MICROCAPITAL STORY: Luxembourg-based responsAbility Global Microfinance Fund Loans $3m to FINCA Kyrgyzstan

The Consultative Group to Assist the Poor (CGAP) recent list of transactions reported Luxembourg-based responsAbility Global Microfinance Fund invested USD 3 million in loans to the Foundation for International Community Assistance (FINCA) Kyrgyzstan this past January 18, 2008.

Incepted in November 2003 in, responsAbility Global Microfinance Fund is a Luxembourg-based investment fund specializing in microfinance institutions and small business enterprises. According to their January 2008 monthly report, responsAbility has current invested assets totaling USD 200 million with recent investments in Honduras, Peru, Tajikistan, Kyrgyzstan and Cambodia. The Fund is managed by Credit Suisse Microfinance Fund Management Company, Luxembourg.

FINCA Kyrgyzstan was started in 1995 as a branch of FINCA international. The microfinance institution targets female bazaar workers offering microfinance services through their 12 thousands Village Banking groups (cooperative savings and loans) serving nearly 64 thousand clients. Seventy-five percent of their clients are women, with a combined loan portfolio of USD 34 million. FINCA Kyrgyzstan has been quite successful with an on-time repayment rate of 98.8 percent.

FINCA International is a leading global microfinance institution, currently operating in twenty different countries, reaching over half a million clients. Founded in Bolivia in 1984 by microfinance pioneer John Hatch, their mission is to provide financial services to the world’s lowest-income entrepreneurs. At the end of 2006, their annual report showed a loan portfolio of USD 166 million.

By Melissa Duscha

Additional Resources:

The Consultative Group to Assist the Poor (CGAP) recent list of transactions

FINCA International

Foundation for International Community Assistance (FINCA) Kyrgyzstan

Microcapital.org:

responsAbility Global Microfinance Fund

responsAbility Global Microfinance Fund January 2008 monthly report

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