Eskhata Bank is successfully implementing the program of lending to small and medium-sized enterprises with the support from EBRD, which allows to obtain, under favorable conditions, the necessary financial resources for successful development. This project is supported by the EBRD Shareholder Special Fund and the Support Fund for countries in early stages of transition to market economy and is active since the beginning of 2010 within the Eskhata Bank under the technical assistance of a Swiss consulting company (BFC). The most important advantage of lending to small and medium enterprises is the provision of lending for longer period of time and lower interest rates. The credit is granted in a short time depending on the amount requested, loans may reach 500 thousand USD and more. Up-to-date, this program has provided loans amounting than 15 million somoni.
Belaruskiy Narodny Bank started cooperation with German Development Bank (KfW) in order to improve lending and servicing programs for small and medium enterprises (SMEs). One of the KfW activities is assisting SME development in CIS countries. Cooperation with KfW is implemented through the technical assistance program TRANSFORM, financed by the German Ministry of Finance and by the German Ministry of Economy and Technology.
The Moldovan-German Forum on financing small and medium enterprises was held in Chisinau this month. The Forum was jointly organized by the German Ministry of Finance, KfW Entwicklungsbank (German Development Bank) and IDIS Viitorul with the purpose of introducing Moldovan entrepreneurs to Germany’s experience with small and medium business development. At the same time, the Forum served to inform the financial giant KfW about recent microfinance developments in Moldova. Acting through the framework of German Financial Cooperation, KfW has been indirectly working in Moldova since 1999.
Annual Assembly of the European Fund for Southeast Europe.
Out of 900 million Euros as planned for the entire region over the next five years, the European Fund for Southeast Europe will set aside 200 million for financial institutions working with small businesses and entrepreneurs in Serbia. This amount could be higher, if the demand for such loans is demonstrated.
On May 18–19 Vostochniy Express Bank hold seminar on successful lending to small and medium enterprises (MSE). Representatives of the consulting company Business & Finance Consulting (Switzerland) and Commercial Bank Taizhou City Commercial Bank (China) participated in the seminar. The goal of the seminar was to exchange positive experiences and summarize the results of the two year project on development of lending to micro, small and medium enterprises.
Credit scoring has been used for more than half a century by the financial industry all over the world to automise the assessment of risk. In microfinance, credit scoring is still not very common but change is under way. The authors of this chapter believe that credit scoring will become a standard application in microfinance within the next 10 years. This chapter lays out how credit scoring works, how microlenders and their clients can benefit and, finally, what are crucial success factors in the implementation process.
The World Bank has completed a study on rural banking and microfinance, with the help of the Government of Bangladesh and the United Kingdom’s Department for International Development. Business & Finance Consulting (BFC), a consulting firm with focuses on Eastern Europe and Central Asia, was hired to provide an analysis of the Bangladeshi rural market for microfinance. Titled the “Access to Rural Finance” project, the study examined commercial banks and microfinance institutions (MFIs) practicing in the rural areas of Bangladesh, including the state agricultural banks Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB).