MFI Report

UMCOR, US NGO Armenia branch’s AREGAK micro credit program has been in operation since 1998. Through its network of 28 sub-offices and satellite offices located in the Republic of Armenia (ROA) and Nagorno Karabakh (NK), the AREGAK micro credit program was one of the largest in the country among its peers in terms of numbers of clients served and the portfolio. The main clients of AREGAK were economically active low income rural women and their families, women-headed households, refugees and internally displaced people. In 2005 the National Assembly of the ROA adopted a law on “United Supervision of Financial systems" creating the legal framework for micro credit programs to formally register and be licensed with the Central Bank of Armenia (CBA). As a result of this legislation UMCOR decided to transform the AREGAK micro credit program into a legal entity In March 2006 AREGAK Universal Credit Organization Closed Joint Stock Company (AREGAK UCO CJSC) was registered and licensed by the CBA. UMCOR, the founder of the Company currently is the sole Shareholder of AREGAK UCO. At the moment of registration of the AREGAK UCO, the program had 19,221 active clients with an outstanding portfolio of 8,091,246 USD. After registration the AREGAK UCO continued to service those loans acting as a financial agent for UMCOR. The AREGAK UCO started the extension of the first loans in May 2006 and the audited financial statements refer to the period of 8 months – from May 1 till December 31, 2006. Currently AREGAK UCO has a countrywide coverage both in ROA and NK and has registered 23 branches and 5 representative offices. AREGAK UCO has active participation in local and international initiatives; such as the formation of the first informal Credit Forum of Armenian MFIs, Association of Armenian Credit Organizations, membership with MFC and a member of leading MFIs group who were pioneering the adoption of the Social Performance Management (SPM). Cacher