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Womens Microfinance Network Non-banking
Deposit and Credit Organization RUSSIA
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• Womens Microfinance Network
• Founded in 1998 with the support from Womens
  World Banking
• Mission build middle class, develop local
  economy, encourage initiative and
  entrepreneurship by opening access to financial
  resources for small business owners

Established By women and for women
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• WMN was established as an association of several
  non-for-profit entities forming a two-tier
  structure
• 1st level locally managed funds (partner
  organizations) located in several regions of
  Central Russia
• 2nd level - apex institution based in Moscow (NGO
  WMN)

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NGO WMN (Moscow)
2nd LEVEL
Fundraising (WMN lenders included Citibank, Deutsche Bank, IFC, Oikocredit, BlueOrchard, etc.) On-lending the funds borrowed from international lenders to the partner organizations Providing partner organizations with technical assistance (workshops, experience exchanges, consultations) Monitoring and auditing operations of the partner organizations Reporting to foreign lenders on the performance of the association
1st LEVEL
NGO Fund Yaroslavl region
NGO Fund Kostroma region
NGO Fund Tula region
NGO Fund Kaluga region
NGO Fund Tver region
Offering micro loans
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As an association of separate non-commercial
legal entities WMN existed until 2005. Over the
7 years of successful growth and development the
network disbursed 46 890 loans, plus 4,672
loans since then in the amount of RUB 1.726
bln. (over USD 60 mln., USD 1 RUB 30) Plus 0.67
bln RUB since then.
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Number of loans disbursed by WMN as an
association of NGO funds in 1998 2005
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Amount of loans disbursed by WMN in 1998 2005
(thousand RUB)
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Loan portfolio of WMN in 1998 2005 (thousand
RUB)
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In 2005 founders of WMN decided to consolidate
the association of NGO MFIs into a single
commercial entity as it opens new opportunities
for growth and development. The goal of the
transformation was to create a precedent of
establishing a regulated Russian MFI.
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• Advantages offered by a regulated entity status
  include
• clear legal basis for operations
• access to an expanded range of financing sources
  and increased leverage
• governance structure with stronger accountability
  mechanisms
• strengthening of internal controls and
  monitoring
• increased standardization of credit operations.

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In Summer 2005 NGO WMN paid up 100 of startup
capital (RUB 20 mln./ USD 645,161) of a newly
registered credit company Non banking deposit
and credit organization Womens Microfinance
Network, closed joint stock company (ZAO NDCO
WMN). In September 2005 ZAO NDCO WMN obtained
its limited banking license authorizing it to

• capture time deposits from legal entities,
• invest the funds on the institutions own behalf
  and at its own cost,
• issue bank guarantees and
• purchase and sell foreign currency in cashless
  form.

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ZAO NDCO WMN started microfinance operations in
January 2006 in Moscow. Credit products
offered Business and consumer loans RUB 5,000
350,000 (USD 160 11,300) for 2 36 months,
interest rates 32 - 46 As of 31 December 2006
ZAO NDCO WMN loan portfolio stood at RUB 68 mln.
with 78 clients RUB 59.8 mln. or 88 of the
loan portfolio were loans to 10 Russian MFIs.
As in 2006 partner organizations hadnt been
transformed to ZAO NDCO WMN yet, the Board of
Directors took decision to offer loans to
different Russian MFIs (NGOs - credit
cooperatives) in order to make the available
funds work.
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• Consolidation of the partner organizations assets
  into ZAO NDCO WMN started in April 2007 and was
  completed in December 2007.
• Since 31 December 2007 ZAO NDCO WMN comprises
  Head office in Moscow and
• 11 branches in 5 regions of Central Russia
• 4 bigger branches in the regional centers of
  Kaluga, Tula, Kostroma and Tver
• 7 smaller branches in the towns of the same
  regions

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WMN geography 11 branches
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Loan portfolio of ZAO NDCO WMN in 2006 - 2009
(thousand RUB)
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Number of clients of ZAO NDCO WMN in 2006 - 2009
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Loans disbursed by ZAO NDCO WMN
Amount (RUB 000)
Number
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PAR 30 of ZAO NDCO WMN in 2006 - 2009
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Clients of ZAO NDCO WMN - economically active
people, mostly women, with low income and
traditionally excluded from accessing streamlined
banking services.
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WMN micro-loans open new horizons
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For farm owners
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WMN was a helping hand in difficult times. Id
like to thank it very much. The micro-loans
allowed me to double the livestock of my
hog-raising farm
Tatiana Kukhto