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Mercy Corps, PlaNet Finance Japan and Kesennuma Shinkin partner to support Tsunami-affected small businesses

2011.11.11

PlaNet Finance Japan, Mercy Corps, Shinkin Central Bank and Kesennuma Shinkin today announced a groundbreaking global partnership to reinforce financial access of the micro, small and medium Enterprises (MSMEs) that are affected by the March, 2011 Great East Earthquake and Tsunami. The partnership, named as “Sanriku Tomodachi Fund for Economic Recovery”, will provide financial access to MSMEs for the reconstruction of their businesses in the severely impacted Sanriku area (Kesennuma, Minami-Sanriku in Miyagi and Rikuzen-Takada, Ofunato in Iwate).

The Fund was established by the generous grant of USD 2 million from Mercy Corps, a global humanitarian aid organization specializing in emergency response and economic development in over 40 countries, with a contribution from World Vision America. PlaNet Finance Japan, affiliated with the international organization, PlaNet Finance Group, specialized in development of Microfinance sector for poverty alleviation, have designed the structure of the project and will manage the implementation of the Fund in close collaboration with Kesennuma Shinkin, a leading local cooperative based in Kesennuma. The partnership was brought together by the strong support from Shinkin Central Bank, the central bank for the cooperatives in Japan.

The Fund will provide grants and subsidies that are critical to the recovery of the MSMEs with less than 20 employees before the Tsunami. It will offer;

- Grant for reemployment of MSMEs’ staff which were affected by Tsunami and were forced to dismiss their employees. The grant will create and support minimum of 50 jobs by providing one-year long employment subsidy.

- Grant to start up new enterprises reflecting newly emerged local demand for various services, including elder and child care, value chain reconstruction or delivery services for temporary housing units. The start-up fund will support 20-25 local entrepreneurs.

- Interest subsidy for new loan product for tsunami reconstruction that provide long term capital to rebuild the facilities and buildings lost by tsunami with free interest for 2 years. The total portfolio size will be about JPY 800 million (approximately USD 10 million) providing financial assistance to more than 80 enterprises.

“We call for a global solidarity to support Japan’s recover from the earthquake through ensuring and expanding employment”, said Jacques Attali, the President and founder of PlaNet Finance, formerly the special advisor of the president of France, during his speech at Paris Chamber of Commerce in France on March 23rd, 2011. This speech led PlaNet Finance Japan to seek for the approach to support the economic rebuilding of the Tsunami affected area.

“This partnership will bring together the expertise of each partners to tackle the complex issues in economic recovery of the area. For Mercy Corps, it is disaster response, for PlaNet Finance, it is the promotion of micro-entrepreneurship and small businesses and for Kesennuma Shinkin, it is the deep insight and knowledge of local market and businesses of the area” says Randy Martin, Director of East Asia Operation at Mercy Corps. For the Portland, Oregon-based Mercy Corps, the partnership also means solidarity between the coastal region which share the Pacific Ocean.

“The Tsunami affected MSMEs are facing tremendous difficulties in reconstructing their businesses” says Shigeru Sugawara, President of Kesennuma Shinkin. “Kesennuma Shinkin itself was a victim of the Tsunami, losing two-third of its branches and few staffs. We decided to take part in this global partnership because the recovery of small business is vital for rebuilding of our community. As a local cooperative, we will do our best for the revival of their business”. Kesennuma Shinkin will provide local knowledge and network for the fund. Loan officers, who deeply understand the local market and businesses characteristic of the area, will closely communicate with business owners of the MSMEs on promotion, selection, monitoring and support of the grantees.

In addition to the Fund, PlaNet Finance Japan will launch an online platform “SKETT (Supports’ market for Tohoku) with support from Mitsubishi Corporation to provide hands-on business development service (BDS) for Tsunami affected MSMEs. SKETT conducts online matching between the pro-bono experts who wish to support Tsunami victims voluntary and the Tsunami affected MSMEs that are in need of specific know-how in rebuilding their businesses such as development of business plan, marketing support and restoration of financial and legal documents lost by the Tsunami. The BDS demand will be posted on the website to call on the potential pro-bono volunteers who wish to go on the field to support the enterprises.

About PlaNet Finance Japan: PlaNet Finance Japan is the non-profit organization in Japan affiliated with PlaNet Finance Group, which conducts awareness raising, project development and implementation to promote the development of micro-entrepreneurs and microfinance sector. PlaNet Finance Group fights poverty by improving access to financial services through the development of microfinance. Headquartered in France, the group is active in 80 countries worldwide. PlaNet Finance Japan is supporting the relief and rehabilitation of Great East Japan Earthquake through global network. For more information, visit the website.
www.planetfinance.or.jp/en/
www.planetfinancegroup.org

About Kesennuma Shinkin: Kesennuma Shinkin Bank is a cooperative bank established in 1926 to serve the enterprises in the local market, including Kesennuma, Minami-Sanriku, Rikuzentakada, and Ofunato. It has been serving for small and medium enterprises in the area through provision of loans, deposits and other financial services. The bank had significant damage by the Tsunami that 8 out of 12 branches including its headquarter were forced to suspend the operation. Currently, the bank actively supports its severely damaged clients and involved in the efforts in recovering the local economy.

About Shinkin Central Bank: Shinkin Central Bank is the central bank of the 271 credit unions and 7,000 branches scattered all over Japan, from Hokkaido to Okinawa. It provides a variety of support to the cooperative credit unions as well as engaged in a wide range of financial services such as loans and financial. The bank actively supports the efforts of the credit unions for the economic recovery and revival of the damaged area in Tohoku. www.shinkin-central-bank.jp/index_e.html

About Mercy Corps: Mercy Corps helps people turn the crises they confront into the opportunities they deserve. Driven by local needs, our programs provide communities in the world’s toughest places with the tools and support they need to transform their own lives. Our worldwide team in 41 countries is improving the lives of 19 million people. For more information, see the website www.mercycorps.org.

Press Release
Mercy Corps, PlaNet Finance Japan and Kesennuma Shinkin partner to support Tsunami-affected small businesses, 11/11/2011

PlaNet Finance Japan support the recovery of oyster farmers affected by the March 11th Tsunami

2011.10.31

Planet Finance Japan(PFJ), a non-profit organization affiliated with PlaNet Finance Group which is specialized in development of micro-entrepreneurs and microfinance sector, received EUR200,000 grant from Fondation de France, a French foundation which promotes private philanthropy, to support the oyster farmers in Sanriku area, where the oyster yield has been severely hit by the March 11th, 2011 Great East Earthquake and Tsunami.

The project is called "France O-Kaeshi" which means "France returning a present", a reference to the help French oyster farmers received from their Japanese counterparts in 1970 and 1990 when their own farms were severely hit by an epidemic.

