by Ryan Hogarth -

MICROCAPITAL STORY: The Microcredit Summit Campaign Announced that Microcredit Reached More than 106 Million of the World’s Poorest in 2007

The Microcredit Summit Campaign revealed that more than 106 million of the world’s poorest received a microloan in 2007. The finding is a product of the Microcredit Summit Campaign’s annual survey of microfinance institutions (MFIs) around the world. The 106 million are made up of individuals who, at the time of receiving their first loan, were either at the bottom half of those below their nation´s poverty line, or living on less than USD 1 per day (adjusted for purchasing power parity).

by Lori Curtis -

MICROCAPITAL STORY: Bill and Melinda Gates Provide US$700,000 to Microcredit Summit Campaign’s “Movement Above US$1 Per Day Threshold” Project

The Bill and Melinda Gates Foundation has donated USD 700 thousand in the form of a grant to the Microcredit Summit Campaign‘s (MSC) project entitled “Movement Above the US One Dollar Per Day Threshold“. The funds will be used to form expert panels who will develop credible methodologies for determining the number of microfinance clients who have crossed the USD 1 a day threshold between 1990 and the current year. The funds will also be used to research and produce studies based on the recommendations of these panels. A Bangladesh Expert Panel has already convened, an India Expert Panel is currently being formed, and an Ethiopia Expert Panel is being planned for 2009. While this is the first time the Bill and Melinda Gates Foundation has provided funding to the Microcredit Summit Campaign, it has previously provided funding to the RESULTS Educational Fund, MSC’s founding organization.

by Bharathi Ram -

MICROCAPITAL STORY: Multilateral Investment Fund (MIF), a Fund Administered by the Inter-American Development Bank, to Provide $20m in Financing to the Emergency Liquidity Fund (ELF) to Help Latin American and Caribbean Microfinance Institutions

The Multilateral Investment Fund (MIF), an autonomous fund administered by the Inter-American Development Bank (IDB), will provide up to USD 20 million in financing to the Emergency Liquidity Facility (ELF), a fund located in San Jose, Costa Rica. According to a press release on the IDB website, the funding would be used to help Latin American and Caribbean microfinance institutions ‘weather economic crisis and natural disasters’ and overcome liquidity shortages.

by Bharathi Ram -

MICROCAPITAL STORY: ACCION Invests $4.2m in Two Microfinance Companies: Mauritius Based Leapfrog Investments Ltd and Swiss Based Paralife, Invests in Initiatives Aimed at Moving Microfinance ‘Beyond Credit’

ACCION International, a microfinance organization founded in 1961, has invested a total of USD 4.2 million in ParaLife, a Swiss microinsurance holding company and LeapFrog Investments, a USD 100 million microinsurance investment fund headquartered in Mauritius. In a press release found on Microfinance Gateway, Ms. Monica Baron, the principal director of ACCION’s Gateway Microfinance Innovation Fund, said that the investment by ACCION was aimed at moving microfinance ‘beyond credit’. The press release quoted Ms. Baron as saying the future of financial inclusion lay in offering the working poor a basic suite of all financial tools instead of providing only credit. In this regard, Ms. Baron mentioned that ACCION believed both ParaLife and LeapFrog Investments would be leaders for the industry, developing flexible, responsive insurance products that would meet the needs of a broad range of low income clients.

by Jeffrey Erfe -

MICROCAPITAL EVENT: Pondicherry University’s 2009 International Conference on Indian Microfinance

JANUARY 21 TO JANUARY 23, 2009, PUDUCHERRY, INDIA

Pondicherry University’s Commerce Department will host an “International Conference on Microfinance” with support from various Indian agencies, including the National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI), and the National Institute of Rural Development (NIRD). The conference will be held at the Department of Commerce in the School of Management of Pondicherry University in Puducherry, India.  University researchers, banking professionals, and representatives from non-governmental agencies (NGOs) and microfinance institutions (MFIs) are welcome to attend. 

by Jeffrey Erfe -

PIONEERS IN MICROFINANCE: Six Pioneers in Latin America: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico

Microcapital has identified the following six microfinance “pioneers,” individuals who have made long-standing contributions to the evolution and promotion of microfinance practices and/or technology. While not all of these pioneers hail from Latin America, all have been instrumental to the development of microfinance in that region. These pioneers are: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico. Below are short descriptons of the contributions of each:

by Iyanna Holmes -

MICROCAPITAL STORY: SKS Microfinance Raises $75.4m in Equity Capital in Transaction Led by Sandstone Capital

