Posts Tagged ‘world bank’
Posted on July 9, 2010 - by M. Bennett
World Bank to lend $407 mn for microfinance, quality stats…
NEW DELHI: The World Bank and India today signed two agreements for a total loan of $407 million to scale up microfinance services in unbanked areas and improve capacity to generate quality statistics.
The assisted projects are ‘Scaling up Sustainable and Responsible Microfinance Project’ ($300 million loan) and ‘India Statistical Strengthening Project’ ($107 million loan), the government said in a statement.
“The objective of the project is to scale up access to sustainable microfinance services to the financially excluded, particularly in under-served areas of India,” it said.
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 18, 2009 - by boris
Dominican Republic: World Bank approves $300 million to support social sectors and public finance…
The World Bank Board of Directors on November 17 approved two loans totaling $300 million to support reforms aimed at improving results in social sectors- mainly social protection, education and health- as well as the quality and efficiency of public spending, while mitigating the impact of the global downturn on Dominican Republic’s public finances.
“These operations will contribute to the Government’s efforts to reactivate the economy by helping to cover the fiscal gap for this year and by raising public investment, according to what is established in the budget approved by the National Congress,” said Vicente Bengoa, the Dominican Republic Minister of Finance.
“The projects will help reduce the country’s vulnerability to future shocks by minimizing inefficient subsidies, recovering costs in the energy sector and improving tax and revenue administration,” said Yvonne Tsikata, World Bank Director for the Caribbean.
Source: http://finchannel.com/news_flash/Banks/52134_Dominican_Republic%3A_World_Bank_Approves_US%24300_Million_to_Support_Social_Sectors_and_Public_Finance/
Posted on October 23, 2009 - by boris
Government of Rwanda and the World Bank sign an agreement to improve basic education…
The government and the World Bank yesterday signed an agreement that will pave way for the disbursement of $35 million under the Fast Track Initiative (FTI), a crucial fund in support of government’s policy reforms which aim to improve the quality of basic education.
The signing fulfils the total of $105 million allocated to the country under this initiative.
Specifically, the grant will support; teachers’ development, the establishment of a framework for the implementation of decentralised procurement and school level selection of text books and the implementation of the girl’s education policy.
“This adds value and commitment to the entire sector. This contribution is very important because it targets those key areas of basic education,” said James Musoni, the Minister of Finance and Economic Planning.
Source: http://allafrica.com/stories/200910230003.html
Posted on September 14, 2009 - by boris
Why the world’s poor refuse insurance?…
There are higher-yielding varieties of groundnut than those that farmers in Malawi tend to plant, but getting them to switch is tough. Better seed is pricey, increasing their risk. So researchers from the World Bank ran an experiment. With local NGOs, they offered the farmers loans.
Some loans even came with a crop-insurance policy: if the season was dry and the yield a dud, the debt would be forgiven. The farmers’ risk was lowered. Of farmers offered conventional loans, 33% signed up. With the added incentive of insurance, 18% did. The researchers were puzzled.
It’s been more than 30 years since microfinance began its fantastic rise, spreading billions of dollars in credit to hundreds of millions of overlooked borrowers around the world. Insurance is the next big promise of financial services for the poor.
Source: http://www.indiamicrofinance.com/microfinance/microinsurance-india/why-the-worlds-poor-refuse-insurance.html
Posted on August 7, 2009 - by boris
The Pakistan Poverty Alleviation Fund (PPAF-III) has received a loan of $250 million from the World Bank…
A loan of $250 million provided by the World Bank for the Pakistan Poverty Alleviation Fund (PPAF-III) will be utilised for social mobilisation, institutional building, enhancement and protection of livelihood, access to microcredit, basic services and infrastructure and support for project implementation during the next five years.
The objective of social mobilisation and institutional building is to target and empower the poor by supporting their organisations through three tiers. These are community organisations, village organisations and federation of village organisations at the union council level and representative organisations to build voice and scale for an effective interface with local government bodies, other development programmes and markets.
Source: http://www.thenews.com.pk/print1.asp?id=191757
Posted on June 23, 2009 - by Gavin
IFC to provide MTN $75m…
TMC Net
KABUL 23 June 2009 ,(Asia Pulse Data Source via
COMTEX) — A World Bank Group member is providing a $65 million
loan and $10 million in equity to MTN-Afghanistan to support the
expansion of the company’s mobile telephone network and meet
growing demand for affordable mobile phone services.
