MICROFINANCE EVENT: XIII FOROMIC 2010: Inter-American Forum on Microenterprise, October 6 to 8, 2010, Montevideo, Uruguay, Sponsored by the Multilateral Investment Fund, Organized by the Inter-American Development Bank

Event Name: XIII FOROMIC 2010: Inter-American Forum on Microenterprise

Event Date: October 6 to 8, 2010

Event Location: Montevideo, Uruguay

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) and Sanabel Grant Certificates of Transparency to 43 Arab Microfinance Institutions

The nonprofit Microfinance Information Exchange (MIX) and Sanabel, a nonprofit organization dedicated to advancing Arabic microfinance, recently awarded certificates of transparency to 43 microfinance institutions from Arab countries.

MICROCAPITAL BRIEF: Societe Generale de Banques du Senegal (SGBS) and Obopay Launch Yoban’tel, a Mobile Money Transfer and Bill Payment Service, in Senegal

The Societe Generale de Banques du Senegal (SGBS), a private commercial bank with CFA 400 billion (USD 743 million) in total assets, and Obopay, a US-based mobile payment service established in 2005, have united to launch Yoban’tel, a mobile money transfer and bill payment service, in Senegal. The system will allow the use of any mobile phone to transfer money or pay bills using SMS (short message service, also known as text messaging).

MICROCAPITAL BRIEF: The Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF) to Provide $2m to Haitian Emergency Liquidity Program (HELP)

The Inter-American Development Bank (IDB), which reported total assets of USD 6.3 billion as of 2008, plans to provide up to USD 2 million to the Haiti Emergency Liquidity Program (HELP) under the Multilateral Investment Fund (MIF), which was founded in 1993 and reported total disbursements of USD 112 million in 2008.

MICROCAPITAL BRIEF: Central Bank of the Philippines (BSP) Approves Increase in Ceiling for Micro Housing Loans for Rural Bankers’ Association of the Philippines (RBAP)

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has approved an increase in the ceiling of micro housing loans disbursed by microfinance institutions (MFIs) accredited by Rural Bankers’ Association of the Philippines (RBAP), a government entity which was founded in 1955, from PHP 150,000 (equivalent to USD 3,200) to PHP 300,000 (equivalent to USD 6,400).

MICROCAPITAL BRIEF: responsAbility Mikrofinanz-Fonds and responsAbility Global Microfinance Fund Loan Total of $500,000 to Microfinance Institution Sinapi Aba Trust (SAT) in Ghana

responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has executed debt investments totaling USD 500,000 in Ghana. Sinapi Aba Trust (SAT), a private non-governmental organization (NGO) established in Ghana in 1994, will receive USD 350,000 from responsAbility Global Microfinance Fund and USD 150,000 from responsAbility Mikrofinanz-Fonds. The investment funds are two of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid and responsAbility Microfinance Leaders.

MICROCAPITAL BRIEF: Africa Capital and Business Support Invests $39m in Integrated Microfinance Bank Limited From $400m Mainsail Trading Limited Facility

In connection with a USD 400 million debt facility received from Mainsail Trading Limited, an investment company based in Dubai, and guaranteed by Suisse Bank Plc, a British private bank, Africa Capital and Business Support Limited (ACBS), a Nigerian financial intermediary, announced the signing of a memorandum of understanding with Integrated Microfinance Bank Limited (IMFB) for an injection of NGN 6 billion (USD 39 million).

MICROCAPITAL BRIEF: Three Directors of Impact Microfinance Bank Limited Arrested for Fraud in Nigeria

Three directors of Impact Microfinance Bank Limited, a microfinance institution established in 2008 with headquarters in Lagos, have been arrested for fraud. The three men – 49 year-old Innocent Akpan, 45 year-old David Obieke and 45 year-old Joseph Nwabuwanne – were arrested after several depositors complained that they could not access their funds. The suspects allegedly mismanaged the depositors’ money and subsequently could not honor clients’ deposits.

MICROCAPITAL BRIEF: As Kenyan Insurers Look to Follow Microfinance Lead, Equity Bank and Safaricom Collaborate to Expand Mobile Payment Methods to Microinsurance

According to BusinessDailyAfrica, a news website based in Nairobi, Kenyan insurers are looking to reach the low-end income market through intermediaries such as microfinance institutions (MFIs), sometimes via customers’ mobile phones. Equity Bank, a Kenyan microfinance bank, and Safaricom, a provider of communication services, have launched a mobile-based platform that will allow users to make weekly insurance payments of about KES 10.2 (USD 0.13) to Equity Bank via mobile phone. While an insurance company partner has not been chosen, eight companies have been selected to bid on the right to participate.

