The MIX Market has released an analysis of Russian microfinance data entitled “Russia Microfinance Trend Report 2008-2009,” which states that the peak of the crisis in the Russian microfinance sector occurred at the end of 2008 and in early 2009.
MICROCAPITAL BRIEF: Second Annual Unitus-Hewitt Compensation And Benefits Survey of Indian Microfinance Institutions Demonstrates Salary Stability
The Unitus-Hewitt Compensation And Benefits Survey, released in early June, has demonstrated stability in the microfinance industry during the 2009 economic crisis. The study examined cash and non-cash benefits at 15 microfinance institutions (MFIs) representing 10 million clients across India. The study was jointly executed by Unitus Inc., an international nonprofit providing funding and consulting services to MFIs, and Hewitt Associates, an international human resources consulting firm.
MICROFINANCE EVENT: Social Performance Task Force (SPTF) Annual Meeting, June 29-July 3, 2010, in Bern, Switzerland
Event Name: Social Performance Task Force (SPTF) Annual Meeting
Event Date: June 29 to July 3, 2010
MICROCAPITAL BRIEF: Aditya Birla Finance (ABF) Enters Wholesale Microfinance Sector in India
Aditya Birla Finance (ABF), a non-banking financial company (NBFC) in India, has entered into the microfinance sector and has already closed a bulk financing deal with an unnamed Hyderabad-based microfinance institution (MFI). ABF is currently looking to form financing partnerships with other MFIs throughout the country.
MICROCAPITAL BRIEF: BlueOrchard Finance Invests $6.5m in Latin American Microfinance Institutions
BlueOrchard Finance, a Swiss asset management company, recently invested USD 6.5 million from its Dexia MicroCredit Fund (DMCF) in three Latin American microfinance institutions (MFIs): Forjadores of Mexico, Women’s World Banking (WWB) Popayan of Colombia and D-Miro of Ecuador.
MICROCAPITAL BRIEF: African Development Bank, Four Other International Finance Institutions Launch $600m African Capitalization Fund
The African Development Bank (AfDB) and four development finance institutions recently launched an African Capitalization Fund (the “Fund”), which will be structured as a private equity fund. The other financial institutions involved are the European Investment Bank, the International Finance Corporation (IFC), the OPEC Fund for International Development (OFID) and Abu Dhabi Fund for Development (ADFD). The Fund will be managed by the IFC’s Asset Management Company and will invest in private sector commercial banks.
MICROCAPITAL BRIEF: India: Microfinance Industry Predicts $30b in Loan Portfolio and 110m Clients By 2014
In a report from Intellecap, a social sector advisory firm, it is predicted that the Indian microfinance industry will achieve a portfolio of 110 million borrowers and INR 135,000 crore (USD 30 billion) by 2014.
MICROCAPITAL BRIEF: Bank Respublika, a Private Commercial Bank in Azerbaijan, Reduces Interest Rates to Expand Lending for Small and Medium-Sized Enterprises
Bank Respublika, a private commercial bank in Azerbaijan, has reduced interest rates in order to increase lending flow for small and medium-sized enterprises. According to an unnamed bank official, “High levels of liquidity allow the bank to offer the above loan products on unrestricted long-term basis to entities engaged in entrepreneurial activity.” As of April 1, 2010, Bank Respublika held total capital of approximately AZN 56.1 million (USD 9.7 million) and total assets of AZN 334.5 million (USD 415.5 million).
MICROCAPITAL BRIEF: Oikocredit Invests $6.8m in Local-currency Loans in Three Indian Microfinance Institutions
Oikocredit, a microfinance investment fund in the Netherlands with assets of USD 665 million, recently loaned INR 315 million (USD 6.8 million) to three Indian microfinance institutions (MFIs): Cashpor, SMILE and Grameen FSPL (Grameen Koota).
MICROCAPITAL BRIEF: Bai Tushum & Partners and Mol Bulak, Two Microfinance Organizations, Launch Revival Foundation for Devastated Regions of Kyrgyzstan
Bai Tushum & Partners and Mol Bulak, two microfinance organizations from Kyrgyzstan, along with the domestic law firm Kalikova & Associates, have established the ‘Revival Foundation’ to provide financial assistance to the southern regions of Kyrgyzstan affected by the recent riots. The foundation will serve residents of the cities of Osh and Jalabad and surrounding areas with financial aid and interest-free loans.
