HOUSING

31.03.2007.

AGENDAAGENDA

Who are we?Who are we?The most vulnerableThe most vulnerable

Curent situationCurent situationModels of actionModels of action

LoansLoans

OtherOtherTrainingsTrainings

Why us ?Why us ?

WHO ARE WE ?WHO ARE WE ?

* Founded – December,12 2000

* Donors – UNHCR, Sida, JDC, LRC, CWS, ICRC,

EP, Embassy of the Kingdom of Netherlands * Projects - micro loans, housing, trainings, access to market and consulting

COVERAGECOVERAGETeritorial Coverage

1. Beograd

4. Kragujevac

5. Topola6. Novi Pazar

2. Vrbas

3. Šabac

2001

2002 - 2003

20046. Novi Sad

(Head Office)

7. Subotica

8. Sombor

9. Kikinda

10. Pančevo

11. Zrenjanin

The most vulnerable The most

vulnerable

* Refugees

* Single mothers

* IDPs

* Local population

Their families

0

20000

40000

60000

80000

2001 – March 2007

Number of Dependants

23001

Number of disbursed loans

66132

Number of dependants

CURRENT SITUATIONCURRENT

SITUATION

- no legal framework for microfinance

- current social and economics reforms

- banking system

- lack of funds

+ total number of disbursed loans 23001+ successfully finished our courses > 750

CONSTRAINTS

SUCCESSES

Lack of funds

0

1

2

3

4

5

6

7

8

9

10

2001 2002 2003 2004 2005

(Mil. EUR)

Needs

Funds

MODELS OF ACTION

MODELS OF ACTION

* Clients Education

* Micro loan activities

* Access to market and consulting• Course for entrepreneurship

• Vocational training (school for central heating, hair ressing, ceramic tiling, barman/waiter, wrought iron manufacture, culinary, manicure and padicure, wall painting and plastering, bakery, PVC joinery, plumbing)

* Housing

Micro Loans DetailsMicro Loans Details

* Loan amount ranging between EUR 250-4,500.

* Monthly interest rate is 1,2% - 1,5%

* All types of businesses (services, trade, agriculture, animal husbandry, production)

* Repayment period is from 6 to 24 months

* All loans require collaterals

5000

10000

15000

20000

25000

2001 – March 20070

61%Male

39%Female

Gender structure

0

2000

4000

6000

8000

10000

12000

2001 – March 2007

51%

Large City

22%

Town 27%

Rural

Area structure

Business structure (in %)

No of loans0 2500 5000 7500 1000012500

Services58

Animal Husbandry14

Trade 12

Production10

Agriculture6

0

6000

12000

18000

24000

30000

2001- March 2007

13542

No of new employees

28761

No of emp. before Loan

Employees structure

Every disbursed loan results in 0,59 new job created.

Monthly Portfolio Outstanding 2006Month OSP # Active Clients

January 4,082,265€ 3950

February 4,101,304€ 3901

March 4,213,337€ 3900

April 4,338,816€ 3943

May 4,510,117€ 3976

June 4,613,592€ 3987

July 4,697,740€ 3994

August 4,719,648€ 3959

September 4,783,154€ 3946

October 4,896,190€ 3980

November 5,007,288€ 4085

December 5,114,883€ 4163

Month OSP # Active Clients

January 5.063.885€ 4141

February 5.279.058€ 4208

March 5.431.132€ 4215

2007

Monthly Client Retention Rate 2006Repeat

 

49,8%

50,7%

51,8%

51,9%

52,7%

53,8%

55,1%

55,5%

56,1%

57,0%

56,9%

56,8%

Month

# Activ

e Client

s

Loan Cycle

First SecondThird

>=Fourth

January 3950 1984 777 716 473February 3901 1922 778 716 485

March 3900 1879 800 721 500April 3943 1896 817 717 513May 3976 1882 835 706 553June 3987 1841 844 716 586July 3994 1794 852 733 615

August 3959 1761 858 714 626September 3946 1732 862 695 657

October 3980 1713 875 711 681November 4085 1761 898 723 703December 4163 1797 910 740 716