In July 2011, MULOT, a French fishing equipment company and SDV, one of the largest French transportation companies joined their effort to transport about 12 tonnes of buoys, ropes and fishing equipment to Sanriku in northeastern Japan. This operation caught attention of the French government and the Fondation de France and led to the EUR200,000 grant.

“This project is based on a trusted partnership between Japan and France. We hope that this project will contribute to the revival of the oyster farming business in Sanriku,” says Kazuo Tanaka, the Executive Director of PFJ. PFJ will collaborate with I-link.,Ltd and Japan Oyster Association which are in close contact with the oyster farmers in Sanriku to grasp the actual needs of the farmers and provide the most suitable equipments. MULOT and SDV will continue to provide the materials and transportation support. PFJ will be in charge of the overall coordination of the delivery of the equipments.

In addition to the EUR200,000 grant from Fondation de France, French Chamber of Commerce has gathered over EUR20,000 of donations to support this project.

Press Release
French and Japanese organizations join forces for the recovery of oyster farmers affected by the March 11th Tsunami, 10/31/2011

Arthur D. Little sees strong demand for insurance at the BOP

2009.8.26

Four billion people worldwide, who have to get along with less than 2 a day, are especially exposed to risks such as accidents, illness or natural disasters and may buy so-called microinsurance, according to research by Arthur D. Little Inc.

Insurers, including Zurich Financial Services AG, Allianz SE and Munich Re, are among firms running insurance operations in developing nations. They offer flood protection in Indonesia, life insurance and endowment insurance in India and disability coverage in rural China. These companies realize profitable sales of policies with premiums of as little as 5 cents a month.

The Microinsurance Center, a research and advocacy group, in 2007 estimated a global market of 1 billion low-income people in the 100 poorest countries. Allianz put the number at 2 billion worldwide.

For more information, click here

Bright outlook for microcredit in Malaysia

2009.8.26

The global microfinance sector has not escaped the impact of the global crisis. Growth has slowed and non-performing loans are on the rise. However, so far no MFIs have defaulted on their creditors. The situation varies by country. In Malaysia, for example, the micro-credit segment registered a strong performance in the first six months of this year, with the sector seen as less affected by the economic slowdown and a still-high growth potential as demand still far surpasses the available supply of microfinance services.

For more information, click here

Report shows risks faced by industry

2009.7.21

The 2009 annual “Microfinance Banana Skins” survey confirms that risks to the sector have increased dramatically due to the global economic and financial crisis. Conducted in April and May 2009, and covering 430 respondents in 82 countries, the survey shows key risks facing the sector are all tied to the global economy: a surge in bad loans, shortages of liquidity and funding, and declining profitability. Other top concerns surround the ability of microfinance institutions (MFIs) to manage their way through the crisis because of weaknesses in management and corporate governance.

The report can be downloaded here: here

Filipino Microfinance Groups Agree to Promote Client Protection

2009.7.21

The Rural Bankers Association of the Philippines, the Microfinance Council of the Philippines and ACCION International have agreed to partner to protect the rights of financial institutions’ microfinance clients. The effort is part of a project to collect information on consumer protection guidelines and their implementation in several countries worldwide.

For more information, click here

IFC Guarantees $5.9m Standard Chartered Loan to Faulu Kenya

2009.7.21

Standard Chartered Bank of Kenya has partnered with the International Finance Corporation (IFC) to loan the MFI Faulu Kenya $5.9 million. IFC will provide a credit guarantee for 80 percent of the loan and both Standard Chartered and the IFC will provide advisory support to Faulu Kenya regarding its new deposit-taking services. For 2007, Faulu Kenya reported a gross loan portfolio of USD 27.4 million, 90,000 active borrowers, total assets of USD 46.9 million, return on assets of 2.29 percent and return on equity of 11.49 percent.

For more information, click here

Leapfrog Fund Raises $44m for Microinsurance

2009.6.19

The LeapFrog Financial Inclusion Fund has raised USD 44 million, which it will invest in microinsurance in Africa and Asia. Investors include the European Investment Bank, Fiduciary/Claymore Opportunity Fund, Omidyar Network, Triodos-Doen Foundation, Hivos-Triodos Fund, ACCION International, Calvert Large Cap Growth Fund.

For more information, click here

PlaNet Guarantee Increases Capital

2009.6.2

Investments from BNP Paribas and other financial institutions have enabled PlaNet Guarantee, the PlaNet Finance social business that provides microinsurance services, to increase its capital base by 50%. PlaNet Guarantee currently serves 70,000 microinsurance policyholders via in 6 countries in Africa. With the new capital, PlaNet Guarantee will expand its microinsurance schemes into the Middle East and North Africa region.

For more information, click here

PlaNet Finance launches the first microfinance program in Oman

2009.5.24

The first microfinance institution (MFI) in the Sultanate of Oman has been launched by PlaNet Finance’s affiliate in Dubai. The initiative is supported by business groups such as the Ajith Khimji Group and MB Holding with the support of the Omani Ministry of Social Development. Oman has a strong banking system but traditional banks reaches only medium and large enterprises. The results of a market study showed that about 66,000 households – 20% of households in the country – depend on micro or small enterprises for their livelihood, and of those 42% (27,720 people) signaled a willingness to take out a microfinance loan. The proposed size of a microfinance loan in Oman will be between $800 and $4,000.

For more information, click here

PlaNet Finance creates full-service mobile bank for the poor in Philippines

2009.5.22

PlaNet Finance has partnered with the Philippines’ largest telecommunications company, SMART, to deliver mobile-based savings, credit, remittance and other services to the poor and unbanked throughout the Philippines. The project will match SMART’s Smart Money platform with PlaNet Finance’s operational skill to create the first mobile-based microfinance service channel that offers full range of mobile banking services for the unbanked, particularly in rural areas where SMART’s network of 36 million subscribers is strong. In doing so, it promises to drastically lower the cost of providing financial services to people in hard to reach areas, transforming the way microfinance services are delivered and the scale of those service.

For more information, click here

Improved microfinance website launched

2009.5.19

CGAP, the World Bank agency responsible for microfinance, has upgraded the website Microfinance Gateway, the most comprehensive online resource for the global microfinance sector. The website community now offers interactive features, updated information and more training resources on key areas such as investment, rural and agricultural finance, and social performance. Microfinance Gateway continues to offer daily news and announcements, job postings, and a library of over 7,000 microfinance documents.

