The European Investment Bank, the EU’s long-term lending institution, recently lent ProCredit Bank Bulgaria, one of 13 members of Germany’s ProCredit Group, EUR 15 million (USD 16.3 million). ProCredit Bank Bulgaria will on-lend the funds to small and medium-sized enterprises (SMEs) in Bulgaria, with 40 percent of the total to be directed to
Category: Eastern Europe and Central Asia
MICROFINANCE EVENT: Sustainable Finance Forum: Eastern Europe, Caucasus & Central Asia; March 11-12, 2020; Kyiv, Ukraine
The goal of the Sustainable Finance Forum is to catalyze investments for “sustainable” development in the region by bringing together banks, microfinance institutions, project sponsors and investors that are committed to creating a
MICROCAPITAL BRIEF: US International Development Finance Corporation (DFC) Launches, Combining Efforts of OPIC, USAID’s DCA with Investment Cap of $60b to Focus on Low-income, Lower Middle-income Countries
The government-backed US International Development Finance Corporation (DFC) recently launched with goals to “help businesses expand into emerging markets, foster growth and improve lives in the developing world, while reinforcing US foreign policy and national security interests.” DFC is taking over the work of the Overseas Private Investment Corporation, which had similar goals and an investment cap of USD 29 billion, and the
MICROCAPITAL BRIEF: Patria Credit Borrows $2.7m from EFSE to Increase Local-currency Financing in Rural Romania
Patria Credit, a non-banking financial institution in Romania, recently borrowed RON 12 million (USD 2.7 million) from the European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle. Christoph Tiskens, the Board Chair of EFSE, said of
MICROCAPITAL BRIEF: EIB Lending Crédit Agricole Srbija $33m for Investing in SMEs, Mid-Caps in Serbia
The European Investment Bank (EIB), the long-term lending institution of the EU, recently gave the Serbian unit of the French banking group Crédit Agricole access to EUR 30 million (USD 33 million) of a EUR 50 million (USD 55 million) line of credit. Crédit Agricole Srbija agreed to
MEDIA OF THE MONTH: Digital Exhibit – Exemplary Women Addressing Social, Economic, Environmental Challenges – “Little Big Movement” from BNP Paribas
In celebration of 30 years of supporting microlending, BNP Paribas has created an exhibit showcasing women who are making positive changes in their communities: https://group.bnpparibas/en/microfinance30years.
This is the first of a monthly series from MicroCapital on quality media that might not have fit into our usual news format. Enjoy!
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
MICROCAPITAL BRIEF: Liberty Bank of Georgia Borrows $17m for SME Finance from EIB Under EU4Business Initiative
The European Investment Bank (EIB), the long-term lending institution of the EU, recently loaned EUR 15 million (USD 16.8 million) to Joint Stock Company Liberty Bank of Georgia. The loan is
MICROCAPITAL BRIEF: EBRD Issues $20m Credit Line to Ipoteka Bank of Uzbekistan to Increase Microfinance, SME Lending
Micro-, small, and medium-sized enterprises (MSMEs) in Uzbekistan are due to gain increased access to financing via a loan in the amount of EUR 18 million (USD 20 million) provided by the UK-based European Bank for Reconstruction and Development (EBRD) to Uzbekistan’s Ipoteka Bank.
MICROCAPITAL BRIEF: Luxembourg Donates $4m to EIB for Technical Assistance for Microfinance in Asia, Caribbean, Pacific (ACP) Countries
The Ministry of Finance and the Ministry for Foreign and European Affairs of the Grand Duchy of Luxembourg recently agreed to give EUR 3.6 million (USD 4 million) to the EU’s European Investment Bank (EIB) for microfinance in low- and middle-income countries of Asia, the Caribbean and the Pacific (ACP). The funding is for institutions serving
MICROCAPITAL BRIEF: With “Homeland” App, MTN Opens Remittance Channels from Europe to Africa, Afghanistan, Yemen
South Africa’s MTN Group recently released an application for mobile phones called MTN Homeland that allows users to send money or airtime to 17 countries from Europe. The service allows cash remittances to Cameroon, Congo Brazzaville, Ghana, Guinea Conakry, Rwanda and Uganda. It also allows the sending of
SPECIAL REPORT: e-MFP Investors Action Group Wrestles with Measuring Microfinance Client Outcomes in Alignment with UN’s SDGs
Members 
of the European Microfinance Platform (e-MFP) Investors Action Group met at last week’s European Microfinance Week to review their progress on developing methods for reporting client outcomes in terms of meeting the UN Sustainable Development Goals (SDGs).
