by Jaclyn Berfond -

MICROCAPITAL STORY: Microfinance Lessons for a Macrofinance Mess

As world leaders met in London to discuss the global financial crisis, one of the items on the agenda was how the major economies and international institutions could mitigate the impact of the crisis on the world’s poorest counties. Several measures were proposed to reaffirm the G-20’s commitment to the most vulnerable. Yet, a recent Christian Science Monitor article argues that global financial players should instead be listening to what the poor have to say about financial institutions and take some lessons from the microfinance sector.

by Jaclyn Berfond -

MICROCAPITAL STORY: Bangladesh Central Bank Push for Agricultural Finance Triggers Citibank-led Loan Syndication: BURO Bangladesh to Raise $14.5m to Support Agriculture Microfinance Program

BURO Bangladesh, a microfinance institution in Bangladesh, announced that it will raise Tk 100 crore (USD 14.52 million) through syndicated loans. The financing, arranged by Citibank NA, will be used to expand BURO’s microcredit program, with 30 percent going towards their agricultural loan portfolio. According to The Daily Star, the expansion follows on a push by the central bank of Bangladesh to encourage agricultural credit programs.

by Zoran Stanisljevic -

MICROFINANCE EVENT: The 2009 Pacific Northwest Microfinance Conference: May 8-9, 2009 at Seattle Pacific University, Seattle, Washington

The 2009 Pacific Northwest Microfinance Conference, hosted and sponsored by Seattle Pacific University School of Business & Economics, the SBE Microfinance Initiative, and the Center for Integrity in Business

May 8-9, 2009 at Seattle Pacific University, Seattle, Washington

by Laura Anderson -

MICROCAPITAL STORY: Muhammad Yunus Warns of the Dangers of Foreign Currency at Sa-Dahn Microfinance Conference

Muhammad Yunus, the Nobel Laureate who made microfinance a success in Bangladesh, has warned of the pitfalls for microfinance institutions relying on foreign money.  The comments, reported by The Hindu Business Line, came at the recent Sa-Dahn National Microfinance Conference 2009 in New Delhi, India.

by Laura Anderson -

MICROCAPITAL STORY: Cambodian Microfinance Lenders See Number of Non-Performing Loans Rising Above 1 Percent in 2009

According to a report in the Phnom Penh Post, Cambodian microfinance institutions predict that as the economic crisis spreads, their level of non-performing loans (NPLs) will grow. “Our major concern now is that nonperforming loans will go up,” said Bun Mony, a member of the board of the Cambodian Microfinance Association (CMA) and chairman of Sathapana Limited, a Cambodian MFI with 37,000 clients.  “We forecast that NPLs will increase to 1 percent or higher this year due to the economic downturn that is affecting our clients’ incomes.”  According to Bun Mony, the NPL rate at his institution was only 0.16 percent at the same time last year.  Even as the global economy slows, Bun Mony still expects his overall loan portfolio to grow.  Sathapana lent USD 37.5 million last year and expects that to rise to USD 44.5 million in 2009.

by Bharathi Ram -

MICROCAPITAL STORY: Center for Financial Inclusion at ACCION International Holds First Meeting of the Steering Committee for the Campaign for Client Protection in Microfinance; International Leaders Endorse the Six Principles of Client Protection in the Meeting

In the face of client protection failures in the mainstream financial sector, the first meeting of the Steering Committee for the Campaign for Client Protection in Microfinance was hosted by the Center for Financial Inclusion at ACCION International. The meeting was attended by members of the committee which comprises of twenty-three leaders from various microfinance organizations representing a diversity of regions, types of institutions and expertise. The purpose of the meeting was aimed at ensuring microfinance providers worldwide remain committed to serving their clients’ best interests. According to a press release on PRNewsire, the leaders attending the meeting officially endorsed the six principles of client protection in microfinance launched by the campaign at the Clinton Global Initiative in September, 2008. MicroCapital had previously reported on the official launch of the campaign; more information on the story can be found here. The press release states the meeting has a ‘sense of importance and timing’ given the current financial crisis sweeping the world and the increasing focus on interest rates and transparency.

by Zoran Stanisljevic -

MICROFINANCE EVENT: 4th Annual African Microfinance Conference: Affordable Access to Finance for Low-income African Entrepreneurs to be held in Ouagadougou, Burkina Faso, in the Sub-Saharan Africa region from July 7-10th, 2009

Leonce Kone, Committee Chairman for the Fourth Annual African Microfinance Conference in Ouagadougou

July 7-10, 2009, Ouagadougou, Burkina Faso (Sub-Saharan Africa)

by Laura Anderson -

MICROCAPITAL EVENT: Belgrade to Host Twelfth Annual MFC Conference of Microfinance Institutions Jointly Organized with Microfinance Development Fund Serbia, Co-Sponsored by responsAbility and Blue Orchard

12th MFC Conference of Microfinance Institutions – Global Crisis: Threat or Opportunity for Microfinance?

 MAY 25-27, 2009, The Continental Hotel, Belgrade, Serbia

by Andrea Chu -

MICROCAPITAL STORY: International Finance Corporation (IFC) To Lend USD 450 Million and Increase Its Support of Microfinance Institutions (MFIs) in Colombia, Peru, Ecuador

The International Finance Corporation (IFC), a member of the World Bank Group, plans to lend USD 450 million to Peru, Colombia, and Ecuador over a 12-month period through to June 2009; however, in light of the global financial crisis that that amount may increase. The IFC is also increasing its support of microfinance institutions (MFIs) because they have been deemed an efficient way to lift people from poverty.

by Zoran Stanisljevic -

MICROCAPITAL STORY: Mexico’s Fifth-Biggest Bank Grupo Financiero Banorte SAB is Closing its Microfinance Division Creditos Pronegocio after Experiencing Losses of USD 8.4 Million for 2008

The Wall Street Journal (WSJ)/(Dow Jones) reported that Grupo Financiero Banorte SAB (Mexico’s fifth-biggest bank) is closing its microfinance division Creditos Pronegocio.  The bank suffered losses of USD 8.4 million for 2008.  Alejandro Valenzuela, Grupo Financiero Banorte, chief executive stated to the WSJ that the bank has been in liquidation mode since 2008 and that they “feel that right now it is a major distractions from the big challenges we face.”

by Bharathi Ram -

MICROCAPITAL STORY: Economic Downturn Forces the Cambodian Microfinance Sector to Scale down Recruitment Plans

The rate of job creation and recruitment in the Cambodian microfinance sector is expected to drop sharply this year, according to microfinance industry experts in the region. A press release on the Cambodian based newspaper Phnom Penh Post states that the current global crisis has forced the fast-expanding microfinance institutions (MFIs) in the region to scale down their recruitment plans. The release quotes Mr. Bun Mony, Chairman of the Cambodian MFI Sathapana Limited and member of the Cambodian Microfinance Association (CMA), as saying that the sector-wide employment growth in the region is expected to be only around 5 to 10 percent this year. As per available estimates, this year’s growth forecast is far lower than the past few years which had registered growths of nearly 30 percent.