MTN Afghanistan is owned by MTN Dubai Ltd, part of the
South Africa-based group, a long time partner of the World Bank
Group member International Finance Corporation (IFC). It is the
second-largest mobile telephone operator in Afghanistan with more
than 2.5 million subscribers.
According to the World Bank’s office in Kabul, the
expansion is aimed in particular at low-income populations. “MTN
Group places high importance on its operation in Afghanistan,”
said James Ramadan, MTN Group’s regional vice-president for
Middle East and North Africa.
He added: “We have invested significantly in MTN
Afghanistan and will continue to do so in the future. IFC is
providing long-term funding, which is a great vote of confidence
for this frontier market.
“It will enable us to serve the people of Afghanistan by
enhancing network coverage and expanding high-quality services to
a greater number of customers,” Ramadan was quoted as saying in a
press release from the World Bank office.
IFC Director for Global Information and Communication
Technologies Moshen Khalil said: “Mobile telecommunications
enable access to knowledge and services, innovation across
sectors, and more efficiency in the delivery of government and
business services.” He hoped the investment would encourage other
investors to support the telecommunication sector, and more
broadly, economic development and growth in the strife-torn
country.
IFC investment portfolio in Afghanistan totals $95 million in
five companies, including investments in two small and
microfinance institutions. Its advisory activities complement its
investments through capacity-building initiatives with these two
institutions, and by helping the government establish regulatory
frameworks for leasing and housing-sector lending.
Source: "http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm">http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm”>http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm
Posted on June 23, 2009 - by Gavin
Micro-finance banks to get $8.4m grant…
Vanguard Kaduna, Nigeria, The Executive
Secretary/Chief Executive Officer of the Nigerian Investment
Promotion Commission, Alhaji Mustapha Bello, yesterday, said that
six micro-finance banks in the country will receive about $8.4
million grant this year. Bello said that the lifeline was to
address the problem of poor access to loan and equity capital
confronting micro, small and medium enterprises in Nigeria. He
spoke in Kaduna while addressing participants at the Business
Development Services Fair jointly organized by the World Bank and
the Federal Government. According to Bello, the grants awarded by
the MSME Project, a joint pilot project of the Federal Government
and the World Bank, were expected to attract over $20 million worth
of new private sector investment to the micro-finance institutions.
Bello further said that the six micro-finance banks are currently
serving over 800,000 active clients, including over 50,000 active
borrowers. “Access to finance is a significant problem for Micro,
Small and Medium Enterprises (MSMEs) in Nigeria. MSMEs have poor
access to both loan and equity capital,” he said. “To overcome
these constraints the project through its to finance component has
broadened and deepened finance provision to MSMEs through the
introduction of new financialinstitutions. “A total of $8.4million
of grants has been approved for six micro-finance banks-ACCION,
SUSU, IMFB (opened a branch in Kaduna), MIC, LFS, and Microcred
(will be operating from Kaduna)… “In this respect we recognize
the important role the MSMEs play in harnessing the forces of
economic growth to benefit the poor and have identified access to
both financial and non-financial support as critical to the growth
of NigerianMSMEs. “This is especially important as the current
global economic and financial crisis will have significant impact
onemerging economies,” he added. Earlier, the Team Leader,
WorldBank/MSME Nigeria Project, Mr. Emeka Ile said that the
projectwas working in Kaduna State with the New Nigeria Foundation
topromote rice production chain. Source:
http://www.vanguardngr.com/2009/06/19/micro-finance-banks-to-get-84m-grant/
Posted on June 9, 2009 - by Gavin
Gates Foundation giving $20M to World Bank…
Business Journal
The Bill & Melinda Gates Foundation is giving $20 million to the World Bank for a program to improve the access of rural poor people to financial services.
In its announcement Monday, the World Bank Group said it would establish the Agriculture Finance Support Facility with the grant. The facility will support banks and nonbanking institutions with grants to increase access to savings, credit, insurance and other options.
The World Bank Group is a collection of World Bank programs that makes loans, usually to developing nations.
Before the financial crisis struck, the world’s 1 billion small farmers had very limited access to financial services, according to the announcement. The deteriorating global economy has increased those challenges.
