Recently, the International Finance Corporation (IFC), an organization under the World Bank Group that has been a significant source of financing for the microfinance industry, agreed to confer to three microinsurance projects in East Africa a grant of USD 4.1 million, which is expected to allow 35,000 farmers and 5,000 livestock herders in Rwanda and Kenya to protect their crops and livestock from natural disasters.
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MICROFINANCE BRIEF: Bangladesh Government to Investigate Allegations of “Financial Irregularities” Against Microfinance Institution (MFI) Grameen Bank
The Bangladesh government recently announced that it will form a committee to investigate allegations of “financial irregularities” against Grameen Bank, a microfinance institution (MFI) started in Bangladesh by Dr Muhammad Yunus.
MICROCAPITAL BRIEF: Standard Chartered, MicroSave Launch Microfinance Risk Management Toolkit
The Bangladesh branch of Standard Chartered PLC, an international bank headquartered in the United Kingdom that reported total assets of USD 436 billion in 2009, and MicroSave, a company based in India that specializes in technical assistance and training for microfinance organizations, have jointly launched a risk management toolkit for microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Funded by MasterCard Foundation to Expand Data Coverage Among Microfinance Organizations (MFIs) in Africa
The Microfinance Information Exchange (MIX), the microfinance data clearinghouse, has received a USD 2 million grant from the MasterCard Foundation, a private Canadian foundation that seeks to alleviate poverty through microfinance and education, to improve information sharing among microfinance institutions (MFIs) in Africa and the visibility of those organizations outside the region.
MICROCAPITAL BRIEF: Microfinance Experts Say “Microcredit Is Not The Enemy”
The Financial Times, a UK-based newspaper, recently published an opinion piece titled “Microcredit is not the enemy,” which examines the recent microfinance trouble in the Indian state of Andhra Pradesh and some of the misperceptions that have subsequently emerged that deem the industry as “a flawed idea.”
MICROCAPITAL BRIEF: Asian Development Bank Invests in Microfinance through $10m Equity Placement in Shorecap II Fund
The Asian Development Bank (ADB), an international development organization based in Manila, Philippines, announced that it will be making an equity investment of up to USD 10 million in Shorecap II Fund (SCII), the successor to Shorecap International (SCI), a microfinance investment vehicle (MIV) established in 2003.
MICROCAPITAL BRIEF: Dr Muhammad Yunus, Founder of Grameen Bank and Winner of Nobel Peace Prize for Work in Microfinance, Cleared of Allegations of Illegal Money Transfer to Grameen Kalyan
Grameen Bank founder and 2006 Nobel Peace Prize Winner, Dr Muhammad Yunus, who had been accused of ‘siphoning’ approximately USD 100 million from Grameen Bank to its affiliated health insurer Grameen Kalyan, has reportedly been cleared of any allegations of mishandling funds by the Norwegian Ministry of Affairs.
MICROCAPITAL BRIEF: 350 Microfinance Institutions (MFIs) Report to Microfinance Information Exchange (MIX) Social Performance Reporting Awards
The Microfinance Information Exchange (MIX), the microfinance data clearinghouse, recently argued that microfinance institutions (MFIs) around the world have increased their commitment to transparency in social performance based on a surge in applications to the MIX’s 2010 Social Performance Reporting Awards, which acknowledge openness in reporting.
MICROCAPITAL BRIEF: World Microfinance Forum Geneva Hosts Debate on Corporate Governance as it Relates to Managing Crises in Microfinance
The World Microfinance Forum Geneva recently hosted a debate on issues related to corporate governance and its importance in managing crises in microfinance.
MICROCAPITAL BRIEF: Institute for Financial Management Research Mezzanine Finance Private Limited (IFMR Mezz) Provides $221k in Subordinated Debt to Saija Finance Private Limited
The Institute for Financial Management Research (IFMR) Mezzanine Finance Private Limited (IFMR Mezz), a microfinance investment arm of the nonprofit IFMR, has provided funds worth INR 10 million (approximately USD 221,000) to Saija Finance Private Limited, a non-banking finance company providing microfinance services in northern India, in the form of unsecured, subordinated debt.
MICROCAPITAL BRIEF: Intellecap Publishes White Paper Analyzing Events Leading Up to Andhra Pradesh Microfinance Lending Crisis and State, Media Responses to the Crisis
Intellecap, a social-sector advisory firm with offices in India and the US, has released a white paper analyzing the events leading up to the ongoing microfinance lending crisis in Andhra Pradesh, a state on the southeastern coast of India.
MICROCAPITAL BRIEF: Investment Company responsAbility Releases “Microfinance Market Outlook 2011”
responsAbility Social Investments AG, an investment company in Switzerland, recently released “Microfinance Market Outlook 2011,” a report based on surveys of representatives of microfinance institutions (MFIs), investors, rating agencies and consultancies.
MICROCAPITAL BRIEF: Standard Chartered Bank Tanzania Arranges, USAID Guarantees Local-Currency Bond for Tanzanian Microfinance Institution (MFI) Promotion for Rural Initiatives and Enterprise Limited (PRIDE Tanzania)
Standard Chartered Bank Tanzania, a division of the London-based international bank Standard Chartered PLC, recently arranged a bond issue for Tanzanian microfinance institution (MFI) Promotion for Rural Initiatives and Enterprise Limited (PRIDE Tanzania), which is reportedly the first MFI bond ever issued on the Tanzania Stock Exchange.
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: 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: Munich Re Foundation, International Labour Organization (ILO) Announce Microinsurance Has Potential to Reach 3 Billion People
Munich Re Foundation, a nonprofit founded by German reinsurer Munich Re, and the International Labour Organization (ILO), an arm of the United Nations promoting fair work conditions, announced in advance of a microinsurance conference in Manila, Philippines, that unnamed studies indicate microinsurance has the potential to reach three billion people.
MICROCAPITAL BRIEF: Bangladesh Microcredit Regulatory Authority (MRA) to Restrict Fees, Cap Microloan Interest Rates at 27%, Discourage Flat Interest Rates
Bangladesh’s Microcredit Regulatory Authority (MRA) has enacted a new regulation capping microfinance institution (MFI) loan rates at 27 percent per year as of July 2011.
MICROCAPITAL BRIEF: MicroSave Launches Social Performance Management Framework for Microfinance Institutions (MFIs)
MicroSave, an organization that provides technical assistance to microfinance institutions (MFIs), recently unveiled its flagship Social Performance Management framework, which aims to improve MFIs’ social and business performance.