MICROCAPITAL BRIEF: Microfinance Centre (MFC) To Launch “Borrow Wisely” Campaign in Effort to Increase Financial Literacy in Europe, Central Asia

The Microfinance Centre (MFC), a Poland-based network of 103 microfinance providers in 27 countries, will launch a “Borrow Wisely” campaign during October 2014 with the goal of increasing the financial literacy of 80,000 low-income borrowers in nine countries in Europe and Central Asia. The countries are Armenia, Azerbaijan, Bosnia and Herzegovina, Georgia, Kosovo, Kyrgyzstan, Macedonia, Serbia and Tajikistan.

MFC will use posters, leaflets and brochures throughout the month to communicate the importance of “borrowing wisely.” It will also release a checklist that clients can use to decide whether they should take out a loan. The goal of the campaign is to help borrowers avoid taking out unnecessary loans and incurring debt that will be difficult for them to repay.

MFC envisions the campaign becoming an annual event that will help maintain the integrity of the microfinance industry in the region. The 2014 campaign partners are the microfinance institutions: The Kosovian Agency for Finance; Serbian AgroInvest and Micro Development; BaiTushum of Kyrgyzstan;  Crystal of Georgia; Ekonomska Kreditna Institucija (EKI) of Bosnia and Herzegovina; Armenia’s Farm Credit, Horizonti of Macedonia; Imon of Tajikistan; Mi-Bospo from Bosnia and Herzegovina;  and VisionFund (VF) AzerCredit from Azerbaijan.

Dzenita Kicic, the operational manager of Serbian AgroInvest stated that “participation in this campaign allows us to avoid the risk that customers will be indebted and by doing so we will ensure that their and our own investments bring planned outcomes. The goal is to help the client to assess their real needs.”

By Emily Teleposky, Research Associate

About Microfinance Centre (MFC):
Based in Poland, the Microfinance Centre (MFC) is a network of 103 microfinance institutions (MFIs) in 27 countries that aims to promote a socially oriented and sustainable microfinance sector. Its services include knowledge management, policy advocacy, research and development COMMA and assistance with technical services for the microfinance community. MFC reported total assets of PLN 10 million (USD 3.14 million) for the year 2012, and a total income PLN 600,000 (USD 186,000). They have yet to report any more recent financial data.

Additional Sources and Resources:
[1] MFC and 12 Leading MFIs Launch Historic “Borrow Wisely” Campaign, http://www.mfc.org.pl/en/content/mfc-and-12-leading-mfis-launch-historic-“borrow-wisely”-campaign

[2] About MFC: http://mfc.org.pl/en/about

[3] “Borrow Wisely” Campaign Launch Countdown: 12 Days to Go!, http://www.mfc.org.pl/en/content/“borrow-wisely”-campaign-launch-countdown-12-days-go

[3] MICROCAPITAL BRIEF: Moody’s Analytics, Microfinance Centre (MFC) Partner to Launch Social Performance Assessment (SPA) in Europe, Central Asia, September 13, 2013, https://www.microcapital.org/microcapital-brief-moodys-analytics-microfinance-centre-mfc-partner-to-launch-social-performance-assessment-spa-in-europe-central-asia/

[4] MICROFINANCE PUBLICATION WRAP-UP: “FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev, Kinga Dabrowska; published by Microfinance Centre, July 9, 2014,https://www.microcapital.org/microfinance-publication-wrap-up-findev-azerbaijan-retaining-key-staff-through-a-pay-for-performance-culture-by-sevda-huseynova-jalal-aliyev-kinga-dabrowska-p/

[5] MICROCAPITAL UNIVERSE PROFILE: Microfinance Centre (MFC) ,https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Centre+for+Central+and+Eastern+Europe+and+the+New+Independent+States

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