For more information, click here

60% of MFIs report clients have trouble repaying loans

2009.5.18

60% of 400 managers of microfinance institutions report that their clients are finding it harder to repay their loans according to a survey by CGAP, the World Bank agency responsible for microfinance. This phenomenon is most severe in the Eastern Europe/Central Asia and Latin American regions, where economic activity and remittances have slowed. In Asia, the main problem is high food prices, which makes it harder for clients to repay loans by absorbing more disposable income. As a result, more than two-thirds of MFIs report that the percentage of loan payments past due is rising. However, defaults are still rare and few MFIs have so far failed as a result of the crisis.

For more information, click here

Assets of the top 10 microfinance investment funds grew by 32 percent in 2008

2009.5.14

Microfinance is one of the few asset classes that showed a positive return in 2008, with the average net return for fixed-income funds reaching 5.5 percent. As of December 2008, there were 104 active microfinance investment funds with total estimated assets under management of US$6.5 billion. These investment vehicles encompass a broad range of institutions and instruments, including structured finance vehicles, private equity funds, holdings of microfinance banks, and fixed income funds. Of the top 10 funds, all but one – the Omidyar Tufts Fund -- are European.

For more information, click here

Micro-pensions in India

2009. 4.30

UTI Asset Management, an Indian mutual fund, has teamed up with the Indian microfinance institution BASIX to offer a micro-pension scheme. Under the plan, UTI will offer its UTI-Retirement Benefit Pension Fund to customers of BASIX. The minimum investment is USD 1 per month. The fund invests 60 percent of its assets in fixed income instruments and up to 40 percent in equities.

For more information, click here

Microfinance benchmarking report shows high growth and efficiency in Asia

2009. 4.9

The latest Asia Microfinance Analysis and Benchmarking Report, drawing on data from 313 MFIs from 16 countries across South Asia and East Asia and the Pacific, shows that MFIs in the region continue to grow faster than their counterparts in other regions. Cambodia, India and Pakistan show the fastest growth. The data also show that Asian MFIs serve borrowers at the lowest cost level of any region globally. At a cost of US$37 per borrower, the cost of delivery of microfinance services in Asia is less than half that in the next most efficient region.

To download the report, click here

Mobile-based micro-finance banking in the Philippines

2009.4.3

Globe Telecom, one of the largest providers of mobile phone services in the Philippines, will create the country’s first mobile microfinance operation. Rather than create a separate banking division, the venture will use the mobile technology platform as a faster and low-cost delivery mechanism, making use of electronic cash for clients to receive or transfer money instead of going to the bank to pick up the loan proceeds.

For more information, click here

BlueOrchard Reports 4 to 8% Returns for 2008

2009.4.2

Initial financial results from BlueOrchard indicate the firm reached USD 870 million in total assets under management during 2008, of which USD 670 million was invested in microfinance institutions. Each of the funds managed by BlueOrchard returned between 4 and 8 percent during the year. BlueOrchard’s strategy is to acquire minority stakes and assume an active governance role in MFIs worldwide.

For more information, click here

PF and Pfizer Expanding access to healthcare in China

2009.3.20

PlaNet Finance and the world's largest pharmaceutical company, Pfizer Inc., will team up to conduct an in-depth research project on the healthcare needs of the working poor in China. The study will examine the availability and existing sources of medicines, patient purchasing patterns, and the level of access to medical services. The study ultimately aims to help identify how microfinance can be used to create financially sustainable models that may enhance and expand access to medicines and healthcare services for the working poor in China.

For more information, click here

NPLs in Cambodia expected to rise to 1% of portfolios

2009.3.30

It has been expected that the global crisis will lead to an increase in non-performing loans (NPLs) in the microfinance sector. But just how much of an increase? Early indicators from Cambodia, which has the most developed microfinance industry in East Asia, suggest NPLs Microlenders predict nonperforming loans (NPLs) will increase to 1% of loans in 2009 from 0.67 percent last year.

Even with the slowdown, however, some lenders say their total loans will increase in 2009 as demand for banking services grows. The MFI Sathapana says its portfolio is expected to grow to $44.5 million this year from $37.5 million in 2008. The MFI Prasac lent $60 million in 2008 and plans to increase the figure to $75 million in 2009.

For more information, click here

Allianz Life Indonesia Quadruples Micro-Client Base

2009.3.14

Microinsurance provider Allianz Life Indonesia has announced that its client base grew 417 percent during 2008 to 183,000, with just 76 claims settled. Since it introduced its micro-insurance business in 2006, nearly 230,000 people have been covered. One of its leading products is credit life protection, which repays the loan balance in the event of borrower’s death. For the year 2009, Allianz Life Indonesia targets to serve at least 200,000 new customers and expects to reach more than 3 billion rupiahs of premium income from its microinsurance business.

For more information, click here

Latest survey on the impact of the global crisis in microfinance

2009.3.11

The bi-monthly magazine Microfinance Insights has published a new survey on the impact of the global economic crisis on microfinance, gathering views from 120 MFIs and 40 investors from around the world. The survey reveals that 70% of MFIs report that their clients are starting to miss loan repayments, although the majority report such problems with less than 5% of their clients. 15% of MFIs are worried about higher default rates, but the biggest concern for 41% of MFIs is the rising cost of capital rise as investors become cautious. Nevertheless, more than 80% of investors have maintained or increased their portfolio allocation towards the microfinance†sector so far this year.

For microfinance clients, the impact from the global crisis is coming mainly from the drop in remittances from family members abroad as job losses mount in Europe and the United States. However, although there has been an increase in short-term arrears, actual default rates on microfinance loans have not shown signs of rising. According to data collected from the top 150 microfinance institutions by the International Finance Corporation, the share of borrowers 30 days delinquent on their loans has increased from 1.2% before the crisis to between 2% and 3% now.

For more information, click here

Microfinance Leaders Endorse Principles of Client Protection

2009.3.11

Financial services have the power to help people improve their lives. However, competition, the desire to achieve profitability, and internal sales incentives may push financial institutions to offer those services carelessly or improperly, causing more harm than good. The Campaign for Client Protection in Microfinance seeks to unite microfinance providers worldwide to develop and implement standards for the appropriate treatment of low-income clients. The overall objective of the Campaign, which recently held its initial steering committee meeting, is for these standards to become embedded within the fabric of the microfinance community and for microfinance to be recognized as a strongly pro-consumer industry.

For more information, click here

The number of microfinance clients reaches 155 million

2009.3.11

According to the annual report by the Microcredit Summit Campaign, 3552 microfinance institutions who reported to the Campaign have a total of 154.8 million clients, 106 million of whom were among the poorest of the poor when they took their first loan. Of these poorest clients, 83%, or 88.7 million, are women. The number of microfinance clients certified by the Campaign has increased eight-fold since 2000 and is expected to double every three years. Yet this number may be just a fraction of the total number of microfinance clients worldwide. Industry experts estimate that there are 10,000 microfinance institutions worldwide, three times the number who reported to the Campaign.

