National Microfinance Study of Sri Lanka: Survey of Practices and ...

More documents

Recommendations

Info

NOVIB Partnerships tend to be long term. Satyodaya has received funding for 10 years, Agromart, CWD and EHED for 6. The partnership with SEEDS is stated to be 4 years, however funding figures shown by SEEDS suggest a longer period. With the exception of SEEDS, NOVIB does not sponsor loan portfolios. In the case of SEEDS it was agreed in the year 2000 to provide a loan for SEEDS banking services. The loan period is 6 years at a 14% interest rate per annum payable every 6 months. There is a penalty of 1% of the remaining loan to be paid each month if the interest payment is not made on time. Table 6 NOVIB expenditure in Sri Lanka (in Dutch Guilders) 1998-2001 Total funding (Guilders) 1998 1999 2000 2001 3,846,575 3,415,343 3,774,520 4,000,000 Agromart 891,760 711,738 50,495 1,198,901 Satyodaya 52,000 52,000 0 101,000 SEEDS 625,000 980,000 12,368,000 870,000 CWD 50,000 4,500 0 0 EHED 117,500 37,770 95,279 185,278 Sub-total Partners with microfinance segment. Sub-total % of total funding 1,736,260 1,786,008 2,412,784 2,355,179 45% 52% 64% 58% Source: Hospes et al, 2001. ____________________________ NOVIB invests a relatively large percentage of the annual budget for Sri Lanka in partners with a microfinance component. However, in most cases the volumes of contributions earmarked for credit activities are modest. In the period 1998-2000, Agromart has used about 24,000 Dutch Guilders every year for its credit programme, EHED about 5,000 Dutch Guilders per year, and Satyodaya less than 5,000 Guilders. NOVIB has provided a phase-out grant to CWD that used to spend some 5,000 Guilders for credit activities but in 1999 only 2,500. SEEDS is different in that NOVIB has earmarked about 1,000,000 Guilders for the two non-financial divisions as well as expenditures for the non-financial activities of the SEEDS banking division. The regional bureau has also earmarked 634,000 Dutch Guilders per year to be spent and transferred to the NOVIB lending desk for loan provision to SEEDS for the years 2000-2002. The process of negotiating and finalising the loan provision was long as both partners were concerned over the financial arrangements especially the interest rate and terms of collateral. 49
ICCO The ICCO Desk in 2000 had identified five partner organisations that provided savings and credit facilities for their clients. The HDO organisation was however not considered to have qualified as Savings and Credit as it was too small a segment in their overall programme. The Habaraduwa Participatory Development Fund (HPDF) in the Galle District and Satyodaya are both newcomers to ICCO funding and ICCO has been keenly monitoring their savings and credit activities with concern about the organisations financial management abilities. Table 7 ICCO expenditure in Sri Lanka Total funding in Sri Lanka. (In Dutch Guilders) 1998 1999 2000 2001 2002-03-18 (planned) 638,910 577,687 1,485,536 710,870 903,000 Satyodaya SEEDS IFFDP HPDE OFERR Sub-total 126,481 207,779 1,000,000 684,710 0 Sub-total as a % of total funding 19.8% 36.0% 67.3% 96.3% 0% Source: Hospes et al, 2001. On the other hand the IFFPD was given a phase out grant in 2000, yet on the other hand OFERR, it seemed could count on continued commitment from ICCO due to their belief that the conflict caused poverty and inequality in Sri Lanka. The ICCO contributions to SEEDS used to be directed at the Enterprise Service Division, however in the year 2000 ICCO was funding the total budget of SEEDS as it felt that the work of the organisation had become an integrated whole, however ICCO only provides grants and has not become a lending organisation. ICCO has decided to phase out completely in 2002 mainly because SEEDS is becoming less dependent on donors and it also appeared inefficient that both ICCO and NOVIB should fund the same organisation. Although the percentage of funding to partners with microfinance activities had grown prior to phase out only a small percentage of this was directed at savings and credit operations, seemingly ICCO was more concerned with assisting the building of the capacity of its partner organisations to manage their microfinance operations. The project portfolio and changes to it although guided by ICCO general terms of reference or principles leaves the desk officer really with the overall decision making as to partner networks and portfolio. 50
