MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX), CGAP (Consultative Group to Assist the Poor) Release “Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report 2010”

Two US-based nonprofits, the Microfinance Information Exchange (MIX) and CGAP (Consultative Group to Assist the Poor) co-published the “Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report 2010.”

MICROCAPITAL BRIEF: In Partnership with 15 Microfinance Institutions (MFIs), Dia Vikas Capital to Distribute Micro-Pension Scheme Initiated by India’s Pension Fund Regulatory and Development Authority (PFRDA)

In association with its 15 partner microfinance institutions (MFIs), Indian social venture firm Dia Vikas Capital, a subsidiary of nonprofit Opportunity International Australia, will distribute a micro-pension scheme that was initiated by the Pension Fund Regulatory and Development Authority (PFRDA) of the Indian government. The program, NPS-Lite, will encourage economically disadvantaged people to save money for when they are over age 60 [1]. The Indian government is reported to have committed to match NPS-Lite contributions up to INR 1,000 (USD 22) per client annually [1] [2].

MICROCAPITAL BRIEF: Supreme Court Schedules Hearing on Petition Filed by SKS Microfinance Against Over Regulation of Moneylending Act of India’s State of Andhra Pradesh

SKS Microfinance, an Indian microfinance institution (MFI), has filed a petition with the Supreme Court of India seeking a stay to prevent the enforcement of the Regulation of Microlending Act issued by the government of the Indian state of Andhra Pradesh.

MICROCAPITAL BRIEF: United Nations Development Program (UNDP) Convenes Discussion On Amending Microfinance Regulations in Uzbekistan

United Nations Development Program (UNDP), the United Nations’ global development network that seeks to connect countries to knowledge, experience and resources to help people build a better life, organized a session recently to discuss amendments to microfinance regulations in Uzbekistan.

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Microfinance Blog Argues Importance of “Matching Types of Accounts to Types of Needs”

The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by President Bindu Ananth of IFMR Trust, an affiliate of India’s nonprofit Institute for Financial Management and Research (IFMR), that argues the importance of “matching types of accounts to types of needs” based on several examples from India[1].

MICROCAPITAL BRIEF: Fourth “Survey on the Access to Finance of Small and Medium-sized Enterprises (SMEs) in the Euro Area” From European Central Bank Indicates Modest Progress

The European Central Bank, the institution that oversees the monetary policy of the 17 EU member states, recently published its fourth report on the results of its “Survey on the access to finance of small and medium-sized enterprises (SMEs) in the euro area.”

MICROCAPITAL BRIEF: Bangladesh Supreme Court Dismisses Attempt by Dr Muhammad Yunus to Remain as Managing Director of Microfinance Institution (MFI) Grameen Bank

Bangladesh’s Supreme Court has dismissed Dr Muhammad Yunus’ final bid to overturn the Bangladesh High Court’s ruling upholding the effort of the Bangladesh Bank (BB), the central bank of Bangladesh, to remove Dr Yunus from his position as managing director of Grameen Bank [1] [2] [3].

MICROCAPITAL BRIEF: Vision Microfinance’s Dual Return Fund Loans $6m to MFIs in Armenia, Ecuador, Georgia, Mexico, Peru; Unspecified Mexican MFI Defaults

Absolute Portfolio Management GmbH, an Austrian investment company specializing in microfinance, has reported that its Dual Return Fund, a sub-fund of Vision Microfinance, has loaned USD 6 million to unnamed microfinance institutions (MFIs) in Armenia, Ecuador, Georgia, Mexico and Peru.

MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $7.4m to NLB Razvojna Banka of Bosnia and Herzegovina

The European Fund for Southeast Europe (EFSE), a microfinance investment fund, recently loaned USD 7.4 million to NLB Razvojna banka, a financial institution in Bosnia and Herzegovina that provides financial services to retail clients, corporate clients and small and medium-sized enterprises (SMEs) [1].

