GPFI Forum

St. Petersburg,October 21 2013

SME Finance Challenge Update

• Over $236 million financing facilitated for MSMEs by the winners

• Over 131,000 new loans disbursed• 5,380 outstanding SME borrowers• $11.56 million disbursed to 13 winners• Over $340 million in parallel financing

raised

Current state of SME Finance…• SMEs are critical for job

growth but all SMEs are not equal in job creation

• SMEs consider access to finance and power as the leading constraints

• Implementation of BASEL II/III may have unintended negative impacts on SME finance

• New research shows a credit gap of over $2 trillion for SMEs in emerging market

The way forward – potential for concerted action…

• PS innovation through SME Finance Challenge and other channels

• Improved financial infrastructure

• Gazelles – a special financing challenge requiring more than debt

Conclusions and recommendations

• Collaborative learning platforms for SME finance

• Harmonized data collection on SME finance and its enabling environment

• Financial markets infrastructure, particularly credit information, moveable collateral and secured transaction systems, and electronic payments

• Support “big data” based innovation in SME Finance.

to

Investment Unlocked Through Moveable Collateral Projects Dwarfs IFC Direct Investment in China and Ghana

New Initiative:SME Finance Policy Case Studies

• To identify good practice and successful policy interventions that promoted SME Finance at country level

• To develop, publish and widely disseminate good policy case studies in order to promote adoption of good practices among policy makers

SME Finance Policy Case StudiesWorkplan

• Interested policy makers propose successful policy interventions for review and selection (by 30 Nov)

• Template with guiding questions will be shared (by 31 October)

• Iterative review process to standardize presentations (Dec-August 2014)

• Dissemination through next GPFI/Forum (late 2014)

Template key elements

• Category of policy initiative• Laws, regulations, information services, guarantees/risk shares, etc.

• Market failure addressed• Implementation steps• Results achieved• Key indicators, methods of measurement

• Costs/Timeframe

On the Web at www.smefinanceforum.org

LinkedIn Group: SME Finance Forum

Twitter: @SMEFinanceForum