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
Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
DNA molecules that follow specific instructions could offer more precise molecular control of synthetic chemical systems, a discovery that opens the door for engineers to create molecular machines with new and complex behaviors.
Researchers have created chemical amplifiers and a chemical oscillator using a systematic method that has the potential to embed sophisticated circuit...
MPQ scientists achieve long storage times for photonic quantum bits which break the lower bound for direct teleportation in a global quantum network.
Concerning the development of quantum memories for the realization of global quantum networks, scientists of the Quantum Dynamics Division led by Professor...
Researchers have developed a water cloaking concept based on electromagnetic forces that could eliminate an object's wake, greatly reducing its drag while...
Tiny pores at a cell's entryway act as miniature bouncers, letting in some electrically charged atoms--ions--but blocking others. Operating as exquisitely sensitive filters, these "ion channels" play a critical role in biological functions such as muscle contraction and the firing of brain cells.
To rapidly transport the right ions through the cell membrane, the tiny channels rely on a complex interplay between the ions and surrounding molecules,...
The miniaturization of the current technology of storage media is hindered by fundamental limits of quantum mechanics. A new approach consists in using so-called spin-crossover molecules as the smallest possible storage unit. Similar to normal hard drives, these special molecules can save information via their magnetic state. A research team from Kiel University has now managed to successfully place a new class of spin-crossover molecules onto a surface and to improve the molecule’s storage capacity. The storage density of conventional hard drives could therefore theoretically be increased by more than one hundred fold. The study has been published in the scientific journal Nano Letters.
Over the past few years, the building blocks of storage media have gotten ever smaller. But further miniaturization of the current technology is hindered by...
11.12.2017 | Event News
08.12.2017 | Event News
07.12.2017 | Event News
15.12.2017 | Power and Electrical Engineering
15.12.2017 | Materials Sciences
15.12.2017 | Life Sciences