The World Bank provides awards to improve financial conditions in rural areas. In fiscal year 2008 ending June 30, 2008, the World Bank committed $613 million for 28 rural finance projects.
Posted on May 27, 2009 - by Gavin
Putting the Microsavings in Microfinance…
The New York Times
It has become increasingly clear that the most important element of microfinance isn’t lending, but savings. That lesson was taught to me by SEWA in India, Kashf in Pakistan and Grameen in Bangladesh. Only some poor people will benefit from the chance to borrow, but almost all will benefit from the chance to save.
That’s also a lesson of a fascinating new book, “Portfolios of the Poor: How the World’s Poor Live on $2 a Day.” It looks at the financial activities of very poor families, and I was struck in particular from the surveys by how often poor families lost everything from crime. If you don’t have a bank account (because you can’t open one), and all your money is in a coffee can under the bed — well, you can be wiped out in an hour. In South Africa, 11 percent of the sample faced a financial emergency in any one year from theft or violent crime. In Bangladesh, 7 percent were cheated or lost cash, and 19 percent lost their home or property through fire or other means. To be poor truly is to live precariously.
Likewise, the book notes that many poor people must pay to save. That’s right — instead of receiving interest for depositing their savings with someone, they have to pay interest on their own money. One common scheme in West Africa, for example, charges an annual interest of 40 percent for accepting savings. If you struggle to save $100, a year later you have $60. But at least it’s safer than it would be under the bed. If we develop banks that actually serve the poor and accept savings, even if they paid zero interest, that would be a huge step forward and a big incentive to start saving. (more…)
Posted on May 26, 2009 - by Gavin
World Bank, IFAD Commend NDDC…
Leadership Nigeria
The World Bank and IFAD have commended the NDDC for its contributions toward the success of the Community-based Natural Resources Management Programme (CBNRMP) in the Niger Delta region.
Conceived in 2004 by the Federal Government, the programme is being sponsored by the World Bank and the International Fund for Agricultural Development (IFAD).
It aims at reducing poverty in 40,000 families in the nine Niger Delta States through agriculture, small-scale business entrepreneurship and micro-finance.
Giving the commendation during a courtesy visit to the NDDC management in Port Harcourt , the World Bank Task Team Leader, Dr Eshogba Olojoba, said the programme had made “modest” achievements in alleviating poverty.
“The NDDC has shown commitment to the programme by giving the first installment of 584,000,000 to kick-start the programme.
Posted on May 20, 2009 - by Gavin
WB official recommends high power tariff…
The International News
ISLAMABAD: Upward tariff adjustments for power is imperative for eliminating subsidy and bringing efficiency as without improving balance sheets power generation cannot be maximised, World Bank’s Country Director for Pakistan Yusupha B Crookes said on Tuesday.
Talking to reporters after launching a World Bank report titled ‘Access to Finance’, he commended the democratic government’s bold steps for increasing the electricity tariff, saying other South Asian countries were amazed to see the progress made by Islamabad in terms of eliminating power subsidy. Without discussing the growth figure fudging issue, in reply to a query, he said that the World Bank was ready to extend its technical and financial assistance in order to restructure the statistics agency, the Federal Bureau of Statistics.
“Without giving autonomy to DISCOs, their unbundling will not help in achieving desired results,” he said and added that the bank was working with the government for preparing an action plan to bring improvement in the power sector. (more…)
Posted on May 20, 2009 - by Gavin
World Bank report: Pakistan’s poor still cannot access finance…
Daily Times
ISLAMABAD: Despite significant growth of Pakistan’s financial system, access to finance remains elusive for most Pakistanis, especially among poor people, women, and small businesses in rural areas, says a new World Bank report launched Tuesday.
The report, titled “Bringing Finance to Pakistan’s Poor: A Study on Access to Finance for the Underserved and Small Enterprises,” says the average Pakistani household remains outside the formal financial system, saving at home and borrowing from family or friends in cases of dire need. In fact, only 14 percent of adults have access to a formal financial institution and about 40 percent have no financial access to formal or informal financial systems.
Policy efforts to increase access to finance in Pakistan have taken time to bear fruit, the report says, but now access is expanding quickly in certain financial sectors such as microfinance and remittances albeit from a very low base. The report says the major constraints to financial access arise from high levels of poverty, combined with low awareness of and information about available financial services, as well as gender bias.
