The European Fund for Southeast Europe (ESFE), a microfinance investment vehicle (MIV) based in Luxembourg, and Azerbaijan Micro-Finance Association (AMFA), an organization with 28 microfinance institution members, have agreed to work together to develop a financial education booklet to raise the financial literacy of microfinance customers in Azerbaijan. The plan is initiated by KfW Entwicklungsbank (KfW), a state-owned development bank in Germany, with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission.
The booklet will offer current and potential customers of AMFA members information on the risks and benefits of taking out loans, placing deposits and using other financial services. The project aims to reduce multiple borrowing and cross-lending practices, which have resulted in over-indebtedness. The booklet is expected to be published in September and distributed through the branches of AMFA members throughout Azerbaijan.
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million). Founded in 2001, The Azerbaijan Microfinance Association (AMFA) is an organization with 28 members, all of which are microfinance institutions (MFIs) in Azerbaijan.
By Brett Cohen, Research Associate
About European Fund for Southeast Europe
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
About Azerbaijan Micro-Finance Association
The Azerbaijan Microfinance Association (AMFA) is an organization with 28 members, all of which are microfinance institutions (MFIs) in Azerbaijan. AMFA started informally in the mid-1990s to help meet the economic requirements of internally displaced persons (IDPs) and began a formalized alliance of what would become AMFA in 2001. The organization utilizes in an effort to “advance the interests of the microfinance community” in Azerbaijan. Its three “strategic pillars” are: “innovative products and services, continuing education and industry expertise.” AMFA also offers services to improve financial management at medium-sized and larger institutions.
About KfW Entwicklungsbank
KfW Entwicklungsbank (KfW) is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization “fair” and to conserve natural resources. KfW Entwicklungsbank collaborates with local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. As of 2012, KfW Entwicklungsbank has a portfolio of EUR 2.15 billion (USD 2.57 billion).
Sources and Additional Resources
Esfe.lu press release, “EFSE and Azerbaijan Micro-Finance Association raising financial literacy in Azerbaijan”
http://www.efse.lu/Details—2012-06-19-EFSE-and-Azerbaijan-Micro-Financ…
MicroCapital.org story, March 3, 2012, “MICROCAPITAL BRIEF: Partner Microcredit Foundation, European Fund for Southeast Europe Publish 100k Financial Literacy Guides for Microfinance Clients in Bosnia and Herzegovina”
https://www.microcapital.org/microcapital-brief-partner-microcredit-found…
MicroCapital.org story, March 12, 2012, “MICROCAPITAL BRIEF: Azerbaijan Microfinance Association Mulling Agricultural Credit Guarantee Fund”
https://www.microcapital.org/microcapital-brief-azerbaijan-microfinance-a…
MicroCapital Universe Profile: European Fund for Southeast Europe
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…
MicroCapital Universe Profile: Azerbaijan Micro-Finance Association
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…
MicroCapital Universe Profile: KfW Entwicklungsbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW…
MicroCapital Universe Profile: BMZ
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bun…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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