Central Asia Microfinance Center MFCCGAP project

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(No Transcript)
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Central Asia Microfinance Center (MFC-CGAP
project)

• Olga Tomilova, olgatomilova_at_yahoo.com
• June 2, 2007

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Central Asian Countries Common Features

• MF sector is one of the youngest and most rapidly
  growing in the world 40 growth in client base
  between 2003 and 2005
• Similar political regimes and common history
• Low population density
• Except Kazakhstan, among 25 of the poorest
  countries
• Among 25 of the countries with the shallowest
  financial sector outreach

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Non-Bank MF Sector in CA, Sept 2006
22 MFIs serve over half of all clients
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Banks Versus MFIs, September 2006
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Compared to other regions

• Interest rates in CA are among the highest in the
  world
• In Uzbekistan the highest effective interest
  rate (about 80)
• Still very low efficiency and productivity
  indicators
• Excellent portfolio quality (CUs have the highest
  PAR of about 2.8)

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Equity to Assets Ratio
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Average Loan Balance/GNI per Capita
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Profit Margin and Total Cost Ratio
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Cost per Borrower, US
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Number of borrowers per staff member
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Challenges

• Policy environment
• Sector infrastructure
• MFI capacity
• Fragmented market

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Central Asia Microfinance Center Project Areas
of Focus

• Working with policy makers
• Financial transparency
• Working with donors and investors
• Working with financial institutions and industry
  associations
• Dissemination of MF best practices information
  and materials

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Activities and Achievements Policy Work

• Training for the National Bank of Kyrgyzstan,
  jointly with the CGAP Policy Team (MF
  Fundamentals)
• CA Manager invited as a member of the Working
  Group on the development of the MF National
  Strategy in Kyrgyzstan
• Training for the National Bank and government
  officials in Tajikistan (MF Fundamentals)
• Training on fundamentals of MF reporting and
  performance analysis for government officials in
  Uzbekistan
• Active cooperation with Fund for Development of
  Small Entrepreneurship in Kazakhstan

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Activities and Achievements Financial
Transparency

• of MFIs in the MIX Market grew to 69 from 13 in
  2005

• First-ever CA Benchmarking Report for 2005
  published, includes info on macroeconomics,
  banking sector and legal environment
• http//www.mixmarket.org/medialibrary/mixmarket/20
  05_Central_Asia_Microfinance_Report1.pdf
• 2 CA winners of CGAP Transparency Award 4 Merit
  Recognition awardees in 2006 (to compare, 3 MR
  awardees in 2005)

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Activities and Achievements Other

• Dissemination of best practices and materials
  January 2007 Road Show
• 3 countries
• Over 150 participants
• Representatives from govt, donors, banks, MFIs,
  CUs
• Actively working with donors and investors
  linking them to financial institutions

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Donor Activities in Central Asia

• Data provided by 10 donor agencies, for period of
  1998 through 2007
• Cumulative investment about 0.6 bln committed,
  over 60 disbursed
• Overall tendency funding flows are reduced over
  time
• 4 donors (EBRD, USAID, WB and IFC) 89 of total
  funding
• Rough estimates of funding instruments amounts
• Difficult to isolate MF from other activities

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Donor Activities in Central Asia
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Donor Activities in Central Asia Funding
Distribution by Countries
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Thank you!