In addition, financial institutions’ efforts to expand access have been discouraged by slow technological advances, weak legal foundations, and unsuitable financial processes, and products. (more…)
Posted on May 15, 2009 - by Gavin
6 Micro-Finance Banks Get $8.4m Credit Facility…
The Tide Online
The Federal government in collaboration with the World Bank, has approved up to $8.4 million grant for six micro-finance banks.
This disclosure was made by the Executive Secretary, Nigeria Investment Promotion Commission (NIPC), Mr Mustafa Bello, at the launch of the business Development Service (BDS) Fair organised by the Micro, Small and Medium Enterprises (MSMEs), in Lagos, last week.
According to Mustafa, $3 million grant has also been awarded to 58 BDS providers across the country.
“A total $8.4 million of grants have been approved for six micro finance banks, namely ACCION, SUSU, IMFB, MIC, LFS, and Micro credit, he said.
He said it was the company’s understanding that the grants awarded have acted as a catalyst in attracting $10. 4 million of new private sector investment into micro finance institution. (more…)
Posted on May 11, 2009 - by Gavin
Poverty level still high despite 840 MFBs…
The Business Day
There is an indication that poverty level is still very high in Nigeria despite the establishment of over 840 microfinance institutions in the country. This is according to the September 2008 World Bank’s report that Nigeria had nearly 70 percent of its population living in poverty, with more than 54 percent living below the poverty line (less than one US dollar a day). Also, the 2008 Human Development survey of the United Nations ranked Nigeria among the 25 poorest countries, measured on the basis of standard of living, life expectancy, and literacy.
There is no doubt, however, that the persistent global financial crisis, which has not only affected Nigeria but also individuals, has intensified poverty rate. The end result of the crisis is evident in global job losses, companies declaring bankruptcy, while others completely closed down; employers cutting down salaries, etc., all contribute to high rate of poverty.
Meanwhile, in order to assist majority of the populace and encourage private businesses to thrive, the Central Bank of Nigeria (CBN) set up the microfinance scheme as an instrument to access financial services when succour was not coming from the conventional financial institutions in the country. (more…)
Posted on May 5, 2009 - by Gavin
Fortis Microfinance Bank Alerts Customers Using Clickatell SMS Receipts…
Market Wire
Mobile Text Banking Drives Adoption and Offers Compelling Banking Services to Underbanked Population.
LAGOS, NIGERIA–(Marketwire – May 5, 2009) – Banking & Payment Technologies Conference, Muson Centre — Clickatell, messaging provider for financial services, has been selected by Fortis Microfinance Bank to provide SMS Receipts™ to thousands of retail banking customers throughout Nigeria. Currently sending ~10,000 text messages per month, the bank sees tremendous growth potential as existing customers sign up and new customers look for compelling text banking services via mobile. As customers opt-in, the bank automatically sends text messages to registered mobile phone numbers immediately when transactions occur. Mobile text banking provides real time visibility to manage financial affairs, reduce fraud, lower call center costs, increase revenue potential, as well as offer under- and un-banked citizens the ability to bank where the opportunity hadn’t existed.
The World Bank reports that currently over 80 million people in developing countries are served by microfinance banks and confirms that mobile access to a range of services including savings, loans, and money transfers enables poor and rural families to invest in business opportunities, better nutrition, improved living conditions, and the health and education of their children. Microfinance banks are helping to achieve these social and economic objectives. Fortis provides banking products like credit and financing to lower income earners throughout Nigeria with a specific focus on developing and assisting start-up entrepreneurs and traders with the banking services they need to get started and sustain their business. (more…)
Posted on April 28, 2009 - by Gavin
Global economy has deteriorated – WB/IMF…
Ghana Business News
Bretton Woods institutions, the World Bank (WB) and International Monetary Fund (IMF) say the global economy has deteriorated and could lead to human and social calamities in developing countries.
In a communiqué issued in Washington DC at the end of the Development Committee’s Joint Ministerial Committee meeting at their Spring Meeting, the WB and IMF warned that as a result of the worsening global economic crisis hard –earned progress towards the Millenium Development Goals (MDGs) “is in jeopardy.”
According to the institutions, the crisis has already driven more than 50 million people into extreme poverty, particularly women and children.
The WB and IMF have therefore committed to alleviate the impact on developing countries and facilitate their contribution to global recovery, the communiqué said.