MICROCAPITAL BRIEF: responsAbility Loans $8.7m to Microfinance Institutions (MFIs) Microenterprise Development Fund Kamurj of Armenia, ProCredit Bank Georgia

responsAbility Social Investments AG, a Swiss investment company that operates a number of microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments of USD 1.2 million in Armenian microfinance institution (MFI) Microenterprise Development Fund Kamurj (MDF Kamurj) and USD 7.5 million in Georgian MFI ProCredit Bank Georgia.

MICROFINANCE BRIEF: ResponsAbility Microfinance Leaders Fund (rAMLF) Loans $2.5m to FINCA Kyrgyzstan, $500k to HUMO and Partners of Tajikistan

Switzerland’s responsAbility social investments recently reported to MicroCapital that its Microfinance Leaders Fund (rAMLF) has loaned USD 2.5 million to FINCA Kyrgyzstan and USD 500,000 to HUMO and Partners of Tajikistan.

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), National Bank of Georgia, Georgian Ministry of Finance Agree to Promote Local-Currency Financing of Microfinance Institutions, Banks

The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London; the National Bank of Georgia, the Georgian central bank; and the Georgian Ministry of Finance recently signed a memorandum of understanding (MOU) to launch EBRD’s “Local Currency Lending Programme” in Georgia.

MICROCAPITAL BRIEF: Central Bank of Afghanistan Issues Electronic Money Institution License to M-Paisa

The Central Bank of Afghanistan has issued an electronic money institution (EMI) license to M-Paisa, a mobile technology platform that provides financial services targeted at those without access to banking.

MICROFINANCE PAPER WRAP-UP: Reaching the Poorest: Lessons from the Graduation Model, by Syed M Hashemi, Aude de Montesquiou; Published by CGAP (Consultative Group to Assist the Poor)

By Syed M Hashemi and Aude de Montesquiou; published by CGAP (Consultative Group to Assist the Poor), March 2011, 16 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.50806/Reaching_the_Poorest.pdf

MICROCAPITAL BRIEF: Global Entrepreneurship Program: Is There Greater Need for Investment in Small and Medium-Sized Enterprises (SMEs) Than in Microfinance?

Alan Patricof, Founder and Managing Director of US-based venture capital company Greycroft Partners, argues in a recent issues of Fortune magazine that while microfinance institutions (MFIs) “do play an important role in development, there is an even greater need to support small and medium-sized enterprises (SMEs), which have the greatest potential for job growth in most places around the world” [1].

MICROCAPITAL BRIEF: SEED Financial Services, Financial Information Network and Operations Limited (FINO), A Little World Seek Private Equity Funding to Scale Up Business Correspondent Operations in India

Business Standard, an Indian newspaper, has reported that SEED Financial Services, an Indian consulting, planning and implementation agency; Financial Information Network and Operations Limited (FINO), an Indian technology company that seeks to enable financial inclusion; and A Little World, a technology company based in India are seeking private equity funding to scale their business correspondent operations. Business correspondents are individuals or organizations that are permitted to “raise deposits; disburse tiny loans; recover bad loans; sell micro insurance, mutual funds, pension products and other third-party products; and receive and deliver small value remittances” on behalf on banks [2].

MICROCAPITAL BRIEF: FM Bank of Poland Signs $24.6m Agreement with European Investment Fund (EIF), Guaranteed By European Progress Microfinance Facility (EPMF)

FM Bank, a Polish financial institution specializing in servicing micro- and small enterprises, has signed an agreement for a loan of PLN 68.7 million (USD 24.6 million) from European Investment Fund (EIF), which invests in institutions that finance small and medium-sized enterprises (SMEs). The loan, which will be used to on-lend to start-up enterprises, will be made under a 75-percent guarantee from the European Progress Microfinance Facility (EPMF), which seeks to enable microfinance institutions (MFIs) within the EU to increase lending to entrepreneurs by issuing guarantees, loans and equity financing. Under the agreement, FM Bank will provide Polish entrepreneurs loans of up to EUR 25,000 (USD 35,600) for enterprises that have been operating for less than one year [1]. Currently, entrepreneurs with less than 12 months of business history are excluded from external financing in Poland according to EIF.