2015年-世界发展银行全球_The_Need_for_Speed___Helping_the_Microfinance_Industry_Stay_Afloat_in_Times_of_Crises_4页_849kb

Summary of "The Need for Speed: Helping the Microfinance Industry Stay Afloat in Times of Crises"

Core Content

This document outlines the Microfinance Enhancement Facility (MEF), a crisis-response initiative launched by the International Finance Corporation (IFC) in February 2009 to support microfinance institutions (MFIs) during the global financial crisis. The MEF was designed as a short-term and medium-term financing facility to provide liquidity to MFIs facing funding shortfalls, ensuring continued access to financial services for low-income populations.

Main Points

• Background of Microfinance:
  The microfinance industry had grown rapidly over the previous 15 years, becoming a vital tool for financial inclusion. However, its integration into the broader financial sector and commercialization made it vulnerable to global financial shocks.

• Crisis Impact on Microfinance:
  The 2008-2009 crisis significantly reduced MFIs' ability to access commercial funds, leading to liquidity problems and deposit erosion in some regions. This necessitated an immediate and coordinated response to maintain financial stability and support the sector.

• MEF Structure and Function:

  • MEF was established as a special-purpose vehicle in Luxembourg with three classes of shares.
  • It was managed by three leading fund managers: Blue Orchard Finance, Cyrano Fund Management, and ResponsAbility Social Investments AG.
  • A general secretary was appointed to coordinate activities among investors, managers, custodian bank, and hedging manager.
  • MEF provided local-currency loans, which accounted for 20% of its portfolio as of December 2013.

• MEF Performance:

  • As of December 2013, MEF had $441 million in outstanding loans to 86 institutions in 33 countries.
  • Cumulative disbursements reached $651 million in 214 loans.
  • Portfolio quality remained strong, with impairments below 1%.
  • MEF exceeded targeted returns since 2011.

• Key Lessons Learned:

  1. Strong Partnerships are essential for quick launch and efficient mobilization of resources. IFC and KfW's collaboration was critical in creating a reliable liquidity facility.
  2. Outsourcing the origination, execution, and monitoring of loans to experienced fund managers enabled a rapid and flexible response, reducing transaction time to two to four weeks.
  3. Tranche Disbursement Delays can create complications in the implementation of a multi-class share structure. The risk ratios introduced were necessary but had the effect of slowing down the initial disbursement process.

Key Information

• MEF's Purpose: To provide liquidity to MFIs during financial crises, ensuring continued credit flow to low-income clients.
• Investors: IFC and KfW were the anchor investors, with IFC contributing $150 million and KfW $130 million.
• Additional Funding Sources: MEF attracted contributions from governmental, quasi-governmental, and international organizations, including Deutsche Bank and others.
• Regional Coverage: MEF's investments span all regions of the world, with country and regional distribution detailed in Figure 2.
• MEF's Evolution: The facility has grown and adapted over time, responding to new crises in Bosnia and Herzegovina, Nicaragua, India, and Cambodia, and continues to be extended to meet ongoing needs.

Conclusion

The MEF has proven to be a critical and effective tool in supporting the microfinance industry during times of financial instability. Its efficient structure, outsourced model, and strong partnerships enabled a rapid response and sustained support for MFIs. The five-year extension in 2013 reflects the continued importance of MEF in maintaining financial stability and ensuring access to credit for underserved populations.