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MICROFINANCE EVENT: Third International Conference on Micro Finance, January 22-24 2010, Pondicherry University, Pondicherry, India
Event Name: Third International Conference on Micro Finance
Location: Pondicherry University, Kalapet, Pondicherry – 605 014 India
Event Description: This event is a conference that aims to collaborate with National and International Research centers, and involve economists, socialists, administrators, policy makers, and NGOs, to discuss strategies and policies to eradicate poverty in India and the world through microfinance. Participants may submit contributions of original research work, which has not been published or submitted for publication elsewhere to be published, reviewed, and discussed in the conference. [1]
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
MICROCAPITAL.ORG STORY: Bandhan Gets Rs 250-cr (USD 51.9) Million Credit Line From The Government-Backed Small Industries Development Bank of India
Bandhan, a seven-year-old microfinance institution (MFI) based in Kolkata, India has received a credit line worth over USD 51.9 million from the Small Industries Development Bank of India (Sidbi), a government-backed bank focused on investing in the “Micro, Small and Medium Enterprises Sector” (MSME) of India [1,2,3]. This comes after Sidbi extended credit worth over USD 20.7 million to Bandhan last fiscal year [3].
MICROFINANCE EVENT: Clinton Global Initiative (CGI) Fifth Annual Meeting September 22-25, 2009, New York City, U.S.
Event Name: Clinton Global Initiative (CGI) Fifth Annual Meeting
Event Date: September 22-25, 2009
Event Location: Sheraton New York Hotel and Towers, New York City, NY, U.S.
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
MICROCAPITAL.ORG STORY: Financiera Independencia (Independencia) Announced Increase in Line of Credit With Government-Backed Sociedad Hipotecaria Federal (SHF) From Ps. 600 Million (USD 45.2 Million) to Ps. 700 Million (USD 52.7 Million)
Financiera Independencia (Independencia), a microfinance bank based in Mexico City, has received an increased credit line from Sociedad Hipotecaria Federal (SHF), a government-backed bank that provides funding and guarantees for financial institutions [1,2,3]. The line of credit has now reached 700 million pesos (USD 52.7 million) from the previous amount of 600 million pesos (USD 45.2 million) [3]. The fund will mature in March 2011, which makes it the earliest maturity of all of Independencia’s funds [3]. Independencia’s Chief Executive Officer Noel Gonzalez has commented that the funding “[has brought the bank] one step closer in achieving [its] goal of diversifying funding sources in the medium term so that no single source represents more than 25% of the company’s debt” [3].
MICROCAPITAL.ORG STORY: U.S. Senators Introduce Microfinance Growth Fund (MGF) in Latin America and Caribbean, Backed by Overseas Private Investment Corporation (OPIC), Multilateral Investment Fund (MIF), and Inter-American Investment Corporation (IIC)
United States Senator Bob Menendez of the state of New Jersey, U.S. recently announced plans to invest in the Latin American and Caribbean (LAC) microfinance sector. The U.S. administration will launch a Microfinance Growth Fund (MGF) with the following organizations: the Overseas Private Investment Corporation (OPIC), an independent U.S. government agency which assists with investments in developing countries; the Multilateral Investment Fund (MIF), an autonomous fund administered by the Inter-American Development Bank (IDB); and the Inter-American Investment Corporation (IIC), an affiliate of the IDB which supports private sector and capital market development in LAC countries.
MICROCAPITAL.ORG STORY: Basix Chairman Vijay Mahajan Advocates The Use Of Interest-Free Microfinance And Islamic Finance Techniques To Help Muslim Clients in Small Communities In India
According to a report entitled ‘Islamic way of microcredit the best way to help the poor: Basix Chief’ [1] which is available on the Two Circles online information portal [2], the chairman of the Indian MFI, Basix [3], Mr Vijay Mahajan, was stated to have strongly advocated the use of interest free microcredit or equity financing as an appropriate way of enabling the poor in India gain financial independence. Speaking at the inaugural session of an orientation and training camp on interest free micro-financing in Hyderabad, Mr Mahajan was quoted as stating that financing techniques where the investor and the microentrepreneur share both the loss and profit or ‘micro equity finance’ is particularly suitable for poor people although he did caution that it will work most effectively in small communities where people know and trust each other and where the Islamic concept of ‘Iman’ or honesty can thrive.
