microfinance for roma in macedonia
TRANSCRIPT
12-13 April, 2007 Skopje, Macedonia
Microfinance for Roma in Macedonia
Horizonti - Best Practices
12-13 April, 2007 Skopje, Macedonia
Horizonti Background
• Established as a microfinance project of CRS (Catholic Relief Services U.S.C.C.) in January 2000
• Transformed to a local MFI, a Foundation, in June 2005• Operations located in 9 branches, with Head Office based in
Skopje• Total assets $ 2.5 mil.• Total staff 34• Main Donors: CRS, Caritas Norway, OSI, CEB
12-13 April, 2007 Skopje, Macedonia
Mission Statement
Our mission is to extend financial opportunities to micro-entrepreneurs in Macedonia so that they can maintain and develop their businesses, create new jobs and improve their livelihoods.
Financial Services
• Short and long term loans for supporting businesses of micro and small enterprises and individual farmers
• Group and individual lending methodology• Focused on poor and disadvantage population• Services provided through bank intermediation
12-13 April, 2007 Skopje, Macedonia
Roma Outreach
• Starting from the very beginning of the program
• High demand for financing small Roma businesses
• Introduction of group lending concept as the most adequate for this target group
• Introduction of specific and innovative approaches to increase client outreach and loyalty
• At present, Horizonti operates in areas where 70% of Roma population is living, and 37% of total Horizonti clients are Roma
12-13 April, 2007 Skopje, Macedonia
Roma Portfolio – Indicators
• Number of clients served 2,196
• Number of loans disbursed 9,135
• Value of loan disbursed (Euro) 4,941,971
• Average loan size (Euro) 540
• Portfolio outstanding (Euro) 501,000
12-13 April, 2007 Skopje, Macedonia
Horizonti – Habitat for Humanity
New Project Initiative and Partnership opportunity
12-13 April, 2007 Skopje, Macedonia
Partnership basis
• Organization missions
• Target beneficiaries
• Experienced and proven organization in areas they are operating
• Clear understanding of each organization roles and responsibilities
• Long-term collaboration
12-13 April, 2007 Skopje, Macedonia
Housing Situation of Horizonti Roma clients
• Large families (avg. 6 members) living in small houses (1-2 rooms)
• Need for home improvement is obvious • Limited financial resources for home improvement• No documentation for legal ownership of land and building permits• Roma clients use their homes as productive assets in generating
income • Low level of personal safety and health
12-13 April, 2007 Skopje, Macedonia
12-13 April, 2007 Skopje, Macedonia
12-13 April, 2007 Skopje, Macedonia
Project developments
• New loan product designed by Horizonti
• Roles and responsibilities of each partner during the credit cycle are defined
• Pilot project will include the existing Horizonti clients (business loan borrowers) in Skopje area
12-13 April, 2007 Skopje, Macedonia
Key Challenges related to HMR
• Setting clear goals and indicators with our partners
• New loan product at the existing market (parallel loans)
• Credit risk (long-term unsecured loans, individual)
• Access to adequate mid-term and long term capital
• Social impact vs. financial sustainability
12-13 April, 2007 Skopje, Macedonia
Q & A