MICROCAPITAL BRIEF: Rating Initiative to Stop Subsidizing Microfinance Institution Social Ratings, Will Shut Down Over Two Years

The Rating Initiative (RI), a Luxembourg-based program that supports the use of ratings that include financial and social criteria, is transitioning into a two-year exit phase that includes terminating its subsidies for social ratings of microfinance institutions (MFIs).

MICROCAPITAL BRIEF: Paris Commercial Court Dismisses Petition Filed Against Socially Responsible Investment Platform MICROFIS by Microfinance Nonprofit PlaNet Finance, PlaNIS responsAbility SAS

In a recent press release, Microfinance Investment Services (MICROFIS), a France-based market platform for investors in “responsible finance,” reports that the Paris Commercial Court has dismissed a petition against MICROFIS that was filed jointly by two France-based organizations: PlaNet Finance, a nonprofit that works to alleviate poverty through microfinance, and social investment advisory firm PlaNIS responsAbility SAS, which is held by PlaNet Finance, Switzerland’s responsAbility Social Investments AG and Natixis Asset Management of France [1][2].

MICROCAPITAL BRIEF: Panelists at Toronto International Microfinance Summit 2011 Discuss Interest Rate Pricing, Technological Solutions, Commercial and Philanthropic Funding

In a presentation at the recent Toronto International Microfinance Summit, panelists weighed in on a range of current topics in the microfinance sector, including profitability, the effect of commercial investment and advances in technology.

MICROFINANCE EVENT: Microfinance Investment Transparency and Evaluation in Washington DC, USA, and Online, July 20, 2011

Event Name: USAID Microenterprise Development Office After Hours Seminar #53 – Microfinance Investment Transparency and Evaluation

Event Date: July 20, 2011; 4:00 pm – 5:30 pm EDT

Event Location: QED Group, Washington DC, USA or online

MICROFINANCE EVENT: Asia Society Washington Hosts “Lending To The Poor: Insights on Microfinance in Asia,” May 9, 2011, Washington, DC, USA

Event Name: Lending To The Poor, Insights on Microfinance in Asia

Event Date: May 9, 2011

Event Time: 6:30 pm to 8:00 pm

Event Location: Asia Society Washington, The Cinnabar Room, Whittemore House, 2nd floor, 1526 New Hampshire Ave NW, Washington, DC, USA

MICROFINANCE EVENT: Microfinance Crisis in India: Local and Global Implications – A Panel Discussion, April 8, 2011, Hosted by the American University, Washington DC, USA

Event Name: Microfinance Crisis in India: Local and Global Implications – A Panel Discussion

Event Date: April 8, 2011, 5.00 pm – 6.30 pm

Event Location: Room 120, School of International Service (SIS), American University, Washington DC

MICROCAPITAL BRIEF: MFX Solutions Publishes “Risky Business: An Empirical Analysis of Foreign Exchange Risk Exposure in Microfinance”

MFX Solutions Incorporated, a company based in Washington, DC, that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), today published a study on currency risk exposure.

MICROFINANCE PAPER WRAP-UP: The Impact of International Influence on Microbanks’ Performance: A Global Survey

By Roy Mersland, Trond Randoy, Reidar Oystein Strom, forthcoming in the International Business Review (2010), available for purchase at http://dx.doi.org/10.1016/j.ibusrev.2010.07.006

MICROCAPITAL BRIEF: Brian Cox Highlights Emerging Challenges for Microfinance Institutions (MFIs)

On August 30, 2010, Brian Cox, the president of MFX Solutions LLC, a company which offers currency hedging instruments, highlighted several emerging challenges that microfinance institutions (MFIs) face as they expand such as currency risks, tighter regulation, and tougher capital adequacy requirements in a recent interview with Microfinance Focus.