Cécile Lapenu from Cerise explained that the action group is working to: (1) identify investors’ expectations regarding reporting on outcomes; (2) review existing impact reports and websites to identify the metrics now in use; (3) conduct field tests of selected indicators; and (4) document the results to serve as guidance for moving forward.
The group is now soliciting data from investors on their current data collection practices. This includes if and how they collect data from: (1) the financial services providers (FSPs) they invest in; and (2) directly from those FSPs’ clients.
Ms Lapenu argued that factors such as client satisfaction do not
MICROCAPITAL BRIEF: MFIs in Africa, Asia, Latin America Borrow $42m from C-Quadrat Dual Return Vision Microfinance Fund, Including ASA International’s Institutions in Ghana, Uganda
Two microfinance institutions (MFIs) in the ASA International network, those in Ghana and Uganda, recently accepted local-currency loans from the Dual Return Vision Microfinance-Local Currency sub-fund of Austria-based C-Quadrat Asset Management. That sub-fund, together with the Dual Return Vision Microfinance sub-fund issued a total equivalent to USD 42 million during October. The other borrowing MFIs are located in Cambodia,
MICROCAPITAL BRIEF: Fintech Lidya Expanding MSME Lending to Czech Republic, Poland
Lidya, a US-based financial technology (fintech) firm active in Nigeria, recently announced that it is beginning to lend to micro-, small and medium-sized enterprises (MSMEs) in the Czech Republic and Poland, particularly in the agricultural, pharmaceutical and retail sectors. The projected average loan size in these countries is
MICROCAPITAL BRIEF: Invest In Visions’ IIV Mikrofinanzfonds Lends $49m to Microfinance Institutions in Ecuador, Egypt, Indonesia, Kazakhstan, Kosovo, Kyrgyzstan, Mexico and Timor-Leste – Including $10m to MFI Alternativa 19 del Sur
Germany-based Invest In Visions (IIV) recently loaned USD 10 million to Alternativa 19 del Sur, a microfinance institution (MFI) in Mexico. The investment is one of a group of loans totaling
MICROCAPITAL BRIEF: EFSE Launches “Power of Local Currency” Campaign in Eastern Europe with Investments in TBC Bank, BasisBank of Georgia; Belarusky Narodny Bank of Belarus; Araratbank of Armenia
The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle domiciled in Luxembourg, recently launched a campaign promoting local-currency funding in Eastern Europe, with the financial support of the EU’s “EU4Business” initiative. Among the first borrowers under this “Power of Local Currency” campaign was
MICROFINANCE PAPER WRAP-UP: “Gender Discrimination in Small Business Lending. Evidence from a Lab-in-the-field Experiment in Turkey,” published by EBRD
By J Michelle Brock and Ralph De Haas, published by the European Bank for Reconstruction and Development, September 2019, 45 pages, available at https://www.ebrd.com/documents/oce/gender-discrimination-in-small-business-lending-evidence-from-a-lab-in-the-field-experiment-in-turkey.pdf
This experiment involved presenting 334 loan officers in Turkey with eight actual loan applications. Each loan officer was asked to decide whether to accept or deny the application, as well as whether the loan applicant would be required to seek a guarantor
MICROCAPITAL BRIEF: C-Quadrat Dual Return Vision Microfinance Fund Lends $35m to MFIs in 11 Countries
C-Quadrat Asset Management loaned a total equivalent to USD 35 million to 16 microfinance institutions (MFIs) in 11 countries from its Dual Return Vision Microfinance Funds during August and September. C-Quadrat, a member of Austria-based CQ Investment Group, tells MicroCapital that the MFIs have “a strong focus on their social mission, customer protection, transparency and
MICROCAPITAL BRIEF: EBRD, EU Commit $132m to EU4Business Initiative for Financing SMEs via OTP Bank Ukraine, ProCredit Bank Ukraine, Raiffeisen Bank Aval
The UK-based European Bank for Reconstruction and Development (EBRD) and the EU recently committed EUR 120 million (USD 132 million) to implement the EU4Business Initiative in Ukraine. Through the program, EBRD will provide local banks with