For more information, click here

New microfinance fund raised €22 million in 2008

2009.3.6

Triodos Bank of the Netherlands has a long track record in the microfinance sector, having invested in more than 100 MFIs in 38 countries over the past 15 years. Last year it launched its new Triodos Microfinance Fund and raised €22 million despite the global financial and economic crisis. Accepting funds from both institutions and individuals, it expects the fund to grow to €100 million by the end of 2009. The expected return on the fund is 6-9%.

For more information about the Triodos Microfinance Fund, click here

CGAP report on microfinance interest rates

2009.2.25

Are microfinance institutions (MFIs) exploiting poor borrowers by charging them excessive interest rates? Some think so. A new report by CGAP, the World Bank agency responsible for microfinance, finds that there are institutions that charge unreasonably high interest rates. However, most MFIs charge interest rates seem to be in line with their costs. In fact, the report also finds that microcredit rates have been dropping by 2.3 percentage points each year since 2003 due to both competition and innovation which have been driving down administrative costs.

For more information about CGAP’s report on microfinance interest rates, click here

TIAA-CREF to invest $40 million in microfinance

2009.2.24

TIAA-CREF, the leading provider of retirement savings products and services in the academic, research, medical and cultural fields, has announced a $40 million investment in Developing World Markets Microfinance Equity Fund I.

For more information, click here

Grameen Foundation releases social performance guidelines

2009.2.23

As the focus on poverty reduction and female empowerment increases, more and more players in the microfinance industry are seeking quantitative tools to measure their social performance as well as their financial performance. To meet this need, the Grameen Foundation has released new guidelines designed to help institutional and individual investors rigorously evaluate the social returns on their microfinance investments.

The new guidelines are available here

Microplace offering 5% return on peer-to-peer microfinance loans

2009.2.17

MicroPlace (www.microplace.com), a website that enables everyday people to invest in the world's working poor, announced today the launch of a new investment opportunity that offers a 5 percent return, a first in the microfinance investment industry for peer-to-peer investors. To achieve this return, MicroPlace has formed a partnership with MicroCredit Enterprises (www.mcenterprises.org), a nonprofit organization that currently finances microloans in 15 countries around the world.

For more information, click here

RENDEV receives the European Union "2009 Sustainable Energy Award"

2009.2.12

PlaNet Finance Japan and its partner Toyota Tsusho have been mobilizing micro-credit to help families living in un-electrified villages in Indonesia and Bangladesh adopt renewable energy so that they have lighting and power in their homes for the first time. In February 2009, the project was selected from among 250 projects for the European Union’s 2009 Sustainable Energy Award as part of the EU’s Renewable Energies for Europe campaign to raise decision makers’ awareness and promote access to sustainable energy. This year the project will organize 160 training sessions in both countries to support the adoption of solar home systems, targeting 10,000 microfinance clients.

For more information on the RENDEV project, click here

PlaNet Finance to advise new microfinance fund

2009.2.5

The International Finance Corporation, a member of the World Bank Group, and the German development Bank KfW have launched a $500 million fund, the “Microfinance Enhancement Facility”, which will be used to refinance more than 100 microfinance institutions in up to 40 countries. Although the microfinance industry continues to perform well and most microfinance institutions (MFIs) have maintained healthy portfolios, some MFIs face problems refinancing their portfolios as a result of the global financial crisis. This fund was created to combat the expected liquidity squeeze. PlaNet Finance Investment Services, PlaNIS, will be part of the team placing these funds.

For more information, click here

Microfinance in the US

2009.2.04

To most people, microfinance means banking services for the poor in developing countries. However, many people in developed countries also lack access to the financial services they need to improve their economic fortunes. To meet this need in the troubled suburbs of Paris, PlaNet Finance launched FinanCités (www.financites.fr – in French only) in 2007. Grameen Bank has a similar program in New York City. Since opening Grameen America in January 2008, nearly 500 women have borrowed on average $2,200. The repayment rate is 99.6%. President Obama recognizes the need for microfinance in the US and included $30 million for microloans in his economic stimulus package.

For more information, click here

Micro-ATM machines in India

2009.2.04

In India, it is estimated that 560 million people (about 51 per cent of the population) is financially underserved. For the very poor, the first and most important financial service they need is a safe place to save their money. Yet collecting small-lot savings is often costly. In order to expand the ability of the poor to save, Financial Information Network & Operations (FINO) and NCR Corporation will jointly set up 30,000 microdeposit-taking machines in the next five years. The machines work with the support of smartcard and biometrics technology.

For more information, click here

JP Morgan develops benchmarks for valuing microfinance equity investments

2009.2.03

At the end of 2008, there were 24 specialized microfinance equity funds with total assets of US$1.5 billion under management. However, there is still no agreed-upon method for valuing microfinance equity. To meet this need, JP Morgan and CGAP, the World Bank agency responsible for microfinance, have created the first ever set of benchmarks for valuing microfinance equity investments. They concluded that basing the value on residual income is more appropriate for microfinance institutions because it combines the current book value with future earnings.

For more information, click here

ADB Institute and PFJ collaborate on localizing microfinance training for Vietnam and Mongolia

2009.1.29

The UNCDF’s Microfinance Distance Learning Course is one of the most popular tools for the initial training of microfinance professionals. Moreover, the course is conducted by the Asian Development Bank Institute from Tokyo, thus creating a link between the microfinance sector in Asia and Japan, the region’s largest provider of development assistance.

Although the UNCDF’s course is well received, its outreach and impact could be enhanced by providing the course material in local languages rather than English. Even for the best MFIs, the level of English language ability among the top staff varies widely; the level of English among mid-level managers and branch managers is low to non-existent.

Since 2007, the Asian Development Bank Institute has worked with PlaNet Finance Japan to organize the translation of the UNCDF Microfinance Distance Learning Course book and CD-ROM into Thai, Lao, Khmer, and Bahasa Indonesian in an effort to expand the outreach of the course. This year, the program will be extended to Vietnamese and Mongolian

For more information on the UNCDF’s Microfinance Distance Learning Course, click here

Flow of money to microfinance funds increasing despite crisis

2007.1.27

The US-based Calvert Social Investment Foundation announced that, despite troubled financial markets and a U.S. recession, it is continuing to grow. Total assets reached $215 million at the end of 2008, up more than 7 percent in the last few months of the year despite the financial and economic crisis. For all of 2008, the fund raised $42 million in new capital for its investments.

For more information, click here

The number of microfinance clients reaches 155 million

2009.1.26

According to the annual report by the Microcredit Summit Campaign, the 3552 microfinance institutions who reported to the Campaign have a total of 154.8 million clients, 106 million of whom were among the poorest of the poor when they took their first loan. Of these poorest clients, 83%, or 88.7 million, are women. The number of microfinance clients certified by the Campaign has increased eight-fold since 2000 and is expected to double every three years. Yet this number may be just a fraction of the total number of microfinance clients worldwide. Industry experts estimate that there are 10,000 microfinance institutions worldwide, three times the number who reported to the Campaign.

