The United Nations Development Program (UNDP), whose goal is to work toward the United Nation’s Millennium Development Goals, reportedly has transferred the portion of its microfinance portfolio that is disbursed in Myanmar to the US-based Pact Global Microfinance Fund (PGMF), which disburses microcredit and offers business training in Myanmar’s rural regions.
UNDP commenced its microfinance operations in Myanmar in 1997. In 2011, the Microfinance Law of the country established a new regulatory framework, enabling licensed microfinance institutions to enter the sector.
As of 2012, PGMF had 670,000 borrowers, 98 percent of whom were women living in approximately 7,000 villages in Myanmar. The fund has disbursed 730,000 loans in the country with a total value of USD 141 million.
By Alíz Crowley, Research Associate
About Pact Global Microfinance Fund (PGMF)
US-based Pact established the Pact Global Microfinance Fund (PGMF) in 2012 in response to the passage of a new Microfinance Law in Myanmar. PGMF disburses microcredits in the country’s rural regions and offers business training to borrowers. As of 2012, PGMF has 670,000 borrowers, 98 percent of whom were women living in approximately 7,000 villages in Myanmar. As of 2012, PGMF disbursed approximately 730,000 loans totaling USD 141 million, with a reported repayment rate of 99.8 percent. PGMF does not report to the US-based nonprofit Microfinance Information Exchange (MIX).
About United Nations Development Program (UNDP)
The United Nations Development Program (UNDP) is the United Nations’ arm meant to provide developing countries with knowledge, experience and resources in line with the United Nations’ Millennium Development Goals (MDGs), a set of eight goals intended to be achieved by 2015. UNDP operates in partnership with national governments in 177 countries and territories as of 2013. UNDP estimates an institutional budget of USD 857 million for the 2013 fiscal year.
About Millennium Development Goals (MDGs)
The Millennium Development Goals are eight goals set by the United Nations to address the needs of developing countries. Established at the Millennium Summit in 2000, the deadline for completion of these goals is 2015. They are as follows: (1) halve poverty and hunger, (2) achieve universal primary education, (3) promote gender equality and empower women, (4) reduce child mortality rate, (5) improve maternal health, (6) combat HIV/AIDS, malaria and other diseases, (7) ensure environmental sustainability and (8) encourage global partnership.
Sources and Additional Resources
[1] Myanmar Times: UNDP moves out of microfinance
[2] UNDP Website, UNDP in Myanmar
MicroCapital, July 27, 2013, Government of Cameroon Partners with United Nations Development Program (UNDP), International Fund for Agricultural Development (IFAD), United Nations Capital Development Fund (UNCDF) To Consolidate Microfinance Sector
MicroCapital, July 1, 2011, Myanmar Plans Microfinance Expansion in Rural Communities
MicroCapital, May 23, 2011, United Nations Development Program (UNDP) Convenes Discussion On Amending Microfinance Regulations in Uzbekistan
MicroCapital Universe Profile: Pact Global Microfinance Fund (PGMF)
MicroCapital Universe Profile: United Nations Development Program (UNDP)
MicroCapital Universe Profile: Millennium Development Goals (MDGs)
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