On October 17 and 18, Oikocredit’s Indian subsidiary Maanaveeya Holdings & Investments will bring together 80 microfinance institutions to discuss Social Performance management. The Symposium on Social Performance Management – 2010 aims to assist MFIs in refocusing on the social mission and providing advice in social performance management and the tools available. Oikocredit will share its approach and priorities in social performance management and capacity building, and offer resource-free ways for MFIs to begin improving social performance management immediately. To find out more about Oikocredit’s Social Performance Management, visit www.oikocredit.org/socialperformance.

Oikocredit has announced its investment of $3.95 million in microfinance institutions in Central Asia. A loan of $1.8 million was given to IMON International in Tajikistan, a country north of Afghanistan. IMON International has been giving microloans since 1999 and is now the largest MFI in Tajikistan with 7 branches, 33 offices in a total of 28 regions of the country. At year-end 2009, IMON International reported “assets of USD 37.2 million, a gross loan portfolio of USD 29 million and approximately 26,600 borrowers”. The organization became a commercial entity in 2008 in order to provide more services and opportunities to their growing client base. Another loan of $1.5 million was given to the First MicroCredit Company, located in Kyrgyzstan; east of China and north of Tajikistan. The First MicroCredit Company was established in 2006 and “as of year-end 2009, [reported] total assets of USD 8.8 million, a gross loan portfolio of USD 8.8 million and 11,987 active borrowers”. The organization focuses on overcoming obstacles in the country by providing a wide range of products and services and strengthening the institutional set-up of the organization. The FMCC also focuses on developing the human resources of the country. The third loan of $650,000 was given to the Credit Union ABN, also based in Kyrgyzstan. Credit Union ABN provides microcredit and voluntary savings to its clients which currently total 432 active borrowers. The prevalence of microfinance in Central Asia has been growing steadily and recent years due to the high level of poverty in the region. With the investments by Oikocredit, hopefully these MFI’s will continue to grow their client base and help bring these countries out of poverty.

Mibanco, the fifth largest bank in Peru, has announced that they are launching a program to help female microentrepreneurs.  The project will focus on finance and business training with the support of the Inter-American Development Bank and a loan of $6.5 million from Oikocredit.  The IDB helped Mibanco access funding that now allows the bank to access medium-term local currency financing which will fund loans for starting or improving businesses.  Overall, Mibanco received a total of $45 million to launch and finance the program.  “To Grow My Business” is special because the bank is offering loans and training; proving their dedication to social performance and helping eradicate poverty in Peru.  This is also “the first local-currency-denominated syndicated loan”.  The Peruvian bank is getting support from many different organizations throughout the world who, like Mibanco, feels it is important to continue supporting the women of the country in becoming successful entrepreneurs.

To read all of Gonzalez’s research click here http://www.themix.org/sites/default/files/MIX%20Data%20Brief%207.pdf

Promoting microcredit investment

Oikocredit Northwest is an all-volunteer Seattle-based non-profit Support Association of Oikocredit, a global leader in the microcredit sector.  Using funds provided by Oikocredit USA, Oikocredit Northwest is creating a part-time position (10-15 hrs./week) with growth potential.  This Outreach Coordinator will support and expand activities undertaken by a two year old board of directors who consist of diverse and busy professionals committed to a mission that promotes microcredit as a sustainable strategy for addressing global poverty, and Oikocredit as a particularly strong provider of microfinance.  Founded in 1975, Oikocredit is the world’s largest international private provider of microcredit, funding 530 microcredit banks and 230 community cooperatives in 71 countries.  Oikocredit USA offers individuals and institutions socially responsible investment products that provide an ethical financial dividend, and high social performance via microloans to 17 million of the world’s poor.

Examples of the Outreach Coordinator’s job duties include:

• event planning, execution and publicity
• membership recruitment, support and communications
• support monthly board meetings and the work of board committees
• track progress of tasks and functions assumed by individual volunteers
• liaison with Washington DC office of Oikocredit USA
• database management
• other duties and tasks assigned by Board Executive Committee (to whom this position reports)

Ideal qualifications for this position include:

• energetic, entrepreneurial self starter
• excellent communication skills (both oral and written)
• capacity to work from home
• extremely detail oriented
• experience both as a volunteer and in the coordination of volunteers
• flexible personality
• comfortable contact diverse constituencies including churches, foundations, community organizations and businesses
• database management experience
• demonstrated passion for global social and economic justice
• familiarity with microcredit and socially responsible investing
• proficient with word processing, spreadsheet and presentation software
• additional means of material support since this part-time position pays $20/hour

