In 2009, Al-Amal Microfinance Bank, a microcredit bank established in 2002 in Yemen, provided credit of YER 300 million (USD 1.5 million) to 5,858 low-income individuals.
Category: Key Players
MICROCAPITAL BRIEF: Bill & Melinda Gates Foundation Grants $3m to World Vision for ‘Access to Rural Savings in Ethiopia’ Project
World Vision has received a USD 3 million grant from the Bill & Melinda Gates Foundation to help launch its Access to Rural Savings in Ethiopia project.
MICROCAPITAL BRIEF: African Development Bank (AfDB) Approves $660k Grant to Access Bank Tanzania (ABT), a Microfinance Bank in Tanzania
The African Development Bank (AfDB), a regional development organization in Africa, has approved a USD 660,000 grant to Access Bank Tanzania (ABT), a newly established commercial bank in Tanzania focusing on microfinance. The initiative was made possible through the Fund for African Private Sector Assistance (FAPA), a subsidiary of the Enhanced Private Sector Assistance program, which is a billion-dollar initiative of the government of Japan and the AfDB to promote private sector development in Africa.
MICROCAPITAL BRIEF: Conglomerates Enter the Microfinance Industry in South Korea Via the Government-Inspired Miso (Smile) Microcredit Foundation
After Samsung, one of the world’s largest conglomerates by revenue, and Woori Financial Group, a Seoul-based financial services holding company, recently opened branches of the Miso Microcredit Foundation, other Korean conglomerates have begun to follow suit. The Miso (Smile) Microcredit Foundation is a government-led microcredit lending program in Korea that plans to raise KRW 2 trillion (USD 1.69 billion) over the next 10 years.
MICROCAPITAL BRIEF: Central Bank of Indonesia Predicts Increase in Microcredit for Small and Medium-sized Enterprises (SMEs) in North Sumatra
Bank Indonesia (BI), the central bank of Indonesia, has predicted that the supply of microcredit to low and medium-income enterprises will increase this year. According to Gatot Sugiono, a BI representative from Medan, the capital of North Sumatara, the supply of microcredit could increase to above 50 percent of total bank credits in North Sumatra. The increase would suggest greater access to credit among low-income enterprises. Mr. Sugiono recently estimated the present supply of microcredit at IDR 68.3 trillion (USD 7.2 billion). [1]
MEET THE BOSS: Isabelle Levard, Deputy CEO of MicroCred, a member of the PlaNet Finance Group
Isabelle Levard is Deputy CEO of MicroCred, a member of the PlaNet Finance Group.
MicroCapital: Please describe MicroCred.
Isabelle Levard: MicroCred is an investment company founded by PlaNet Finance that creates, builds and manages microfinance institutions.
MICROCAPITAL BRIEF: Critics Accuse Smile Microcredit Foundation of Heavy-Handed Regulation, Stifling Access to Microfinance in Korea
Despite the increase in microcredit financing in South Korea, many analysts warn that low-income individuals may be unable to access small loans due to various rules and requirements. A case example is the owner of a small clothing shop in Jegi-dong, Seoul who was unable to receive a loan of KRW 40 million (USD 33,700) from Woori Microcredit Bank, a subsidiary of Woori Financial Group and an affiliate of the “Smile Microcredit Foundation,” a government-led microcredit lending program in Korea. [4] The woman failed to meet a requirement stipulating that business owners must have run his or her shop for at least two years to be eligible for microcredit.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Relaunches Website With New Tools, All Content Available in English, Spanish, French, Russian
The US-based, nonprofit Microfinance Information Exchange (MIX) recently re-launched its MIX Market website, with the support of Canada’s MasterCard Foundation.
MICROCAPITAL BRIEF: FINA Bank Rwanda (FBR) and KfW Development Bank (KfW) To Invest RWF 490.4m ($860,000) In Rwanda’s Microfinance Sector
FINA Bank Rwanda (FBR) and KfW Entwicklungsbank (KfW) have signed a financial agreement worth RWF 490.4 million (USD 860,000) to develop Rwanda’s Micro, Small and Medium Enterprises (MSMEs). The funds will be used for apprenticeship and training programs for both FBR’s staff as well as the microbusinesses to whom FBR lends money. FBR’s Managing Director, Steve Caley stated that, “this gives [FBR] confidence that the funds will be well spent because by this [program] we know that the loans are given to trained people.” This approach also includes the establishment of a specialized microfinance department within FBR.