Calling All Experts in Microfinance Regulation: Please Help Shape Guidelines
To advance on an improved regulatory framework for microfinance operations, the Multilateral Investment Fund (MIF) of the Inter-American Development Fund (IDB) supported the activities of a regional working group lead by the Association of Supervisors of Banks of the Americas (ASBA) with the collaboration of International Consulting Consortium, Inc. (ICC, Inc.). The support included a regional survey to regulators throughout the region, which laid the basis for an initial set of draft “Guidelines of Principles for the Effective Regulation and Supervision of Microfinance Operations.” These guidelines are currently available in summary form for an industry consultation process for comments from selected industry operators.
MICROCAPITAL.ORG STORY: Islamic Solidarity Fund For Development Approves $5m Loan For Kyrgyz Republic And $10m Loan For Tajikistan To Fund Micro-enterprises And Boost Microfinance Sector
In a recent report by the Saudi Press Agency [1], it was reported that the Islamic Solidarity Fund for Development (ISFD) [2] has approved two microfinance projects, one in the Kyrgyz Republic and the other in Tajikistan, worth USD 15 million in total. The ISFD is a subsidiary organ of the Organisation of Islamic Conference (OIC) [3] and was established under a resolution of the Second Islamic Summit Conference in Lahore. The aims of the ISFD are, among others, to provide emergency relief to communities in Islamic states and to help Muslim minorities and communities in OIC member countries combat poverty.
MICROCAPITAL STORY: SME Rating Agency of India Limited (SMERA) Launches Ratings for Microfinance Institutions
SME Rating Agency of India Limited (SMERA), a joint initiative of the Small Industries Development Bank of India, Dun & Bradstreet Inc., and several public and private sector banks, has launched a rating service for microfinance institutions (MFIs). SMERA-MFI Rating is an independent agency that will assess the financial and social performance of MFIs in India.
MICROFINANCE STORY: Small Business Development Finance Trust (SBDFT) of Guyana Provides Over 540 Microfinance Loans Equivalent to $711,046
According to the Starbroek News, the Small Business Development Finance Trust (SBDFT) of Guyana reported that it had funded over 540 micro and small loans to the value GYD 147.2 million (equivalent to USD 711,046) in 2008. SBDFT was created in 2002 with the objective to provide financial and advisory services to low income households in Guyana. Starbroek News reported that in the Trust’s Annual Report, it stated an accumulated surplus equivalent to USD 179,638 as of December 2008 compared with USD 146,801 at the end of 2007.
MICROCAPITAL STORY: Inter-American Development Bank’s Multilateral Investment Fund (MIF) Invests USD 2.15 million in Centro de Investigación y Desarrollo Regional (CIDRE) to Expand Microfinance Services
The Inter-American Development Bank’s Multilateral Investment Fund has approved a USD 2 million loan and USD 150,000 in technical cooperation to help Centro de Investigación y Desarrollo Regional (CIDRE) to expand access to credit and other financial services for small producers, micro and small enterprises and rural communities in Bolivia. The funding will allow CIDRE to expand its loan portfolio, as well as assist in the transition into a regulated microfinance institution (MFI).
MICROCAPITAL STORY: $10b Islamic Solidarity Fund for Development (ISFD) Releases First Annual Report Including Details of its Microfinance Support Program (MFSP) Worth $500m
The Islamic Solidarity Fund for Development (ISFD), a program of the Islamic Development Bank (IDB), has released its first annual report. The report describes the first year as being spent setting the basic foundations for the ISFD including establishing procedures and developing guidelines. The original target of the fund was USD 10 billion with contributions to be made by IDB and IDB member countries. As at the end of 2008 USD 2.61 billion had been pledged. This comprised of USD 1.61 billion from 36 member countries and USD 1 billion from the IDB. Saudi Arabia had committed USD 1 billion, Kuwait USD 300 million and Iran USD 100 million. MicroCapital first reported on the launch of this fund in March 2008.
MICROCAPITAL STORY: Indian Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Likely to Extend Credit Guarantee
The Indian government is considering increasing its credit guarantee scheme for micro and small enterprises (MSE) in the upcoming 2009-2010 budget through its Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). The existing guarantee for member lending institutions of this scheme does not cover bank loans to MSEs that are secured by collateral. A finance ministry source claims that the Reserve Bank of India (RBI) has put forward this proposal and is working on it with the ministry.
