Partner Microcredit Foundation (PMCF), a microfinance institution in Bosnia and Herzegovina, and the technical assistance arm of the European Fund for Southeast Europe (EFSE), a development finance investment fund, have collaborated on a financial literacy project for which PMCF created a “guide to smart borrowing” that covers topics including conducting business with financial institutions, obtaining a loan, acting as a guarantor on a loan, management of household budgets and the basics of consumer protection. The guide emphasizes details of the loan application process. The EFSE Development Facility provided 50 percent of the costs of printing 100,000 copies of the guide.
According to the US-based nonprofit Microfinance Information Exchange (MIX), PMCF had 39,620 active borrowers, a gross loan portfolio of USD 64.8 million and USD 89.2 million in assets as of 2010. As of June 30, 2011, EFSE had an outstanding investment portfolio of EUR 676 million (USD 982 million).
By Courtney Snelling, Research Associate
About Partner Microcredit Foundation: US-based nonprofit Mercy Corps founded Partner Microcredit Foundation (PMCF) in April 1997. According to the US-based nonprofit Microfinance Information Exchange (MIX), as of 2010, PMCF had USD 89.2 million in assets, a gross loan portfolio of USD 64.8 million and 39,620 active borrowers. As of the same year, PMCF had return on equity of 1.60 percent and return on assets of 0.63 percent.
About the European Fund for Southeast Europe (ESFE): 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). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
Sources and Additional Resources:
EFSE.lu, “Partner MCF and EFSE Development Facility Successfully Contribute to the Financial Education of 100,000 Citizens”, February 16, 2012, http://www.efse.lu/Press-releases—Details—2012-02-16-Partner-MCF-and-EFSE-Development-Facility-successfully-contribute-to-the-financial-education-of-100-000-citizens——_nav.52_siteid.134_entryid.400_dir._likecms.html
MicroCapital.org story, December 12, 2011, “MICROCAPITAL BRIEF: Microcredit Foundation Prizma of Bosnia and Herzegovina Borrows $680k in Local Currency from Privredna Banka Sarajevo dd” https://www.microcapital.org/microcapital-brief-microcredit-foundation-pr…
MicroCapital.org story, November 23, 2011, “MICROCAPITAL BRIEF: Microcredit Foundation Prizma of Bosnia and Herzegovina Borrows $2.7 m in Local Currency from Nova Banka, BOR Bank” https://www.microcapital.org/microcapital-brief-microcredit-foundation-pr…
MicroCapital.org story, October 12, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $8m to Mikrofin Banja Luka of Bosnia and Herzegovina, ProCredit Bank Macedonia to Support Micro-, Small and Medium-Sized Enterprises” https://www.microcapital.org/microcapital-brief-european-fund-for-southea…
MicroCapital Universe Profile: Partner Microfinance Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Partner+Microcredit+Foundation
MicroCapital Universe Profile: European Fund for Southeast Europe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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