For more information, click here

Creating a Sustainable Microcredit Model in South Korea

2009.1.14

Citibank Korea and the government of South Korea are stepping up their support for microfinance in the country in the wake of the global economic and financial crisis. Citibank has increased its funding for Korea’s first microfinance institution, Joyful Union, by 190 million won ($138,000, 12.3 million yen). Joyful Union was established in 2000 as a Korean subsidiary of Bangladesh-based Grameen Bank. As Korea’s first microcredit institution, Joyful Union provides unsecured small-scale loans to people who cannot access financial services from established financial institutions. Meanwhile, the government has announced that it will earmark $730,000 (65 million yen) for loans of up to $3,710 (330,000 yen) to shop owners and street vendors. The government’s budget for microcredit has grown from $1.5 million to $9.5 million over the past year.

For more information, click here

ADB says Cambodian MFIs weathering the financial storm

2009.1.14

While Some of the world’s biggest banks are threatened by the credit meltdown, Asian Development Bank Country Director Arjun Goswami says Cambodian microlenders are solid. In fact, he predicts that the demand for MFI services will rise because of the impact of the slowdown on the poor. At the lowest end of society, especially in places hit hard by the food crisis, people are in need of credit and other financial services. Thankfully they can turn to microfinance institutions rather than money lenders, who may charge upwards of 10 percent per month.”

For more information, click here

Hillary Clinton endorses microfinance in Senate testimony

2009.1.13

At her Senate confirmation hearing, incoming Secretary of State Hillary Clinton strongly endorsed microfinance and the role it plays in empowering women:

"Our foreign policy must reflect our deep commitment to the cause of making human rights a reality for millions of oppressed people around the world. Of particular concern to me is the plight of women and girls, who comprise the majority of the world's unhealthy, unschooled, unfed, and unpaid.

"President-elect Obama's mother, Ann Dunham, was a pioneer in microfinance in Indonesia. In my own work on microfinance around the world – from Bangladesh to Chile to Vietnam to South Africa and many other countries -- I've seen firsthand how small loans given to poor women to start small businesses can raise standards of living and transform local economies. We will be honored to carry on Ann Dunham's work in the months and years ahead."

For more information, click here

Upward trend forecast for peer-to-peer microfinance lending in 2009

2009.1.07

Peer-to-peer (P2P) lending programs like Kiva.org have taken the microfinance industry by storm, enabling millions of people around the world to support the microfinance sector for the first time and providing low-cost capital to needy microfinance institutions. The popularity and effectiveness of such programs is spawning competition and innovation. According to P2P industry analysts, more programs are likely to be launched in 2009, and even some banks may experiment with the concept. The most important issues that may be addressed in 2009 are the ability of lenders to provide loans in foreign currency and the introduction of variable rather than fixed interest rates.

For more information, click here

Microfinance taking root in Iraq

2009.1.05

Despite the extreme challenges, a nascent microfinance industry has emerged in Iraq. Today, 12 microfinance institutions are now reaching over 38,000 clients. The largest are run by three international NGOs operating in different areas of the country. CHF International is the largest provider, with over US$100 million in loans disbursed since 2003. ACDI/VOCA has supported SME lending in Iraq for almost five years. Finally, Relief International joined their ranks in August 2006. Around the world, microfinance institutions have flourished in post-conflict situations, providing a crucial path toward development and security for people caught up in conflict.

For more information, click here

India: Microfinance Institutions Emerge as Next Asset Class

2008.12.17

Recently, three Indian micro finance institutions (MFIs) of varying sizes collectively received private equity investments of around $115.5 million. What is making the micro finance sector so attractive despite the crisis in the mainstream financial sector? In a word: growth. MFIs, most of whom operate as non-banking financial institutions, have been consistently growing at more than 200% a year. In fact, despite the crisis, this coming year many large and mature microfinance institutions are predicting over 100% growth as inflationary trends have triggered higher working capital needs for their clients, while mainstream banks have been unable to serve them.

For more information, click here

PF to offer microinsurance in Africa and Latin America

2008.12.12

PlaNet Finance and FMO, the entrepreneurial development bank of the Netherlands, have formed a partnership to develop innovative microinsurance products designed to protect MFIs and microentrepreneurs in Latin America and Africa. The strategy will be implemented through PlaNet Guarantee, PlaNet Finance’s subsidiary dedicated to microinsurance. The project aims at implementing credit life insurance, credit insurance, funeral insurance, hospitalization plans and crop insurance through different delivery channels. It will be carried out in 8 countries: Argentina, Colombia, Guatemala, Peru, Ivory Coast, Egypt, Mali, and Senegal. The project began in January 2009 with the market studies in order to determine the microinsurance products needed in each country.

For more information on PlaNet Guarantee, click here

Cambodian MFIs say the sector is insulated from the financial crisis

2008.12.10

Local microlenders are expecting strong growth in 2009, despite a slowing economy and a tighter credit market. Cambodia’s microfinance institutions, or MFIs, may be one of the few bright spots in an otherwise gloomy economy, with strong growth expected in 2009, forecast local industry experts. MFIs predict 20 percent to 50 percent growth next year - lower than the 2007 figures, but still well ahead of other sectors of the economy.

For more information, click here

Microfinance in Thailand resilient to financial crisis

2008.12.9

Despite the global financial crisis, microfinance is still performing well. Here in Thailand, despite a struggling economy, microfinance institutions (MFIs) are not feeling ill effects. In fact, Common Interest Foundation in Chiang Mai is still seeing a 100% repayment rate on its loans to member Village Banks. Globally, MFIs are still reporting the same 96-98% repayment rates as always, and microfinance is still growing at a good pace. Microfinance is resilient to financial crises like the current credit crunch in part because of the more intimate relationships MFIs have with borrowers. MFIs have personal interactions with borrowers on a regular basis, so they are less likely to over-lend because - unlike more traditional lenders - they understand borrowers' abilities to repay.

For more information, click here

Time Magazine: Microfinance sector stable despite global financial crisis

2008.12.3

The microfinance sector may be resistant to some of the volatility now plaguing financial markets. That's because those who borrow in small amounts from micro lenders often work on projects unaffected by large-scale global banking travails. Recent studies have confirmed the robust reliability of borrowers at the bottom end of the global income scale.