MICROCAPITAL STORY: Fund-raising Continues In India – Kerala’s ESAF Microfinance And Investments Raises $2.5 Million Through Sale Of Minority Stake To Opportunity International Australia’s Subsidiary, Dia Vikas Capital
It was recently reported by Ruchika Sharma in VC Circle, a specialist South Asian journal on venture capital, that a South India based MFI, ESAF Microfinance and Investments (EMFIL) has raised Rupees 12 crore (approximately USD 2.5 million). According to the MIX Market portal, a database which provides financial and other information on MFIs across the globe, EMFIL was established in 1992 and is a regulated non-bank financial institution which is modeled along the lines of Grameen Bank. It is stated in EMFIL’s profile on the MIX Market that the MFI’s total assets as at 31 March 2008 is USD 21, 838,532 and it has active 145,712 borrowers. EMFIL’s total equity is reported to be USD 1,169,903 and it has a profit margin of 3.03%. Its return on assets is said to be 0.71 percent and return on equity is 16.74 percent. The services offered by EMFIL include microcredit, microinsurance, funds transfers and micro-energy loans. Kerala-based EMFIL raised the amount by selling 20 percent of its stake to Dia Vikas Capital Private Limited, a 100% subsidiary of Opportunity International Australia. No further information about the transaction is currently available in the public domain.
MICROCAPITAL STORY: New book entitled “Microfinance for Bankers and Investors, Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid” by Elisabeth Rhyne released by McGraw-Hill
Publishing company McGraw-Hill Professional has released “Microfinance for Bankers and Investors” by Elisabeth Ryne, managing director of the Center for Financial Inclusion at ACCION International. The book explores the challenges of profitably delivering credit, savings, insurance, and remittance services tailored to serve the so-called bottom of the pyramid (BOP), the four billion people in the world who live on less than USD 3,000 per year. The book offers sixteen in-depth case studies, on ventures by companies such as Citibank, Visa, and Sequoia Capital, exploring successful solutions in product design, last-mile delivery to remote villages and urban slums, and technological innovations that reduce costs and provide new means of payment and remittance to populations previously tied to a cash economy.
MICROCAPITAL STORY: Microfinance firms in the Philippines take to ratings
In a recent report by Paolo Luis G. Montecillo in the Business World in the Philippines, it was observed that microfinance institutions in the Philippines have started to approach international rating firms with the hope that independent ratings will attract foreign investments and improve institutional operations. The president and chairman of Rural Green Bank of Caraga, Joseph Omar O. Andaya, noted that the bank was able to obtain a million-peso loan after securing a rating from Milan-based Microfinanza Rating. In addition, the assessment by Microfinanza Rating allowed Mr. Andaya to learn about institutional strengths and weaknesses of his institution, the latter of which included high operating costs and inefficient operations. Rural Green Bank is now in discussions with Blue Orchard Microfinance Investment Managers, a Switzerland-based fund, in relation to a loan for an amount almost equivalent to a quarter of its 1.6-billion peso loan portfolio. The Green Bank was established in 1975 and has a 4-diamond rating on the MIX Market portal. It does not appear to have submitted updated information for 2008. However, latest figures on the MIX Market portal show that Green Bank has a gross loan portfolio of USD 30,524,872 and 72,742 active borrowers as at 31 December 2007. Green Bank’s key sources of funding are loans, savings and shareholder capital.
MICROCAPITAL STORY: Inter-American Development Bank’s Multilateral Investment Fund (MIF) and Corporation Andina de Fomento (CAF) Back Ratings For Microfinance Institutions
The Inter-American Development Bank’s (IDB) Multilateral Investment Fund (MIF) and Corporacion Andina de Fomento (CAF) have announced they will support a project to assist small-scale microfinance institutions (MFIs) in Latin America and the Carribbean obtain credit risk ratings and performance assessments. The new project will give priority to MFIs with loan portfolios between USD 1 million and USD 15 million, with average loans not exceeding USD 3,000. The MIF and CAF will help cover part of the cost of the credit risk ratings and performance assessments: the MIF will provide a grant of USD 986,161, CAF will provide USD 200,000 and participating MFIs will provide USD 400,000.