MICROCAPITAL BRIEF: Number of Microfinance Institutions (MFIs) in Nation of Georgia Grows to 47 in 2010

The number of microfinance institutions (MFIs) in the nation of Georgia grew from 38 to 47 in 2010, an increase of 24 percent, according to the National Bank of Georgia (NBG). Microfinance is popular in Georgia reportedly because small and medium-sized enterprises (SMEs) struggle to meet the cash flow requirements imposed by commercial banks. Despite this, risk in the sector is reportedly low: the Foundation for International Community Assistance (FINCA) Georgia, an arm of the US-based MFI network FINCA International, reports a current delinquent loan rate of 0.3 percent.

Giorgi Isakadze, Chief Executive Officer of the Association of Georgian Small and Medium Sized Enterprises predicts “that in the next few years, when finances and money are generally deficit in this country, the quantity of microfinance organizations will continue to grow [1].”

By John Howard-Smith, Research Associate

About FINCA International: Founded in 1984 by Dr. John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a global microfinance network based in Washington, DC serving approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.

[1] Finchannel: “The Number of Micro Finance Organizations Increased from 38 to 47 throughout 2010”, http://finchannel.com/Main_News/Business/79579_The_Number_of_Micro_Finance_Organizations_Increased_from_38_to_47_throughout_2010/

MicroCapital’s Microfinance Universe profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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