open days 2007 micro-credits for regional and local development brussels, 10 october 2007
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Open Days 2007
Micro-credits for Regional and Local Development
Brussels, 10 October 2007
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% of low income householdsw/bank accounts
Georgia – 1%Azerbaijan – 16%Ukraine - 17%Romania – 22%Poland – 67%
Poland microcredit demand study:
• 2 mln potential clients• 14% existing micro-ent• 86% potential ent
There are 65 mln low income households and entrepreneurs in ECA.
Less than 5% has access to financial services
Avg. MFI’s penetration rate: 3%
Financial exclusion is high and the demand for microfinance significant
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Average non-bank MFI in Eastern Europe
Gross loan portfolio: US$ 12 million
Active borrowers: 6,400
Depth of outreach: 83%
Female clients: 49%
Rural borrowers: 50%
Sustainability: 127%
PAR>30 days: 4%
Funding structure
5%
36%
10%
16%
29%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%other
commercial loans
concessional loans
earnings
grants
owner equity
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Current Constraints and Gapsfor the development of non-bank financing
Enabling environment
tranformation options interest rate regulation tax codes non-profit status definition barriers to MFI borrowing
Funding Growing demand for commercial funding
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Current Constraints and Gapsfor the development of non-bank financing
Infrastructure access to credit bureaus limited or non-
existant weak country level associations limited specialised consulting support
Market coverage gaps limited scale and depth of ourtreach, urban bias (unless targeted to serve rural
areas)
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Current Constraints and Gapsfor the development of non-bank financing
Products and services current operations are for credit only Limited products for start-ups
Institutional gaps strategic planning limited in scope weak governance systems cost accounting and treasury functions missing HR functions underdeveloped Systems for managing social performance not
in place
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Action Research
Policy Work
Sector monitoring and analysis
Training and Consulting
Other MFIs
Donors
Investors
Policy makers
107 member institutions in 26 countries across Central & Eastern Europe, Caucasus, Central Asia and Russia
Networks’ role in promoting inclusive finance: example Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent
States Member
MFIs
Regional Networking & Information Exchange
Support to Country Networks
Market studies