The Daily Finance newspaper of the US reports that Peru’s highly competitive microlending market has helped drop interest rates while increasing average loan size, which stands at USD 1,300 as of 2009, an increase from approximately USD 1,000 in 2006, according to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
MICROCAPITAL BRIEF: University Commission for Development (CUD) Announces Scholarships for 2011 Academic Year, Including European Masters in Microfinance
The University Commission for Development (sometimes referred to by the French acronym CUD), a group of nine French-speaking universities in Belgium established by the Interuniversity Council of the Francophone Community (sometimes referred to by the French acronym CIUF), has announced the availability of scholarships for the 2011 academic year for training courses and academic programs that include a European Masters in Microfinance. Only applicants originating in developing countries may apply for the funding.
MICROCAPITAL BRIEF: Harbu Microfinance Institution of Ethiopia Receives Third Annual “European Microfinance Award” At the European Investment Bank (EIB) in Luxembourg
Harbu Microfinance Institution Share Company (Harbu) of Ethiopia was recently presented the third annual “European Microfinance Award” by Maria Teresa, the Grand Duchess of Luxembourg, on behalf of the Luxembourg Round Table on Microfinance, a government organization established to catalyze interactions between microfinance institutions (MFIs) and financial institutions in Luxembourg, at the European Investment Bank (EIB) in Luxembourg.
MICROCAPITAL BRIEF: Sanabel Receives “Microfinance Network of the Year Award” From The Small Enterprise Education and Promotion (SEEP) Network
Sanabel, a network of microfinance institutions (MFIs) in Arab countries, was given the “Network of the Year Award” by the Small Enterprise Education and Promotion (SEEP) Network, an organization connecting microfinance practitioners around the world, at its recent annual conference in Arlington, Virginia, USA
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $65m to Bank Saint Petersburg of Russia and $4m to Microfinance Institution (MFI) fondiBESA of Albania
The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London, has loaned Bank Saint Petersburg, a commercial bank in Russia, and fondiBESA, a microfinance institution (MFI) in Albania, a total of USD 69 million.
MICROCAPITAL BRIEF: Evaluation Cooperation Group (ECG) Finds Microfinance Operations of Major Multilateral Development Banks (MDBs) Have Difficulty in Reaching Very Poor People
The Evaluation Cooperation Group (ECG), a network of evaluators of multilateral development banks (MDBs), has published a report that finds that the microfinance operations of MDBs have difficulty in reaching very poor borrowers.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Grants Transparency Certificates to Microfinance Investment Vehicles (MIVs) That Adhere to Environmental, Social and Governance (ESG) Standards
CGAP (Consultative Group to Assist the Poor), a policy and research center dedicated to enhancing financial access for the world’s poor, has announced its granting of Transparency Certificates to several microfinance investment vehicles (MIVs) that are in compliance with its environmental, social and governance (ESG) guidelines for MIVs.
MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $26m to Banka Kombëtare Tregtare (BKT) of Albania for Microfinance, Small Enterprise Lending
The European Fund for Southeast Europe (EFSE) a microfinance investment vehicle (MIV) advised by Finance in Motion and managed by Oppenheim Asset Management Services, has provided a loan of EUR 20 million (approximately USD 26.2 million) to Banka Kombëtare Tregtare (BKT), a commercial bank in Albania.
MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $50m to Bank of Georgia for Microfinance Operations
The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) advised by Finance in Motion and managed by Oppenheim Asset Management Services, loaned USD 50 million to Bank of Georgia, a commercial bank, for expansion of its housing and micro- and small enterprise (MSE) lending operations.
MICROCAPITAL BRIEF: Microfinance Dominates Shariah Lending in Indonesia, Commercial Banks Take Notice
The market for Shariah loans, those that are in compliance with Islamic law, has reportedly been dominated by microloans, prompting several of Indonesia’s commercial banks to focus on offering the small loans in underserved areas.
