Oikocredit of the Netherlands, recently announced preliminary results for 2007. The report reveals a 44 percent growth in dispersals since 2006. The microfinance financier disbursed EUR 135 million, the equivalent of over USD 195 million, in the form of loans, credit lines, equity investments, and guarantees to 266 project partners worldwide. The total amount outstanding with these project partners grew by 33 percent to EUR 277 million, the equivalent of over USD 400 million. This does not include the recent investment of USD 12.2 million in 11 different Latin America microfinance institutions (MFIs) earlier this month as reported by microcapital.org. Oikocredit also announced that it intends to continue paying a 2 percent dividend to its members.
In the announcement, the financier also touched on the possibility of offering a savings product. Oikocredit is organized as a nonprofit organization, so it is required to work in conjunction with local banks if it is to accept deposits. Based on a successful pilot program with Raiffeisenbank in South Tirol, Italy, it plans to pursue similar partnerships worldwide.
Founded in 1975, privately-owned Oikocredit is one of the largest financiers of microfinance worldwide. Over 60 percent of its outstanding credit goes directly to microfinance institutions (MFIs) located in Latin America, Asia, Africa, and Central and Eastern Europe. As of 2006, its assets included over USD 455 million, with USD 198 million allocated in MFIs. With the exception of 1989, it paid a dividend of 2 percent annually. It supports 637 “project partners,” including 390 MFIs.
By Jacob Keller
Additional Resources:
Oikocredit: Home, savings product, 60 percent
IT News: Home, preliminary results
MIX Market: Home, Oikocredit
Bloomberg Currency Converter: Home
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