Mikrofond | MFIs in Bulgaria

Data provided through Mikrofond

Gross Loan Portfolio USD, 2011: 4.6 million

Number of active borrowers 2011: 1,104

Average loan balance per borrower USD, 2011: 4,178.7

Deposits USD, 2011: 0.0

Assets USD, 2011: 6.7 million

Number of depositors 2011: 0

Mission:

Our vision is to be a sustainable financial institution which accumulates social and community capital and will fund microentrepreneurs and sustainable projects with social impact. Our mission is to provide loans to micro entrepreneurs and to fund home improvement projects of low-income or ... Read more

Background and Main Challenges:

Microfond AD is the first microfiance institution in Bulgaria to transform from not-for-profit organzition in to microfinance financial institution. The shareholders are MIkrofond Sofia Foundation and Soros Economic Development Fund. Mikrofond AD is providing financing and support for micro, ... Read more

Address:

118-120 Sv. Sv. Kiril i Metodyi Str.

Sofia

1202

Bulgaria

Phone:

+ 359 2 8137800

Fax:

+ 359 2 8137801

Email:

gbreskovski [at] mikrofond [dot] bg

Website:

www.mikrofond.bg

Main Funding Sources:

Loans

Shareholder Capital

Products and Services:

Loans

Leasing

Training and Consulting

Looking for (Investment Types):

Equity

Loans in Local Currency

Loans in USD

Capacity-Building Grants

Guarantees

Loans in EUR

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1999

FYE:

31-Dec

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Clients living in urban areas	2
+ Development goals (ranked by importance)
Increased access to financial services	1
Employment generation	2
Growth of existing businesses	3
Development of start-up enterprises	4
Housing	5
+ Poverty targets
Poor clients	1
Low income clients	1
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises	1
Microcredit for household needs/consumption	1
SME loans
Loans for agriculture	1
Housing loans	1
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
Voluntary house insurance	1
Voluntary agricultural insurance	1
+ Other financial products and services offered
Microleasing	1
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education	1
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Portfolio quality
+ Social responsibility to the environment
This institution offers lending lines linked to alternative energies

+ Poverty measurement tools in use
Per capita household income