Microfinance Portfolio in CEE/NIS

This paper presents the status of microfinance in the Central and Eastern Europe and the New Independent States (CEE/NIS).

The paper provides the following information:

• There are approximately 160 microfinance institutions (MFIs), 6226 cooperatives and credit unions, 14 microfinance banks and 40 commercial banks in CEE/NIS;
• The number of active borrowers is over 2,100,000 and the outstanding loan portfolio is USD 1,380 million;
• Average age of MFIs in CEE/NIS is only four years and four months, indicating a young microfinance industry.

The paper also:

• Compares the microfinance industry in the CEE/NIS and the Arab countries;
• Enlists the top 10 MFIs by the number of clients;
• Shows the leadership of credit unions and non-government organizations (NGOs) in the rural lending markets with NGOs having 36%, credit unions, 49%, microfinance banks, 12% and commercial banks having, 7% of the rural market share.

On issues of sustainability, the paper informs that:

• 30% of NGOs (48 institutions) are operationally self-sustainable;
• 10% (16 institutions) have reached financial sustainability and offer positive returns on investment;
• Financially self-sufficient MFIs in CEE/NIS have operated for only 4 years as compared to 5-7 years in other regions.

Finally, the paper shows that all the MFIs have shown a growth rate of 77% in the total gross loan portfolio in CEE/NIS.This presentation was made at the Sanabel Conference on December 15, 2003.