MICROCAPITAL BRIEF: SKS Microfinance Partners with State Bank of India (SBI), State Bank of Hyderabad (SBH) and State Bank of Mysore (SBM) to Integrate 600 Branches
SKS Microfinance has signed agreements to launch an integrated cash management system for 600 of its branches: 390 branches will partner with State Bank of India (SBI), 150 with State Bank of Hyderabad (SBH) and 60 with State Bank of Mysore (SBM).
MICROCAPITAL BRIEF: United Nations Development Program (UNDP) Commits $4m To Build Inclusive Financial Sector in Rwanda
The United Nations Development Program (UNDP), through the United Nations Capital Development Fund (UNCDF) has committed USD 4 million to building an inclusive financial sector in Rwanda. The funds will continue the implementation of Rwanda’s National Microfinance Strategy from 2009 through 2014. Rwandan Minister of Finance, John Rwangombwa, noted that, “the support given by UNDP/UNCDF is aligned to Financial Sector Development Programmes and the National Monetary Fund Policy Implementation Strategy to contribute to the refinancing and sustainable management of Microfinance Institutions.” Minister Rwangombwa stated that the projects aims to improve productivity and enhance the market access of microenterprises.
MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) to Provide $10m Loan to Mibanco of Peru to Help Launch Microfinance Product
As part of its Opportunities for the Majority initiative, the Inter-American Development Bank (IDB) will provide USD 10 million to Mibanco, a Peruvian microfinance institution with a gross loan portfolio equivalent to USD 781 million, according to the MIX Market, the microfinance information clearinghouse. The loan is expected to help Mibanco launch a financial product called Crecer Mi Negocio (To Grow My Business), which will provide women entrepreneurs with medium term investment loans averaging USD 2,000 to USD 3,000.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Extends $5m Local Currency Credit Line to Microinvest to Boost Microfinance Industry in Moldova
The European Bank for Reconstruction and Development (EBRD) has extended an MDL 62.7 million (USD 5 million) local currency credit line to Microinvest of Moldova for on-lending to micro and small enterprises (MSEs). This is EBRD’s first local currency loan in Moldova.
MICROCAPITAL BRIEF: Symposium on Agricultural Risk and Insurance in Guyana Raises Need for Risk Management, Microinsurance
Launched by the Guyanan government in cooperation with the World Bank and the Inter-American Institute for Cooperation on Agriculture (IICA), the Symposium on Agricultural Risk and Insurance was held in Georgetown, Guyana, from December 7th to 9th to address the primary risk factors affecting the agricultural sector of Guyana and to lay out a risk management strategy. The event included 70 participants from the policy, agriculture, risk management, and financial sectors.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Provides €100m ($146m) Credit Line to Bank Millennium to Assist Small and Medium Enterprises (SMEs) in Poland
The European Bank for Reconstruction and Development (EBRD) has provided a EUR 100 million (USD 146 million) medium term credit line to Bank Millennium of Poland for on-lending to small and medium enterprises (SMEs). This credit line supports Bank Millennium’s recently announced strategy to increase its business in the SME segment of Poland, which has been affected by the financial crisis.
MICROCAPITAL BRIEF: International Fund for Agricultural Development (IFAD) Provides $39m to Support Pastoralists in Ethiopia
The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, has provided a USD 19.5 million loan and USD 19.5 million grant to Ethiopia to support pastoral and agropastoral households. The project, which will be implemented over five years, is the second phase of a partnership between Ethiopia’s pastoral communities, local and federal governments, IFAD and the International Development Association (IDA) – an arm of the World Bank.
MICROCAPITAL BRIEF: 2010 Financial Times Sustainable Banking Awards Accepting Entries Through February
The Financial Times (FT) newspaper, in partnership with the World Bank’s International Finance Corporation (IFC), has launched the 2010 FT Sustainable Banking Awards, which recognizes banks financial institutions for leadership and innovation in integrating environmental, social and governance considerations into their operations.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Taxonomy Recognized by XBRL International
The nonprofit Microfinance Information Exchange (MIX) recently announced that its microfinance taxonomy has been officially acknowledged by XBRL International, the coordinating body for XBRL activities and standards. XBRL (eXtensible Business Reporting Language) is an open-source technology that is widely used in Europe and has been adopted by major players elsewhere, such as the US Securities and Exchange Commission, the Bank of Japan and the Shanghai Stock Exchange. MIX’s microfinance taxonomy is based on International Financial Reporting Standards (IFRS) with additional features specific to microfinance. Scott Gaul, manager of product development at MIX, argues that, “Using IFRS as the basis of the taxonomy allows for a direct link to an accounting standard in use in over 100 countries worldwide and closer alignment of microfinance with mainstream markets,” and that XBRL will “encourage richer data on microfinance, increasing transparency without increasing the reporting burden on MFIs.”