MICROCAPITAL BRIEF: Pakistan Microfinance Network (PMN) Discussion Indicates Need for Greater Focus on Rural Areas

The Pakistan Microfinance Network (PMN), an organization established in 1995 and comprised of 12 microfinance institutions (MFIs) throughout Pakistan, recently held an organized discussion regarding Pakistan’s rural finance market.

MICROCAPITAL BRIEF: Elizabeth Littlefield, Former CEO of CGAP (Consultative Group to Assist the Poor), Confirmed As President and CEO of Overseas Private Investment Corporation (OPIC)

The United States Senate has confirmed President Barack Obama’s nomination of former CGAP (Consultative Group to Assist the Poor) Chief Executive Officer, Elizabeth Littlefield, to head the Overseas Private Investment Corporation (OPIC), a US government development organization working in 150 countries with a portfolio of USD 13 billion.

MICROCAPITAL BRIEF: Head of Nigerian Deposit Insurance Corporation (NDIC) Announces Completion of Review of Distressed Microfinance Banks, Outlines Path to “Sanitization”

In a recent interview with Vanguard, a regional publication, Alhaji Umar Ibrahim, acting Managing Director of the Nigerian Deposit Insurance Corporation (NDIC), shed light on the ongoing efforts to revitalize the Nigerian microfinance sector. Mr Ibrahim revealed that NDIC examiners had recently finished a comprehensive review of distressed microfinance banks. He stated that many of these banks have not been paying government fees and that many are facing insolvency.

MICROFINANCE PAPER WRAP-UP: Where Does Microfinance Flourish? Microfinance Institution Performance in Macroeconomic Context, by Christian Ahlin, Jocelyn Lin and Michael Maio

By Christian Ahlin, Jocelyn Lin and Michael Maio, published by the Journal of Development Economics, April 27, 2010, 16 pages, available at: http://news.msu.edu/media/documents/2010/06/8d6d8126-97dd-4569-b65b-736f700fc844.pdf

Mr Ahlin, Ms Lin and Mr Maio study whether and how the success or failure of microfinance institutions (MFIs) depends on the country-level context, particularly macroeconomic and macro-institutional features. In order to explore these questions, the authors reviewed data on 373 MFIs from 74 countries. The authors rely on two groups of MFI performance variables: operational self-sufficiency (the ratio of revenues to costs) and loan portfolio growth. Operational self-sufficiency is broken down into three components: financial revenues and costs, losses due to default and operating costs, so that, in some cases, the authors are able to identify the channel through which a given macroeconomic variable is correlated with the financial sustainability of a MFI. MFI portfolio growth is decomposed into two components: growth in number of borrowers (extensive growth) and growth in average loan size (intensive growth).

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Arranges Syndicated Loan of $165m for Banco Daycoval to Improve Access to Finance for Small and Medium-Sized Enterprises in Brazil

The International Finance Corporation (IFC), a member of the World Bank Group, with the participation of 11 international banks, has arranged a syndicated loan of EUR 134 million (USD 165 million) for Banco Daycoval, a commercial bank based in Sao Paolo, with the aim of increasing access to finance for small and medium-sized enterprises in Brazil. The 11 international banks involved in the transaction are: Itau Europa, Standard Bank, HSBC, Calyon, Citibank, Oberbank, Banco Santander, Standard Chartered, WestLB, Commerzbank and ING.

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Extends $24.6m Loan to ProCredit Bank Serbia to Improve Access to Finance for Small and Medium-Sized Enterprises

The International Finance Corporation, a member of the World Bank Group, has extended a EUR 20 million (USD 24.6 million) loan to ProCredit Bank Serbia, a private, development-oriented, full-service bank established in 2001, in an effort to increase access to loans for small and medium-sized enterprises in the country. According to Giovanni Daniele, IFC’s Resident Representative in Serbia, small and medium-sized enterprises are an important generator of employment in the country. However, the sector was severely hit by the recent global financial crisis, and companies are now experiencing problems in securing new financing.

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Partners with eTranzact to Launch Rural Telephony Project (RTP) MobileMoney in Nigeria

The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with eTranzact, an online payment system based in Nigeria, to launch Rural Telephony Project (RTP) MobileMoney. The goal of the program is to reach rural people in Nigeria – who often lack access to banking services – through the use of mobile phones.