Financial Education, Entrepreneurial training , Microfinance, networking and advice

1. Financial Education, Entrepreneurialtraining, Microfinance, networking and advice By Unni Beate Sekkesæter, ManagingDirector Mikrofinans Norge (Network Credit Norway - NCN)

2. The start in 1992 for NorwayMFN’sorigin from 1996 • Started in Lofoten Islands in Northern Norway in 1992 – the first group still exists • Bodil Maal wasworking in Bangladesh and got to know the Grameen Bank and theirgrouplendingmodel • Pilot project in Lofoten from 1992 • 2006: Expanded to 1250 members in 250 networkgroups • The first group has lent NOK 1,8 mill (up to 2002) (€210 000) • basedon an initial capitalof NOK 200.000 (€25 000) • Money circulates and allows for newloans • Nationwide from 1998 through SND – NownamedInnovation Norway. • Ended in 2009 – nowunclearsituationwithdistrictgroups: Mergewith MFN? • MFN’sorigin from 1996 ”The SelfHelp Project - Nettverkskreditt • For refugees and immigrants – Norsk Folkehjelp Founded by Unni Beate Sekkesæter – Still ManagingDirector

3. The Norwegian grouplendingmodel • Funding from Government since start (up to 2006): • NOK 65 mill (€7,8 mill) for loan Fund and operational/training costs • Countrywide Outcome (through several local initiatives) • 800+ businesses supported • NOK 236 = €28 mill turnover in those businesses • 820 new jobs created • Every new job that was created cost NOK 66.000 (€8.500) • Women continue to live in rural communities • See film about microfinance in Norway

4. Microfinance Norway: Who arewe? • Two entitieswithclosecooperation • Mikrofinans Norge (Network Credit Norway – NCN) • Cultura Garantifond (Guarantee Fund) • Mikrofinans Norge (MFN): Developingcompetence and opportunities and givesaccess to guarantees for loans • An advocacy, development and trainingnon-profitassociation • Someofourcustomersaremembersoftheassociation • Offer an opportunity to becomeselfemployed for thosewho can not getloans for enterprise purpose otherwise • Offers training and advice for start up businesses • Offers training in Financial Education

5. Situation in Norway • 218 000 Norwegiansare ”bad payers” • Even young persons withoutmuchincomeusecreditcards for consumption – 20 000 young have trouble ofindebtedness • Immigrants and lowincome persons - nOaccess to credit, and trouble payingbills • Need for education – plan yourFuturecourse

6. Cultura Guaranteefund • Offers guarantees (old Loan Fund from NCN used) • Mikrofinans Norge is in chargeofapplicationprocedure and evaluationofloans – withthe peer groups and loancommittee • Cultura Guaranteefund offers theneededguaranteescombinedwith 75% EIF guarantees (European Investment Fund) so peoplewithoutcollateralcangetaccess to loans • Net basedapplicationprocess from December 2010 • Cultura bank offer loans and is in chargeofthe back officerelated to theloans • Interst:6% per year

7. CIP Guarantee and loans from EIF • SME GUARANTEE FACILITY GUARANTEE POLICY FOR MICRO-CREDIT • The “SME Guarantee Facility” is funded by the European Community and is operated by the European Investment Fund (EIF) on behalf of the European Commission. • Norway has this: Cultura Bank has this guarantee which was negotiated based on ideas from MFN in 2003 – The first agreement from December 2005 • Renewal: 2009-2012. • New possibilities under Microfinance Facility to also borrow money and get some operational capital under Progress from 2014

8. Network group • The group is wherethinghappen • Groups consistof 4-7 members • Learningtogether and motivatingeachother is themain purpose • Groups definetheirownby-laws • The group’sneeds and interestsareimportant • Makes business plans and evaluatesloanproposalstogether • Personal savingof at least 10% ofloanamount • The groupdecideswhowillgetloans for what • Individualloans given in groupcontext – noguarantee from group

9. Group loans • Group Loans: from 25 000-200 000 steppedloans (several). • 1. loan: 25 000 – ”test loan” – building trust and checkingability and willingness to repay • For existingbusinesses: 100 000 1. loan. • 100 000 for verypromising and realistic start up businesses in some cases: Thosewhoare ”almostbankable” • Betales på min. 3 mnd eller max. 18 mnd. og åpner for nye lån • Loan 2: 25 000- 100 000 – repaid in 2-5 years • Loan 3: Up to 200 000 – repaid in 3-5 years • Interest rate: 6% + kr 500 as service fee for application.

10. Motivasjon for å starte

11. Motivasjon for å starte

12. Someofourcustomershttp://www.nrk.no/programmer/tv/migrapolis/1.7358575Someofourcustomershttp://www.nrk.no/programmer/tv/migrapolis/1.7358575 http://nettradio.nrk.no/default.php?kanal=p2

13. Financial Education • Offers integrated financial education training as part of other courses – also with partners • Starts new pilot project ”understand your money” among gypsy (ROM) minority in Oslo in partnership with Helle Bennest Humanitarian Fund and Oslo Municipality – Rom Project • New Pilot project among X-cons in partnership with Red Cross and Way Back starts soon

14. Plan YourFuturecourse • “Plan Your Future” financial education curriculum – with role play and fun! • The “Plan Your Future” educational package addresses the basic financial education needs of low-income people. • It is intended for financial education providers and contains materials to run financial education workshops

15. Plan YourFuture • Intended to familiarize low-income people with practical aspects of financial education • persuade the workshop participants of the necessity of household financial planning and regular saving. • The final output of the workshops are financial plans developed by the participants for their families that incorporate all of the components shown on the graph below.

17. Thanks for listening! • More info: • Web-basedapplication and business plans and profile for eachcustomer and association in Norway: www.credinfo.no • Portal includesown web page for eachmember • Seefilmabout MFN http://www.youtube.com/watch?v=9eZcW_jTxIg www.mikrofinansnorge.no