by Conner Brannen -

MICROCAPITAL BRIEF: MFTransparency and The MasterCard Foundation Launch Enabling APR & EIR Program to Promote Transparency in Microfinance in Eight Sub-Saharan African Countries

MFTransparency, a US-based nonprofit that encourages fair and transparent pricing in the microfinance industry, and the MasterCard Foundation, a private Canadian foundation that aims to increase access to microfinance and education, have joined together to launch the Enabling Africa to Price Responsibly & Educate on Interest Rates program (Enabling APR & EIR). The Enabling APR & EIR Program aims to raise awareness of transparent pricing issues in eight countries in Sub-Saharan Africa: Malawi, Uganda, Rwanda, Ghana, Tanzania, Zambia, South Africa and Mozambique.

by Christopher Maggio -

MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), Two Microfinance Institutions (MFIs) Located in Cambodia, Receive Deposit-Taking Licenses

Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), two microfinance institutions (MFIs) located in Cambodia, have received a deposit-taking license from the National Bank of Cambodia, the central bank of Cambodia.

by Christopher Maggio -

MICROCAPITAL BRIEF: President of the Cambodian Microfinance Association (CMA) Describes 2009 as a “Difficult” Year for Microfinance in Cambodia

According to Hout Ieng Tong, the president of the Cambodian Microfinance Association (CMA), microfinance in Cambodia had a “difficult” year in 2009 in terms of non-performing loans (NPLs), profits, and loan disbursement [1,2].

by the MicroCapital Team -

MICROCAPITAL BRIEF: Wall Street Journal: Philanthropists Turning to Program-Related Investments in Microfinance

A recent Wall Street Journal report covered the move among many philanthropists away from donations toward program-related investments (PRIs), which produce returns that can be re-invested in other efforts: “For a long time only big institutions like the Ford Foundation pursued [PRIs]. Given the lingering economic slump, though, program-related investments are getting attention from a wider array of potential donors – including smaller family foundations, investors with donor-advised funds and everyday individual givers.”

by Christopher Maggio -

MICROFINANCE EVENT: 2009 Toronto Microfinance Conference

Event Name: 2009 Toronto Microfinance Conference

Event Description: The 2009 Toronto Microfinance Conference is meant for anyone who is interested in microfinance and wants to learn about initiatives and how they can get involved. Events include an information session called “Microfinance 101,” workshops on microfinance in Africa, Latin America, North Africa, Asia and the Middle East, and time set aside for networking. There will also be panel discussions with representatives from Panel Discussion with panelists from: Rotarian Action Group on Microcredit,  Grameen Foundation, FINCA International, Access Community Capital, Federation for Women, and Scotiabank.

Event Date/Time: November 14, 2009: 9:00 am – 4:00 pm

by Christopher Maggio -

MICROFINANCE EVENT: Azerbaijan Microfinance Association Investors Fair in Baku, Azerbaijan, October 7, 2009

Microfinance Event: Azerbaijan Microfinance Association Investors Fair in Baku, Azerbaijan, October 7, 2009

Event Name: Azerbaijan Microfinance Association Investors Fair

Location: Baku, Azerbaijan

Date: October 7, 2009

Event Description: The conference will focus on MFI governance strategy, financial risk management, client protection, opportunities to learn about innovative products, and a chance to access capital investors [1].

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

Cost: AMFA Members: AZN 200 (USD 248)
non-AMFA Members: AZN 250 (USD 310)
International: USD 200

Summary of Event: The day will start with remarks from members of the Azerbaijan Microfinance Association, the Azerbaijani government, and business representatives. There will then be three panels on governance, risk, and client protection, respectively. Lastly, the Investors Fair will be a roundtable to discuss critical microfinance issues [2].

by Sally Levy -

MICROCAPITAL STORY: Microfinance Down in Cambodia: Microfinance Institutions (MFIs) Reduce Loan Volume in First Half 2009

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/crash-of-2008-and-microfinance

The number of loans extended to clients by microfinance institutions (MFIs) declined during the first half of 2009 in Cambodia, according to an article in the Phnom Penh Post [1]. MFIs reported that they are being more cautious in their lending and clients are more nervous about taking out loans. Both factors are being attributed to the downturn in the global economy. The rate of non performing loans (NPLs) also increased during this period and the Cambodian Microfinance Association forecasts this to increase to three percent by the end of the year [1, 2]. A recent MicroCapital story discussed this trend and the increased credit risk rating that the Economist Intelligence Unit has assigned to Cambodia [9].  

