-8,” https://www.microcapital.org/microfinance-event-2012-small-enterprise-education-and-promotion-seep-annual-conference-building-inclusive-markets-arlington-virginia-usa-november-4-8/

MicroCapital.org story, September 12, 2012, “MICROCAPITAL BRIEF: Citi Foundation Grants $180k to Parinaam Foundation of India to Provide Financial Literacy Training to Clients of Microfinance Institutions Ujjivan,” https://www.microcapital.org/microcapital-brief-citi-foundation-grants-180k-to-parinaam-foundation-of-india-to-provide-financial-literacy-training-to-clients-of-microfinance-institution-ujjivan/

MicroCapital Universe Profile: About Habitat for Humanity International
www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Habitat+for+Humanity+International

MicroCapital Universe Profile: Bank for Agriculture and Agricultural Co-operatives (BAAC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+for+Agriculture+and+Agricultural+Cooperatives+%28BAAC%29

MicroCapital Universe Profile: Citi Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citi+Foundation#Description_140_word_limit_

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