Microfinance in the Kyrgyz Republic

Transcription

1 Microfinance in the Kyrgyz Republic Policy seminar on Women's Entrepreneurship Development in Central Asia Geneva, Switzerland 19 September

2 About the Kyrgyz Republic The population: 5.5 ml. Urban: 1.9 ml. (35%) Rural: 3.6 ml. (65%) 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0, Urban Rural Nominal gross national product per capita in som or equivalent of 886 US $ 2

3 Population of the Kyrgyz Republic in 2011 by Gender Men 49,4% или 2,7 ml..person Source: National statistical committee Women 50,6% или 2,8 ml. person 3

4 Level of economic activity, employment and unemployment rates in 2009 Level of economic activity Employment rate Unemployment rate women men women men women men Kyrgyz Republic 53,1 76,3 47,9 70,7 9,8 7,4 Batken oblast 50,8 75,4 43,3 70,0 14,8 7,2 Djalal-Abad oblast 54,3 75,4 49,7 71,0 8,5 5,9 Issyk-Kul oblast 50,7 76,6 45,1 70,3 11,1 8,2 Naryn oblast 38,1 74,3 32,5 68,7 14,7 7,6 Osh oblast 52,6 80,9 48,4 76,3 8,1 5,7 Talas oblast 61,8 80,4 58,3 77,0 5,7 4,2 Chuy oblast 53,7 72,9 47,6 66,0 11,3 9,6 c.bishkek 55,7 73,5 50,3 65,7 9,6 10,7 4

5 Number of managerial staff of businesses as of Women Men Relative density, % women men Kyrgyz Republic ,4 78,6 Batken oblast ,4 91,6 Djalal-Abad oblast ,7 82,3 Issyk-Kul oblast ,2 75,8 Naryn oblast ,5 79,5 Osh oblast ,9 83,1 Talas oblast ,2 80,8 Chuy oblast ,2 67,8 c.bishkek c. Osh ,1 75,9 5

6 Poverty level Rural population Urban population General level The general level of poverty 39.5% 23.6% 33.7% Level of extreme poverty in ,3% Source: National Statistical Committee ,0 31,7 31,7 33, ,7 36,8 37,1 39, ,2 22,6 21,9 23, Urban Rural General 6

7 Vicious circle of inaccessibility of bank services High requirements of banks to mortgaging property High level of poverty (33.7%) Low estimated mortgage Kinds of the mortgage: movable property and a real estate Lack of financial resources Inaccessibility of the bank services 7

8 Number of microfinance sector organizations MFO CU MFO-4 MFC, 314 MCC, 112 MCA Number of commercial banks on

9 Legal framework: Civil Code of the Kyrgyz Republic Law «On the National Bank of the Kyrgyz Republic» Kyrgyz Republic Law «On Credit Unions» Kyrgyz Republic law «On microfinance organisations» Law «On banks and banking» Law «On licensing» Law «On business partnerships and societies» Law «On company names» 9

10 Rules and regulations of the NBKR: «On establishment of the microcredit companies and microcredit agencies in the territory of KR» «On licensing, reorganization and liquidation of the microfinance companies in the territory of KR» «On minimum qualifying requirements to the officials of the microfinance companies, licensed by the NBKR» «On licensing of the credit unions» As well as Regulations about microfinance organizations and Credit Unions» 10

11 Requirements to the minimum size of capital: 50 mln. som (equivalent 1 mln. US $) - for MFC involving deposits 10 mln. som (equivalent 221 thousand US $) - for MFC not involving deposits 100 thousand som (equivalent 2 thousand US $) - for MCC having branches 50 thousand som (equivalent 1 thousand US $) - for MCC not having branches 11

12 Requirements to the minimum size of capital: 500 thousand som (equivalent 11 thousand US $) - for CU involving deposits 30 thousand som (equivalent 660 US $) - for CU not involving deposits For microcredit agency of the requirement under the authorized capital are absent. 12

13 The microfinancialorganizations and the credit unions can be created: MFO - physical and legal persons - residents and non-residents of the Kyrgyz Republic CU - 10 and more physical persons - residents of the Kyrgyz Republic, legal persons - residents in the form of farms and cooperatives 13

14 Results of the Midterm Strategy of Microfinance Development Plan Actual Coverage of the population 4% 7% Total number of borrowers Total value of loans 7billion Som11billion Som 14

15 Loan portfolio (ml.som): 15

16 Number of borrowers MFOs and CUs (thousand people) 16

17 The average size of the microcredits in 2005 & MFO CU MFO CU 28,5 thousand som (691US $) 25,9 thousand som (628 US $) 26,7 thousand som (568 US $) 58,2 thousand som (1 236 US $) * Data of the National Bank of the Kyrgyz Republic * Level of microcredits recovery, % 96,5 96,6 97,4 * Data of National statistics committee 17

18 The average interest rates for credits in % MFO 33,5 33,5 32,9 32,4 34,5 31,7 CU 26,8 25,9 25,8 28,0 29,5 30,7 18

19 Number of borrowers MFOs and CUs as of Men 28% Women 72% 19

20 Geographical scope by services of commercial banks and the organizations microfinance sector in % as of 31 May

21 Deposits МFО СU МFО CU Depositors In total depositors ,0 ml.som (743 thousand US $) The average size of the deposit ,9 ml.som (571 US $) 21

22 Examples of Successful microfinancing Each of them shows the example that it is possible to change the world around as for a better future. The world is created by us. 22

23 Examples of Successful microfinancing What can we do for the country? Being the best and successful will help to the development of the country. 23

24 Examples of Successful microfinancing We create our future, the future of our children 24

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26 Improvement of the national legislation: -expansion of the list of operations of the CUs -permission to carry out operations on remittances (under the contract with bank) -introduction of universal principles for protection of the rights of consumers 26

27 Results of the Midterm Strategy for Microfinance Development Plan Actual Coverage of the population 4% 7% Total number of borrowers Total value of loans 7billion Som11billion Som 27

28 Objectives of the Microfinance Development Strategy for Growth of level of availability of financial services Growth of financial literacy of the population and protection of the rights of financial market consumers Optimization and harmonization of legislative and regulatory environment Promotion of new products in the microfinance market 28

29 Thanks for attention! Meerim Satkeeva National bank of the Kyrgyz Republic Kyrgyz Republic, , city Bishkek, str. Umetalieva, 101 Tel: Fax: Website: