The World Bank, a US-based multilateral institution, recently approved grants totaling USD 50 million to the Microfinance Investment Support Facility for Afghanistan (MISFA), a government-backed microfinance funder, and the Afghanistan Credit Guarantee Facility, an organization that provides partial risk guarantees on loans retail institutions disburse to small- and medium-sized enterprises, in an effort to stimulate economic growth in the country by increasing access to financial services for micro-, small and medium-sized enterprises (MSMEs). The World Bank’s International Development Association will provide USD 32 million to MISFA to support programs including its Targeting the Ultra Poor Program, which provides funding and job-skill training to poor people, and USD 18 million to the Afghanistan Credit Guarantee Facility to support its expansion. Afghanistan Credit Guarantee Facility aims to support 100,000 borrowers by guaranteeing 1,500 loans by 2018.
Financial information for MISFA and the Afghanistan Credit Facility is not available. The World Bank Group operates in approximately 120 countries as of July 2013 and has an active grant and loan portfolio of USD 173 billion as of June 2012.
By Megan McGowan, Research Associate
About the International Development Association (IDA):
Established in 1960, the International Development Agency (IDA) is an arm of the US-based World Bank that provides interest-free credits and grants for programs in the world’s poorest countries. Loans from IDA have repayment terms stretching over 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress. During the fiscal year ending in June 2012, IDA provided monetary assistance of approximately USD 14.8 billion across 82 countries.
About Microfinance Investment Support Facility For Afghanistan (MISFA):
Microfinance Investment Support Facility For Afghanistan (MISFA) is a microfinance organization established in 2003 by the Afghan government to coordinate donor resources and goals to positively impact the country’s microfinance sector. Through MISFA, the Afghan government and international donors provide technical assistance and funding to increase and improve lending to small and medium-sized enterprises (SME). In its work, MISFA partners with various microfinance institutions (MFIs). MISFA has four partner microfinance institutions (MFIs). Financial information for MISFA is not available on its website or from the Microfinance Information Exchange (MIX), the US-based data provider.
About the World Bank:
The World Bank Group (WBG) is a US-based development bank that consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). WBG has 120,000 employees and operations in approximately 120 countries as of July 2013 and an active grant and loan portfolio of USD 173 billion as of June 2012.
Sources and Additional Resources:
[1] World Bank Press Release: “World Bank US$50 Million Grant Aims to Improve Access to Finance in Afghanistan,” http://www.worldbank.org/en/news/press-release/2013/11/26/World-Bank-US-50-Million-Grant-Aims-to-Improve-Access-to-Finance-in-Afghanistan
MicroCapital: “International Finance Corporation (IFC), Government of Canada to Loan $85m to Dewan Housing Finance of India for “Green” Mortgages,” November 20, 2013, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-government-of-canada-to-loan-85m-to-dewan-housing-finance-of-india-for-green-mortgages/
MicroCapital: “Roshan of Afghanistan to Add Western Union Services to M-Paisa Mobile Money,” March 10, 2012, https://www.microcapital.org/microcapital-brief-roshan-of-afghanistan-to-add-western-union-services-to-m-paisa-mobile-money/
MicroCapital Universe Profile: International Development Assocation (IDA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Development+Association+%28IDA%29
MicroCapital Universe Profile: Microfinance Investment Support Facility for Afghanistan (MISFA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Support+Facility+for+Afghanistan+%28MISFA%29
MicroCapital Universe Profile: World Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
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