MICROCAPITAL BRIEF: SHARE Microfin Limited Officially Delaying Initial Public Offering (IPO) Due to Rising Loan Defaults
SHARE Microfin Limited, a regulated non-banking financial company (NBFC) in India, officially delayed its planned initial public offering (IPO) of INR 10 billion (USD 218 million), originally scheduled for early 2011, due to rising default rates and tightening government regulations in India’s troubled Andhra Pradesh state. A delay had been rumored since October amidst rising uncertainty in the microfinance industry. SHARE Microfin has USD 577 million in assets, a gross loan portfolio of USD 490 million, 990 branches, 2.3 million active borrowers, return on assets (ROA) of 5.5 percent and return on equity (ROE) of 45.18 percent.
MICROCAPITAL BRIEF: SKS Microfinance of India Under Investigation by Insurance Regulatory and Development Authority (IRDA) for Violating Norms in Insurance Practices
India’s Insurance Regulatory and Development Authority (IRDA) is reported to be investigating SKS Microfinance, a publicly traded microfinance institution (MFI) based in India, for violating norms in its insurance practices.
MICROCAPITAL BRIEF: Exposure to Microfinance Sector Threatens Banks’ Stocks in India
Recent analyses by Citigroup, a US-based international financial services conglomerate, indicate that banks in India are experiencing stress on their stock prices due to the falling asset quality of their microfinance institution (MFI) holdings, mainly due to the recent trouble in microfinance in the state of Andhra Pradesh.
MICROCAPITAL BRIEF: Lok Capital Announces $52m Close for Indian Microfinance Fund, Lok II
Lok Advisory Services, an Indian firm that manages two microfinance investment vehicles (MIVs) based in Mauritius, has reportedly announced the first close of USD 52 million for its second fund, Lok Capital II.
MICROCAPITAL PAPER WRAP-UP: Microfinance and Gender: Is There a Glass Ceiling in Loan Size? By Isabelle Agier and Ariane Szafarz, published by Pontifical Catholic University of Rio de Janeiro and Universite Libre de Bruxelles
By Isabelle Agier and Ariane Szafarz, published by Pontifical Catholic University of Rio de Janeiro and Universite Libre de Bruxelles, March 2010, 37 pages, available at: http://ssrn.com/abstract=1573872
MICROCAPITAL BRIEF: REGMIFA Invests $13m in Microfinance Institutions (MFIs) Sinapi Aba Trust and First Allied Savings and Loans of Ghana, Kenya Women Finance Trust, Faulu Kenya, FINCA Tanzania, Programme d’Appui aux Mutuelles d’Epargne et de Credit au Senegal (PAMECAS)
The Regional MSME Investment Fund for Sub-Saharan Africa SA, SICAV-SIF (REGMIFA), a Luxembourg-based fund that seeks to invest in micro-, small and medium sized enterprises (MSMEs) in Africa, has announced investments totaling USD 13.5 million in microfinance institutions (MFIs) Sinapi Aba Trust and First Allied Savings and Loans of Ghana; Kenya Women Finance Trust; Faulu Kenya; FINCA Tanzania, an affiliate of FINCA International, a microfinance network serving 700,000 people through subsidiaries in 21 countries; and Programme d’Appui aux Mutuelles d’Epargne et de Credit au Senegal (PAMECAS).
MICROCAPITAL BRIEF: Grameen Foundation Launches Upgraded Mifos Cloud Service For Microfinance Institutions (MFIs) in India
Grameen Foundation, a US-based nonprofit, announced at the recent Microfinance Leadership Summit on Technology in Manila, Philippines, that it has launched a hosted version of its Mifos management information system, Mifos Cloud, that is available for a fee to microfinance institutions (MFIs) in India. Unlike Mifos Cloud, which runs off-site, a version of the service has been available for free to MFIs around the world to run on their own hardware since 2006.
MICROCAPITAL BRIEF: Eyeing International Expansion, Mexican Microfinance Bank Compartamos Banco Directs Shares to Holding Company
Mexican microfinance bank Compartamos Banco recently announced that it plans to transfer its shares into the newly created holding company Compartamos SAB through an exchange offer.