by Zoran Stanisljevic -

PAPER WRAP-UP: A Closer Look at Consolidation: The Sonata-Jeevika Acquisition, by Akhand Tiwari and Michael Chasnow

Akhand Tiwari and Michael Chasnow, IFMR Centre for Microfinance’s co-authors, provide an in-depth look at an acquisition in Indian microfinance: Sonata Finance’s purchase of Jeevika Livelihood Support Organization’s microfinance operation in August 2007. The Institute for Financial Management and Research (IFMR) Centre for Microfinance was established in 2005 with the objective to improve the accessibility and quality of financial services for the poor through research, knowledge dissemination and evidence-based policy for MFIs. This paper explores the acquisition and insights it may have for other microfinance practitioners.

by Bharathi Ram -

MICROCAPITAL STORY: Global Alliance for Banking on Values Launched in The Netherlands; Eleven Banks Join to Form the Alliance

Eleven banks have joined to form a new alliance called The Global Alliance for Banking on Values in a move to build a positive alternative to the current crisis in the global financial system. According to a press release on the Netherlands based Triodos Bank’s website, this new partnership plans to develop new ways of building organizations better suited to long-term sustainable thinking and also to develop new forms of ownership and economic cooperation. The alliance was launched at an event held in The Netherlands from March 2-4, 2009. The event was also attended by Her Royal Highness Princess Máxima of The Netherlands, a former banker and former member of the United Nations Group on Inclusive Financial Sectors, and Achim Steiner, Executive Director of the United Nations Environment Program. The eleven member alliance was founded by the Bangladesh Rural Advancement Committee (BRAC) Bank based in Bangladesh, ShoreBank Corporation the United States based community development and environment bank and Triodos Bank in The Netherlands. Other member banks of the alliance include Alternative Bank ABS in Switzerland, Banca Popolare Etica in Italy, Banex, Banco del Exito in Nicaragua, the GLS Bank in Germany, Mekur Bank in Denmark, Mibanco, Banco de la Microempresa in Peru, New Resource Bank in the United States and the XacBank in Mongolia.

by Andrea Chu -

MICROCAPITAL STORY: Expanding Microfinancing in Latin America

In his article, published in British newspaper Financial Times, Jonathan Wheatley reports that, as the global banking system sinks into its worst crisis since the 1930s, there is a resurgence of interest in microfinance among Latin American banks. Several articles and papers have reported on this up and coming trend.

by Yanni Hao -

MICROCAPITAL STORY: The European Bank for Reconstruction and Development (EBRD) Provides $3.8m Loan to Inicjatywa Mikro with Technical Assistance Funded by the European Commission (EC) to Support the Development of Micro and Small Enterprises in Poland

The European Bank for Reconstruction and Development (EBRD) is providing the microfinance institution Inicjatywa Mikro with a 3.8 million USD loan to aid the development of micro and small enterprises in Poland. The loan is supported by technical assistance funded by the European Commission, the executive branch of the European Union. The financing comes under the EU/EBRD Preparatory Action Framework, which supports micro and small enterprises in the new EU member states, and aims to generally provide medium and long-term financing from the EBRD combined with technical assistance funded by the European Commission.

by Lori Curtis -

MICROCAPITAL STORY: Uganda’s Global Trust Bank Plans Expansion Throughout East Africa

Global Trust Bank, owned by the Industrial and General Insurance (IGI) Plc of Nigeria and the National Insurance Corporation of Uganda (NIC) is contemplating opening branches in Rwanda, Burundi and Southern Sudan but says that expansion throughout Uganda’s rural areas is not part of its plan.  Global Trust Bank has been described as a “new indigenous Ugandan commercial bank” in East African Business week, after it acquired Uganda’s Commercial Microfinance Limited (CMF) in July 2008. IGI of Nigeria made the purchase of CMF in order to start up Global Trust Bank, which began operations in November 2008.  MicroCapital covered the initial acquisition and additional information can be found here.  Global Trust Bank has inherited CMF’s eight branches and six agencies throughout Uganda and recently named Richard Byarugaba as its CEO.

by Lori Curtis -

MICROCAPITAL STORY: USAID AND RBAP’S MABS Expands Rural Banking Nationwide in The Philippines

The Philippines’ Microenterprise Access to Banking Services (MABS), a program of the Rural Bankers Association of the Philippines (RBAP) and the United States Agency for International Development (USAID) plans to expand and increase the number of borrowers using rural banks nationwide. MABS aims to increase the number of borrowers among participating rural banks by more than 375 thousand from 2008 to 2013. The program originated in Mindanao, where it has provided training and technical assistance to rural banks for the past ten years and acts as the implementing agency for USAID’s Mindanao Peace and Development Fund (MPAD Fund) and plans to expand throughout the Philippines. The Mindanao Economic Development Council (MEDCo) is the government implementation and overseeing body for MABS.

by Scott Everett -

MICROCAPITAL STORY: John Deere Foundation Grants $1.2 Million to Opportunity International to Fight Hunger in Africa

Opportunity International, one of the world’s largest microfinance organizations, received a $1.2 million grant from the John Deere Foundation to provide increased access to financing for the hunger-afflicted in Africa. OI forecasts that the grant will have a $10.6 million economic impact over the next three years. The grant will be used to benefit farmers, food processors and retailers and their ability to provide affordable food to the rural poor in Malawi and Mozambique.

by Lori Curtis -

MICROCAPITAL STORY: Indonesia’s MBK Ventura, Egypt’s Al Tadamun, and Grameen Bank’s Nurjahan Begum Recognized at Grameen Foundation 2008 Awards

The achievements of the Grameen Bank‘s Nurjahan Begum, Indonesia’s Mitra Bisnis Keluarga (MBK) Ventura, and Egypt’s Al Tadamun were recognized on November 12, 2008 at the Grameen Foundation’s 2008 Awards in Washington D.C. The awards were held in conjunction with its annual Knowledge Sharing Roundtable discussion, which this year discussed the implications of the global financial crisis on microfinance. Nurjahan Begum received the Susan M. Davis Lifetime Achievement Award for her work in microfinance for over 30 years, including her efforts to organize women in Bangladesh’s poorest villages and leading the fight for the rights of disadvantaged women. MBK Ventura of Indonesia received the Excellence in Microfinance Award for its leadership its efforts to ensure that Indonesia’s poorest citizens receive financial services, and Al Tadamun of Egypt was awarded the Pioneer in Microfinance Award in recognition of its program to provide financial services to Cairo’s poorest women.