by the MicroCapital Team -

CGAP Microfinance Dealbook: May 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for May 2009:

by Goda Thangada -

MICROCAPITAL STORY: Global Partnerships Microfinance Fund 2008 Invests $1.75m in South American MFIs FODEMI, Fundacion D-MIRO and Prisma

The Global Partnerships Microfinance Fund 2008 (GP MFF 2008), a member of the Global Partnerships family of funds, reported three investments in April 2009 to the CGAP Microfinance Dealbook, the monthly report on microfinance market transactions. Equadorian microfinance institutions (MFIs) FODEMI and Fundacion D-MIRO each received USD 500,000 in debt while Peruvian MFI Asociacion Benefica PRISMA received USD 750,000 in debt. MicroCapital previously reported on the launch of the GP MFF 2008 in November 2008.

by Zoran Stanisljevic -

MICROCAPITAL STORY: Co-Operative Bank and Deutsche Bank to Launch a USD 50 Million Microfinance Fund to Directly Target Credit Unions and Co-operatives

Co-Operative Bank and Deutsche Bank (DB) have recently announced the launch of a USD 50 million microfinance fund to target credit unions and co-operatives directly.  The “Global Co-operative Development Fund” (GCDF) is expected to launch this month and will be open to investors in the fourth quarter 2009.  The fund aims to provide capital to the poorest communities with a geographical target of Central Europe, Asia, and Latin and Central America.  The GCDF will be managed by Deutsche Bank and sub-managed by Oikocredit.  The Co-operative Bank will be principal sponsor for the GCDF.  No additional information regarding how the fund will function is provided.

by Zoran Stanisljevic -

PAPER WRAP-UP: Microfinance Funds Continue to Grow Despite the Crisis, by the Consultative Group to Assist the Poor (CGAP)

By Xavier Reille and Jasmina Glisovic-Mezieres, CGAP, with research assistance from Yannis Berthouzoz, Symbiotics, published by Consultative Group to Assist the Poor (CGAP), April 2009, CGAP Brief, 4 pages, available at: 

http://www.cgap.org/gm/document-1.9.34437/CGAP%20Brief_MIV_FinancialCrisis.pdf

by the MicroCapital Team -

CGAP Microfinance Dealbook: April 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for April 2009:

by Goda Thangada -

MICROCAPITAL STORY: CreSud SpA Invests $900K in Comixmul of Honduras, UMF Arariwa of Peru, and Proempresa Edpyme of Peru

CreSud SpA, a socially responsible Italian private investment company, has reported three microfinance investments in the past three months to the CGAP Microfinance Dealbook, a monthly report on microfinance capital market transactions. In February 2009, CreSud SpA granted a loan of USD 250,000 to Comixmul of Honduras. In March 2009, CreSud SpA loaned USD 250,000 to Unidad Microfinanza Arariwa (UMF Arariwa) of Peru. In April 2009, CreSud SpA closed an equity investment of USD 400,000 in Proempresa Edpyme of Peru. CreSud SpA invests in companies with a minimum portfolio of USD 500,000 and three years of operational history. As of 2006, 88 percent of CreSud SpA’s investments were in Latin America and the Caribbean.

by Laura Anderson -

MICROCAPITAL STORY: MicroPlace Offers Online Microfinance Investment in Nicaraguan Credit Alternatives Fund issued by Working Capital for Community Needs with Interest Rates up to 6 percent

MicroPlace, a microfinance website, eBay Inc. company, and SEC registered broker/dealer, has launched a microfinance product available to retail investors with up to a six percent return, according to its website and a report on the Corporate Social Responsibility Newswire (CSR).  The opportunity comes just as Americans are considering what to do with their tax refunds.  According to a poll on taxsoftware.com, 58 percent of Americans planned to either save or invest their refunds and 27 percent planned to donate a portion to charity.  The investment offering targets loans to the poor in Nicaragua and is part of the unsecured, USD 20 million Nicaraguan Credit Alternatives (NICA) Fund offering, issued by Working Capital for Community Needs (WCCN).   Interest rates range between zero and six percent, terms vary by Note.  The Notes can be purchased directly from WCCN (traditional modality, minimum investment size USD 1000) or online through the MicroPlace website (online modality, minimum investment size USD 20). Traditional Notes are not senior to Online Notes.  The Notes are not registered with the Securities and Exchange Commission in reliance upon the exemption in Section 3(a)(4) for charitable organizations. To read a prospectus on the offering, click here.  For more information contact Annie Lescroart at MicroPlace.com, (anlescroart@ebay.com) (408)-376-7458.