Archive for November, 2009
Posted on November 30, 2009 - by boris
India: AU Financiers is planning to raise an overall funding of Rs 65 crore…
International Finance Corporation (IFC), the private investment arm of World Bank, is planning to put Rs 35 crore ($7 million-$7.5 million) in Rajasthan’s AU Financiers Pvt Ltd. The company, which is registered as a non-banking financial company (NBFC), provides finance to rural and semi urban areas. These include services like vehicle loans and general insurance, besides microfinance.
AU Financiers, which last year raised funding from Motilal Oswal Ventures Capital, is planning to raise an overall funding of Rs 65 crore. The Jaipur-headquartered firm plans to use the funds for expansion in Rajasthan and other states. It currently has 57 offices, most of which are in Rajasthan, with a presence in Maharashtra and Gujarat.
IFC, which is focusing on the bottom of the pyramid, has been aggressively investing in India microfinance and other companies providing finance to the unbanked.
Source: http://www.vccircle.com/500/news/ifc-to-invest-rs-35-cr-in-au-financiers
Posted on November 30, 2009 - by boris
IFC Promotes Coordinated Support to Liberia’s Private Sector for Rapid Development…
IFC, a member of the World Bank Group, has affirmed its commitment to expanding activities in Liberia to contribute to the country’s development through the private sector.
IFC is working to maintain a unified approach in the development of Liberia’s private sector. In partnership with the World Bank and the African Development Bank, IFC is supporting a Joint Assistance Strategy to ensure that efforts of World Bank Group and other partners are well coordinated and relevant based on development needs and government priorities. At the same time, IFC is working closely with members of the private sector to promote public-private dialogue on reform that encourages more investment in the country.
At the end of Fiscal Year ending June 2009, IFC made new commitments worth approximately $13 million in the country. This includes a $10 million investment to Salala Rubber, a $1.1 million investment to AccessBank Liberia and a $2 million Trade Finance line to Liberian Bank for Development and Investment.
Source: http://www.auto-mobi.info/index.php?option=com_content&task=view&id=9679&Itemid=50
Posted on November 30, 2009 - by boris
UN–HABITAT Sri Lanka office invites MFIs to upgrade areas with less basic facilities…
The UN–HABITAT Sri Lanka office is inviting microfinance institutions and non-governmental organisations to invest in upgrading under-served settlements (areas with less basic facilities) in urban areas.
UN–HABITAT has set up a credit guarantee mechanism, with government support, to allow banks to lend housing upgrading loans to Sri Lanka’s slum communities, through micro finance institutions. The credit guarantees are offered through the Lanka Financial Services for Underserved Settlements (LFSUS), a non profit company.
“LFSUS was set up as a credit guarantee institution, to bring commercial banks to the table. Traditionally banks will not lend to this category of people because the banks require securities to lend against, and need collateral,” said the Chairman of the LFSUS, Chandula Abeywickrema, last week at a forum on Leveraging Finance for Low Income Settlers in Under-served Settlements in Sri Lanka.
Source: http://www.sundaytimes.lk/091129/FinancialTimes/ft27.html
Posted on November 30, 2009 - by boris
J.P. Morgan launches securities lending services in Taiwan…
J.P. Morgan Worldwide Securities Services on November 26 announced the launch of its securities lending capabilities in Taiwan to help asset managers and institutional investors increase the performance of their securities portfolios with Taiwanese assets while providing them with risk-adjusted returns.
Through these capabilities, J.P. Morgan will be able to offer securities lending solutions to its clients with Taiwanese assets. J.P. Morgan’s customized securities lending solutions allow lenders to define individual program parameters to meet their specific risk/reward requirements by using separate cash accounts.
Having the ability to control the eligibility of counterparties helps clients mitigate risk more efficiently. J.P. Morgan also provides a robust indemnification program against borrower default supported by the Bank’s strong balance sheet.
Source: http://www.finchannel.com/news_flash/Banks/52852_J.P._Morgan_Launches_Securities_Lending_Services_in_Taiwan/
Posted on November 30, 2009 - by boris
OPIC Board approves $25 million to support Micro and SME Lending…
The Board of Directors of the Overseas Private Investment Corporation (OPIC) approved a $25 million loan to a parent company of 22 development-oriented banks. Proceeds of the loan will be used to expand lending to micro and small and medium-sized enterprises (SMEs) at a time when sources of financing have diminished due to the global financial crisis.
The OPIC loan will provide ProCredit Holding (PCH), one of the most successful organizations globally in creating financial institutions that provide finance for micro and small businesses in developing countries, with capital in order to expand their lending.
OPIC has partnered extensively with ProCredit institutions during the last several years, including loans to ProCredit institutions in Ukraine and Moldova. The ProCredit group has performed steadily throughout the global financial crisis.
Source: http://www.opic.gov/news/press-releases/2009/pr112409
Posted on November 27, 2009 - by boris
Bosnia and Herzegovina: EUR 110 million to boost local economy…
The European Investment Bank (EIB) has announced on November 26 the signature of three separate loan contracts for a total amount of EUR 110 million aimed at boosting the economy of Bosnia and Herzegovina and supporting the country’s economic recovery efforts.
EUR 50 million via Intesa Sanpaolo Banka for small and medium sized enterprises (SMEs) and priority projects. EUR 50 million via IRBRS-Republic of Srpska Investment-Development Bank for SMEs and local infrastructure projects. EUR 10 million via LOK Microfinance for small and micro-enterprises, including start-ups.
These three operations constitute a major contribution to the development of projects in those economic sectors not adequately supported by financial services and also to making funds available to a vast platform of small and micro-sized enterprises to the benefit of an important section of the local economy.
Source: http://finchannel.com/news_flash/Banks/52810_Bosnia_and_Herzegovina:_EUR_110_million_to_boost_local_economy/
Posted on November 27, 2009 - by boris
World Bank predicts robust economic growth for Nigeria…
In spite of the gloomy economic atmosphere, the World Bank has predicted robust growth for the Nigerian economy in 2010.
Mr. Ismail Radwan, Private Sector and Financial Specialist of the World Bank, said that the biggest impact from the financial crises has been, until recently, the fall in commodity prices, especially the fall in the price of oil which had since rebounded to about $80 per barrel “so, it seems that the crisis is over for Nigeria.”
Radwan also said that the on-going reform in the banking sector was a step in the right direction adding that the bank would partner with the Federal Government in its bid towards entrenching sound corporate governance practices in the country’s financial sector.
Source: http://www.punchng.com/Articl.aspx?theartic=Art20091127236539
Posted on November 27, 2009 - by boris
Village Enterprise Fund (VEF) has received $100 thousand from Arcus Foundation…
Village Enterprise Fund (VEF), an experienced micro-enterprise organization, has received $100,000 grant from the Arcus Foundation, a Kalamazoo, Michigan-based foundation that is the largest global funder of great apes conservation.
The grant will be used to fund an innovative, integrated development/conservation program in the communities surrounding Uganda’s Budongo Forest, an important conservation area in East Africa. The Budongo Forest, part of the Albertine Rift, is home to a wealth of plant and animal life, including more than 600 chimpanzees.
Founded in 2000 by President Jon L. Stryker, the mission of the Arcus Foundation is to achieve social justice that is inclusive of sexual orientation, gender identity and race, and to ensure conservation and respect of the great apes. The Foundation works globally and has offices in New York City and Cambridge, UK, in addition to the Kalamazoo office.
Source: http://www.seattlemicrofinance.org/microfinance-projects-to-support-wildlife-conservation/2009/11/23
Posted on November 27, 2009 - by boris
EMRC and African Development Bank call for entries for a $15 thousand Project Incubator Award…
The African Development Bank (AfDB) has confirmed its sponsorship of the EMRC-AfDB Project Incubator Award. The award recognises sustainable business ideas that embody African-inspired entrepreneurship and innovation while demonstrating the potential economic and social impact their project holds for their local community.
The award will be presented in Amsterdam at the Africa Finance & Investment Forum 2009 (AFIF09) Gala Evening on the 14th of December 2009. Winners will receive the cash prize of $15 000 in order to bring their winning project to life and will receive ongoing support and guidance from both EMRC and the African Development Bank.
Delegates attending the Africa Finance & Investment Forum 2009 in December will have the opportunity to put forward their development project ideas to be considered for grand prize of $15 000.
Source: http://www.modernghana.com/news/251284/1/emrc-and-african-development-bank-call-for-entries.html
Posted on November 27, 2009 - by boris
Uganda: Four men accused of operating illegal microfinance institution…
The police in Kampala have arrested four men accusing them of operating an illegal microfinance institution in Katwe, a city suburb. Katwe Twegate Microfinance has been operating since 2008 but its managers had not registered it with Bank of Uganda as the law requires.
The Spokesperson of police, Judith Nabakooba says that many Ugandans in different parts of the country have lost millions of money to conmen who are running unregistered finance institutions.
Joseph Lwanga, one of the bank managers arrested told police that they were not conmen but a finance institution helping its members in Katwe to save money.
Source: http://www.ugpulse.com/articles/daily/news.asp?about=Four+arrested+over+fake+bank+&ID=13845
Posted on November 27, 2009 - by boris
Asian Development Bank approves a loan of $10 million to Cambodia…
The Asian Development Bank (ADB) on Thursday approved a loan of $10 million to Cambodia, to help the government ease the effects of the global slowdown and improve its financial system.
“Cambodia has taken many positive steps to develop its financial sector since the instability of the 1970’s and 1980’s, but still faces policy gaps, capacity constraints and other challenges,” Samiuela Tukuafu, Senior Financial Sector Specialist in ADB said.
The loan would be for a period of 24 years, with a grace period of eight years. The interest rate would be 1% during the grace period and 1.5% during the rest of the time, the Asian Development Bank said.
Source: http://www.rttnews.com/ArticleView.aspx?Id=1141381&SMap=1
Posted on November 26, 2009 - by boris
ADB Extends Budget Reform Assistance to Philippines’ Local Governments…
The Asian Development Bank (ADB) will support the Philippines’ ongoing efforts to transfer responsibility for the delivery of basic services from the central government to the local government level.
The ADB’s Board of Directors today approved a $225 million loan for Subprogram 2 of the Local Government Financing and Budget Reform Program, which aims to improve the efficiency and effectiveness of service delivery by expanding fiscal resources and financing options for local governments.
“Decentralization has brought choices closer to the people while opening up space for innovative responses and solutions to service delivery issues,” said Tariq Niazi, Senior Public Sector Management Specialist in ADB’s Southeast Asia Department. “This new program will allow local governments to enhance their capacity to plan and budget for the general welfare of their communities in a transparent and accountable way.”
Source: http://www.finchannel.com/news_flash/Banks/52689_ADB_Extends_Budget_Reform_Assistance_to_Philippine_Local_Governments/
Posted on November 26, 2009 - by boris
World’s unbanked turn to cellphones for money services…
The mobile phone will in 10 years be the tool of choice for the world’s 2.7 billion unbanked people, a new study says.
More than two billion people who have no bank accounts will be using it for simple financial transactions, says the survey by CGAP, a microfinance group based at the World Bank, and the UK’s Department for International Development (DfID).
“The fact that many of the 2.7 billion people who currently don’t use a bank will have access to branchless banking methods such as mobile phones and the internet by 2020 is a huge step towards financial inclusion for people in developing countries,” said UK Minister for Trade and Development Gareth Thomas.
Source: http://www.businessdailyafrica.com/Company%20Industry/-/539550/805820/-/t72l44z/-/
Posted on November 26, 2009 - by boris
Zambia’s President Opens Planting Season at IFC Supported Farm…
Zambian President Rupiah Banda has officially opened the country’s planting season at a maize and dairy farm supported by an IFC project that is helping Zambian farmers access the finance and skills they need to boost their productivity. IFC is a member of the World Bank Group.
“IFC’s Zambia Emergent Farmer Finance and Support Program provides access to finance, technical support, and business training to 50 Zambian farmers, helping them become sustainable commercial farmers who produce high-quality products. The program, launched in 2008, expects by 2013 to support 300 farmers with training and $30 million in financing,” IFC reported.
The planting ceremony welcomed hundreds of farmers from the region to a farm in Zambia’s Southern Province run by Loti Chiluli, who has more than doubled his output thanks to support from IFC and IFC’s partners.
Source: http://finchannel.com/Main_News/Business/52690_Zambia%E2%80%99s_President_Opens_Planting_Season_at_IFC_Supported_Farm/
Posted on November 26, 2009 - by boris
India: Microfinance institutions wary of housing loans over default fears…
Concerns of defaults are holding back microfinance institutions, or MFIs, from a full-fledged expansion into home loans even as they seek to turn their clientele of poor borrowers into consumers and compete with commercial banks.
MFIs, established mainly to lend small sums to the unbanked poor to help them earn a living, say there’s potentially a huge demand for home loans among their customers. “This is unsecured lending. Risks are too many,” said a senior official at SKS Microfinance Ltd, India’s largest MFI, who didn’t want to be named. “It’s a different and a difficult ball game. We do not know yet how to price it.”
Home loans would be an extension of the consumer finance business of MFIs, who have already gone beyond their traditional role by financing the purchase of mobile phones, water purifiers and even refrigerators and are seeking to expand their product offerings to compete with commercial lenders.