For more information, click here

Microfinance weathering the global financial storm so far

2008.11.20

In mid-November, the Consultative Group to Assist the Poor (CGAP), the World Bank agency responsible for microfinance, held a virtual conference which gathered 600 managers of microfinance institutions (MFIs), central bankers, investors and advisers from 34 countries to provide a report on how the financial crisis is impacting the sector and its clients. The answer is not much – yet. Repayment rates by the clients of MFIs remain high. While there is increasing concern that the global slowdown will affect their clients’ businesses, no one expects repayment rates to fall so low as to cause an MFI to collapse like sub-prime lending did for many commercial banks. Also, the funds that invest in MFIs have not seen any redemptions, although the flow of new investment is slowing to a trickle which could hamper MFIs’ expansion plans in 2009.

For more information, click here

Additional information can be found at here

Cashpor India Reads Fingerprints over Mobile Phones

2008.11.14

Microfinance institution Cashpor India, which has 300,000 clients and a portfolio of $150 million, has many clients in rural areas. In order to reduce the cost of providing microfinance services to them and increase security, Cashpor’s loan officers have adopted a high-technology solution. They use ClassifEye’s camera phone transaction and authentication product, which uses a photo of the client’s finger to authorize access to his or her account. With the technology, Cashpor’s clients can now securely manage loans, make deposits and execute other transactions without visiting a Cashpor office.

For more information, click here

Standard Chartered Bank focuses on microfinance in Sub-Saharan Africa

2008.11.13

Standard Chartered Bank has signed an agreement with the US Agency for International Development (USAID) to increase access to financial services in sub-Saharan Africa by supporting microfinance institutions (MFIs). As of the end of 2007, the bank had originated USD 170 million in loans in Africa through partnerships with local MFIs.

For more information, click here

Microfinance in China continues to expand

2008.11.2

Citigroup has announced that the China Banking Regulatory Commission has approved its plan to open two microcredit firms in the rural province of Hubei. Citigroup joins HSBC and Standard Chartered, who began microfinance operations in rural China in 2007. PlaNet Finance, through its subsidiary MicroCred, launched China’s first internationally-funded MFI in January 2007.

For more information, click here

Gates Foundation Grants $1.7m to PlaNet Finance, Orange for Mobile Banking Project

2008.10.28

The Bill and Melinda Gates Foundation has granted USD 1.7 million to PlaNet Finance to fund a mobile banking project aimed at providing microfinance clients with enhanced access to banking services. The project, developed with mobile operator Orange, will create pilot mobile banking platforms in Senegal, Jordan, Egypt and Ivory Coast. By enabling low-income people living in remote areas to use their mobile phones to conduct financial transactions, the project will increase access to financial services in a cost-effective way.

For more information, click here

Leading microfinance investors sign on to Consumer Protection Principles

2008.10.22

More than thirty of the leading microfinance investment funds have signed on to the Client Protection Principles, an industry-wide initiative that encourages the microfinance institutions they invest in to ensure that their clients are treated fairly. The signatories have agreed that financial services to low-income clients should adhere to the following core principles:

Lenders should ensure that credit will be extended only if borrowers have demonstrated an adequate ability to repay
Loans will not put the borrowers at significant risk of over-indebtedness
Pricing, terms and conditions of financial products should be transparent
Debt collection practices should not be abusive or coercive

For more information, click here

Microfinance and ICT Conference in Delhi, India

2008.10.21

PlaNet Finance and India’s leading association of ICT professionals, NASSCOM, hosted a global Microfinance and New Technologies summit in India on October 21-22.

The conference focused on how technology products and channels aid in the delivery of microfinance throughout the world, making a crucial difference in outreach, sustainability and the impact of microfinance.

For more information, click here

PlaNet Finance announces MicroFix, a unique currency risk fund

2008.10.20

Many private sector funds investing in microfinance institutions have sprung up in recent years, and the capital they provide has been crucial the growth and development of the sector. However, the funds almost always invest in hard currency, while the MFIs lend in local currency. This mismatch increases the business risk to the MFIs.

To mitigate this risk, PlaNet Finance has launched MicroFix, a US$70 million fund that can take on the currency exposures of its participants. The fund is backed by technical assistance from BNP Paribas, Dutch investor FMO, and TCX, a currency exchange fund based in the Netherlands.

For more information, click here

What Microfinance can teach Wall Street

2008.10.12

While Wall Street is in crisis, the microfinance sector continues to expand and microfinance institutions continue to report low levels of default. The lesson microfinance can teach Wall Street is that lending against collateral can blind you to the need for checking the repayment capacity of borrowers.

Microfinance, by contrast, has no collateral at all. MFIs deliberately keep loan sizes within the repayment capacity of the borrowers and MFIs set an absolute loan limit to guard against over-borrowing. The lesson: don't just depend on collateral; assess the cash flow of borrowers, and leave a cushion to ensure repayment.

For more information, click here

Microcredit Lenders Emerging in China

2008.10.6

China is considered the world’s largest potential market for microfinance services. Until recently, however, microfinance institutions have been hampered by restrictive government regulation. That is finally changing. On May 4, the central bank and the China Banking Regulatory Commission published a joint statement encouraging more MFIs to be established in different provinces to help finance small business development.

More recently, in mid-August the Chinese government introduced new incentives to encourage microcredit lenders to provide more loans to small companies engaging in labor-intensive manufacturing activities and to help unemployed workers to finance start-up businesses.

PlaNet Finance, through its subsidiary MicroCred, set up China’s first international best-practices microfinance institution in Nanchong, Sichuan province, in 2007.

For more information about microfinance in China, click here

For more information about MicroCred’s operations in China, click here

Shinsei Bank renews support for PlaNet Finance Japan

2008.10.1

Shinsei Bank is PlaNet Finance Japan’s pioneer sponsor, having supported PFJ’s operations since it was created in 2005. The Bank has agreed to continue supporting PFJ for a fourth year starting October 1, 2008. Shinsei provides financial support and know-how that has been critical to the early growth of PFJ.

For more information about Shinsei Bank’s Corporate Philanthropy program, click here

Toyota Tsusho Corporation supports Renewable Energy for Development (RENDEV) Project

2008.9.25

RENDEV is a 3-year project supporting rural development and poverty alleviation in an environmentally sustainable way through increasing access to solar energy for people living without electricity in Indonesia and Bangladesh. In addition to Toyota Tsusho, it is co-financed by the European Union.

Project activities include the development of financial products to support the purchase and installation of solar home systems by microfinance clients, training sessions for microfinance staff and their clients, and awareness raising activities such as DVDs and conferences for policy makers and donors.

For more information, click here

Merrill Lynch Japan renews its support for PFJ’s Microfinance Career Kick-Start Internship Program

2008.9.19

The PlaNet Finance Japan internship program, now in its third year, gathers young Japanese professionals interested in a career in microfinance. The professionals help develop Japanese-language microfinance training material. They then spend six months working in a microfinance institution overseas. This year’s interns are working at South Pacific Business Development in Apia, Samoa. Support from Merrill Lynch Japan will enable a new round of internships to take place in 2009.

