Transcript МКА Агрокредит Плюс

AgroKredit Plus
A Non-Profit Micro-Credit Agency Serving the Rural
Agricultural Communities of Southern Kyrgyzstan
Foundation & Motives Behind the
Creation of AgroKredit Plus (AK+)
AK+ was founded by the ТES Centre (Technical Extension Services Centre)
in March of 2005. TES is an Osh based organization providing agricultural
training and extension services to individual farmers.
Environment that Motivated the Creation of AK+
– Frustration of TES Centre personnel when farmer/clients were unable to fully
utilize their training due to inability to afford minimal amounts of ag inputs. This
was compounded by the knowledge that these minimal investments had huge
payback multiples when combined with training and extension services.
– In reality, no sources of financing existed for small balance (< USD$500),
uncollateralized, short-term loans to small farmers.
– Abundance of low quality inputs, provided by transient merchants of
questionable ethics, made the purchase of ag inputs by individual small
farmers a risky proposition that impacted their entire operation.
– Kyrgyzstan is a rural-based society where 40-60% of the population in is
directly involved with agricultural production. Thus, improving the incomes of
small farmers/producers has an enormous “multiplier effect” on the community
as a whole.
Organizational Strategies &
Objectives
– Leverage Pre-Existing Knowledge
• Through working with their clients, the extension service agents have valuable
knowledge regarding the personal character of the farmers and the viability of
their plans. These items, willingness and ability to repay, form the foundation of
any sound lending decisions. AK+ utilizes this as a core input to its lending
process.
– Ensure Use of Proceeds for Intended Purpose and Quality of Inputs
• Farmers purchase inputs from recognized (AAK) vendors.
• Loan payments disbursed directly to vendors.
• Purchases planned and reviewed by extension agents for conformance to
growing plan.
– Focus on Social Group Lending
• Reduces risk of non-payment through group pressure. Important given noncollateralized and concentrated (geographic and industry) nature of lending.
• Creates a larger orders for inputs and thus possibilities for quantity discounts.
• Reduces paperwork.
– Strive for Sustainability of Clients and Lender
• Minimize overhead costs.
• Charge rates that do not subsidize the farmer and that allow the lending
organization long-term viability.
AK+ Mission
The mission of AK+ is to serve the Kyrgyz
agricultural community and improve the wellbeing and prosperity of its clients by offering
them financial services that will help them to
succeed in their undertakings.
Current Regions of Activity
• Osh oblast
• Batken oblast
• Jalalabat oblast
Authorized Lending Sectors
•
•
•
•
Agricultural Production
Ag Processing
Other Agribusiness
Other Businesses
Client Types
• Groups
(Social Group Lending)
• Individuals
• Cooperatives and Other
Legal Entities
Current Loan Products
• Production Agriculture
– Crop Growing
– Livestock
– Nursery/Gardening
• Agribusiness
– Ag inputs Supply
– Ag Product Processing
Lending Focus
• Social group lending to small farmers has
been, and will continue to be, the primary
focus of AK+. We believe that this best
serves our mission and that there
continues to be a large, unmet demand.
• Other lending is primarily a way to utilize
funds during periods of low seasonal
farmer demand.
• Group loans normally represent greater
than 90% of the AK+ loan portfolio.
Group Lending Process
5
AgroKredit
Plus
3
Farmer
Group
2
6
Ag Input
Suppliers
1
4
Extension Services Agent
1 Farmers and Agent Jointly Develop Production Plan
2 Farmers Negotiate with Supplier of Their Choice for Inputs
3
4
5
6
with Support of Extension Agent
Copy of Negotiated Contract Submitted to AK+
Contracted Inputs Validated with Extension Agent
Funds Transferred to Input Supplier
Delivery of Inputs to Farmers
Collaboration with Extension
Services Organizations
AK+ currently Collaborates with the Following
Extension Services Providers:
•
•
•
•
•
TES Centre (Osh, Batken)
Rural Advisory Services (Jalalabat)
Agro Foundation for Development (Osh)
DCCA – (Osh, Jalalabat)
NGO “Chernobylci of Nookat in XXI century” (Osh)
Selected Statistics: Lending
Number of Loans Disbursed
Amount Disbursed: KGS '000
Number of First-Time Clients
Number of Outstanding Loans: Period-End
Number of Loans <USD$1,000: Period-End
Number of Loans to Women: Period-End
Percentage Women Clients: Period-End
Percentage Loans in Rural Areas
Value of Loans Written-Off
Value of Loans Restructured
Percentage Loans Overdue < 30 Days
Percentage Loans Overdue 31-90 Days
Percentage Loans Overdue > 90 Days
Total Staff
Credit Staff
2005
2006
2007
30.06.2008
469
3 381
422
107
107
34
32%
100%
0
0
17%
0%
0%
3
2
911
9 862
596
185
182
65
35%
100%
0
0
0%
2%
1%
6
3
1 148
16 950
848
628
619
313
50%
96%
0
0
9%
4%
1%
6
3
1 203
24 580
684
1 331
1 268
594
45%
97%
0
185 016
5%
2%
1%
10
5
Operational Efficiency
Indicators
Loans Disbursed Per Employee
Payroll Expenses Per Loan Disbursed
Other Overhead Expenses Per Loan Disbursed
Total Payroll & Overhead Expenses Per Loan Disbursed
Payroll Expenses / Period-End Outstanding Loans
Other Overhead Expenses / Period-End Outstanding Loans
Total Payroll & Overhead Expenses / Period-End
Outstanding Loans
Notes:
1.
