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
How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.
Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...
In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.
Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...
Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
09.12.2016 | Life Sciences
09.12.2016 | Ecology, The Environment and Conservation
09.12.2016 | Health and Medicine