MFI Report

Region Our scope of activity is in Plovdiv region and covers several local municipalities - Saedinenie, Maritsa, Rakovski, Asenovgrad, Parvomaj, Podopi and Kalojanovo. Activity Our members are people with small and medium size enterprises, not attractive target for the commercial banks, and that’s why they have no access to lending resources and banking service. The co-operative is open for new members, but due to our limited resource we are not able to meet the needs of all. Up to 30.06.2006 the co-operative has 400 members, and our own capital is 400 000 lev /205 000?uro/. By the Agricultural Capital fund scheme through PHARE program and the Bulgarian government the co-operative has received financial grant as irredeemable advances at the amount of 671 000 lev /344 000 euro/, which after the end of project in 2006 is expected to become co-operative’s capital. Attracted loans by members – 60 000 lev /31 000 euro/. External redeemable finance in terms of credit resource – 60 000 euro. The amount of credits disbursed during past ten years - 1600 for 5 000 000 lev. The average loan amount varies between 3500-3900 lev /1800-2000euro /, as short-term ones 70% and long-term ones - 30%. These loans, even if small size, have helped to above 500 families in setting up and development of their agricultural activities and animal stock breeding, and assisted in extending commercial and production units, and in creating 1500 work places. Structure of portfolio – 70 % in agricultural production and animal breeding ; 25% trade and services, 5% consumer goods. Fees for service t? 2%, depending on the term. Loan interest varies between 14 - 16% Maximum term for lending a credit is 3 years. Other activities of the co-operative: - Insurance mediation to the National Insurance Institute; - Financial consultancy for SAPARD program,Fund Agriculture etc. The supervision of the cooperative’s activity is annual by a control board with 3 members. Board of Directors consists of 5 members and meets at least once a month. In office work 4 employees - chairperson, loan officer, cashier and accountant. Main tasks in short-term : - increase membership, respectively share capital - set up a branch office in Pazardjik - increase the insurance kassa’s activities which at present has 80 clients Cacher