Refinancing assured for the microfinance sector Major contribution toward safeguarding and creating jobs in developing and transition countries
In the presence of German Development Minister Heidemarie Wieczorek-Zeul and World Bank Group President Robert Zoellick, KfW Entwicklungsbank and the IFC today launched a cross-border refinancing facility for microfinance institutions.
The fund, created by KfW Entwicklungsbank with assistance from the IFC, has a target volume of USD 500 million and aims to support microfinance institutions (MFIs) by assuring their ability to lend to small and micro entrepreneurs - even in times of a global financial crisis - and thus to preserve and create jobs also for poor people. KfW Entwicklungsbank will provide a promotional loan amounting to USD 130 million and the IFC will contribute USD 150 million.
The refinancing facility is one of several joint efforts by the German Government and the World Bank Group to mitigate the negative impacts of the global financial crisis for developing and transition countries.
"Microcredit is one of the most effective development policy instruments. Microfinance institutions are doing an excellent job all over the world. We must not allow the global financial and economic crisis to jeopardise the work of these institutions. We must act now to ensure that those who are least responsible for the financial market crisis do not have to bear the brunt of the hardships it is causing. With the new facility, we are helping to make sure that people will continue to be able to make use of microfinance services in their efforts to find ways out of the poverty trap", said Heidemarie Wieczorek-Zeul, head of the German Federal Ministry for Economic Cooperation and Development (BMZ) and member of the Board of Supervisory Directors of KfW Bankengruppe.
"Supporting micro enterprises is highly relevant for development policy reasons because in developing and transition countries, the smallest and small businesses act as a motor for growth and for jobs while also laying the groundwork for safeguarding existing employment. With this facility we can set a strong example and quickly counteract the current downward trend in lending to and by MFIs", explained Dr Norbert Kloppenburg, member of the Managing Board of KfW Bankengruppe.
Over the coming weeks and months the facility is to be endowed with additional funds from other public donors, development financiers and possibly also commercial investors, making it the world's largest refinancing facility for microfinance institutions.Robert Zoellick, World Bank Group President since 2007, commented:
KfW is one of the largest microfinanciers the world over. On behalf of the German Government, KfW Entwicklungsbank is now promoting some 100 microfinance projects in around 60 developing and transition countries. Its current project portfolio adds up to approx. EUR 800 million (as of the end of 2007). German Development Cooperation activities reach out to some 50 million people all over the globe.Contact at the BMZ:
Further reports about: > BMZ > Bankengruppe > Entwicklungsbank > Financial market crisis > IFC > KfW > Microcredit > financial crisis > global financial and economic crisis > global financial crisis > microfinance projects > microfinance sector > microfinance services > small and micro entrepreneurs > smallest and small businesses > world's largest fund
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
University of Maryland researchers contribute to historic detection of gravitational waves and light created by event
On August 17, 2017, at 12:41:04 UTC, scientists made the first direct observation of a merger between two neutron stars--the dense, collapsed cores that remain...
Seven new papers describe the first-ever detection of light from a gravitational wave source. The event, caused by two neutron stars colliding and merging together, was dubbed GW170817 because it sent ripples through space-time that reached Earth on 2017 August 17. Around the world, hundreds of excited astronomers mobilized quickly and were able to observe the event using numerous telescopes, providing a wealth of new data.
Previous detections of gravitational waves have all involved the merger of two black holes, a feat that won the 2017 Nobel Prize in Physics earlier this month....
Material defects in end products can quickly result in failures in many areas of industry, and have a massive impact on the safe use of their products. This is why, in the field of quality assurance, intelligent, nondestructive sensor systems play a key role. They allow testing components and parts in a rapid and cost-efficient manner without destroying the actual product or changing its surface. Experts from the Fraunhofer IZFP in Saarbrücken will be presenting two exhibits at the Blechexpo in Stuttgart from 7–10 November 2017 that allow fast, reliable, and automated characterization of materials and detection of defects (Hall 5, Booth 5306).
When quality testing uses time-consuming destructive test methods, it can result in enormous costs due to damaging or destroying the products. And given that...
Using a new cooling technique MPQ scientists succeed at observing collisions in a dense beam of cold and slow dipolar molecules.
How do chemical reactions proceed at extremely low temperatures? The answer requires the investigation of molecular samples that are cold, dense, and slow at...
Scientists from the Max Planck Institute of Quantum Optics, using high precision laser spectroscopy of atomic hydrogen, confirm the surprisingly small value of the proton radius determined from muonic hydrogen.
It was one of the breakthroughs of the year 2010: Laser spectroscopy of muonic hydrogen resulted in a value for the proton charge radius that was significantly...
17.10.2017 | Event News
10.10.2017 | Event News
10.10.2017 | Event News
20.10.2017 | Information Technology
20.10.2017 | Materials Sciences
20.10.2017 | Interdisciplinary Research