by Christopher Maggio -

MICROFINANCE PAPER WRAP-UP: Outlook for Remittance Flows 2010-2011, by Dilip Ratha, Sanket Mohapatra, and Ani Silwal

Written by Dilip Ratha, Sanket Mohapatra, and Ani Silwal, published by The Migration and Remittances Team of the World Bank’s Development Prospects Group (DECPG) in April 2010, 18 pages, available at: http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1110315015165/MigrationAndDevelopmentBrief12.pdf

The Migration and Remittances Team of the World Bank’s Development Prospects Group (DECPG), an organization providing information and analysis on global economic trends, has published a paper entitled “Outlook for Remittance Flows 2010-2011.”

by Conner Brannen -

MICROCAPITAL BRIEF: Microfinance Researcher at Massachusetts Institute of Technology (MIT) Receives Top Economics Prize

Esther Duflo, a contributor to the field of microfinance research, has been awarded the John Bates Clark Medal [1]. The award, which is generally considered to be one of the most prestigious prizes in the field, is given to an economist in the US under the age of forty who is judged to have made the most significant contribution to economic thought and knowledge.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Insights Releases Report, “Is Information and Communication Technology Fueling the Growth of Microfinance?”

Microfinance Insights, a publication produced by the social-sector advisory firm Intellecap, recently released a survey report titled, “Is Information and Communication Technology Fueling the Growth of Microfinance?”

by Stefanie Rubin -

MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $15m in Aavishkaar Goodwell Fund for Microfinance

Aavishkaar Goodwell India Microfinance Development Company Ltd, a microfinance focused private equity firm, has secured a USD 15 million commitment from the International Finance Corporation (IFC), the private investment arm of the World Bank, for its second fund.

by Christine Chang -

MICROCAPITAL BRIEF: Pakistan Looking to Microinsurance to Increase Insurance Penetration in the Country

The executive director of insurance at the Securities and Exchange Commission of Pakistan, Nasreen Rashid, has commented that insurance penetration throughout Pakistan is “miserably” low. The insurance penetration of Pakistan is reportedly “0.7 percent of GDP, which is believed to be the lowest in the region”. According to the Life Insurance Council, a forum that connects the various stakeholders within the insurance sector, insurance penetration in India “reached 4.7 percent in 2008”.

by Matthew Castner -

MICROCAPITAL BRIEF: Mohammad Yunus, Founder of Grameen Bank, Calls Out Loan Shark Organizations

In an interview with Vikash Humar, Editor in Chief of Microfinance Focus, Mohammad Yunus, founder of Grameen Bank, blasted profit-seeking microfinance institutions (MFIs). He likened these institutions, which he defined as those who charge more than 15 percent plus the cost of funds, to the loan sharks that necessitated the foundation Grameen. While reluctant to name names, Mr Yunus offered Compartamos Banco, a Mexican microfinance bank founded in 1990, as an example of one of these firms. Mr Yunus additionally spoke out against IPOs by MFIs, such as Compartamos Banco and SKS Microfinance, a microfinance institution (MFI), launched in 1998, which caters to women clients in India.

by Matthew Castner -

MICROFINANCE EVENT: “African Mobile Micro-Finance & M-Remittances Summit” Conference Hosted by BSP Events and Forums May 10 – May 11, 2010 in Ikoyi, Lagos

Event Name: African Mobile Micro-Finance & M-Remittances Summit

Event Date: May 10 – May 11, 2010

Event Location: Ikoyi, Lagos

Event Website: http://www.bspmediagroup.com/event.php?EID=58

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) and CGAP (Consultative Group to Assist the Poor) Criticize Muhammad Yunus’ Method of Judging Microfinance Institutions’ (MFIs’) Interest Rates

Microfinance Information Exchange (MIX) Lead Researcher, Mr Adrian Gonzalez, has published a report on MIX titled, “Analyzing Microcredit Interest Rates: A Review of the Methodology Proposed by Mohammed Yunus.”

by Christopher Maggio -

MICROCAPITAL BRIEF: Grameen Foundation to Upgrade Mifos, an Open Source Microfinance Institution (MFI) Management Software with Grants of $500,000 from Cisco Foundation and $1.23m from MasterCard Foundation

The Grameen Foundation, an independent non-profit organization, has announced that it will add functionality to Mifos, a microfinance institution (MFI) management software package that is open source, meaning that it is free software that can be changed by users.

by Christine Chang -

MICROFINANCE PAPER WRAP-UP: Women and Income-Generating Activities: Understanding Motivations by Prioritising Skill, Knowledge and Capabilities, by Thanuja Mummidi

Written by Thanuja Mummidi, published by the Rural Microfinance and Employment project (RUME) in June 2009, 27 pages, available at: http://www.rume-rural-microfinance.org/IMG/pdf_WP5.pdf

This study examines a methodology for analyzing whether or not microfinance promotes income-generating activities amongst the poor, specifically focusing on women.

by Eric McKay -

MICROCAPITAL BRIEF: Unitus, US Overseas Private Investment Corporation (OPIC) and Citi Microfinance Finalize $15m Credit Facility for Microfinance Institutions

Unitus Inc., an international nonprofit organization that supports microfinance institutions (MFIs); the US Overseas Private Investment Corporation (OPIC), a US government agency that invests in international development projects; and Citi Microfinance, Citi’s organization that aims to support MFIs, recently finalized a USD 15 million credit facility that aims to help foster growth among MFIs.

by Eric McKay -

MICROCAPITAL BRIEF: LeapFrog Investments Microinsurance Fund Raises Additional $65m in Commitments from International Finance Corporation (IFC), KfW, Flagstone Reinsurance, and Soros Economic Development Fund

LeapFrog Investments, an international for-profit microinsurance fund, recently announced that it had raised an additional USD 65 million in commitments, bringing the fund’s total to USD 112 million.

by Christopher Maggio -

MICROCAPITAL BRIEF: Apax Foundation, Charitable Arm of London-Based Private Equity Firm, Apax Partners, to Purchase 20-Percent Stake in Finance in Motion, Fund Adviser to European Fund for Southeast Europe (EFSE)

The Apax Foundation, the charitable arm of the London-based private equity firm, Apax Partners, has agreed to issue a capital increase to purchase a 20-percent stake in Finance in Motion, a Frankfurt-based asset management firm focused on development finance, including microfinance.

by Christopher Maggio -

MICROFINANCE PAPER WRAP-UP: Does Microfinance Repayment Flexibility Affect Entrepreneurial Behavior and Loan Default?, by Erica Field, Rohini Pande and John Papp

Written by Erica Field, Rohini Pande and John Papp, published by The Institute for Financial Management and Research (IFMR) in October 2009, 33 pages, available at: http://ifmr.ac.in/cmf/publications/wp/2010/34_Field_Flexibility_Repayment.pdf

This study examines whether the rigidity of microfinance loan repayment structures inhibits investment in microenterprises.