To read the blog of PFJ’s intern in Samoa, click here (in Japanese)

Mobile Banking: Where no bank has gone before

2008.9.4

What do these countries have in common: Kenya, Pakistan, Mongolia, and the Maldives? They share political challenges, conflict, as well as having highly dispersed populations across varied types or terrain. They are also pioneers when it comes to mobile phone banking.

Banking services provided via cell phones can make a big difference in the lives of people who would otherwise have to travel 20 or 30 kilometers just to get to a bank branch. Technology-enabled banking channels cut the cost of delivering services to rural and remote areas in half.

For more information, click here

Association of Women in Finance extends their endorsement of PlaNet Finance Japan

2008.9.3

The Association of Women in Finance (AWF), an events and networking organisation for women in the finance industry, has extended its support to PlaNet Finance Japan into 2009. AWF provides networking opportunities and financial support of PFJ’s operations.

For more information about AWF, click here

PlaNet Finance and PlaNet Finance Japan launch Asian Technical Hub

2008.8.4

The PlaNet Finance Group has launched its Asia technical hub in Manila, the Philippines, in order to increase its support for the microfinance sector in Asia. The establishment of an Asian hub office that compliments PlaNet Finance’s existing country programs in India, China, Nepal and Sri Lanka reflects the enormous possibilities and also the difficult challenges facing the microfinance sector in Asia.

According to the Microcredit Summit Campaign, 85% of the clients of verified MFIs are in Asia, making it by far the largest microfinance market in the world. Nevertheless, the number of clients reached is still only a fraction of the number who need microfinance services, and MFIs in Asia receive the least amount of investment of any region in the world except Africa.

In PlaNet Finance’s view, one of the key challenges in the region is that in many countries there are a few extremely dominant institutions that attract staff and investment while many smaller MFIs do not have access to the support they need to grow.

PlaNet Finance Asia’s goal is to assist these smaller MFIs. In doing so, we are dedicated to a vision of a microfinance sector in Asia that

increases outreach
maintains institutional diversity
guarantees a competitive environment that spurs innovation and reduces costs to the borrowers

Handbook for the analysis of the governance of microfinance institutions

2008.7.31

In order to achieve financial viability, good governance is critical. Successful and sustainable microfinance institutions (MFIs) are those which articulate a clear strategic vision and implement transparent internal processes. In order to support and enhance these efforts, the International Fund for Agricultural Development (IFAD) has published a handbook that outlines a method to evaluate an MFIs’ approach to its systems and organization according to six fundamental elements of good governance.

For more information, click here

President of Indonesia opens the Asia-Pacific Regional Micro Credit Summit 2008

2008.7.30

The Asia-Pacific Regional Micro Credit Summit was held on July 28-30 in Bali. Presiding over the opening of the event was President Susilo Bambang Yudhoyono.

The event was the 12th in a series of global and regional summits organised by the Microcredit Summit Campaign. In February 1997, the first Microcredit Summit launched a nine-year Campaign to reach 100 million of the world's poorest families, with credit for self-employment and other financial and business services by the end of 2005.

That goal was achieved in 2005, after which the Campaign set two new goals:

By 2015, ensuring that microfinance outreach expands to 175 million of the world's poorest families
By 2015, working to ensure that 100 million of the world's poorest families rise above the US$1-a-day income threshold

The summit was attended by over 900 delegates representing 50 countries. The former President of Peru, Alejandro Toledo, delivered a moving speech at the closing dinner. Grameen Bank founder Muhammed Yunus was also a keynote speaker.

For more information, click here

PlaNet Finance arranges US$1 million loan to Vision Fund Cambodia

2008.7.28

PlaNet Finance Japan recently conducted a two-day due diligence analysis of the MFI Vision Fund Cambodia (VFC). As of the end of 2007, VFC had 53,885 clients and an outstanding portfolio of US$10,700,478, making it the seventh-largest MFI in Cambodia.

VFC had a return on assets of more than 5% and a return on equity of more than 14% in 2007. Its loan default rate is less than 1%. Nevertheless, with an average loan size of just under US$200, it is clear that VFC achieves these results while focusing exclusively on poor and rural populations.

As part of the due diligence mission, PlaNet Finance Japan interviewed all the senior managers of the organization and spent a day with its loan officers visiting clients in the rural areas around the capital, Phnom Penh. In the end, a loan of $1,000,000 for 36 months at an interest rate of 10.25% was agreed upon. The funds were released at the end of July.

For more information about Vision Fund Cambodia, click here

Vietnam: 85% of rural poor denied bank loans

2008.7.25

A recent Action Aid Viet Nam study said that although WTO status has led to development of the banking industry, 85 per cent of the rural poor in Vietnam still do not have access to small loans. The resuts of the study suggest that microfinance, still hampered by adverse regulation, is greatly needed to address poverty in Vietnam.

For more information, click here

Gradatim launches India's first Micro-Insurance Platform - MF-Insure

2008.6.24

Gradatim IT Ventures, one of the leading players in the microfinance industry, has launched MF-Insure, an on-demand micro-insurance technology platform which combines IT Infrastructure and Back Office Services. It is delivered as a Business Process Utility (BPU) on a ‘Pay-Per-Use’ Pricing Model.

For more information, click here

China: Microcredit firms may debut in Zhejiang

2008.6.16

Microfinance continues to expand in the world’s largest potential market, China. New microfinance institutions will debut in Zhejiang province in July on a pilot basis to meet the demand of small and medium-sized enterprises' growing demand for capital.

For more information, click here

PlaNet Finance Japan presents on financing issues at the ADB’s Asia Clean Energy Forum

2008.6.6

Policymakers, private sector firms, and non-governmental organizations (NGOs) across Asia gathered on June 3-5 in Manila, Philippines for the Asia Clean Energy Forum: Investing in Solutions that Address Climate Change and Energy Security.

The Forum aims to promote increased use of clean energy in Asia and the Pacific by promoting successful clean energy policies and finance solutions.

PlaNet Finance Japan addressed the participants regarding the opportunities for financing access to clean and renewable energies at the grassroots level through microfinance.

For more information, click here

Research on the near-term challenges in the microfinance sector

2008.4.21

The Centre for the Study of Financial Innovation, a non-profit research center, has for years published its famous Banana Skins research on risks in the financial sector. In 2008, for the first time it published a similar report on the microfinance sector. Its report concludes that:

With the exception of Africa, a shortage of funding is not a problem for the microfinance industry
Management skills are in short supply, preventing microfinance institutions from growing to meet increasing demand
Government regulation in developing countries is also often a hindrance

Among Asian MFIs, the biggest challenges that need to be overcome are in the areas of management, particularly technology management, and also staffing and corporate governance. Other operational challenges include foreign exchange risk.

