MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Loan $1.5m to FINCA MDO for Microlending in Tajikistan

IFC, a US-based international financial institution and a member of the US-based World Bank Group, plans to loan USD 1.5 million to Foundation for International Community Assistance (FINCA) Microcredit Deposit Organization (MDO), a microfinance institution (MFI) based in Tajikistan that is a part of the US-based, nonprofit FINCA International microfinance network. FINCA MDO is to use the proceeds of this loan to further its mission to alleviate poverty by providing financial support to micro-, small and medium-sized enterprises (MSMEs), particularly in remote areas of Tajikistan. Jerrold Smelcer, CEO of FINCA MDO, expressed that “FINCA aims to bring more opportunities to disenfranchised communities throughout Tajikistan by offering them a range of high quality financial services.” [1]

As of 2012, FINCA MDO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 20.3 million, a gross loan portfolio of USD 15.8 million and deposits of USD 13,811. FINCA International has total assets of USD 814 million as of December 2012 and serves approximately 1 million clients through its subsidiaries in 22 countries as of June 2012. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

By Tejas Jain, Research Associate

  About FINCA MDO

Established in 2003 and based in Tajikistan, The Foundation for International Community Assistance (FINCA)  Microcredit Deposit Organization (MDO) a microfinance institution (MFI) that serves rural and urban clients through group loans. As of 2012, FINCA MDO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 20.3 million, a gross loan portfolio of USD 15.8 million and deposits of USD 13,811. FINCA MDO’s parent organization, FINCA International, is a US-based nonprofit microfinance network operating in 22 countries with total assets of USD 814 million as of 2012.

About FINCA International

The Foundation for International Community Assistance (FINCA) International, a nonprofit microfinance network based in Washington, DC, provides financial services to poor families through a network of locally managed institutions. FINCA was founded in 1984 by Dr John Hatch, who is known for helping develop “village banks” in which each member guarantees the loans of other members. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. FINCA International has total assets of USD 814 million as of December 2012 and has approximately 1 million clients served through subsidiaries in 22 countries as of June 2012. In December of 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC, with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility, and Triple Jump.

About International Finance Corporation

A member of the US-based 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. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

Sources and Additional Resources:

[1] International Finance Corporation (IFC): “IFC Helps Extend Micro-Loans to Entrepreneurs in Remote Areas of Tajikistan,”
http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/001530FBB496C7A485257C2F004341E9?OpenDocument

MicroCapital Story, December 17, 2013, “‘Partnership for Financial Inclusion’ of International Finance Corporation (IFC), MasterCard Foundation Donates $2.7m to AccessBank Tanzania, FINCA Democratic Republic of Congo (DRC) for Projects Including Mobile Banking”
https://www.microcapital.org/microcapital-brief-partnership-for-financial-inclusion-of-international-finance-corporation-ifc-mastercard-foundation-donates-2-7m-to-accessbank-tanzania-finca-democratic-repub/

MicroCapital Story, November 21, 2013, “International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-31m-to-fullerton-credit-to-support-small-medium-sized-enterprises-smes-in-china/

MicroCapital Story, November 8, 2013, “Developpement International Desjardins (DID) Loans $1m to Microfinance Institution (MFI) Humo and Partners of Tajikistan”
https://www.microcapital.org/microcapital-brief-developpement-international-desjardins-did-loans-1m-to-microfinance-institution-mfi-humo-partners-of-tajikistan/

MicroCapital Universe Profile: FINCA MDO
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Tajikistan&PHPSESSID=0095fa661988fcfa7eaf1a044f849fb2

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

MicroCapital Universe Profile: International Finance Corporation https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

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