To Apply: Submit letter of interest and resume to joyceqe@yahoo.com by August 29, 2010.
www.oikocredit.org www.oikocreditUSA.org www.oikocreditNW.org

Oikocredit’s Project Partner in Azerbaijan, AccessBank, has won the “Best Bank of Azerbaijan” at the Euromoney Awards for Excellence 2010.  AccessBank provides financial services for the low and middle income citizens of Azerbaijan, a country located in Eurasia between Iran and Russia.  Earlier this year, the bank was also recognized by the International Fitch Rating Agency as “the most reliable non-stated owned bank” in the country.  AccessBank has the largest portfolio of financial products in the country which includes over 98,000 borrowers.  In 2009, the bank launched the first Transparent Pricing Initiative in the country in which they partnered with MFTransparency.  Similar to AccessBank, Oikocredit was the first Dutch company to endorse MFTransparency’s campaign for transparent pricing.  Both Oikocredit and AccessBank are working towards transparency throughout the industry by collecting and providing pricing data which show the true and accurate price of loans.  Without this information, a quoted interest rate of 3% can actually result in an APR of anywhere between 36% and 96%.  This allows investors to better determine if organizations are focused on social performance or profit and which type they would like to support.

Since the 7.0 magnitude earthquake in early January 2010, all eyes have been on Haiti to see what will come from the rubble. Many celebrities and organizations have donated their money, time and physical efforts to helping the country recover from the devastating disaster but none have committed themselves as much as singer turned politician, Wyclef Jean, who announced his application for presidential candidacy last week. Emerging in the 1990s with the band, The Fugees, he has gone on to become a successful artist in the music industry and has been providing aid to Haiti since 2005 with his foundation, Yele Haiti.

The winner of the election in November is said to take on the responsibility of rebuilding the capital and aiding the 1.6 million homeless people. Organizations such as Oikocredit and Fonkoze are also dedicated to rebuilding the country with projects with a $2 million in banknotes transfer from Oikocredit to Fonkoze banks immediately following the earthquake. Fonkoze has 41 branch offices in Haiti allow citizens to access local savings and facilitate remittances from abroad.

Critics of the candidate point out that Jean does not speak French and speaks “American-accented Creole” which is a “reminder he did not grow up here” as both French and Creole are the language of the government in Haiti. If elected, Jean plans to govern in English and French. Jean’s 2007 appointment as ambassador-at-large exempts him from the residency requirement although there is still speculation that his candidacy will be approved due to other constitutional requirements. Jean has announced that he is working with teams around the world including those in Haiti to improve literacy and infrastructure. Though he has already released a song “If I Was President”, he might have the opportunity bring the song to life.

Oikocredit has been involved in the region while working with XacBank LLC and Credit Mongol LLC. Both companies offer a wide range of financial services to their customers in the rural and urban regions of Mongolia. Oikocredit also works with companies such as Barefoot Power, out of Australia, a company that has developed energy efficient lighting products for the poor in developing projects. With the control valves in Mongolia and the efforts by Barefoot Power in developing countries throughout the world, rural communities are learning how to manage their energy resources.

So now the question is: Is it good or bad for investors to make a profit from microfinance?  Those in favor of raising funds through the sale of shares argue that it is a factor of supply and demand; large MFI’s are running out of options and need to maintain a ration of capital to loans.  Investors are going to invest in companies that seen as doing good not only by helping the poor but also those that are more successful and the IPO’s increase visibility of the industry and the more successful companies.  Opponents of the IPO have expressed that these investments will lead to disappointment as investors are making purchases without taking other considerations of the industry such as risk of defaults, worsening credit quality and rising costs.

40% of population in India live on less than $1.25/day and MFI’s in the country are reaching scale.  Mohammad Yunis, founder of the Grameen Foundation, has made statements that he opposed to the profit making side of the industry, the side of the SKS IPO.  An IPO can falsely promise people that a lot of moneycan be made from their investments therefore MFI’s that choose to offer an IPO need to be disciplined.  Although no plans to go public, Oikocredit is taking steps of similar MFI’s in concentrating on social performance through transparency in the industry.  In order to attract investors who are focused on social performance for success, Oikocredit has adopted the PPI, Progress out of Poverty Index.  It is up to investors to decide what is more important, profit or achieving social goals.  No one is certain yet if public company can prevent financial objectives from superseding the social objectives but one thing is for certain, this decision will increase the number of people affected by microfinance around the world.