MICROCAPITAL BRIEF: 26 Inclusive Finance Players Pledge to Support Microfinance Institutions (MFIs), Clients Throughout Pandemic

At the initiative of the Luxembourg-based Grameen Crédit Agricole (GCA) Foundation, microfinance lenders and other operators in the inclusive finance sector have agreed to a set of “Key Principles to Protect Microfinance Institutions and Their Clients in the COVID-19 Crisis.” The commitment involves measures including: operating in a customer-centric manner, protecting staff members, sharing information, providing training and technical assistance, minimizing foreign-exchange risk, providing additional debt funding, and taking a cooperative and transparent approach in response to requests for moratoriums as well as debt restructuring. Since the publication of the pledge, which had been signed by 20 organizations, an additional six have joined.

The signatories are: ADA (Appui au Développement Autonome); Alterfin; the Azerbaijan Microfinance Association; Bamboo Capital Partners; CERISE; CIDR Pamiga; Cordaid Investment Management; Crédit Agricole CIB India; CA Indosuez Wealth (Asset Management); Crédit Agricole SA; the European Microfinance Network; FS Impact Finance; GAWA Capital; GCA Foundation; the Inclusive Finance Network Luxembourg (InFiNe.lu); Inpulse; Kiva; the Luxembourg Microfinance and Development Fund; MCE Social Capital, formerly known as MicroCredit Enterprises; the Microfinance African Institutions Network; the Microfinance Centre; Rabo Foundation; Solidarité Internationale pour le Développement et l’Investissement (SIDI); Social Investment Managers & Advisors (SIMA); the Social Performance Task Force; and the Whole Planet Foundation.

GCA Foundation was established in 2008 by Credit Agricole, a French retail bank, in partnership with Muhammad Yunus, the founder of Grameen Bank. The organization seeks to reduce poverty by providing funding and technical assistance to microfinance institutions and other social businesses. As of May 2020, GCA Foundation had commitments of EUR 98 million (USD 110 million) outstanding to 85 partners in 40 countries in Africa and Eurasia. These partners serve approximately 9 million customers, of whom 85 percent are women and 78 percent live in rural areas.

By Jessica McLeod, Research Associate

Sources and Additional Resources

GCA Foundation news release
http://gca-foundation.org/news/new-signatories-of-the-pledge-to-protect-mfis-and-their-clients-from-the-economic-effects-of-the-covid-19

GCA Foundation homepage
http://gca-foundation.org/

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