Transcript Uzņēmumu konkurētspējas uzlabošanas atbalsta programma

Microlending Programme
Aleksejs Kanejevs
Deputy Head, Programmes’ Development Department
25.04.2013
Microlending Programme
 Overall objective: to improve access to micro loans to micro enterprises and
self employed persons for setup and development of business activities
 Support:
• Micro loan up to 10 thsd. LVL (17.3 thsd. CHF);
• Grant for repayment of the loan - 500/750 LVL (867/ 1300 CHF)
 Beneficiaries: micro enterprises up to 10 employees
 Budget: 5.1 mln. LVL (8.9 mln. CHF), of which:
• Micro loans - 4.6 mln. LVL (8.1 mln. CHF) - 80% financed by the Swiss side;
20% - Hipoteku Banka
• Grants – 0.44 mln. LVL (0.77 mln. CHF) – solely financed by the Swiss side
 Duration: allocation of loans and grants - until the end of 2013 (disbursement
of grants – until June 2015)
 Planned results: - up to 650 micro businesses supported;
- up to 900 jobs (both created and saved)
Results (as of 23.04.2013)
The Programme was launched in September 2011
Micro loans:
 allocated 672 micro loans for the total amount of 3.9 mln. LVL (6.8 mln. CHF),
incl.,:
• 656 contracts signed for 3.8 mln. LVL (6.6 mln. CHF),
• 641 disbursed for 3.6 mln. LVL (6.2 mln. CHF)
Implementation status: 83% (of the total budget)
Grants:
 allocated 561 grant for 382 thsd. LVL (662 thsd. CHF) or 87% of the total budget
 disbursed 23 grants for 15 thsd. LVL (27 thsd. CHF)
Size of Microloans
 Average loan size – 5.9 thsd. LVL (10.1 thsd. CHF)
 Micro entreprises request investment and working capital loan mainly. 15% of
loans are for working capital only (no grant available)
 20% of loans have been applied for the maximum amount
 Loans up to 1.5 thsd. LVL (2.6 thsd. CHF) are not widely requested (7%), smallest
loans - 650 LVL/ 1127 CHF (2 cases)
Sectoral Breakdown
 Almost half of micro loans are allocated for the projects of agriculture
(cereal, dairy, vegetables, meet production etc.)
 28% of loans are provided for services (tourism, catering, training,
accounting, beauty services, repairing etc.)
 15% – for trade (food, wear, shoes, stationery, flowers, sports inventary
etc.)
 8% - for manufacturing industry (mainly: woodworking, food), 5% forestry
Regional Breakdown
 The Programme meets its regional targets – micro loans are well
balanced in all the regions of Latvia, less demand in Riga region
 Micro loans are channeled through Bank branches throughout the whole
territory of Latvia (the most active branches in allocating the micro loans
are Gulbene (92 loans), Jekabpils (82), Rezekne (78), Daugavpils (68)
 A positive feature: micro loans are well demanded also in remote border
regions and small sized municipalities, e.g., 8 micro loans are allocated in
Rozupe, 7 – Iecava, 6 – Belava
Jobs Created and Saved
Number of jobs:
 1241 – prior to implementaion of business projects (in average 1.9 per
enterprise)
 1572 – estimated after implementation of business projects (in average 2.4)
The Programme foresees 900 jobs created and saved
Project Example
Individual enterprise in Codes county,
Bauskas region
Specialized transport services for people
with disabilities
 The client has previous experience in social
care (worked at assistance service of Order of
Malta)
Investment loan – 5 thsd. LVL/ 8.7 thsd. CHF
+ grant 750 LVL/ 1300 CHF (purchase of
specialized microbus equiped with a lift)
Project Example (2)
 Enterprise in Gailisu county,
Bauskas region
 Family business (mother and 2
sons)
 Planting,
processing
and
distribution of cucumbers, cabbage,
tomato (distribution through a
retail chain, catering companies)
 Loan for investment and working
capital – 8.2 thsd LVL/ 14.2 thsd.
CHF + grant 750 LVL/ 1300 CHF
(renovation of product packing
premises)
Project Example (3)
 Enterprise in Ventspils
 Female owned business (education in
music pedagogy and business
management)
 Production of singing toy bears
(components come from abroad while
the 7 lullabies are recorded by the
owner of enterprise)
 Distribution through toy shops (plans
to start exporting to Baltic countries
and Scandinavia)
 Working capital loan – 5 thsd LVL/ 8.7
thsd. CHF (purchase of relatively large
stock of components in order to cut
production costs)
Publicity
 Advertisement campaigns (banners in the
business newspaper «Dienas Bizness»,
2012)
 Billboards (30 places in Riga, Aug./Sept.
2012)
 Press release on achievements (Sept.2012)
 Regular information on conditions of the
programme (www.hipo.lv; leaflets in the
premises of the branches)
 Dissemination of information in events
(seminars / conferences organized by other
institutions)
 Short film (arranged by the Swiss Embassy,
to be presented at the Annual Swiss
Ambassadors Meeting in Bern, 31.05.2013)
Perspectives
The funds available will be allocated by July, 2013
Re-allocation from the Latvian – Swiss Cooperation Programme:
 In May, 2013 the Bank will allocate additional 99 thsd. CHF in the
Loan Fund as Bank’s co-financing and submit Advance
Reimbursement Request for additional 444 thsd. CHF
 Additional funding (543 thsd. CHF) allows to continue allocation of
micro loans / grants in July/August, 2013 (at least 50 more micro
projects to be financed)
 Afterwards new micro loans will be provided from repayments only
(no allocation of grants)
 2014 – disbursement of allocated grants; monitoring of projects etc.
Conclusions
In the frame of previous and current micro lending programmes the Bank has already
supported more than 1000 micro businesses!
 The Bank has obtained competence and gathered experience in micro lending
process and in examination of needs of micro enterprises
 The presence of regional branches has ensured availability to be near the clients –
micro enterprises throughout the country
 In the frame of current programme micro loans are permanently well demanded,
including remote border regions and small sized municipality (thus the
programme positively contributes to the socio-economic needs: creation or
maintanence of jobs; development of economic activities; increase of incomes)
 Commercial banks are relucatant to deal with microloan segment (relatively high
administrative costs; additional bureaucracy related to programmes, special
reporting req. etc.). Also non-bank lending towards micro businesses (e.g., credit
unions) is not developed yet
The Microlending Programme should be continued in the future years!
Thank you!
[email protected]
+371 6777 4091