Source: http://www.livemint.com/2009/11/23212808/MFIs-wary-of-housing-loans-ove.html
Posted on November 26, 2009 - by boris
Pakistan: SBP allows microfinance banks to raise foreign currency loans from international donor agencies…
Liquidity-starved microfinance banks and institutions can now raise foreign currency-denominated loans from international donor agencies, the State Bank of Pakistan (SBP) said on Wednesday.
The purpose of the loan, which can also come from commercial financial institutions, should only be to finance loan portfolio of microfinance banks and borrowing can be raised in US dollar, euro, pound sterling and Japanese yen.
“This decision will help microfinance providers access different sources of debt that may offer longer tenor, and in turn reduce their funding risk,” the SBP said in a press release. Microfinance banks would have to borrow these foreign currency loans for a minimum period of two years and loan pricing will be based on a reference rate such as London Inter-bank Offered Rate (LIBOR), it added.
Source: http://www.thenews.com.pk/daily_detail.asp?id=210416
Posted on November 25, 2009 - by boris
IFC Helps Nepal Plan Expanding Financial Services to Underserved Communities…
IFC, a member of the World Bank Group, is helping microfinance institutions and banks in Nepal discuss strategies for expanding financial access by mobilizing deposits and using banking technologies such as payment cards, mobile phones, and retail agents.
“Microfinance institutions, banks, payment providers, regulators, and development partners from Nepal along with institutions from Bangladesh and India participated in the discussions at a workshop hosted by IFC at the request of the Nepal Rastra Bank,” IFC reported.
Senior executives from Nepal Rastra Bank, Nirdhan Bank, Everest Bank, Bangladesh’s BRAC Bank, and Indian firms BASIX and FINO, were among those participating in the workshop on Expanding Access to Finance in Nepal: The Opportunity of Deposits and Banking Technologies.
Source: http://finchannel.com/Main_News/Business/52617_IFC_Helps_Nepal_Plan_Expanding_Financial_Services_to_Underserved_Communities/
Posted on November 25, 2009 - by boris
European Investment Bank signs agreements to finance renewable energy projects in Pakistan…
The European Investment Bank (EIB) is providing EUR 100 million to the Islamic Republic of Pakistan to part-finance investments in the renewable energy sector.
The operation will be co-financed with the Asian Development Bank (ADB) under an innovative arrangement. Mr Carlos da Silva Costa, EIB Vice-president, Dr Syed Rizwan Ahmed, on behalf of the Government of Pakistan, and Mr Antonio Andrea Monari, Resident Director General of the Asian Development Bank, signed the relevant documents in Luxembourg today.
The EIB Vice-President said that this operation “is definitely a timely and visible contribution to the European Union (EU) policy aimed at consolidating democracy in Pakistan and supporting social and economic development in the country.
Source: http://www.finchannel.com/news_flash/Banks/52652_European_Investment_Bank_signs_agreements_to_finance_renewable_energy_projects_in_Pakistan/
Posted on November 25, 2009 - by boris
Kenya: Faulu Advisory Services acquires Trustmark Insurance…
Faulu Advisory Services, a fully owned subsidiary of micro-finance group Faulu Kenya, has acquired an insurance brokerage company as it seeks to diversify its offerings by getting a piece of the untapped business.
The micro finance firm has now taken full control of Trustmark Insurance Brokers at an undisclosed price, and a notice published in the latest Kenya Gazette indicates that Finance Minister Uhuru Kenyatta gave the deal the nod on November 11.
George Maina, the CEO of Faulu Advisory Services said the deal was in line with firm’s strategy to enter into new lines of business in a bid to grow its earnings and diversify the range of financial services it offers.
Source: http://allafrica.com/stories/200911230809.html
Posted on November 25, 2009 - by boris
IFC supports education in Chile with $30 million in financing to Fundación DUOC…
IFC, a member of the World Bank Group, will promote access to affordable professional and technical education for low- and middle-income students in Chile with $30 million in financing to Fundación DUOC, a leading educational institution. Through its network of 12 campuses, DUOC provides a range of technical, vocational, and professional education to 50,000 students.
With IFC’s support, the university will expand its facilities and programs, reaching more students with limited access to higher education. “IFC’s financing will help DUOC increase its course offerings in business, construction, health care, and engineering,” said Marcelo Von Chrismar Werth, Rector, DUOC.
“These programs are highly relevant to the demands of the local labor market, preparing students to enter the workforce with strong practical skills. The project shows our commitment to good citizenship and corporate social responsibility.”
Source: http://finchannel.com/Main_News/Business/52618_IFC_Supports_Education_in_Chile_with_$30_Million_Financing_to_Fundaci%C3%B3n_DUOC/
The MiFi Report
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