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Women’s Microfinance Network Non-banking Deposit and Credit Organization RUSSIA

Women’s Microfinance Network Non-banking Deposit and Credit Organization RUSSIA. Women’s Microfinance Network: Founded in 1998 with the support from Women’s World Banking

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Women’s Microfinance Network Non-banking Deposit and Credit Organization RUSSIA

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  1. Women’s Microfinance Network Non-banking Deposit and Credit Organization RUSSIA

  2. Women’s Microfinance Network: • Founded in 1998 with the support from Women’s World Banking • Mission:– build middle class, develop local economy, encourage initiative and entrepreneurship by opening access to financial resources for small business owners Established By womenandfor women

  3. WMN was established as an association of several non-for-profit entities forming a two-tier structure: • 1st level – locally managed funds (partner organizations) located in several regions of Central Russia; • 2nd level - apex institution based in Moscow (NGO WMN)

  4. NGO WMN (Moscow) 2nd LEVEL: 1st LEVEL: NGO Fund Tver region NGO Fund Kaluga region NGO Fund Tula region NGO Fund Kostroma region NGO Fund Yaroslavl region

  5. Asan association of separate non-commercial legal entities WMN existed until 2005. Over the 7 years of successful growth and development the network disbursed 46 890 loans, plus 4,672 loans since then in the amount of RUB 1.726 bln. (over USD 60 mln., USD 1 = RUB 30) Plus 0.67 bln RUB since then.

  6. Number of loans disbursed by WMN as an association of NGO funds in 1998 – 2005

  7. Amount of loans disbursed by WMN in 1998 – 2005 (thousand RUB)

  8. Loan portfolio of WMN in 1998 – 2005 (thousand RUB)

  9. In 2005 founders of WMN decided to consolidate the association of NGO MFIs into a single commercial entity as it opens new opportunities for growth and development. The goal of the transformation was to create a precedent of establishing a regulated Russian MFI.

  10. Advantages offered by a regulated entity status include: • clear legal basis for operations; • access to an expanded range of financing sources and increased leverage; • governance structure with stronger accountability mechanisms; • strengthening of internal controls and monitoring; • increased standardization of credit operations.

  11. In Summer 2005 NGO WMN paid up 100% of startup capital (RUB 20 mln./ USD 645,161) of a newly registered credit company – Non banking deposit and credit organization “Women’s Microfinance Network”, closed joint stock company (ZAO NDCO WMN). In September 2005 ZAO NDCO WMN obtained its limited banking license authorizing it to • capture time deposits from legal entities, • invest the funds on the institution’s own behalf and at its own cost, • issue bank guarantees and • purchase and sell foreign currency in cashless form.

  12. ZAO NDCO WMN started microfinance operations in January 2006 in Moscow. Credit products offered: Business and consumer loans RUB 5,000 – 350,000 (USD 160 – 11,300) for 2 – 36 months, interest rates 32% - 46% As of 31 December 2006 ZAO NDCO WMN loan portfolio stood at RUB 68 mln. with 78 clients RUB 59.8 mln. or 88 % of the loan portfolio were loans to 10 Russian MFIs. As in 2006 partner organizations hadn’t been transformed to ZAO NDCO WMN yet, the Board of Directors took decision to offer loans to different Russian MFIs (NGOs - credit cooperatives) in order to make the available funds “work”.

  13. Consolidation of the partner organizations assets into ZAO NDCO WMN started in April 2007 and was completed in December 2007. • Since 31 December 2007 ZAO NDCO WMN comprises Head office in Moscow and • 11 branches in 5 regions of Central Russia: • 4 bigger branches in the regional centers of Kaluga, Tula, Kostroma and Tver • 7 smaller branches in the towns of the same regions

  14. WMN geography: 11 branches

  15. Loan portfolio of ZAO NDCO WMN in 2006 - 2009 (thousand RUB)

  16. Number of clients of ZAO NDCO WMN in 2006 - 2009

  17. Loans disbursed by ZAO NDCO WMN : Amount (RUB 000) Number

  18. PAR 30 of ZAO NDCO WMN in 2006 - 2009

  19. Clients of ZAO NDCO WMN - economically active people, mostly women, with low income and traditionally excluded from accessing streamlined banking services.

  20. WMN micro-loans open new horizons Для производства: For farm owners: Для производства: «WMN was a helping hand in difficult times. I’d like to thank it very much. The micro-loans allowed me to double the livestock of my hog-raising farm» TatianaKukhto

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