by Radhika Chandrasekhar -

MICROCAPITAL.ORG BRIEF: ACCION International invests $500,000 for 49.5% Equity Stake in Indian Microfinance Institution Saija Finance Pvt Ltd

ACCION International recently invested USD 500,000 for a 49.5 percent equity stake in Saija Finance Pvt Ltd, [4] a microfinance institution (MFI) based in Northern India that started in April 2008. The investment was made through ACCION International’s ACCION Gateway Fund. [3] Saija is the fund’s fourth investment in India. Other recent investments in Indian MFIs include Swadhaar FinServe, [5] which caters to the urban poor, Lok Capital, [6] which serves social enterprises, and United Villages, [7]  which focuses on the rural poor.

by Christopher Maggio -

MICROCAPITAL.ORG BRIEF: Philippines Central Bank (BSP) to Receive Technical Assistance from International Finance Corporation and German Technical Cooperation (GTZ) to Supervise and Regulate Small and Medium Enterprise (SME) Lending

According to an article in the online publication ‘Trading Markets,’ The Phillippines Central Bank (BSP) has signed an agreement with the International Finance Corporation (IFC), the investment arm of the World Bank, and the German Technical Cooperation (GTZ), a development enterprise of the German government, to receive technical assistance for supervision and regulation of lending to small and medium enterprises (SMEs) [1,2,3,4]. Employees from the BSP will be provided with training programs to enhance supervision and regulation of banks that extend loans to SMEs [1]. Additionally, the IFC and GTZ hope to generally improve BSP examination procedures in terms of SME lending [1]. The ‘Trading Markets’ articles states that SMEs in the Philippines currently struggle with credit access, only receiving 11-21 percent of “total funding requirements,” as opposed to the world benchmark of 30 percent [1]. This agreement, therefore, aims to “[enhance] the enabling policy and regulatory environment” for SME lending [1].

by Diya Chopra -

MICROCAPITAL.ORG STORY: Conclusions from the Global Forum on Remittances Co-Hosted by International Fund for Agricultural Development (IFAD) and African Development bank (AfDB)

The Global Forum on Remittances, co-hosted by the International Fund for Agricultural Development (IFAD) and the African Development Bank (AfDB), recently concluded in Tunis on October 23, 2009. 200 participants involved in remittances attended the forum. The discussion was focused on issues related to workers living abroad who wished to send money back to their families in Africa [1].

by Christopher Maggio -

MICROCAPITAL.ORG STORY: Members of Azerbaijan Microfinance Association (AMFA) Reach Microloan Portfolio of USD 393 Million

According to an article from the online publication, Azerbaijan Business Center, microfinance institutions (MFIs) that are members of the Azerbaijan Microfinance Association have reached a combined microloan portfolio of USD 393 million as of October 1, 2009 [1,2]. Additionally, the number of active borrowers has exceeded 274,600 [1].

by Christopher Maggio -

MICROCAPITAL.ORG STORY: Tanzanian Newspaper ‘The Citizen’ Reports on Performance of ‘Youth Self Employment Foundation’ (Yosefo), a Tanzanian Microfinance Institution (MFI), After 12 Years of Existence

The Citizen, a Tanzanian newspaper, has reported on the performance of the Youth Self Employment Foundation (Yosefo), a microfinance institution(MFI) in Tanzania that has now been in existence for twelve years [1,2]. In this time period, Yosefo has loaned Sh11.6 billion, the equivalent of over USD 8.7 million, to 28,000 borrowers, according to the Citizen’s report on comments from Altemius Millinga, Executive Director of Yosefo [1].

by Hio Kyeng Lee -

MICROCAPITAL.ORG STORY: Developments in the Past Year of Microfinance Regulation Coverage by Microcapital.org

     Microfinance regulation has provided rich fodder for reporting over the past twelve months of coverage by Microcapital.org.  Nearly twelve months ago, in November 2008, Microcapital.org reported on the World Economic Forum’s Inaugural Summit on the challenges posed by regulatory frameworks as policy makers grappled with the question of how to advance microfinance.  Since that time, there have been a number of international agencies as well as developed country governments involved in researching and collaborating on guidelines for the strengthening of microfinance regulation. On the other hand, there have also been doubts about the relevance of regulation to microfinance sector:

by Stefanie Rubin -

MICROCAPITAL.ORG STORY: Remittance Duopoly: International Fund for Agricultural Development (IFAD), African Development Bank (AfDB) and Inter-American Dialogue (IAD) Hold Global Forum on Remittances Calling for More Competition in African Remittance Market

The Global Forum on Remittances 2009, organized by the United Nations’ International Fund for Agricultural Development (IFAD) and the African Development Bank (AfDB) in collaboration with the Inter-American Dialogue (IAD), is calling for the lifting of restrictions and costly fees imposed on the USD 40 billion sent as remittances to Africa each year [1]. The forum, a follow-up to similar forums held in 2005 and 2007, also addressed a proposal by G8 leaders in July 2009 to reduce costs of remittances by 50 percent over the next five years [2, 3].

by Radhika Chandrasekhar -

MICROCAPITAL.ORG STORY: PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) in Indonesia receives $70m financing from International Finance Corporation

Indonesia’s PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) received a USD 70 million financial package from the International Finance Corporation (IFC). The package includes an option to covert USD 15.9 million from debt to equity and a USD 54.1 senior loan or “prime rate” loan. IFC has also committed to help BTPN raise more funding throughout the next three years. [1]

by Christopher Maggio -

MICROCAPITAL.ORG STORY: Daily Monitor of Uganda Reports on Progress of Equity Bank Uganda, Bank Formed After Acquisition by Equity Bank of Kenya

The Daily Monitor Online of Uganda has reported on the progress of Equity Bank Uganda, a microfinance bank that was formed when Equity Bank, a major bank in Kenya, acquired 100 percent of Uganda Microfinance Limited [1,2]. The acquisition, valued at 1.66 billion Kenyan shillings, the equivalent at the time of over USD 26.9 million, was reported by Microcapital in April of 2008 [3].

by Kenny Kline -

MICROCAPITAL STORY: EFSE Invests USD 10 million Into PJSC MEGABANK of Ukraine

The European Fund for Southeast Europe (EFSE) and PJSC MEGABANK, a Ukrainian commercial bank, signed a loan agreement of USD 10 million.  This long-term subordinated loan is intended to allow PJSC to enlarge its capacity to provide access to finance for micro and small enterprises.  This is EFSE’s first investment in the Ukrainian market.[3]

by Christopher Maggio -

MICROCAPITAL.ORG STORY: P500 Billion (USD 10.7 Billion) Bank Loans Exposed to Defaults in Philippines After Tropical Storms

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has estimated that P-500-Billion (USD 10.7 Billion) worth of loans are at risk of default due to financial hardships that have come as a result of the typhoons “Ondoy” and “Pepeng” that hit the Philippines in late September [1,2]. This is 24 percent of the total loan portfolio of the banking sector in the Philippines [1]. Because those most vulnerable are individual and retail borrowers, the microfinance industry has been particularly effected by the storms [2]. The typhoons mainly damaged parts of Luzon and the capital, Manila, which accounts for about 30 percent of the country’s gross domestic product (GDP) [2].