MICROCAPITAL BRIEF: MicroCred Group Completes $5m Sale of Mexican Operations to Fig Tree Ventures, a Microfinance Management Company
The MicroCred Group, an investment company with operations in France, Madagascar and China, has completed the sale of its Mexican operations to Fig Tree Ventures, including assets of EUR 4.1 million (equivalent to USD 5 million).
MICROCAPITAL BRIEF: Small Enterprise Education and Promotion (SEEP) Network Asks for Feedback on Reporting Standards
The Small Enterprise Education and Promotion (SEEP) Network, an international organization with the goal of connecting microenterprise practitioners, is calling on the microfinance community to contribute to the update of the SEEP Framework, a guide for measuring the financial performance of microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Two Thirds of Philippine Households Lack Bank Accounts, Says Central Bank Official
Two thirds of Philippine households, an estimated 11 million, do not have bank accounts, according to Mr Amando Tetangco, the Governor of Bangko Sentral ng Pilipinas (BSP), the central bank of the Republic of the Philippines.
MICROCAPITAL BRIEF: National Bank for Agriculture and Rural Development (NABARD) Plans to Open Rural Credit Bureaus in India
The National Bank for Agriculture and Rural Development (NABARD), a development bank in India that promotes sustainable agriculture and rural development through credit support, institution building and other related services, plans to set up rural credit bureaus in rural districts throughout the country. According to Dr K.G. Karmakar, the managing director of NABARD, “Once implemented, [the credit bureaus] will go a long way in improving the financial position of India’s 480 million marginal farmers.” The proposed bureaus would maintain information on all rural borrowers in order to facilitate credit and information disbursement.
MICROCAPITAL BRIEF: India’s SKS Microfinance IPO Could Trigger Trend in Microlending
SKS Microfinance has recently filed to raise up to USD 250 million in an initial public offering (IPO), as initially reported by MicroCapital on March 9, 2010. The pending IPO, to be offered on the Bombay Stock Exchange and the National Stock Exchange of India, would be the first public offering for an Indian microlender and is resulting in debate about the future of funding microfinance institutions.
MICROCAPITAL BRIEF: Philippines Partners with Key2Flex to Develop Microfinance Geographic Information System
The People’s Credit and Finance Corporation (PCFC), a Philippines government entity providing resources to retail microfinance institutions, has recently entered into a partnership with Key2Flex, an information technology company focused on rich internet applications, to assist with PCFC’s development of a geographic information system.
MICROCAPITAL BRIEF: Indian Microfinance Institution Ujjivan Financial Services Reduces Interest Rates, Following Lead of Bandhan Financial Services Private Limited
Ujjivan Financial Services, an Indian microfinance institution, announces that it will reduce borrowing rates on new and renewal loans by 190-290 basis points. As a result, new business loans will cost 23 percent per annum and renewal loans will cost 22 percent per annum beginning in July 2010. As MicroCaptial reported on May 4, 2010, Bandhan Financial Services Private Limited, another Indian microfinance institution, reduced its annual rates on loans possibly triggering the Ujjivan reduction.
MICROCAPITAL BRIEF: South African Microfinance Institution Blue Financial Services Reports Significant Year-End Loss and Recapitalization, Loses Operating License in Rwanda
Blue Financial Services, a South African microfinance institution reporting total reviewed assets equivalent to USD 343 million, has lost its operating license in Rwanda and expects to announce a year-end loss of up to USD 194 million for its fiscal period ended February 28, 2010. Blue attributes the negative results mainly to goodwill and deferred tax asset valuation impairments, an increase in loan loss reserves, reduced funding, early rapid expansion of the business and the weakening of African currencies. The company has entered into an agreement with Mayibuye (Pty) Ltd to provide equity and debt financing. As a result of the recapitalization, Mayibuye will become the majority shareholder.