Sanabel, a network of microfinance institutions (MFIs) in Arab countries, has reportedly released results of a survey of MFIs in Tunisia and Egypt that indicates a significant increase in portfolio-at-risk (PAR) since political instability and social unrest recently broke out in those countries. PAR is a proxy measure for expected defaults and anticipated loan write-offs, that has risen because of enforced office closures and curfews that prevent repayments from being collected. According to the report, between March 2011 and April 2011 PAR in Egypt reached 5.87 percent from an unspecified benchmark, while the same metric rose to 2.23 percent in Tunisia [1].
The survey corroborates recent evidence from the Yemen Microfinance Network (YMN), which found that MFIs in Yemen had encountered “operational difficulties” as a result of political uncertainty, as was reported by MicroCapital in late July 2011 [2].
By Rohan Trivedi, Research Associate
About Sanabel:
Sanabel is a network of microfinance institutions (MFIs) in Arab countries that was established in 2002 by 17 founding members from seven countries. Currently Sanabel has 83 members from 12 Arab countries. As of December 31, 2009, Sanabel member institutions served 2.8 million clients, a number that reportedly represents 90 percent of all microfinance clients in the region. In 2004, Sanabel was incorporated and registered as a nonprofit organization in both Atlanta, in the US state of Georgia, and in Cairo, Egypt, where it is headquartered. Sanabel has organized an annual microfinance conference since 2003.
Sources and Additional Resources:
[1] Microfinance Focus: “Rising Portfolio Risk for microfinance institutions caught in Arab spring”, http://www.microfinancefocus.com/rising-portfolio-risk-microfinance-institutions-caught-arab-spring
MicroCapital.org story, July 29, 2011: “MICROCAPITAL BRIEF: Survey Conducted by Yemen Microfinance Network (YMN) Indicates Microfinance Institutions Facing Operational Difficulties Because of Ongoing Political Tension”, https://www.microcapital.org/microcapital-brief-survey-conducted-by-yemen-microfinance-network-ymn-indicates-microfinance-institutions-facing-operational-difficulties-because-of-ongoing-political-tension/
MicroCapital Universe Profile: Sanabel, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sanabel
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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