The Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States, a regional network of 110 microfinance institutions (MFIs), announced its Financial Education Program (FEP) has reached 100,000 low-income households. FEP is focused on “improving the financial capabilities and encouraging proactive financial behaviour of low-income households in Eastern Europe and Central Asia.” Since 2004 it has prepared approximately 1,000 local trainers and counselors in 16 countries for this effort.

According to MFC, financial literacy levels of low-income households are low in Eastern Europe and Central Asia – where there are approximately 250 million poor individuals – as a result of lingering influences of communist times “when people were discouraged from managing their finances.” The goal of FEP is to bring about social change by exposing poor people to new knowledge, skills and attitudes about financial management. The deputy director of MFC, Katarzyna Pawlak, stated, “We observed large scale self-exclusion from the financial system. One of the reason[s] was the lack of trust in the system in the 90’s. That is why we decided that the knowledge and practice related to systematic planning, regular saving and smart borrowing is a must for increased financial inclusion and reduced risk of client over indebtedness.”

By Carol Kim, Research Associate

About Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States: Based in Poland, the Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States is an international network of approximately 110 microfinance institutions (MFIs) that aims to promote a socially-oriented and sustainable microfinance sector. Its services include knowledge management, advocacy, research, development and technical assistance.

Sources and Additional Resources:

Microfinance Gateway: http://www.microfinancegateway.org/p/site/m/template.rc/1.9.52699/

Microfinance Centre (MFC) for Central Eastern Europe and New Independent States: http://www.mfc.org.pl/finedu.html

MicroCapital.org: “MICROCAPITAL BRIEF: Proposals Sought by “Social Performance Start-up Fund for Networks” of Microfinance Centre for Central and Eastern Europe and the New Independent States”, July 6, 2011, http://www.microcapital.org/microcapital-brief-proposals-sought-by-“social-performance-start-up-fund-for-networks”-of-microfinance-centre-for-central-and-eastern-europe-and-the-new-independent-states/

MicroCapital.org: “MICROCAPITAL BRIEF: Habitat for Humanity, Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States Establish “Shelter Innovation Center” to Address Housing Needs in Europe, Central Asia”, June 10, 2011, http://www.microcapital.org/microcapital-brief-habitat-for-humanity-microfinance-centre-mfc-for-central-and-eastern-europe-and-the-new-independent-states-establish-“shelter-innovation-center”-to-address-housi/

MicroCapital.org: “MICROFINANCE EVENT: 14th Annual Microfinance Centre (MFC) Conference, “Reorienting Microfinance Towards Balanced Growth”, May 18 – 20, 2011, in Prague, Czech Republic”, March 7, 2011, http://www.microcapital.org/microfinance-event-14th-annual-microfinance-centre-mfc-conference-%E2%80%9Creorienting-microfinance-towards-balanced-growth%E2%80%9D-may-18-%E2%80%93-20-2011-in-prague-czech-republic/

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

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