introduction to roi project by fair credit house ifn s.a. romania emn conference “new product”...
TRANSCRIPT
Introduction to ROI Project Introduction to ROI Project by FAIR CREDIT HOUSE IFN S.A. Romaniaby FAIR CREDIT HOUSE IFN S.A. Romania
EMN ConferenceEMN Conference““New Product” WorkshopNew Product” Workshop
Milan,Milan,44thth June 2009 June 2009
OBJECTIVESOBJECTIVES
To briefly present current products / To briefly present current products / services;services;
To present new services in microfinance To present new services in microfinance programs; programs;
To discuss how such programs could grow To discuss how such programs could grow in the future;in the future;
IntroductionIntroduction
Why did the organization decided to start new services?Why did the organization decided to start new services? Why did we select these specific services? On which Why did we select these specific services? On which
ground?ground? How did we introduced such services?How did we introduced such services? How have our clients been involved in the start of such How have our clients been involved in the start of such
services?services? What are the main results so far?What are the main results so far? What has been the impact of such services on our What has been the impact of such services on our
microcredit activities?microcredit activities? What are the perspectives?What are the perspectives?
IntroductionIntroduction
Brief history of the presenting Brief history of the presenting organization; organization;
Our organisationOur organisation
FAIR CREDIT HOUSE IFN S.A. – FAIR CREDIT HOUSE IFN S.A. – microfinance organisation registered with microfinance organisation registered with the National Bank of Romania in June the National Bank of Romania in June 20082008
Private capitalPrivate capital Executive team – Executive team – experience with experience with
microfinance programmesmicrofinance programmes
ServicesServices
Microfinance for MSMEsMicrofinance for MSMEs
Consultancy and assistanceConsultancy and assistance
Training Training
Accounting servicesAccounting services
Microfinance activityMicrofinance activity
Target group: Loans were disbursed Target group: Loans were disbursed starting with August 2008, mainly for rural starting with August 2008, mainly for rural areas, to SMEs and private farmers areas, to SMEs and private farmers
Credit specifications: max.5-year loans for Credit specifications: max.5-year loans for investment, collateral requested for loans investment, collateral requested for loans bigger than 10,000 Euros, flexible bigger than 10,000 Euros, flexible reimbursement schedulereimbursement schedule
Microfinance activityMicrofinance activity
Average Loans amount: about 14,000 Average Loans amount: about 14,000 EurosEuros
Average loans term: about 26 monthsAverage loans term: about 26 months No defaults and profit registered end year No defaults and profit registered end year
2008 2008
The ROI ProjectThe ROI Project
Initiative of a social solidarity co-operative Initiative of a social solidarity co-operative in Bologna – La Piccola Carovana with the in Bologna – La Piccola Carovana with the Bologna MunicipalityBologna Municipality
Pilot Project for an Entrepreneurial Pilot Project for an Entrepreneurial Operative ReturnOperative Return
Target group: people of Rroma origin and Target group: people of Rroma origin and Romanian citizenship living in the Bologna Romanian citizenship living in the Bologna areaarea
FAIR’s roleFAIR’s role
Legal structure to grant and monitor micro-Legal structure to grant and monitor micro-loans in Romanialoans in Romania
Provider of servicesProvider of services
Type of servicesType of services
Microloans granted to families who want to Microloans granted to families who want to return to Romania and start small return to Romania and start small business of their own (3-year loans, up to business of their own (3-year loans, up to 6,000 Euros)6,000 Euros)
Consultancy and assistance for Consultancy and assistance for registration of small businessregistration of small business
TrainingTraining Monitoring both credit return and small Monitoring both credit return and small
business developmentbusiness development
Why? What’s new?Why? What’s new?
Project consistent with our overall Project consistent with our overall objectivesobjectives
Special interest in activities carried out by Special interest in activities carried out by co-operativesco-operatives
What’s new: the social dimension of the What’s new: the social dimension of the projectproject
Selection of servicesSelection of servicesIntroduction to clientsIntroduction to clients
Types of services - agreed with the Italian Types of services - agreed with the Italian partnerpartner
Selection of potential clients – made by Selection of potential clients – made by the Italian partnerthe Italian partner
Once in Romania – a FAIR officer in Once in Romania – a FAIR officer in charge with the client relationshipcharge with the client relationship
Results so farResults so far
Two micro-credit granted in MayTwo micro-credit granted in May - 4,440 Euros – small vegetable - 4,440 Euros – small vegetable
farm equipmentfarm equipment - 3,330 Euros – cattle, horse - 3,330 Euros – cattle, horse
and cartridgeand cartridge Perspectives for 2009: 5 families to be Perspectives for 2009: 5 families to be
assisted assisted
Impact on our current activitiesImpact on our current activities
Project requiring extra work as compared Project requiring extra work as compared to mere credit granting and monitoringto mere credit granting and monitoring
Rewarding in terms of social and Rewarding in terms of social and economic re-insertion of rroma families in economic re-insertion of rroma families in rural communitiesrural communities
PerspectivesPerspectives
Increase of the number of beneficiariesIncrease of the number of beneficiaries
Good practice model followed by Good practice model followed by disseminationdissemination