For more information, click here

Rabobank Japan supports PlaNet Finance Japan

2008.4.1

Rabobank has donated to the PlaNet Finance general fund through sponsorship of a local soccer team. The soccer team wears the Planet Finance logo on its jerseys.

Association of Women in Finance support PlaNet Finance Japan

2007.9.28

The Association of Women in Finance (AWF), an events and networking organization for women in the finance industry, has made PlaNet Finance Japan the organization’s cause for 2008. AWF provides networking opportunities and financial support of PFJ’s operations.

For more information about AWF, click here

Merrill Lynch Japan supports PFJ’s Microfinance Career Kick-Start Internship Program

2007.9.5

The PlaNet Finance Japan internship program will soon receive support from Merrill Lynch Japan. Through the internship, young Japanese professionals interested in a career in microfinance develop Japanese-language microfinance training material. They then spend six months working in a microfinance institution overseas. Last year’s interns developed the PlaNet University training course and spent six months working at the MFI Association for Underprivileged People in Bangladesh.

To take the PlaNet University microfinance training course, click here

To read the blogs by PFJ interns, click here and here (in Japanese)

ADB Institute and PFJ collaborate on localizing microfinance training for Indonesia, Thailand, Cambodia and Laos

2007.6.3

The Asian Development Bank Institute has agreed to work with PlaNet Finance Japan to organize the translation of the UNCDF Microfinance Distance Learning Course book and CD-ROM into Thai, Lao, Khmer, and Bahasa Indonesian in an effort to expand the outreach of the course.

For more information on the UNCDF’s Microfinance Distance Learning Course, click here

Japan’s first international conference on microfinance was organized by PlaNet Finance Japan on October 10

2007.5.11

PlaNet Finance Japan organized Japan’s first microfinance symposium on May 10, co-organized by JICA, JBIC, World Bank Group, Asian Development Bank Institute, KRI and Shinsei Bank. The event was held at the Asian Development Bank Institute in Kasumigaseki. Close to 200 people attended.

The symposium focused on the many new and innovative ways the private sector has been increasing its involvement in and support for microfinance. One featured example was the director of the Grameen-Danone project, a joint venture between the French food company Danone and the Grameen Bank, founded by Muhammad Yunus, who last year was awarded the Nobel Peace Prize for his work in microfinance. PlaNet Finance’s global chairman, Jacques Attali, concluded that “Although Japan’s understanding of and involvement in microfinance has not been a factor in the growth of the industry to date, going forward Japan’s technology and human resources will be a critical factor in the next stage of the sector’s development.”

The attendees were drawn from the private sector, government and academia. Media interest was also very high, with ten representatives of the Japanese media covering the event. The event was featured that evening on TV Tokyo’s “World Business Satellite” program, helping to inaugurate a new age for microfinance in Japan.

All the presentations for Japan Microfinance Symposium, are available for those who could not make it on that day or for reserchers' reference.

To download the Program Index file, please click here
To download all the files in zip file (9MB), please click here

PlaNet Finance Japan launches its blog site, written by its interns in Bangladesh

2007.2.26

PlaNet Finance Japan has sent two Japanese interns to the microfinance institution AUP (Association for Underprivileged People) in Bangladesh for 6-month training. These interns are writing about their experience, and about microfinance through blogs accessible from this site (in Japanese).

The blog by Seiko Saito is here

and

The blog by Yuya Arashima is here

Cash flow management tool for Sunduq MFI of Afghanistan

2007.2.22

The MFI Khadamaty Mahali Sunduq operates in the eastern provinces of Afghan, with its headquarters in Jalalabad, 150 km east of Kabul. It is one of the few Afghan MFIs with a clear mandate for rural development. As of the end of 2006, Sunduq had 8 branch offices with a total staff of 53. It had lent $1.7 million to 4,000 clients.

That makes it one of the smaller MFIs operating in Afghanistan, but it is gearing up for high growth. In order to prepare it for the future, PlaNet Finance was invited in to help strengthen its internal procedures and staff capacity.

PlaNet Finance Japan was asked to support this process by reviewing Sunduq’s accounting procedures and developing a financial and cash management tool that is robust enough to support the organization as it expands. The new financial management tool enables Sunduq to test four different lending scenarios for the coming year, projecting cash flow and operating profits for each one. It enables Sunduq to monitor actual cash flow versus its initial projections, and is flexible enough not only for Sunduq to change the terms of its three current loan products, but to add three new products.

PFJ Arranges loan to Credit MFI of Cambodia

2007.2.8

PlaNet Finance Japan recently met with six of the leading MFIs in Cambodia and conducted a full two-day due diligence analysis of one, called Credit MFI. Although one of the smaller MFIs in Cambodia, Credit has 11,000 clients and an outstanding loan portfolio of $4.6 million. The average loan is $427, and the average repayment rate in 2006 was 97%. Credit reached operational self-sufficiency (that is, the ability to cover its operating expenses, financing costs and the provisions for loan losses out of its own operations without relying on subsidies) in 2005 and improved further in 2006. Return on equity averaged in 2006 was 1%.

As part of the due diligence mission, PlaNet Finance Japan interviewed all the senior managers of the organization and spent a day with its loan officers visiting clients in the rural areas around the capital, Phnom Penh. In the end, a loan of $500,000 for one year at an interest rate of LIBOR + 5.9% (roughly 11.8%) was agreed upon between Credit and responsAbility. The funds were released at the end of February.

For more information about Credit MFI, click here

PlaNet University: the first Japanese language microfinance training program

2006.12.20

PlaNet Finance Japan announces the launch of PlaNet University, the first Japanese language microfinance training program. The six courses provide a foundation for understanding the fundamental issues of the microfinance sector and the key challenges of managing a microfinance program.

The training program is made up of self-directed lessons available for download for free from the PlaNet Finance Japan website (in Japanese).

PlaNet University site is here

PlaNet Finance Japan granted NGO status by Tokyo Metropolitan Government

2006.7.24

The Tokyo Metropolitan Government has approved PlaNet Finance Japan’s application for NPO status, which was submitted on April 3, 2006. The PlaNet Finance Japan general assembly has 10 members. Among its board of directors are Mr. Makoto Utsumi, former vice-minister for international affairs at the Ministry of Finance and Mr. Kimio Fujita, the past president of JICA and former ambassador to the Netherlands and Indonesia.

Shinsei Bank supports the creation of PlaNet Finance Japan

2005.10.11

Shinsei Bank has agreed to become PlaNet Finance Japan’s pioneer sponsor, providing financial support and know-how that will be critical to PFJ’s establishment and growth.