Month

# Active Client

s

Loan Cycle

First SecondThird

>=Fourth

January 4141 1770 916 724 731February 4208 1816 905 728 759

March 4215 1804 885 741 785

2007

Monthly Portfolio at Risk 2006Month PAR > 30 PAR > 30 Value

January 0.74% 30,120€

February 0.96% 39,446€

March 0.83% 34,903€

April 0.86% 37,464€

May 0.78% 34,984€

June 0.67% 30,725€

July 0.59% 27,740€

August 0.58% 27,140€

September 0.73% 34,820€

October 0.66% 32,078€

November 0.52% 25,957€

December 0.56% 28,814€

Average 0.71% 32,016€

Month PAR > 30 PAR > 30 Value

January 0.59% 29,792€

February 0.51% 26,691€

March 0.78% 42,482€

Average 0.63% 32,016€

2007

Monthly Interest Income 2006Month Interest

Penalties Total

Repayment Rate

January 86,356€ 5,344€ 91,700€ 82.68%

February 89,245€ 5,458€ 94,704€ 80.74%

March 97,099€ 5,540€ 102,639€ 84.91%

April 87,625€ 4,782€ 92,407€ 81.58%

May 96,959€ 5,777€ 102,736€ 85.05%

June 95,763€ 5,024€ 100,787€ 83.23%

July 99,008€ 5,593€ 104,601€ 84.41%

August 98,368€ 5,590€ 103,958€ 84.29%

September

97,587€ 5,420€ 103,006€ 83.42%

October 100,621€ 5,746€ 106,367€ 84.35%

November

103,424€ 5,833€ 109,256€ 84.70%

December

104,979€ 4,757€ 109,736€ 85.63%

AVERAGE

96,419€ 5,405€ 101,825€ 83.75%

TOTAL1,157,033

€64,863€

1,221,898€

NA

Month InterestPenaltie

s TotalRepayment

Rate

January 103.594€ 5.916€ 109.510€ 85,06%

February 102.627€ 5.368€ 107.995€ 83,44%

March 108.660€ 5.314€ 113.974€ 84,90%

AVERAGE

104.960€ 5.533€ 110.493€ 84,47%

TOTAL 314.880€ 16.598€ 331.478€ NA

2007

Monthly Write-offs 2006Month

Writen Off Amount Recovered Ammount

January 2,639€ 155€

February 74€ 906€

March 1,609€ 939€

April 24€ 334€

May 1,184€ 544€

June 1,805€ 112€

July 4,402€ 307€

August 2,340€ 463€

September 627€ 447€

October 177€ 423€

November 975€ 387€

December 1,335€ 431€

AVERAGE 1,432€ 454€

TOTAL 17,190€ 5,448€

MonthWriten Off

Amount Recovered Ammount

January 1.249€ 25€

February 380€ 555€

March 107€ 843€

AVERAGE 578€ 474€

TOTAL 1.735€ 1.423€

2007

Courses:- central heating- hair ressing- ceramic tiling- barman/waiter- wrought iron manufacture- culinary- manicure and padicure- wall painting and plastering- bakery- PVC joinery- plumbing

Clients EducationClients Education

Semi-professional production

Vocational training

- Loan- Housing

- Course of entrepreneurship

Market

OtherOther

* Course for entrepreneurship

* Access to market and consulting

* Microfinance school for other NGOs

WHY US ?WHY US ?

* We are good at what we are doing* Achieved results :

Total Number of loans disbursed 23.001

Total Amount disbursed (EUR)

29.715.552

Impact - Number of new jobs created 13.542

Impact - Number of dependants 66.132

Delinquency - P.A.R. 0.6 %

* Successful clients

AGENDAAGENDA

AboutAboutHistoryHistory

Loans ConditionsLoans ConditionsLoans Size and TermLoans Size and Term

BeneficiariesBeneficiaries

ApplicantsApplicantsCollateralsCollaterals

Follow UpFollow UpResultsResults

ABOUTABOUT

* Housing Project is designed to provide a permanent solution for refugees and IDP's, still accommodated in collective centers or in very poor private accommodation.* The specific objective of this project is to offer alternate solutions to people in need of normal living conditions and support them in realization of durable solutions for their future life.

HISTORYHISTORY

* First housing loans MicroFinS disbursed in November 2004 in cooperation with Church World Service (CWS). Criteria required that beneficiaries are residents of Serbia's collective centers but have began building houses and left them unfinished in their initial phase due to the lack of funds.

* In 2006 MicroFinS has launched new Housing in cooperation with UNHCR and CWS.

LOANS CONDITIONSLOANS CONDITIONS

- late payment penalty fee is 0,2% per day, calculated on monthly installment basis;

- all loans are offered at flat interest rate of 0.8% per month;

- loan amount is ranging between 2.000 € and 4.000 € with the repayment period from two up to four years;

- individual lending methodology is utilized;

LOANS CONDITIONSLOANS CONDITIONS

- initial loan disbursements are in national currency; monthly repayments are required in national currency as well;

- all payments have to be made through correspondent bank or post offices; credit officers are not permitted to accept cash payments;- clients are required to provide one or combination

of several types of guarantees or collaterals.

LOANSLOANS

* Loan size for this new Housing is ranging according to the following policy:Amount Period

2,000.00 € 24 months

3,000.00 € 36 months

4,000.00 € 48 months

The beneficiaries must meet the following

criteria:

The beneficiaries must meet the following

criteria:* refugees ought to have citizenship of Serbia;

* permanent source of income at the moment of application (at least one member of the family should be employed);

* property status in the country of origin and in Serbia.

CollateralsCollaterals

* promissory note signed by the borrower and 2 guarantors;

* administrative ban on salary;

* bank account authorization.

Selected applicants received a loan linked

to:

Selected applicants received a loan linked

to:* building materials purchase;

* costs of hiring highly qualified labor for adaptations or plumbing and electrical installations within the existing object;* buying of already existing rural property (house) that needed reparation.

Beneficiaries follow-up by MicroFinS

Beneficiaries follow-up by MicroFinS

* MicroFinS team will do a follow up and provide photos of all beneficiaries, in order to monitor the progress of their individual situation, to evaluate the initial use of credits,

as well as to assure smooth loan repayment process until the end of the repayment period.

RESULTSRESULTS

* MicroFinS achived folowing results in housing:

CWS CEB Over All

Nr. of Active Accounts

50 136186

Outs Balance118,796.16

€455,535.99

€574,332.1

5 €

Total Aproved Amount

158,447.00 €

535,000.00 €

693,447.00 €

Average Loan Amount

3,168.94 € 3,933.82 €3,551.38 €

Average Nr. of Terms

47 47.147.05

Total Nr. of Dependents

181 453634

Average Nr. of Dependents

4 33.50

Mile LalovićMile Lalović

before

after

Nikola Jakovović

Nikola Jakovović

before

after

Zdravko Berić

Zdravko Berić

before

after

Rajko JakovićRajko

Jaković

before

after

Momir BorakMomir Borak

before

after

Neca Vukojević

Neca Vukojević

before

after

Mile LalovićMile Lalović

before

after