Transcript Slide 1

Supporting microfinance in the European Union:
business models, impact assessment and lessons
learned from EU initiatives
Planet Rating’s learnings and
methodological adaptations
Antoine Navarro – Planet Rating
[email protected]
[email protected]
www.e-mfp.eu
Planet Rating
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Created in 1999, it became a private
independent rating firm in June 2005
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Mission to contribute to the development
of microfinance thanks to increased
transparency on the financial and
social performance of MFIs
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Enjoys a global coverage, thanks to a
network of six offices spread over four
continents (Paris, Lima, Dakar, Nairobi,
Beirut, Manila)
Offices
Missions
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A team of 16 experienced analysts, with
backgrounds in investment banking,
management consulting, non-profit,
microfinance
[email protected]
www.e-mfp.eu
JASMINE initiative
Joint Action to Support Microfinance Institutions in Europe (JASMINE):
A 5 year project (2009-2013), managed by the European Investment Fund (EIF) funded by the EC
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Objectives
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To promote good practice in the field of microcredit.
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To provide additional funding for microfinance institutions.
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In the long term, to improve the environment of the European microcredit sector, by
developing partnerships between the banking and non-banking actors.
How does it work?
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Evaluation: providing an assessment or rating to the MFIs by specialized microfinance
rating agency
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Technical assistance: provide dedicated training in areas where improvement is needed.
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Funding: After the technical assistance, MFIs may apply to the European Microfinance Facility
Fund managed by the EIF, which offers guarantees and equity/loans funding.
Implementation
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24 MFIs selected in 2010 and 2011 already received an evaluation and TA.
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After a second call for proposals, an estimate 20-30 MFIs will receive an evaluation and TA in
2012.
[email protected]
www.e-mfp.eu
Ratings and assessments
conducted for the JASMINE program
JASMINE 2010
JASMINE 2011
 Créa-Sol (France)
 CP’AC (Spain)
 FEA (Hungary)
 Mikrohitel (Hungary)
 PRIMOM (Hungary)
 PSBYT (Scotland)
 Credal (Belgium)
 Jobs MFI (Bulgaria)
 Mikrofond (Bulgaria)
 Nachala (Bulgaria)
 Qredits (The Netherlands)
 Patria Credit (Romania)
JASMINE 2012
 6 MFIs in Germany
 And 9 others in Romania, Slovak Republic, UK, Malta,
Poland, Belgium, Bulgaria and Sweden
Experience in other EU countries
Bosnia Herzegovina
 10 MFIs: EKI, Mikrofin, Partner, LOK
micro, Mi-Bospo, Prizma, Benefit,
Sunrise, Women for Women, Sinergija
Plus
 26 ratings
[email protected]
Serbia & Montenegro
Moldova
 AgroInvest
 MicroInvest
Kosovo
Turkey
Ukraine
 KEP
 TGMP
 Hope Ukraine
Russia
 5 MFIs: FFECCC,
RWMN, VRFSBS,
Doveriye, Narodnyi
 8 ratings
www.e-mfp.eu
Main differences of microfinance in
Western Europe with “traditional”
microfinance
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Context
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Higher level development of financial services  narrow potential market
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Lower margins of businesses of micro-entrepreneurs in EU countries:
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Low level of informality
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Higher costs (taxes)
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Cannot always afford higher interest rates
 Consequences on the business models
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Specific targeting: financially marginalized population represent a smaller share of the
population than in developing countries  target unemployed, start-ups, and SMEs
which have difficulties to access finance
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Different business models : often includes business development services as a core
service
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Specific training on admin, legal processes
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Entrepreneurial and business planning trainings  find a market niche
Dependent on grant funding from public or private donors and socially oriented
investors for their sustainability
 Different approach needed for the analysis of the sustainability of MFIs from
Western or Eastern Europe
[email protected]
www.e-mfp.eu
GIRAFFE-S Evaluation Framework for EU MFIs
A rating methodology tailored for European MFIs Governance
Information
Ratios and scales have been
adapted and benchmarks collected
Risk
Activities
Factors have been added
Outreach to the excluded
Adaptation of services
Cost of Services
Financial Inclusion
Financing
Factors have been added
Fight vs. Unemployment
Business creation
Empowerment
Efficiency
Client Protection
Social Change
[email protected]
www.e-mfp.eu
THANK YOU FOR YOUR ATTENTION!
www.planetrating.com
[email protected]
www.e-mfp.eu