MIKROFOND

MIKROFOND EAD

THE FIRST MICROFINANCE NGO IN BULGARIA TRANSFORMED INTO COMMERCIAL LENDING COMPANY

WITH CAPACITY TO REACH 5000 CLIENTS

MIKROFOND

ACCESS

Mikrofond provides access to finance for 2 000 microentrepreneurs.

MIKROFOND

EMPOWERMENT

Microfinance encourages people to improve their well being through income generating activities

MIKROFOND

SUCCESS

Improvement of local economy builds on the success of the micro businesses.

MIKROFOND

History

• Microfond EAD originates from the Microcredit Program of the Resource Center Foundation, which has started in 1999 with the support of the Soros Economic Development Fund and OSI. The Sole Owner of Mikrofond EAD is Mikrofond – Sofia Foundation.

• Mikrofond EAD provides financing and support to micro- and small-sized enterprises in regions with high level of unemployment and low economic growth.

• Three year experience of consulting large Bulgarian bank in microfinance.

• Over 1500 loans for one year.

MIKROFOND

MISSION

• To support the initiative people in Bulgaria, providing alternative financial and other services. We believe that the small business is the engine of the economic development and has the greatest growth potential.

• Our clients are micro- and small-sized companies that meet difficulties in financing their business projects by the existing banks and other financial

MIKROFOND

Outreach

• Seventeen offices covering – 215 municipalities – more than 75% of the territory – more than 90% of the population

MIKROFOND

FUNDING

• 3 mln USD credit line from Raiffeisenbank (Bulgaria) EAD

• 0.3 mln USD loan subsidized loan from Soros Economic Development Fund

• 0.77 mln USD in registered Equity

MIKROFOND

Results

• Outstanding portfolio – 5,5 mln BGN (2.75 mln EUR) 1 100 clients

• Portfolio at risk > 30 days 2.7%• Repayment rate 98.8%• Business structure

– Wholesale 9%– Retail 26%– Production 15%– Field Farming 9%– Stock-breeding 8%– Services 22%

– Others 11%• Over 350 start-up businesses funded

• 40% of clients are women

MIKROFOND

Transparency

• Implemented Quality Management System of Mikrofond EAD, certified in compliance with ISO 9001:2000

• Appointed financial external auditor Ernst&Young

• Member of Microfinance Center Poland

MIKROFOND

FORECASTS

• Outstanding portfolio end 2005 – 10 000 000 BGN• Number of microloans outstanding – aprox. 2 432• Expected market share (200 000 total market) – 1,5%• 2005 operational costs – 850 000 BGN• 2005 financial costs – 450 000 BGN• 2005 total income – 1 400 000 BGN• Needed funding • Equity up to - 1 000 000 EUR• Loan – up to 3 000 000 EUR