MICROCAPITAL BRIEF: Microfinance Growth Slows in Andhra Pradesh, Quickens in Other Indian States

According to a statement attributed to chief executive officer Mr Alok Prasad of Microfinance Institutions Network (MFIN), a trade association of 46 Indian microfinance lenders, the microfinance sector in the Indian state of Andhra Pradesh is expected to experience reduced growth for the financial year ending on March 31.

MICROFINANCE PUBLICATION ROUND-UP: Disclosure Regimes for Responsible Financial Inclusion; The Thailand Village and Urban Revolving Fund; “Microsavings Works Much Better”

Designing Disclosure Regimes for Responsible Financial Inclusion,” by Jennifer Chien; published by CGAP (Consultative Group to Assist the Poor); March 2012; 23 pages; available at:
http://www.cgap.org/gm/document-1.9.57109/FN_78.pdf

MICROCAPITAL BRIEF: Waseela Microfinance Bank of Pakistan to Commence Operations With $11m in Backing from Egypt’s Orascom Telecom

Waseela Microfinance Bank, a microfinance bank (MFB) in Pakistan, reportedly has been authorized by the State Bank of Pakistan (SBP), the central banking authority of Pakistan, to commence operations and will begin providing financial services nationwide in the upcoming weeks.

MICROCAPITAL BRIEF: Draft Law Would Cut Subsidies, Cap Interest Rates in Sri Lanka, Establish Microfinance Regulatory Authority

The Sri Lankan government recently released a new draft law to regulate microfinance, which would establish a Microfinance Regulatory and Supervisory Authority (MRSA) run by a five-person board of directors.

MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) Asks Reserve Bank of India (RBI) to Assist in Recovering Loans Outstanding in Andhra Pradesh

Microfinance Institutions Network (MFIN), a trade association of 46 Indian microfinance lenders, reportedly has requested that the Reserve Bank of India (RBI) intervene on behalf of microlenders attempting to collect INR 7,000 crore (USD 1.36 billion) in loans outstanding in the Indian state of Andhra Pradesh.

MICROCAPITAL BRIEF: Lok Capital, Proparco Invest $5m in Equity in India’s IFMR Rural Channels and Services

Lok Capital LLC, a Mauritius-based microfinance investment vehicle, and its Proparco, a French development finance institution, have recently invested INR 260 million (USD 5 million) in equity in the Institute for Financial Management and Research (IFMR) Rural Channels and Services, a company of IFMR Trust that provides financial services in rural India.

MICROCAPITAL BRIEF: Mainstreet Microfinance Bank of Nigeria to Utilize Mechanics Fund, Adopt International Financial Reporting Standards

Mainstreet Microfinance Bank (MFB), a Nigerian microfinance institution, reportedly has been selected to access an undisclosed amount of the NGN 1 billion (USD 6 million) take-off fund that was established by the government of Nigeria and the National Automotive Council (NAC) in order to provide lending to mechanics in Nigeria.

MICROCAPITAL BRIEF: Central Bank of Nigeria to Endorse Microfinance Development Fund, More Automated Teller Machines (ATMs), Regulation Related to Electronic Statements, Dispute Resolution

According to a statement attributed to Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), CBN plans to encourage the National Assembly to approve four bills that would tighten regulation of the financial sector.

MICROCAPITAL BRIEF: Business Standard Reports on “New Breed” of Small Indian Microfinance Institutions

A recent article in the Business Standard, an Indian financial newspaper, recaps a few highlights of the Indian microfinance industry in the year following the enactment of the Regulation of Moneylending Act in late 2010 in the Indian state of Andhra Pradesh.

MICROCAPITAL BRIEF: Japan International Cooperation Agency (JICA) Invests $2.6m in First MicroFinance Bank Limited-Pakistan (FMFB-P)

The Japan International Cooperation Agency (JICA), a development institution of the Japanese government, has signed a subscription agreement with the First MicroFinance Bank Limited-Pakistan (FMFB-P) to invest PKR 240 million (USD 2.6 million) in the microbank to assist in FMFB-P’s expansion of microfinance operations in Pakistan.

MICROCAPITAL BRIEF: Russia’s Microfinance Sector Doubles Growth to 32% in 2011, Default Rate Stands at 7%

Microfinance institutions (MFIs) in Russia reportedly disbursed loans of approximately RUR 29 billion (USD 1 billion) to individual borrowers in 2011, representing a 32.2-percent increase from 2010.

MICROCAPITAL BRIEF: GABV Report: Microfinance Institutions, “Values-Based” Banks Stronger than Mainstream Banks

The Global Alliance for Banking on Values (GABV), a nonprofit network of 15 “values-based” banks, released a report it commissioned at its recent annual conference in the Canadian city of Vancouver, British Columbia, suggesting that values-based banks (VBBs), banks that prioritize social progress, are financially stronger than mainstream banks.

MICROCAPITAL BRIEF: European Investment Fund, Banca Transilvania Sign $10m Loan Agreement for Microfinance in Romania

The European Investment Fund, a public-private partnership that provides risk finance to lenders to small and medium-sized enterprises (SMEs) in Europe, and Banca Transilvania, a privately-owned Romanian bank, have signed a EUR 7.5 million (USD 10 million) loan agreement under the European Progress Microfinance Facility, an organization that provides grants and funding to microcredit lenders in the European Union.

MICROCAPITAL BRIEF: Fitch Improves Outlook to Positive for Grupo ACP, Owner of Mibanco of Peru and Forjadores of Mexico

Fitch, a rating agency with headquarters in London and New York, reportedly has affirmed the rating of Peruvian nonprofit holding company Grupo ACP Inversiones y Desarrollo (Grupo ACP) at BB-, indicating an elevated vulnerability to default risk.