MICROCAPITAL PAPER WRAP-UP: Microfinance Foreign Exchange Facilities: Performance and Prospects, by David Apgar and Xavier Reille of CGAP

By David Apgar and Xavier Reille, published by CGAP (Consultative Group to Assist the Poor), April 2010, 12 pages, available at: http://www.cgap.org/p/site/c/template.rc/1.9.43712/

“Microfinance Foreign Exchange Facilities,” a paper recently published by CGAP (Consultative Group to Assist the Poor), reviews methods microfinance institutions (MFIs) and microfinance investment vehicles (MIVs) use to deal with foreign exchange risk. It considers the nascent microfinance hedging market by detailing the operations of The Currency Exchange Fund (TCX), Cygma Corp and MFX Solutions LLC (MFX). It concludes by examining the importance of local-currency markets and additional development of the microfinance hedging market.

MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund Invests Total of $2.76m in Microfinance Banks Crezcamos Colombia and Coomuldesa of Colombia and Nueva Vision of Peru

The responsAbility Global Microfinance Fund, headquartered in Switzerland and founded in 2003, has executed debt investments totaling the equivalent of USD 2.76 million to three microfinance banks, according to a report submitted by responsAbility to MicroCapital. The microfinance investment vehicle (MIV) reports total assets of USD 358 million as of 2009 and is one of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid, responsAbility Mikrofinanz-Fonds and responsAbility Microfinance Leaders Fund.

MEET THE BOSS: Discussions on Microfinance Investment Vehicles (MIVs): Interview with Gil Crawford, Chief Executive Officer of MicroVest Capital Management

Mr. Crawford is Chief Executive Officer of MicroVest Capital Management, responsible for the development, management and growth of MicroVest, including developing and implementing business development strategies and supervising investment deals. He led the launch of MicroVest I, LP, a commercial private equity vehicle focused on microfinance in North America. He has over 20 years of experience with microfinance institutions (MFIs) and capital markets and has worked in Latin America, Africa and Asia. 

Previously, Mr. Crawford worked for the Latin American Financial Markets Division at the International Finance Corporation (IFC), created and ran Seed Capital Development Fund and was the Assistant Project Director for Africa Venture Capital Project. Mr. Crawford received his bank training at Chase Manhattan Bank in the mid 1980’s after working in Africa for the Red Cross and the US State Department. He graduated from Johns Hopkins University School of Advanced International Studies (SAIS) (US) in 1983 and Bates College (US) in 1980.

MICROFINANCE EVENT: Microfinance Investment Summit 2010 in Geneva

Event Name: Microfinance Investment Summit

Event Date: March 10 – March 11, 2010 with pre-conference workshops on March 9, 2010

Event Location: Geneva, Switzerland

Event Website: http://www.microfinancesummit.com/

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

Cost: GBP 1199 – GBP 2198 (USD 1880 – USD 3450) depending on the affiliation of the attendee and the number of workshops in which the attendee wishes to participate

Summary of Event: The two-day conference will deal with pressing issues in the microfinance industry. Preceding the conference will be two workshops, one dealing with foreign exchange and interest risk and the other dealing with the establishment of a microfinance institution.

MICROFINANCE PAPER WRAP UP – CGAP Due Diligence Guidelines For The Review Of Microcredit Loan Portfolios, by Robert Peck Christen and Mark Flaming

Written by Robert Peck Christen and Mark Flaming of CGAP (Consultative Group to Assist the Poor), published by the World Bank Group in December 2009, 58 pages, available at: http://www.cgap.org/gm/document-1.9.36521/DueDiligence_TechGuide_ENG.pdf

The purpose of this paper is to provide a method of acquiring an understanding of the underlying quality of the loan portfolio of an microfinance institution (MFI) for banking regulators, donor agencies, and potential investors.

MICROCAPITAL EVENT: Microfinance Investor’s Fair 2009, October 21-22, 2009, in Nairobi, Kenya, Organized by African Microfinance Transparency (AMT) Forum

Event Name: Microfinance Investor’s Fair 2009

Event Date: October 21-22, 2009

Event Location: Nairobi, Kenya, Hotel Intercontinental

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