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].
Search Results for: measure
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Publishes Working Draft of “Microfinance, Financial Crises, and Fluctuations in Food and Fuel Prices” by Adrian Gonzalez
Microfinance Information Exchange, a US-based, nonprofit data provider, recently drafted a paper entitled “Microfinance, Financial Crises, and Fluctuations in Food and Fuel Prices” that examines the potential impact of large-scale financial crises on the microfinance sector.
MICROFINANCE EVENT: Global Insurance Conference 2011, Sponsored by World Bank and International Finance Corporation (IFC), June 1 – June 2, 2011, Washington, DC, USA – Registration Closes May 25, 2011
Event Name: Global Insurance Conference
Event Date: June 1, 2011 to June 2, 2011
Event Location: Preston Auditorium, World Bank Headquarters, Washington, DC, USA
MICROCAPITAL WRAP-UP: Measuring Changes in Client Lives through Microfinance: Contributions of Different Approaches; By Mayada El-Zoghbi and Meritxell Martinez; Published by CGAP (Consultative Group to Assist the Poor)
By Mayada El-Zoghbi and Meritxell Martinez; published by CGAP (Consultative Group to Assist the Poor); May 2011; 4 pages; available at http://www.cgap.org/gm/document-1.9.50966/MeasuringBenefits_Brief.pdf
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.
MICROCAPITAL BRIEF: Center for the Economic Analysis of Risk (CEAR) at Georgia State University, Munich Re Foundation of Germany Announce Joint Collaboration on Microinsurance Research
The Center for the Economic Analysis of Risk (CEAR), based in the US city of Atlanta, and Munich Re Foundation, a nonprofit founded by German reinsurer Munich Re, recently entered into an agreement to collaborate on microinsurance research.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency in Poland Through $21m Loan to BZ WBK Finance & Leasing
In its effort to boost energy efficiency in Eastern Europe, the European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London, recently loaned EUR 15 million (USD 21.6 million) to BZ WBK Finance & Leasing, a subsidiary of Polish leasing company Bank Zachodni WBK, that provides medium- and long-term leasing to small and medium-sized enterprises (SMEs).
MICROCAPITAL BRIEF: Funding Shortage Continues in Indian State of Andhra Pradesh, Loans Overdue to SKS Microfinance Total $27m
London-based news agency Reuters recently reported that since the October 2010 passage of legislation by the state government of Andhra Pradesh in response to the turmoil in the microfinance sector there, funding still remains an issue for microlenders. This is despite efforts by India’s central bank, the Reserve Bank of India, to ease the liquidity crunch. According to Reuters, the issues of mission drift among for-profit players – putting short-term profits ahead of sustainability – and an uncertain regulatory outlook have contributed to the funding shortage [1]. Reuters also states that domestic lenders exercising extra caution when lending to Indian microfinance institutions (MFIs) further deter foreign investors [1].
MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Prisma is First Fully Certified User of Grameen Foundation’s Progress out of Poverty Index (PPI)
Grameen Foundation, a US-based nonprofit, has announced that “Asociacion Benefica Prisma”, a Peru-based microfinance institution (MFI), has become the first fully certified user of the Progress out of Poverty Index (PPI) [1].
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases Benchmarking Reports on West Africa and Arab Region
Microfinance Information Exchange (MIX), a nonprofit, US-based data provider, recently released its “2010 WAEMU – Microfinance Analysis & Benchmarking Report “ and “2010 Arab Microfinance Analysis and Benchmarking Report”.
MICROCAPITAL BRIEF: Indian Budget Plans Include Partnering with Small Industries Development Bank of India (SIDBI) to Create $22m India Microfinance Equity Fund
The Indian government began review of a draft 2011-2012 budget, which reportedly includes a partnership with the Small Industries Development Bank of India (SIDBI), a government-owned bank providing credit to microfinance institutions, to allocate funds totaling approximately INR 100 crore (USD 22 million) to traditionally underserved groups via a newly established India Microfinance Equity Fund.
