Activity Report of Locfund as of December 2007

This activity report presents an overview of the activities of Locfund. Locfund aims to offer local denominated debt instruments and targeted credit enhancement financial instruments to MFIs, microfinance banks, institutional investors, commercial financiers and small business banks. The report offers details about Locfunds size, date of inception, areas of operations, investors, manager, investments per country and assets. It also describes the development of the Locfund portfolio as of December 31st, 2007, highlighting agreements in the areas of loan, due diligence and technical support. The report concludes with an update on Locfunds fund raising efforts, the technical support facility and comments from the general manager.