SKS Microfinance Pvt. Ltd. has announced the closing of a fourth round of equity financing in which it raised Rs 366 crore, approximately USD 75.4 million.  The transaction was led by Sandstone Capital, a U.S. hedge fund based in Boston, MA.  Also participating in the transaction were existing investors Kismet Capital and SVB India Capital Partners, an affiliate of Silicon Valley Bank.  Edelweiss Capital was the investment banker to the issue.

by Iyanna Holmes -

MICROCAPITAL STORY: International Business and Finance Network (IBF Net) and Islamic Relief Worldwide Host an Islamic Microfinance Training Program

The Islamic Business and Finance Network (IBF Net), a global network of students, researchers, and finance professionals, and its Institute of Microfinance and Development together with Islamic Relief Worldwide, an international development and relief organization, held an international training program and workshop to discuss the nuances of Islamic microfinance was recently held in New Delhi.    The program was attended by over sixty participants from the corporate sector, NGOs, and academics from India, Bangladesh, Sri Lanka and Afghanistan.

by Jeffrey Erfe -

MICROCAPITAL STORY: Inter-American Development Bank (IADB) Projects First Time Drop in Real Value of Remittances to Latin America and the Caribbean in 2008

The Inter-American Development Bank (IADB) recently announced a projection that the value of remittances sent by migrant workers to their families in Latin America and the Caribbean will grow in 2008 by its slowest rate on record.  Migrants sent home about USD 66.5 billion last year but may increase that amount by about 1.5 percent in 2008, bringing the yearly total to USD 67.5 billion.   Despite the nominal increase, remittances in 2008 may for the first time contribute 1.7 percent less (p. 1) to household incomes after accounting for rising Latin-American inflation and the falling U.S. dollar. 

by Scott Everett -

MICROCAPITAL STORY: The Global Financial Crisis And Microfinance

As financial markets struggle internationally, some microfinance institutions (MFIs) have begun to see downstream effects in the form of rising lending rates. Royston Braganza, chief executive officer of Grameen Capital India observed “the demand for funds is high because microfinanciers have drawn up aggressive growth plans” and “the cost of funds remains a concern due to the 2 percent increase in just the last quarter.” These factors could make fundraising very difficult for microfinance institutions in cases where they have not built up proper reserves according to K. Vinod Kumar, Assistant Vice-President of member services at SKS Microfinance.

by Greg Casey -

MICROCAPITAL STORY: Examination of Fitch Rating Standards for Microfinance Institutions

The credit ratings assigned to corporations affect the cost of borrowing money in international capital markets. Microfinance institutions (MFIs) are no exception. As more and more MFIs look to raise money from capital markets, their credit ratings will become increasingly important in their ability to provide financial services at a low cost. Fitch Ratings is a premier international ratings agency, which has evaluated a number of MFIs around the world. This story will examine how Fitch approaches ratings of microfinance.

by Greg Casey -

MICROCAPITAL STORY: Foromic Conference, hosted by the Inter-American Development Bank, to Focus on Responsible Finance, Response to International Crises, Rural Finance, Housing, Technology, Venture Capital and the Importance of Networks

On October 8-10, the Inter-American Development Bank (IDB) will host the sixth edition of the Forum on Microenterprise (FOROMIC). Aside from a general discussion on microfinance in Latin America and the Caribbean, the conference will focus on responses to international crises, rural finance, housing, technology, venture capital and the importance of networks. To learn more about this event, please read this previous MicroCapital story.

by Sarah Knapp -

MICROCAPTIAL STORY: Inter-American Development Bank’s Awards for Microenterprise Development Will be presented at the Inter-American Forum on Microenterprise (FOROMIC) in Paraguay to Recognize Advances in Microfinance

The Inter-American Development Bank (IDB) recently announced that the Awards for Microenterprise Development will be presented at the IDB’s 11th Inter-American Forum on Microenterprise (FOROMIC) in Asuncion Paraguay, in October 2008. It will be organized by the government of Paraguay as well as by the IDB’s Multilateral Investment Fund (MIF), which promotes inclusive private sector growth through grants and investments.