MICROCAPITAL BRIEF: Federal Microfinance Bill May Replace Existing State Microfinance Legislation in India
The Ministry of Finance in India recently unveiled its plan to pass a new microfinance bill to regulate the microfinance sector. The ordinance passed by the government of the Indian state of Andhra Pradesh in October 2010, in response to a series of farmer suicides, severely curtailed lending activity in the region. The bill, which is reportedly being drafted along the lines of the recommendations made by the Reserve Bank of India’s Malegam Committee which was formed in the wake of the unrest in Andhra Pradesh, is likely to render state legislation on microfinance null and void.
MICROCAPITAL BRIEF: Associations Social Performance Working Group of Social Performance Task Force (SPTF) Authors “Donor Strategies for Advancing Social Performance through Microfinance Associations”
The Social Performance Task Force (SPTF) and the Small Enterprise Education and Promotion (SEEP) Network, recently published a technical note authored by SPTF’s Social Performance Working Group for Associations that highlights the proceedings of their meeting during the Social Performance Task Force Annual Meeting in June 2010.
MICROCAPITAL BRIEF: Microcredit Summit Campaign Releases State of the Microcredit Summit Campaign Report 2011, Reports 128m Poor People Received Microfinance Loans in 2009
The Microcredit Summit Campaign, a project that was launched in 1997 by US-based nonprofit advocacy group RESULTS Educational Fund (REF), recently released the State of the Microcredit Summit Campaign Report 2011, a plenary account of the recent trends, challenges and achievements in the microfinance industry, at the National Press Club in Washington, DC. The report indicated that 128 million poor people received microloans in 2009, more than was recorded in any of the organization’s previous reports. In 1997, 7.6 million were estimated to have received microloans.
MICROFINANCE PAPER WRAP-UP: Exploring Linkages: Women’s Empowerment, Microfinance and Health Education; By Lora du Moulin, Jean Pouit, Leyla Sharafi, Aminata Toure, Kai Lashley, Barbara Ryan, Gayle Nelson and Divya Alexander; Published by United Nations Population Fund (UNFPA)
By Lora du Moulin, Jean Pouit, Leyla Sharafi, Aminata Toure, Kai Lashley, Barbara Ryan, Gayle Nelson and Divya Alexander; published by the United Nations Population Fund (UNFPA); design and analysis of study by Research and Applications for Alternative Financing for Development (RAFAD); 2011; 15 pages; available at http://www.unfpa.org/public/home/publications/pid/7262
MICROCAPITAL BRIEF: Mobile Technology as an Alternative Channel for Foreign Aid Delivery May Increase Access to Finance
Recent developments in mobile technology, including biometric identification and point-of-sale devices, are being considered as alternatives to current foreign aid delivery mechanisms. The possible shift towards electronic transfers of foreign aid comes at a time of rising concern regarding its delivery methods and effectiveness.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Eases Access to Social Performance Data of Microfinance Institutions (MFIs), Announces 11 Social Performance Indicators in Conjunction With Social Performance Task Force (SPTF)
The Microfinance Information Exchange (MIX), the US-based provider of data relating to microfinance, now offers social performance data on microfinance institutions (MFIs) directly from each MFI profile on mixmarket.org.
MICROCAPITAL BRIEF: Vikram Akula of SKS Microfinance Views Recommendations of Reserve Bank of India (RBI) Malegam Committee as Boost to Microfinance
Vikram Akula, chairman of SKS Microfinance, a for-profit microfinance institution (MFI) in India, has stated that the recommendations released by the “Malegam Committee” of the Reserve Bank of India (RBI) in response to unrest in microfinance in the Indian state of Andhra Pradesh, would give a boost to the microfinance sector by further encouraging bank lending to MFIs. Mr Akula also stated that the proposed microloan interest rate cap of 24 percent would not impact SKS Microfinance as its lending rate falls below the cap, but that it would impact smaller institutions that are yet to achieve efficiencies of scale. He viewed this recommendation as a measure to encourage consolidation within the sector.