2.
2005
2006
2007
6/30/2008
156
144
385
530
4%
12%
152
387
264
651
9%
6%
191
574
979
1,553
6%
11%
144
715
1,571
2,286
8%
17%
17%
15%
18%
24%
All Figures in KGS
2008 Figures Annualized Where Applicable
Lending Programs and Financing
Received: 2005-Present
Donors and creditors
Winrock International
Amout in KGS
Amout in USD
(approx.)
Note
4,599,004
127,750
Loan-to-Grant
10,023,079
278,419
Grant
200,000
5,556
Grant
1,231,771
34,216
Loan-to-Grant
16,000,000
444,444
Interest Bearing Loan
Winrock International
407,400
11,317
Zero Interest Loan
PF “DCCA”
261,000
7,250
Zero Interest Loan
MCA “Initiative-Ug”
270,000
7,500
Interest Bearing Loan
80,000
2,222
Zero Interest Loan
33,072,254
918,674
ICCO
TES-centre
JICA through TES-centre
MLC “Frontiers”
TES-centre
Total
Financial Statements
Balance Sheet
All Figures in KGS
ASSETS
Cash and Bank Current Accounts
Short Term Investments/Interest Bearing
Deposits
Gross Loans Outstanding
(Loan Loss Reserve)
Net Loans Outstanding
Other Current Assets
Total Current Assets
Long Term Investments
Fixed Assets: Property and Equipment
Costs
(Accumulated Depreciation)
Net Property and Equipment/Net Fixed
Assets
Total Long Term Assets
Total Assets
LIABILITIES
Client Savings and Time Deposits
Other Deposits
Short Term Borrowings (Commercial Rate)
Total Current Liabilities
Long Term Debt (Commerical Rate)
Long Term Debt (Concessional Rate)
Other Liabilities
Total Liabilities
EQUITY
Paid-in Equity (Shareholders)
Donated Equity (Loan Fund)
Donated Equity (Cumulative Grants for
Operations)
Retained Net Profit/(Loss) - Prior Years
Net Profit/(Loss) - Current Period
Total Equity
2005
2006
2007
6/30/2008
647,699
3,832,472
1,505,243
5,124,841
0
1,505,127
-75,256
1,429,871
83
2,077,653
0
0
3,980,791
-104,249
3,876,542
10,756
7,719,770
0
0
10,156,088
-371,656
9,784,432
113,677
11,403,352
0
2,000,000
27,058,981
-854,746
26,204,235
485,581
33,814,657
0
110,200
-21,654
140,074
-59,110
360,662
-110,409
922,273
-169,456
88,546
88,546
2,166,199
80,964
80,964
7,800,734
250,253
250,253
11,653,605
752,817
752,817
34,567,473
0
0
0
0
0
0
0
0
0
0
0
0
2,089,207
2,089,207
0
0
0
0
7,564,560
7,564,560
0
0
0
0
2,994,835
2,994,835
7,000,000
7,000,000
9,000,000
0
4,156,069
20,156,069
0
200,000
0
200,000
0
8,159,934
0
14,073,683
0
0
-123,008
76,992
0
-123,008
159,183
236,175
515,128
236,175
-252,466
8,658,770
1,027,679
-148,966
-540,991
14,411,405
Financial Statements
INCOME
Interest on Loans
Interest on Investments
Loan Fees
Total Financial Income
Income Statement
EXPENSES
Interest on Debt
Interest Paid on Deposits or Savings
Total Financial Costs
Gross Financial Margin
Provision for Loan Losses
Net Financial Margin
OPERATING EXPENSES
Salary and Benefit Expenses
Administrative Expenses
Other Expenses
Total Operating Expenses
Net Income from Operations before Taxes
Taxes
Net Operating Income after Taxes
Donations/Grants for Operating Expenses
Donations/Grants for Loan Capital
Non Operational Expenses or Income
Net Income
Notes:
1.
