MICROCAPITAL BRIEF: Depositors Withdraw Savings from Microfinance Firms in Kumasi, Ghana amid Lack of Safety Nets for Clients

High rates of deposit withdrawals reportedly are occurring in Ghanaian city of Kumasi, which allegedly is attributed to the lack of safety nets protecting depositors in case firms are shut down by the Bank of Ghana (BoG), the country’s main financial regulator. Continue reading

MICROCAPITAL BRIEF: Pasha Bank Underwrites Inaugural Bond Issue of $12.7m to FINCA Azerbaijan to Support Micro and Small Businesses, Entrepreneurs

Pasha Bank, an Azerbaijan-based financial services provider, recently underwrote a three-year inaugural bond issue of AZN 10 million (USD 12.7 million) to the Azerbaijan-based subsidiary of the Foundation for International Community Assistance (FINCA), a US-based microfinance network. Continue reading

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $2m to Kreditimi Rural i Kosoves of Kosovo

The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned EUR 1.5 million (USD 2 million) to Kreditimi Rural i Kosoves Limited Liability Company (KRK), a non-bank microfinance institution (MFI) that serves rural areas in Kosovo, for on-lending to small and medium-sized enterprises (SMEs) and residential clients in Kosovo for energy efficiency and renewable energy projects. Continue reading

MICROCAPITAL BRIEF: Small Industries Development Bank of India (SIDBI) Launches India Microfinance Platform

The Small Industries Development Bank of India (SIDBI), a state-owned bank, with the help of the World Bank, a US-based international development institution, and implemented by the US-based nonprofit Microfinance Information Exchange (MIX), has launched the India Microfinance Platform, a web-based portal that will provide information on all the microfinance organizations in India. Continue reading

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $1m to BancoSol of Bolivia to Support Rural Areas

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently notified MicroCapital that it will provide a loan of up to USD 1 million to Banco Solidario SA (BancoSol), a Bolivian commercial bank that offers microfinance services, in an effort to improve financial access for farmers and poor rural families in the Bolivian cities of La Paz, Oruro and Potosi [1]. Continue reading

MICROCAPITAL BRIEF: Risk Management Initiative in Microfinance (RIM) Launched

MFX Solutions, a US-based company that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently announced that it is one of eight partners launching the Risk Management Initiative in Microfinance (RIM), which will aim to mitigate challenges MFIs face in risk management; promote best practices; institute global MFI risk management standards; and protect MFIs and their clients from internal and external risks. Continue reading

MICROCAPITAL BRIEF: Nepal’s Microfinance Institutions (MFIs) See 21% Growth in Profit During 2013-2014 Amidst Concerns over High Interest Rates Charged to Borrowers

Microfinance institutions (MFIs) in Nepal reportedly are experiencing a period of growth that some say can be attributed to high interest rates charged to borrowers. Continue reading

MICROCAPITAL BRIEF: Gray Matters Capital Invests Equity in Unitus Capital

Unitus Capital (UC), a Bangalore-based financial services firm that specializes in capital market services for microfinance institutions (MFIs) and other social enterprises in Asia, recently announced that Gray Matters Capital (GMC), a US-based private foundation, invested an undisclosed amount in UC to fund social businesses that both assist poor clients and generate financial returns. Continue reading

MICROCAPITAL BRIEF: Absolute Portfolio Management’s Dual Return Funds Invest $9.5m in Microfinance Institutions (MFIs) of Eight European, Asian, Latin American Countries

In June 2013, Absolute Portfolio Management (APM), an Austrian firm that invests in microfinance and other sectors, issued loans totaling the equivalent of USD 9.5 million to microfinance institutions (MFIs) in Azerbaijan, Bosnia & Herzegovina, Cambodia, Colombia, Ecuador, Georgia, Kyrgyzstan and Poland though its two Vision Microfinance funds, Dual Return Fund- Vision Microfinance and Dual Return Fund- Vision Microfinance Local Currency Fund. Continue reading

MICROCAPITAL BRIEF: EFSE Loans $33m to UniCredit for Business, Home Loans in Serbia

The European Fund for Southeast Europe (EFSE), a Luxembourg-based, government-backed microfinance investor that aims to foster regional development, recently announced that it has provided loans totaling EUR 25 million (USD 33 million) to UniCredit Serbia to support its small enterprise lending operations and its homes and housing improvement program [1]. Continue reading

MICROCAPITAL BRIEF: Bangladeshi Government Criticized for Proposal to Takeover or Split Grameen Bank

A working paper commissioned by the Bangladeshi government regarding Grameen Bank, a Bangladeshi microfinance institution founded by Nobel Laureate Dr Muhammad Yunus, proposes a government takeover of Grameen Bank or a split of the institution into 19 entities. The paper recommends that the Bangladeshi government own 51 percent of the shares of Grameen Bank, an increase from the current 25 percent. Continue reading

MICROCAPITAL BRIEF: Germany’s Kreditanstalt fur Wiederaufbau (KfW) Loans $130m to Small Industries Development Bank of India (SIDBI) for Micro-, Small and Medium-Sized Enterprise (MSME)

Kreditanstalt fur Wiederaufbau (KfW), a German development bank, recently loaned a total of EUR 100 million (USD 130 million) to Small Industries Development Bank of India (SIDBI), a state-owned bank, for on-lending to micro-, small and medium-sized enterprises (MSMEs) in India. Continue reading

MICROFINANCE PUBLICATION ROUND-UP: Alleviating Poverty via Mobile Communications; Integrating Microfinance, Health Services in the Andes; Mobile Phone Technology for Women in Afghanistan

Alleviating Poverty: Mobile Communications, Microfinance and Small Business Development Around the World;” by Darrell M. West; published by The Brookings Institution; May 2013; 12 pages; available at: http://www.brookings.edu/~/media/research/files/papers/2013/05/16%20poverty%20mobile%20microfinance%20business%20west/westalleviating%20povertymobile%20comms%20microfinance%20small%20business51613v12.pdf Continue reading

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), European Union Launch $3m “Small Business Support” Facility to Bring Technical Assistance to Firms in Egypt

The UK-based European Bank for Reconstruction and Development (EBRD) and the European Union (EU) recently launched a Small Business Support (SBS) facility with EUR 2.4 million (USD 3 million) in financial support from the EU for approximately 50 projects in Egypt. Continue reading

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects

The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned USD 80 million to Yapi Kredi, a Turkish commercial bank, in an effort to promote energy efficiency and renewable energy investments for small and medium-sized enterprises in Turkey. Continue reading

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $65m to Türk Ekonomi Bankasi of Turkey for Rural Micro-, Small, Medium-Sized Enterprises

The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned USD 65 million to Türk Ekonomi Bankasi (TEB), a Turkish commercial bank, to be on-lent to micro-, small and medium-sized enterprises (MSMEs) in an effort to boost agribusinesses in rural areas of Turkey [1]. Continue reading