According to the communiqué, in order to protect the poorest, the World Bank Group (WBG), comprising all the wings of the Bank has set up the Vulnerability Financing Facility, including the Global Food Crisis Response Program and the new Rapid Social Response Program. The International Finance Corporation (IFC) has also created the Microfinance Enhancement Facility to help poor borrowers. (more…)
Posted on April 24, 2009 - by Gavin
World Bank to Invest $45 billion in Infrastructure to Help Create Jobs and Speed Crisis Recovery…
The World Bank
WASHINGTON, – The World Bank will increase infrastructure investments to $45 billion over the next three years to provide the foundation for rapid recovery from the global economic crisis, World Bank Group President Robert B. Zoellick announced today at the World Bank/IMF Spring Meetings. In the wake of last year’s food crisis, the Bank Group is also boosting support for agriculture from $4 billion in 2008 to $12 billion over the next two years to help ensure vital food security.
“Investments in infrastructure can provide the platform for job creation, sustainable economic growth and overcoming poverty, and help jump start a recovery from the crisis,” said Zoellick. “The Latin American and Asian crisis showed how countries can suffer from a decline in infrastructure, leaving a weaker foundation for long-term economic growth that hits the poorest the hardest. Infrastructure is also crucial to supporting agriculture. Without good infrastructure a lot of agricultural production can go to waste.”
A new World Bank Infrastructure Recovery and Assets Platform (INFRA) will provide $45 billion in infrastructure lending over the next 3 years, an increase of $15 billion over the three years preceding the crisis. In addition, IFC, the World Bank Group’s member focused on private sector investments, set-up an Infrastructure Crisis Facility (ICF), which was developed to bridge the gap in available financing for viable, privately-funded or public private partnership infrastructure projects in emerging markets that are facing financial distress as a result of the financial crisis. (more…)
Posted on April 14, 2009 - by Gavin
MICROCAPITAL STORY: Microfinance Lessons for a Macrofinance Mess…
Microcapital
As world leaders met in London to discuss the global financial crisis, one of the items on the agenda was how the major economies and international institutions could mitigate the impact of the crisis on the world’s poorest counties. Several measures were proposed to reaffirm the G-20’s commitment to the most vulnerable. Yet, a recent Christian Science Monitor article argues that global financial players should instead be listening to what the poor have to say about financial institutions and take some lessons from the microfinance sector.
The London Summit of the Group of 20 (G-20) Finance Ministers and Central Bank Governors, a forum of the major economies of the world and key international institutions such as the IMF and World Bank, took place amidst a deepening economic crisis and aimed to foster collective action to “stabilize the world economy and secure recovery and jobs.” The communiqué from the London Summit, a statement of the decisions taken, outlined commitments from world leaders to restore growth through fiscal and monetary stimulus, to strengthen international financial regulation, and to resist protectionism and promote global trade and investment. Recognizing that the crisis was also having a disproportionate impact on the most vulnerable populations, the G-20 also reaffirmed aid pledges and committed additional concessional finance for the poorest countries. (more…)
Posted on April 8, 2009 - by Gavin
Remittances: Money on the move…
Banking Technology
The outlook for remittances is as uncertain as any other part of the financial services sector, but the provision of mobile services is a key growth area.
Officially recorded remittance flows to developing countries are estimated by the World Bank to reach $283 billion for 2008, growth of 6.7% on the previous year. However a slowdown, first seen in the third quarter of last year, could dent the seemingly inexorable rise in remittances.
“In 2009, remittances are expected to fall by 0.9% (or at the worst case, no more than 6%),” says the World Bank in its report, Outlook for Remittance Flows 2008-2010, published in November 2008. “Migration flows from developing countries may slow as a result of the global growth slowdown, but the stock of international migrants from developing countries is unlikely to decrease. Remittance flows from the GCC [Gulf Cooperation Council] countries are likely to fall more than those from the US and Europe, affecting recipient countries in the Middle East and North Africa and South Asia.”
The outlook for remittances, says the World Bank, “remains as uncertain as the outlook for global growth. In the past, remittances have been noted to be stable, or even counter-cyclical, during an economic downturn in the recipient economy, and resilient in the face of a slowdown in the source country. This time, however, the crisis has affected all countries, creating additional uncertainties.” (more…)
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