Page 1: National Microfinance Study of Sri
Page 4 and 5: (b) Lenders .......................
Page 6 and 7: Introduction into the pawning busin
Page 8 and 9: Microfinance Overview .............
Page 10 and 11: Savings ...........................
Page 12 and 13: List of Tables Table 1 Microfinance
Page 14 and 15: Table 70 Ratnapura District Microfi
Page 16 and 17: JBIC MFI MFN MIS MPCS MSME NCPPDP N
Page 18 and 19: Figure 1 Map of per Capita Value of
Page 20 and 21: Figure 3 Map of per Capita Value of
Page 22 and 23: Executive Summary This report provi
Page 24 and 25: Practitioner Microfinance Activity
Page 26 and 27: As a result the banks are moving aw
Page 28 and 29: The operating conditions of the con
Page 30 and 31: Donor Strategies There should be a
Page 32 and 33: Introduction to the Study The objec
Page 34 and 35: The survey does not claim to repres
Page 36 and 37: Introduction Socio-Economic Overvie
Page 38 and 39: These five years saw a spate of new
Page 40 and 41: The 'Economic Stream' Employment is
Page 42 and 43: Microfinance Clients and Beneficiar
Page 44 and 45: 1. Funders of Microfinance in Sri L
Page 46 and 47: CIDA believes that microfinance act
Page 48 and 49: The Department For International De
Page 52 and 53: HIVOS The HIVOS Desk concentrates o
Page 54 and 55: Over time SIDA noted that the loan
Page 56 and 57: Comment freely given from one of th
Page 58 and 59: the time period of the project, wit
Page 60 and 61: Only a very small part of the US 50
Page 62 and 63: The demand for loans from this fund
Page 64 and 65: Without permanent access to institu
Page 66 and 67: This broad strategy means that the
Page 68 and 69: Beneficiary targeting was generally
Page 70 and 71: The FCSs were developed the followi
Page 72 and 73: CARE's new strategy commits the org
Page 74 and 75: Each CBO determines the level of in
Page 76 and 77: The project’s overall approach re
Page 78 and 79: Figure 6 GTZ/JRP - Project Interact
Page 80 and 81: The Social Development Foundation F
Page 82 and 83: There are no sector-based quotas ap
Page 84 and 85: Over the past five years SCN has as
Page 86 and 87: UNDP in the North & East - The Jaff
Page 88 and 89: In December 2001 a new UNDP Program
Page 90 and 91: From previous experience and lesson
Page 92 and 93: World Vision Lanka WVL believes tha
Page 94 and 95: Membership Development 3500 3000 25
Page 96 and 97: Table 14 World Vision - Gramashakth
Page 98 and 99: ZOA works with community groups in
Page 100 and 101:
At the village society and bank lev
Page 102 and 103:
In Wayamba the sustainability of th
Page 104 and 105:
Table 15 Badulla IRDP - Summary Dat
Page 106 and 107:
DZPDP/WHRDA credit operations comme
Page 108 and 109:
In the initial years they did not f
Page 110 and 111:
Table 18 SPRDP- Loans 1993 to 1999
Page 112 and 113:
(c)Lender-Practitioners The Central
Page 114 and 115:
Society members have access to cred
Page 116 and 117:
The RDBs were re-structured in 1998
Page 118 and 119:
Table 25 Value of Loans Disbursed b
Page 120 and 121:
The total savings and credit issued
Page 122 and 123:
Table 29 Samurdhi - Loans by Distri
Page 124 and 125:
In 1998 SEEDS converted to a separa
Page 126 and 127:
Within the loans from SEEDS funds t
Page 128 and 129:
The Arthacharya Foundation practice
Page 130 and 131:
The program was assisted by some li
Page 132 and 133:
However in general the majority of
Page 134 and 135:
Table 33 Growth of MPCS CRBs -1990
Page 136 and 137:
As at the end of December, 2000 a s
Page 138 and 139:
Some 1,176 of the 1,476 Co-operativ
Page 140 and 141:
A total of 74 NGOs were identified
Page 142 and 143:
Finally only a small proportion of