2.
3.
2005
2006
2007
6/30/2008
191,107.00
0.00
12,664.00
203,771
653,211.87
0.00
144,657.20
797,869
2,007,858.50
0.00
51,809.81
2,059,668
1,975,746.22
500.00
269,742.73
2,245,989
0.00
0.00
0.00
203,771.00
75,256.00
128,515.00
0.00
67,694.70
105,683.50
75,026.93
248,405.13
-119,890.13
3,118.00
-123,008.13
200,000.00
0.00
0.00
76,992
0.00
0.00
0.00
797,869.07
28,992.85
768,876.22
0.00
352,608.80
126,140.70
114,138.84
592,888.34
175,987.88
16,805.59
159,182.29
0.00
0.00
0.00
159,182
185,320.00
0.00
185,320.00
1,874,348.31
267,407.44
1,606,940.87
0.00
659,376.80
903,108.18
220,766.71
1,783,251.69
-176,310.82
76,155.40
-252,466.22
515,127.78
8,159,934.20
0.00
8,422,596
615,529.70
0.00
615,529.70
1,630,459.25
483,090.16
1,147,369.09
0.00
513,465.85
734,805.97
392,908.94
1,641,180.76
-493,811.67
47,179.53
-540,991.20
339,976.65
5,953,649.00
0.00
5,752,634
All Figures in KGS
Year 2005 began with Founding of AK+ in March
Accounting for loan losses and reserves is to recognize expense at time
loan is disbursed and reverse when loan is paid-off, thus creating income
volatility. Through June 2008, AK+ has not experienced any loan losses
Staffing
Senior Management
Position
Name
Years w/AK+
Years Related
Experience
Education
Executive Director
Mametov Asananly
Since Founding
12
Diploma in Economics (MA equivalent),
Kyrgyz State National University, Bishkek
Financial Director
Timur Jumashev
Since Founding
7
Diploma in Finance & Credit (MA equivalent),
Osh Technological Univ., Osh
Chief Accountant
Umut Abdirahmanova
Since Founding
2
Academy of Management under The
President of The Kyrgyz Republic, MBA
expected 2010
Supervisory Board
Credit Committee
Audit Committee
Executive director
Financial director
Marketing
specialist
Chief
accountant
Office
manager
Senior credit
officer
Guard
Accountantcashier
Credit
officer
Cleaner
Credit
officer
Credit
officer
Credit
officer
Outsourced
IT-specialist
Lawyer
For Potential Donors
AK+ welcomes the opportunity to work with donors who share our
commitment to improve the lives of farmers and rural communities.
• AK+ provides segregated and detailed reporting related to the application of funds received.
• AK+ has experience working with donors to design and implement lending programs.
Programs can be targeted based upon characteristics such as:
• Gender
• Region
• Ag Sector/Crop Type
• Purpose (e.g. specific type of equipment)
• AK+ has a preference to undertake programs consistent with its mission and that help build
its capabilities and ability to be self-sustainable. Thus, preference is given to programs that:
• Target the rural, agricultural community
• Do not subsidize the recipient in a way that creates long-term economic dependence on
subsidized activities.
• Allow AK+ to cover its related operational costs.
• Build AK+ capital base as to grow its funds available for lending in a consistent manner.
This allows AK+ to:
• Be a consistent provider of funds to its client community
• Better manage its operations by avoiding excessive expansion and contraction of
activities and staff.
• Since it is organized as a public foundation, capital of the organization must be used
consistently with its mission. In the event of liquidation, capital would be transferred to
another public foundation that served a similar purpose.
Example Programs
AK+ is very open to discussing custom designed programs that serve the specific
objectives of donors. Some example of types of programs we have executed are
described below.
1. Loan to Grant: General
•
•
Funds provided to AK+ for re-lending consistent with it mission
At end of specified period, all or part of funds convert to AK+
2. Loan to Grant: Specific
•
•
Funds provided to AK+ for re-lending consistent with donor specified objectives and
benchmarks
At end of specified period, all or part of funds convert to AK+ based upon AK+
meeting donor’s objectives and benchmarks
3. Donations/Grants: Specified and General
• As earlier mentioned, donors receive full reporting on activities. Reporting
requirements are defined upfront as to ensure donor needs.
• In the case of loans to AK+, an important consideration is our ability to cover
operational costs associated with the related lending activity. Thus, these
programs normally make use low interest rates, management fees or some
combination thereof in order to achieve this objective. Again, AK+ can be very
flexible in the design of a specific program.
Further Information
For further information or clarifications,
please do not hesitate to contact us.
•
•
•
•
Mamatov Asanaly
(+996 3222 ) 21640
(+996 3222 ) 21640
[email protected]