World Bank increases microfinance
The World Bank and Standard Chartered have joined up to boost microfinance projects in Asia and Africa. Microfinance involves lending small amounts to usually poor people without collateral (uden at kunne stille sikkerhed), whose needs are not met by traditional banking, often women.
The International Finance Corp, the World Banks private-sector lender, said it will invest 45 million US dollar in credit-linked notes issued by Microfinance Institutional Loans for Asia and Africa (MILAA) established by Standard Chartered to expand its lending to the microfinance sector.
The transaction will enable Standard Chartered to issue additional credit to microfinance institutions that deliver loans to small companies or to the poor who do not have access to mainstream banking in developing countries.
– This transaction will unlock more funding for microfinance, said Peter Sands, Standard Chartered Groups chief executive, in a joint statement with the IFC. – We believe improving access to finance is a key lever in reducing poverty and catalyzing broader social and economic development, Sands added.
Loan sizes vary, but the average loan issued by Grameen Bank, which was founded by Muhammad Yunus, 2006 Nobel Peace Prize winner in 1983, is 100 dollars.
Large global banks such as Standard Chartered have begun to show increased interest in the sector in recent years. Citigroup and ING have also set up microcredit programs.
Standard Chartered says it already provides backing for 48 microfinance firms in 15 nations in African and Asia, benefiting 1,2 million people.
Kilde: www.worldbank.org