Page 144 and 145:
Table 38 TCCS Active Societies and
Page 146 and 147:
District Unions - National Federati
Page 148 and 149:
4. Facilitators a) National Level F
Page 150 and 151:
International Centre for the Traini
Page 152 and 153:
Funder-Practitioner Microfinance Ac
Page 154 and 155:
As practitioner experience increase
Page 156 and 157:
Introduction and Approach The major
Page 158 and 159:
State-Owned Banks The Bank of Ceylo
Page 160 and 161:
Starting in 1994, the NCRCS is aime
Page 162 and 163:
The Seylan Bank The Seylan Bank ent
Page 164 and 165:
Figure 9 Linking of the RBIP Tools
Page 166 and 167:
People's Fast reduces loan processi
Page 168 and 169:
In addition, RBIP monitors the impl
Page 170 and 171:
The Hatton National Bank Case Study
Page 172 and 173:
Seylan Bank Case Study The Seylan B
Page 174 and 175:
Until 1961 private pawnbrokers were
Page 176 and 177:
Bank officials stated that PSC staf
Page 178 and 179:
The urban PSCs have on average more
Page 180 and 181:
The lack of flexibility has induced
Page 182 and 183:
From the borrowers perspective not
Page 184 and 185:
The Peoples Bank, on the other hand
Page 186 and 187:
Introduction and Approach Internati
Page 188 and 189:
Displaced populations are dependent
Page 190 and 191:
Large tracts of land have become to
Page 192 and 193:
Public markets, shops, guest houses
Page 194 and 195:
The previous thriving local economy
Page 196 and 197:
The Wanni Access to the area known
Page 198 and 199:
Remembering that these intervention
Page 200 and 201:
This type of situation is seen thro
Page 202 and 203:
People IDPs in welfare centres, sho
Page 204 and 205:
World Vision has been working in al
Page 206 and 207:
small entrepreneurs have received t
Page 208 and 209:
The exception to this is a governme
Page 210 and 211:
There has been some continued acces
Page 212 and 213:
Introduction and Approach A distric
Page 214 and 215:
The MPCSs were equally disrupted an
Page 216 and 217:
The main body of the survey is pres
Page 218 and 219:
Local NGOs 11 NGOs were identified
Page 220 and 221:
Local NGOs 1 NGO was identified in
Page 222 and 223:
Local NGOs 1 NGO was identified in
Page 224 and 225:
Local NGOs 2 NGOs were identified i
Page 226 and 227:
Local NGOs No NGOs were identified
Page 228 and 229:
Gampaha District Microfinance Overv
Page 230 and 231:
Hambantota District Microfinance Ov
Page 232 and 233:
Jaffna District Microfinance Overvi
Page 234 and 235:
Staring in 1998 each DS received SL
Page 236 and 237:
Page 238 and 239:
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
Matale District Microfinance Overvi
Page 246 and 247:
Matara District Microfinance Overvi
Page 248 and 249:
Moneragala District Microfinance Ov
Page 250 and 251:
Nuwara Eliya District Microfinance
Page 252 and 253:
Polonnaruwa District Microfinance O
Page 254 and 255:
Puttalam District Microfinance Over
Page 256 and 257:
Ratnapura District Microfinance Ove
Page 258 and 259:
Trincomalee District Microfinance O
Page 260 and 261:
Vavuniya district Microfinance Over
Page 262 and 263:
The Wanni Area Microfinance Overvie
Page 264 and 265:
Summary Microfinance Activity by Ac
Page 266 and 267:
The NGO questionnaire survey identi
Page 268 and 269:
World Vision Lanka works in 5 distr
Page 270 and 271:
Given that these figures do not inc
Page 272 and 273:
Overall, 13 of districts had levels
Page 274 and 275:
Averages Value of Loans Table 78 Av
Page 276 and 277:
Volume and Number of Loans The surv
Page 278 and 279:
Findings The key and main findings
Page 280 and 281:
Service Providers The service provi
Page 282 and 283:
those incapacitated by conflict, wi
Page 284 and 285:
Cultures of Dependency in Microfina
Page 286 and 287:
Strategic Recommendations The key s
Page 288 and 289:
Conclusion The study found that the
Page 290 and 291:
Charitoneko, S. and D de Silva (200
Page 292 and 293:
Remenyi, J (1991). Where Credit is
Page 294:
Technical Appendix
show all

National Microfinance Study of Sri Lanka: Survey of Practices and ...

Create successful ePaper yourself

Delete template?

Save as template?