MICROCAPITAL.ORG STORY: World Vision International Affiliate, VisionFund Cambodia (VFC), Begins Disbursing Loans to Small Businesses Affected by Typhoon Ketsana

VisionFund Cambodia (VFC), an affiliate of California-based World Vision International (WVI), has begun disbursing USD 30,000 in “Express Loans” to small businesses affected by Typhoon Ketsana. Typhoon Ketsana swept through Southeast Asia in September 2009, killing over 600 people. According to the Cambodian National Committee for Disaster Management, the typhoon damaged 54,500 hectares of rice fields and 320 kilometers of rural roads and flooded more than 1,100 schools [1, 2].

The Express Loans will be distributed to about 500 small businesses in the hardest hit regions of Cambodia, Kampong Thom and Siem Reap. The loans, which require no collateral, will have a three to six month term and range from USD 1 to USD 250. Clients are required to pay a monthly interest rate of 2.6 percent and will also receive “micro” life insurance.

According to the MIX Market, the microfinance information clearinghouse, VFC was established in 2001 as a World Vision Cambodia program, but has since transitioned into a formal microfinance company, owned and governed by World Vision [3]. As of December 2008, VFC had over 80,000 borrowers (85 percent of whom were women), a loan portfolio of USD 19.8 million, total assets of USD 23.1 million and an ROA of 2.96 percent. To view VFC’s 2008 Annual Report, click here [4].

WVI, a private Christian relief, development and advocacy organization, is active in three key areas: providing immediate disaster relief; developing long-term, sustainable programs; and sponsoring children in need. According to World Vision’s 2008 Review, the organization served over 100 million people across 98 countries in 2008 [5]. During FY2008, WVI´s total revenue was USD 1.1 billion (p5), and it provided USD 314.6 million in aid for relief and rehabilitation, community development, and Christian impact and leadership projects (p5). USD 208.4 million was provided for child sponsorships, USD 219.3 million for gifts-in-kind and USD 132.6 million for other international relief and development programs (p5). Total operating expenses during this period amounted to USD 1.13 billion [6]. Employees responded to 75 emergencies, including the China earthquake, Cyclone Nargis in Myanmar, flooding in Haiti and more [7].

WVI began implementing microfinance programs in 1993 and has since established 47 microfinance institutions (MFIs). In 2003, it created VisionFund International (VFI), a wholly owned subsidiary, to manage the MFIs. In FY2008, VisionFund-affiliated MFIs had an overall portfolio of USD 397 million, with over 604,000 active borrowers and borrower deposits of USD 11.6 million [8].

Currently, VisionFund fully owns five MFIs in Georgia, Serbia, Montenegro, Azerbaijan and Cambodia. VisionFund CREDO of Georgia has an outstanding loan portfolio of USD 27.2 million and 20,069 clients (p36); AgroInvest of Serbia has an outstanding loan portfolio of USD 21 million and 14,948 clients (p36); AgroInvest of Montenegro has an outstanding portfolio of USD 66.7 million and 22,568 clients (p36); Azercredit of Azerbaijan has an outstanding loan portfolio of USD 14.5 million and 18,067 clients (p36); and lastly, VisionFund Cambodia has an outstanding portfolio of USD 19.8 million and 82,344 clients (p38). Over the next five years VisionFund plans to own all of World Vision’s current and future affiliate MFIs. View the VisionFund 2008 Annual Report here [9].

MicroCapital has previously covered stories on World Vision International and microfinance in Cambodia, which have been laid out in the Bibliography below, [10] – [13].

By: Stefanie Rubin, Research Assistant

Bibliography

[1] Deutsche Press Agentur: “Cambodia Finalizes Typhoon Ketsana Death Toll Near 43”: http://www.monstersandcritics.com/news/asiapacific/news/article_1508623.php/Cambodia-finalizes-Typhoon-Ketsana-death-toll-at-43

[2] VisionFund Cambodia Press Release: VisionFund Cambodia Offers Micro Loans to Ketsana Victims

[3] The MIX Market: VisionFund Cambodia: http://www.mixmarket.org/mfi/vfc

[4] VisionFund Cambodia 2008 Annual Report: http://www.visionfund.com.kh/verve/_resources/Annual_Report_Final_version-2008.pdf

[5] World Vision International 2008 Review: http://www.wvi.org/wvi/wviweb.nsf/C5C75B86935DAAA88825758900751799/$file/WVI_2008_Annual_Review.pdf

[6] World Vision Consolidated Statements of Financial Position, p4: http://www.worldvision.org/resources.nsf/main/PRES08830_AFS_2008.pdf/$file/PRES08830_AFS_2008.pdf

[7] World Vision: Disaster Response: http://www.worldvision.org/content.nsf/about/emergency-presskit

[8] VisionFund: http://visionfundinternational.org/VisionFund/VisionFundweb.nsf/maindocs/E4892CFDBB56F0B2882573850066808B?opendocument

[9] VisionFund 2008 Annual Report: http://www.visionfundinternational.org/VisionFund/VisionFundweb.nsf/79dac655bc049cf188256f10006069bd/dad2b4573022f457882575be00636c2e/$FILE/2008-VFI-AnnualReport.pdf

[10] MICROCAPITAL STORY: World Vision’s CREDO Signs Up for PayBox System in Georgia

[11] MICROCAPITAL STORY: World Vision International (WVI) Announces 48.8 Percent Growth in Microfinance Clientèle of the Middle East and Eastern Europe Region (MEER)

[12] MICROCAPITAL.ORG STORY: Cambodian MFIs Cut Interest Rates: Observations From Phnom Penh-Based MFIs Hattha Kaksekar Limited, Prasac MFT Ltd and CHC Limited

[13] MICROCAPITAL STORY: Microfinance Down in Cambodia: Microfinance Institutions (MFIs) Reduce Loan Volume in First Half 2009

Similar Posts: