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press releases
September 24 2005 – Communiqué of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund
September 21 2005 – The first Canadian microfinance gateway launched today
September 18 2005 – Brazilian Minister of Culture Gilberto Gil to serve as a Patron and Emissary for the United Nations’ International Year of Microcredit
August 1 2005 – Update: What's happening?
June 13 2005 – Microfinance Conference to Focus on Market Integration
June 10 2005 – Women from the Financial Industry examine how the growing Microfinance Industry can benefit from the expertise of Wall Street
June 10 2005 – How the growing microfinance sector can benefit from the expertise of Wall Street
June 10 2005 – Wall Street, UN experts mark International Year of Microcredit
June 10 2005 – Wall Street Women Team up with United Nations on Microfinance
May 19 2005 – A few Euros/Dollars can make a big difference
May 18 2005 – The MFRC Going an Extra Mile to Assist Over-Indebted Consumers
May 10 2005 – Ambassador Espiritu calls for wider partnerships in Microfinance in the Philippines
May 2 2005 – Global Gathering in Geneva to Address Improving Access to Financial Services for Development
April 11 2005 – Unprecedented Global Response to International Year of Microcredit 2005
January 31 2005 – IFC and ACCION Promote Commercial Banks' Investment in Microfinance
November 18 2004 – Message of SG Kofi Annan on the Launch of the International Year of Microcredit 2005
November 18 2004 – UN Launches International Year of Microcredit 2005
November 18 2004 – Media Advisory on Launch of the Year of Microcredit 2005
November 9 2004 – Global Microentrepreneurship Awards Promote Small Business in Conjunction with UN's International Year of Microcredit
November 4 2004 – Global Microentrepreneurship Awards Held in Maputo, Mozambique
October 2004 – ING Netherlands Forms Alliance with Oikocredit and Becomes Main Sponsor of the International Year of Microcredit 2005
September 2004 – Financial Industry Leaders Join Patrons Group to Advise on the UN’s International Year of Microcredit 2005
August 2004 – Harvard Students Launch Global Microentrepreneurship Awards to Promote Small Business for International Year of Microcredit 2005
December 2003 – UN General Assembly Approves the Programme of Actions for the International Year of Microcredit 2005
December 2003 – Citigroup Awards $250,000 to International Year of Microcredit 2005

 
Microfinance Conference to Focus on Market Integration
13 June 2005

If Africa wants to move forward with economic development and poverty alleviation, it must progress quickly with the process of integration and transformation of its microfinance industry. This process is evident in some countries, but in most African countries microfinance is still seen and handled as separate to the formal financial sector.

"Because until an energetic and determined effort is made to integrate microfinance into the formal banking systems, we'll always be playing catch-up," says Rashid Ahmed from the Micro Finance Regulatory Council (MFRC). Ahmed is also co-chair of the conference.

A start to this and other pressing microfinance issues will come under intense discussion at the 2nd African Microfinance Conference in Cape Town from 29 August to 01 September this year. It is being organised by a partnership of institutions, including the MFRC, the University of Pretoria Centre for Microfinance, the Ugandan Micro Finance Network and the Central Bank of Uganda as well as the FSD project in Uganda supported by GTZ and SIDA.

"This conference follows on the first, highly successful conference held in 2003 attended by over 250 delegates from 30 countries," reports Professor Gerhard Coetzee, co-chairman of the conference organising committee, "and comes at an opportune time with regard to the challenges faced by both the poverty focused SMME finance organisations and the signatories to the Financial Charter. It is also a highlight of the United Nations Year of Microcredit."

"The trend globally is on integrating the microfinance industry with formal financial markets," notes Ahmed. "First world markets have developed a seamless progression from microfinance to formal banking services that brings everyone into a multipurpose banking environment. And so must we."

"The theme of the conference is 'Integrating microfinance into formal financial markets'," reports Ahmed. "That reconstruction of the industry is based on the acceptance that microcredit is no longer a charity for the poor. Hard lessons have taught us that handouts are non-sustainable. They don't grow the economy much and do not help the needy. The switch to microfinance is proving a better way for people to help themselves, and grow their economy in real terms locally and regionally."

The focus on integrating the microfinance industry with formal financial markets is also closely aligned with strategic objectives of the South African government and NEPAD.

"Among the principles of NEPAD is cooperation between African nations in building infrastructure, promoting local economies and improving the quality of life," says Coetzee. "The microfinance industry has contributed significantly to helping those generally excluded from the mainstream economy to create business, finance housing and education and fulfill their potential."

"Financial institutions have always been regarded as a vital tool in broad and sustained economic growth and job creation," Ahmed maintains. "It's not only about stability, but of the increasing role of the financial system in managing money flows throughout the economy."

Microfinance has evolved to the point where it is better accepted as a tool to build up a more inclusive financial sector. The process is complicated and develops in the local context, which means that each country has its own methods. To deal with this, the conference applies six sub-themes through experts on the subject. Most are from Africa, but include those with international expertise on this particular theme, leading to invaluable information and experience exchange. The themes covered are regulation and supervision, rural finance, housing finance, transformation of microfinance institutions, member based financial services and indeed very important, poverty and microfinance.

"Thirteen per cent of people in the lowest income areas borrow money to buy food. Medical costs are the biggest drain on their resources because they live in an unhealthy environment. Incremental housing presents a problem — graduating from a cardboard roof to aluminium takes money. They need more cash than wealthier people, and they need to set that aside. But distance, transport and other costs contribute to the challenges they face and it's virtually impossible for them to access a formal commercial banking service in most of the countries in Africa. Besides, many banks don't want them as clients as they do not focus on retail services for the real poor. So savings and other financial transaction services are important for the poorest" says Coetzee.

There are promising signposts emerging in Africa, pointing to the way forward for microfinance institutions (niche banks, NGOs and others) to cross the great divide and join the formalised financial sector, while still providing financial services to the poor. In this process they often transform into new institutions by obtaining a licence to mobilise deposits. However, many challenge the transformation emphasis, and strive to retain a more flexible approach. This promises to be good material for good discussions and learning at the conference.

"The conference is basically an exchange of Africa-wide experience with input per sub-theme of selected international experts" says Coetzee. "It is indeed an important event in Africa in 2005 in the financial services field, and something not to be missed by all those focusing on the development aspects in financial markets."

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Women from the Financial Industry examine how the growing Microfinance Industry can benefit from the expertise of Wall Street
10 June 2005

Women from the financial industry came together today at the United Nations to examine how the growing microfinance industry can benefit from the expertise of Wall Street.

The event provided Wall Street professionals with a better understanding of how they can assist in extending access to financial services to poor and low income women around the world. It was held as part of the UN’s International Year of Microcredit, which aims to raise public awareness about microfinance.

The keynote speaker was Mrs. Nane Annan, wife of Secretary-General Kofi Annan. Mrs. Annan told attendees about her personal experiences meeting women who have benefited from microfinance.

"In my travels with my husband I have been very touched by the women I have met involved in microcredit projects, understanding their sense of pride and achievement," said Mrs. Annan. "The Year of Microcredit is a chance to highlight what women living in poverty can do when given a chance, and the important role that access to credit, savings, and other financial services play in their lives."

A panel discussion, called "Wall Street and Microfinance; applying sophisticated finance to the emerging industry," attracted several microfinance practioners and was moderated by Tom Easton of The Economist.

"We are just at the beginning of the relationship between the microfinance world and the traditional financial sector. This relationship will grow quickly from now on," said Jack Lowe, CEO of BlueOrchard Finance, and one of the participants in the panel. Lowe added "the challenge is to be able to allow private capital to accompany the microfinance growth, and to do so with full confidence, reasonable return, and a real and tangible contribution to the developing world."

Lowe and other experts stressed that microfinance must be viewed as a business and investment opportunity.

"Microfinance is not charity; it is a sustainable business solution to poverty," said Maria Otero, president and CEO of ACCION International. "One of the pillars of ACCION's work in building microfinance institutions - 'banks for the poor' if you will - has been to connect those institutions with international capital markets. We need Wall Street to sit up and take notice."

"For microfinance institutions to become a lasting solution to global poverty they have to adopt financial strategies used on Wall Street," said David Satterwaite, CEO of Prisma Microfinance. "Given the potential returns, we expect investors will begin to see microcredit as a viable asset class."

The event was co-hosted by the United Nations Capital Development Fund and several women's financial associations. Including the Financial Women's Association, Women Advancing Microfinance, Women's Association of Venture and Equity, Women's Bond Club of New York, and 85 Broads.

"Women on Wall Street are well positioned to champion change in this industry and allow for wealth creation by women living in poverty around the world today," said Robyn Sacks, organizer of the event and an associate of AlpInvest Partners.

Microfinance benefits women in particular, as women represent seventy percent of the world's poor people.

An eight-year World Bank study in Bangladesh found that 48 percent of the poorest households with access to microcredit loans rose above the poverty line. In India, three-quarters of the clients who participated in microfinance programs of SHARE over an extended period of time saw significant improvements in their economic well-being and half of the clients graduated out of poverty.

The International Year of Microcredit 2005 is one of the most
successful UN designated years to date, with dozens of countries worldwide participating in events aimed at raising awareness about the importance of microcredit and microfinance in the eradication of poverty.

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The MFRC Going an Extra Mile to Assist Over-Indebted Consumers
18 May 2005

Debt is a plague among both rich and poor, developed and developing nations, and it afflicts particularly those who have been deprived of basic financial education. Acutely aware of the devastating effects of over-indebtedness especially among lower-income earners, the Micro Finance Regulatory Council (MFRC) launched a pilot Debt Relief Programme on behalf of the DTI to deal with the problem. Peter Setou, Education and Communication Manager, described its operation and objectives.

"Firstly, the aim is to assist over-indebted consumers to reduce their debts to manageable levels, secondly equip them with financial information which will help them to balance their budgets and finally, to rehabilitate them, changing their behaviour to encourage them not to incur excessive debt in the future." According to Setou, the programme has experienced success exceeding expectations and has enjoyed enthusiastic feedback from participants. The pilot programme was conducted in Pretoria, Johannesburg , Vaal, the West Rand and Knysna.

Consumers on the programme were required to sign a "social contract" indicating their determination to stick with the project and co-operate fully with the service providers carefully selected and appointed by the MFRC to act as debt counsellors. These service providers already had a record of providing free consumer services, were familiar with consumer protection and possessed a legal or paralegal background.

Consumers provided a comprehensive financial record of their indebtedness, including payslips, lists of all loans and monthly repayments, together with account statements. Once all these details were verified, service providers were able to commence negotiations with creditors, together with the consumers themselves. These discussions were aimed at reducing payments to levels which decreased unmanageable financial burdens on consumers. "Creditors are generally amenable to such arrangements," explained Setou, "since the alternatives, such as debt administration are not always the answer given some of the pitfalls prevalent in the abuse of administration orders.

The programme has provided the MFRC with invaluable information on the debt profile of those who participated. It included some fascinating insights. "We found, for instance that the 35-44 and 45-59 age brackets were the biggest culprits," commented Setou. "This appears to indicate that over-indebtedness is correlated to age and economic activity. And from this we deduce that access to credit is a major contributory factor."

Not surprisingly, men incurred almost twice as much debt as women. "This might sound contentious, but generally women tend to be more cautious than men in dealing with money and also have less access to credit."

What was particularly interesting however was the nett income distribution of those suffering from excessive debts. The worst affected was the group earning between R1 500 and R3 000, while the least affected were those earning R10 000 and above. The type of employment also had an impact, with those working in the retail sector incurring the greatest debt, closely followed by civil servants and the unemployed.

"We found that micro-loans and retail are the two major contributory factors to over-indebtedness in all areas," Setou summed up. "We are now researching the reasons which lead people to over extend themselves with credit. Obviously, this is the root problem behind over-indebtedness which needs to be addressed. This will also inform of future interventions to be put in place.

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Ambassador Espiritu calls for wider partnerships in Microfinance in the Philippines
10 May 2005

Philippine Ambassador to the Court of St. James's Edgardo B. Espiritu called for wider partnerships in microfinance in the Philippines. This call is particularly significant as the United Nations has declared 2005 as the International Year of Microcredit.

Ambassador Espiritu, a former banker and Secretary of Finance of the Philippines, pointed out that "microfinance has had an impressive record in the Philippines particularly in support of the President Gloria Macapagal Arroyo's program towards job creation and fight against poverty and hunger. I hope we can harvest the tremendous opportunities provided by microfinance to put millions of families on the road to progress."

Ambassador Espiritu made the remark after his recent meeting with David Coates, CEO of Opportunity International, UK, an international network of microfinance organizations operating in 27 developing countries providing financial services to half a million poor entrepreneurs. The Philippines is home to the biggest clientele base of Opportunity International.

Ambassador Espritu agreed with Mr. Coates to co-host an event at the Philippine Embassy in London in June to increase awareness on the potentials of microfinance and showcase the numerous best practices lessons from Opportunity International's networks in the Philippines.

Ambassador Espiritu said, "In this city known as the global centre for banking and finance, we can promote partnerships among private sector, microfinance institutions and government to send a clear and valuable message that microfinance is not charity but a way of banking on the ideas, energy and vision of low-income families."

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Unprecedented Global Response to International Year of Microcredit 2005
11 April 2005

The United Nations' International Year of Microcredit 2005 has been met with unprecedented global response and interest during the first quarter of the year.

The Year seeks to raise awareness of the financial needs of the world's poor and low-income people. Celebrities, government officials, bankers, students and current and potential clients have begun a dialog on how to best provide those financial services, and countries are taking action to try to meet this challenge.

Throughout the world, at least 80 UN member states have formed National Committees to pledge their support to the Year. National Committees are comprised of high-level government representatives, UN officials, and members of the private sector. The committees are holding conferences and other events to examine how to create financial services that meet the needs of poor people.

"There is no doubt that having a safe place to save, and a way to access credit and insure risk is a good thing," said Christina Barrineau, Chief Technical Advisor to the International Year of Microcredit 2005. " Access to quality financial services and stable markets drives prosperity. We are seeing a surging response to the Year of Microcredit — countries are voting in their actions on the importance of microfinance and uncorrupt financial sectors that are tailored to engage the majority of the world — which is indeed financially poor."

The International Year of Microcredit recognizes and celebrates clients of microfinance institutions. More than 30 countries are participating in this year's Global Microentrepreneurship Award Program, which is culminated by contest winners ringing the opening bell at stock exchanges worldwide. In addition, products made by microentrepreneurs are now available for sale on the website, www.shopmicro.org.

Several celebrities are promoting the Year through public service announcements. A PSA by Anggun was aired at the Pavarotti and Friends Concert in Johannesburg, South Africa this month.

Emissaries of the Year are also actively involved. Princess Mathilde of Belgium has made trips to meet microfinance clients in China, Mali and India. Princess Maxima of the Netherlands has visited Uganda and Kenya.

Hundreds of conferences and events on microfinance are scheduled worldwide. More information is available on the Year's official website, www.yearofmicrocredit.org.

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THE SECRETARY-GENERAL
MESSAGE ON THE LAUNCH
OF THE INTERNATIONAL YEAR OF MICROCREDIT
18 November 2004

Microfinance has proved its value, in many countries, as a weapon against poverty and hunger. It really can change peoples' lives for the better -- especially the lives of those who need it most.

A small loan, a savings account, an affordable way to send a pay-cheque home, can make all the difference to a poor or low-income family. With access to microfinance, they can earn more, build up assets, and better protect themselves against unexpected set-backs and losses. They can move beyond day-to-day survival towards planning for the future. They can invest in better nutrition, housing, health, and education for their children. In short, they can break the vicious circle of poverty.

If we are to reach the Millennium Development Goals, that is exactly the kind of progress we need to make.

Let us be clear: microfinance is not charity. It is a way to extend the same rights and services to low-income households that are available to everyone else. It is recognition that poor people are the solution, not the problem. It is a way to build on their ideas, energy, and vision. It is a way to grow productive enterprises, and so allow communities to prosper.

Where businesses cannot develop, countries cannot flourish. Let us use this International Year of Microcredit to put millions of families on the path to prosperity.

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UN Launches International Year of Microcredit 2005
Microentrepreneurs Ring in the Year by Opening Stock Exchanges around the World

18 November 2004 — The United Nations launches the International Year of Microcredit today in an effort to build support for making financial services more accessible to poor and low-income people. It will aim to raise public awareness about microcredit and microfinance, and promote innovative partnerships among governments, donors, international organizations, non-governmental organizations, the private sector, academia and microfinance clients.

The Year's overarching goal is to provide greater access to credit, savings, insurance, transfer remittances and other financial services for poor and low-income households in order to move towards more secure livelihoods and prosperous futures.

"The world has set an ambitious course to meet the Millennium Development Goal of cutting in half, by 2015, the proportion of people living on less than one dollar a day. Microfinance is a powerful tool to help us get there," said Mark Malloch Brown, Administrator of the United Nations Development Programme (UNDP).

Although microcredit and microfinance have already had a positive impact on the household income and quality of life of millions of poor people, many still lack access to financial services that could raise their standard of living and protect them against economic setbacks. Billions of people could benefit from financial services, although today only a tiny fraction of this demand is being met. To meet this huge gap in services, the Year calls for constructing inclusive financial sectors that strengthen the powerful, but often untapped, entrepreneurial spirit that exists all over the world.

"By viewing poor people as vital contributors to their local and national economies, the International Year of Microcredit 2005 has the potential to unleash a new wave of microentrepreneurship, giving poor and low-income people a chance to build better lives," said José Antonio Ocampo, Under-Secretary-General of the UN Department of Economic and Social Affairs (UNDESA).

Launch observances are beginning the day with the ringing of opening bells at stock exchanges around the world by microentrepreneurs from Cambodia, the Dominican Republic, Indonesia, Mexico, Rwanda and the United States. The participants are all recipients of the Global Microentrepreneur Awards coordinated by Harvard Business School and other graduate schools. In New York, local microentrepreneur award winners are scheduled to open the NASDAQ market, while nine exchanges from Karachi to Zurich and from Manila to Maputo are also taking part in this coordinated initiative.

"Stock exchanges play an essential role in efficiently allocating capital in national economies and globally," said Stanley Fischer, Vice Chair of Citigroup and Chair of the Advisors Group for the International Year of Microcredit 2005. "Today, the world's stock markets are focusing on the people to whom this Year is dedicated: microfinance clients."

At opening celebrations at UN Headquarters in New York and elsewhere throughout the world, experts will address the challenge of expanding the reach of microfinance by identifying best practices and the hurdles to wider availability.

Another primary aim of the Year is to increase public awareness about the reliability of microfinance clients, especially women, in repaying loans, managing household incomes, building assets and enterprises and contributing to the economy.

One key need is to collect and analyze hard data on the state of microfinance: its availability by region, client profiles, and types and quantities of services offered. As part of the Year's activities, a Data Project will bring together expert statisticians and researchers from the Bretton Woods Institutions and the UN, in collaboration with governments and the private sector, to address current data gaps, anticipate future needs, and build agreement on the best way forward for donors, private investors and practitioners.

In addition, the "Blue Book" project will seek to identify constraints and opportunities for the promotion of inclusive financial sectors, culminating in recommendations of concrete actions that countries can take to make microfinance an integral part of national financial systems.

The UN General Assembly has designated the UN Capital Development Fund (UNCDF) and the UN Department of Economic and Social Affairs (UNDESA) as focal points to coordinate the activities of the United Nations system for the International Year of Microcredit 2005.
For media information about the Year of Microcredit 2005, please contact:
Christina Barrineau, tel: +1-212-906-6308, christina.barrineau@undp.org
Adam Rogers, tel: +1-212-906-6082, adam.rogers@uncdf.org
Oisika Chakrabarti, tel: +1-212-963-8264, mediainfo@un.org
www.yearofmicrocredit.org

Published by the UN Department of Public Information in cooperation with the Year of Microcredit Secretariat DPI/2357A-455499-October 2004-31M

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UNITED NATIONS TO LAUNCH INTERNATIONAL YEAR OF MICROCREDIT ON 18 NOVEMBER

WHAT: On 18 November 2004, the United Nations will officially launch the International Year of Microcredit 2005.

  • High-level dignitaries, financial leaders, microcredit entrepreneurs and emissaries from around the world will attend the launch event.
  • The Year will raise awareness about the importance of microcredit and microfinance in the eradication of poverty and its significant contribution to achieving the Millennium Development Goals.

WHEN: Thursday, 18 November 2004

WHERE: United Nations Headquarters, 1st Avenue & 46th Street

SUMMARY OF KEY EVENTS:

16 November

Press Conference, November 16, 11:15a.m., Press Briefing Room S-226
International singers — Indonesia-born Anggun, and Algerian Souad Massi are official Emissaries for the International Year of Microcredit 2005 and will be performing at the launch events. Karina from the Dominican Republic will also be performing. A press conference hosted by Henriette Keijzers, Deputy Executive Secretary and Officer-in-Charge, UNCDF will be held to highlight the involvement of the international stars with the Year.

17 November

Noon Briefing, November 17, 12:00 p.m., Press Briefing Room S-226
UNDP Administrator Mark Malloch Brown and Under-Secretary-General José Antonio Ocampo will provide a brief overview of the launch events and explain the goals of the International Year of Microcredit 2005, as guests at the daily press briefing by the Spokesman for the Secretary-General.

Evening Gala, 17 November, 6:30 - 8:30 p.m., Delegates Dining Room (4th Floor)
(By invitation only- photo opportunity for interested press. Please send requests in advance to Abdelattif Kabbaj, Chief Media Accreditation and Liaison Unit, fax: 212-963-4642, tel: 212-963-6934)
A gala reception with high-profile guests — including Her Royal Highness Princess Mathilde of Belgium, representatives of UN Agencies, microfinance partners and governments — will be held on the eve of the launch. Guest artists Anggun, Karina and Souad Massi, three rising stars of the international music scene, will give a live concert. Highlights of the evening include a preview of producer Sterling Van Wagenen's documentary film "Small Fortunes: Microcredit and the Future of Poverty".

18 November 2004

Opening ceremony for the launch, 18 November, 10-11:30 a.m., Conference Room 2
(Will be webcast and telecast on UN TV: www.un.org/webcast)

Hosted by the Second Committee of the General Assembly, the launch event will be attended by UN ambassadors, representatives of the private sector, UN and governmental officials, microfinance partners and non-governmental organizations. Guest speakers will include Under-Secretary-General of the Department of Economic and Social Affairs, José Antonio Ocampo and Her Royal Highness Princess Mathilde of Belgium. UNDP Administrator Mark Malloch Brown will moderate the event. The UN International School Children's Chorus will give a special concert in collaboration with special guest artists Anggun, Karina and Souad Massi.

Microentrepreneurs have been invited to ring the opening bells of stock exchanges in participating countries through the Global Microentrepreneurship Awards (GMA) — a student-led initiative organized by the Harvard Business School and other universities. There will also be a statement by a microentrepreneur winner of the GMA from Indonesia.

World premier of Sterling Van Wagenen's documentary "Small Fortunes: Microcredit and the Future of Poverty", 12:00 — 12:45 p.m., Conference Room 2
Renowned producer Sterling Van Wagenen will screen his documentary film "Small Fortunes, Microcredit and the Future of Poverty". The film, scheduled to air on public television stations in the United States, highlights the impact of microfinance in promoting the social and economic welfare of low-income people around the world.

Roundtable luncheon, 1:00 — 2:30 p.m., Delegates Dining Room (4th Floor)
"Women and microfinance", "Microfinance and job creation" and "Data collection" will be the focus of lively discussions during the lunch. These are sponsored by the UN Capital Development Fund (UNCDF), the International Fund for Agricultural Development (IFAD), the Office for Least Developed Countries (OHRLLS) and the International Labour Organization (ILO).

Afternoon High-Level Panels, 3:00-5:30 p.m., Conference Room 2
"Why are so many bankable people unbanked?" is the central question that the afternoon panels will seek to answer. Leaders in the field will aim to identify the constraints impeding the growth and sustainability of the microfinance sector as well as the barriers to building inclusive financial sectors.

  • Panel 1: (3 - 4.15p.m.) Microfinance Outlook: Where will we be in 2015?
    Speakers include: Jacques Attali (Planet Finance), Nancy Barry (Women's World Banking), Maria Otero (ACCION International), Mr. Roadjito (Bank Rakyat Indonesia), Rupert Scofield (FINCA) and, Moderator: Elizabeth Littlefield (CGAP).
  • Panel 2: (4.15-5.30 p.m.) What are the constraints to an Inclusive Financial Sector?
    Speakers include: Rene Azokli (PADME), Charles Konan Banny (BCEAO), Stanley Fischer (Citigroup), and Diedrik Laman Trip (ING) Moderator: Raghuram Rajan (IMF).

Advisors' Group Roundtable and Summary, 5:30-6:00p.m., Conference Room 2
A final plenary session will summarize the discussions held at the two panels aiming to present a vision of how to move forward. Delegations will be invited to make brief comments, time permitting

MEDIA ARRANGEMENTS:

Accreditation- All journalists must have UN accreditation to attend the press conferences and launch events. Media accreditation forms and general information for the media can be found at www.un.org/media/accreditation

Accreditation and media access questions: Media Accreditation and Liaison Unit,
Tel: +1 (212) 963-6934, Fax: +1 (212) 963-4642

For further information, please contact:
UN - Microfinance
Christina Barrineau, Tel: +1-212-906-6308, christina.barrineau@undp.org
Vivienne Heston-Demirel, Tel: +1-212-906-6229, vivienne.heston-demirel@undp.org

UN Department of Public Information
Oisika Chakrabarti, Tel: +1-212-963-8264, mediainfo@un.org

All launch day proceedings in Conference Room 2 will be webcast at http://www.un.org/webcast and telecast on UN TV.

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Global Microentrepreneurship Awards Promote Small Business in Conjunction with UN's International Year of Microcredit

CAMBRIDGE, Mass., 9 November 2004 -- This month, small business owners from developing countries around the world will be recognized by a new initiative called the Global Microentrepreneurship Awards. The effort, spearheaded by a group of US graduate students, is an official event in the launch of the "International Year of Microcredit." Award competitions will take place in Afghanistan, Cambodia, the Dominican Republic, Indonesia, Mexico, Mozambique, Pakistan and Rwanda between November 2nd and November 24th.

The Global Microentrepreneurship Awards will celebrate the entrepreneurial spirit of micro business owners by celebrating their innovation and their perseverance under even the most challenging conditions.

The Orphan Child Parents Award in Rwanda, for example, will recognize people like Janine Umuhoza, who was forced, at seven years old, to provide for her four siblings after Hutu militiamen killed her parents. Now, after ten years of being an entrepreneur, she provides for her family by selling eggs and chicks.

"The Awards will magnify the impact of the work of microentrepreneurs by sharing their talents and contributions with the world," said Bhakti Mirchandani, a Harvard Business School student and founder of the initiative. The student leaders plan to expand the project to several dozen countries in coming years.

The initiative aims to spark further investment in the microfinance sector from donors, governments and private sector businesses. Microfinance institutions have achieved average repayment rates greater than 95 percent, and commercial banks are beginning to profitably enter the sector. This is just the beginning of the sector's potential to provide financial services to developing countries.

"These services not only alleviate poverty and enhance growth, but they also consolidate networks of trust and create opportunities for women," said Beatriz Armendariz de Aghion, a visiting Harvard professor and microfinance expert.

Prominent leaders from each of the eight participating countries will judge the micro businesses to select winners with the greatest economic and social impacts on their families and communities. Prizes will range from cash to capital to livestock.

On November 18th the NASDAQ will host a special ceremony commemorating the Year of Microcredit and winners will illustrate their contributions to the world economy by ringing the opening bells at various stock exchanges around the world including the London and Amsterdam Exchanges.

For inquiries please contact:
(617) 335-9247- Deirdre Cooper, dcooper@mba2005.hbs.edu
(917) 549-4758- Bhakti Mirchandani, bmirchandani@mba2005.hbs.edu

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Global Microentrepreneurship Awards Held in Maputo, Mozambique

MAPUTO, 4 November 2004 -- Today the Mozambique Global Microentrepreneurship Awards was held in Maputo at the Centro de Conferencias do Instituto de Formaçao das Telecomunicacoes (TDM). The awards were met with great enthusiasm, as microfinance, business and government leaders, as well as TV and radio representatives came together to congratulate the 22 finalist microentrepreneurs and their loan officers from eight microfinance institutions and four of Mozambique's ten provinces.

Lize Nhaca of Catembe, owner and manager of a small fishing enterprise and client of Hluvuku-Male Yeru, is Mozambique's Microentrepreneur of the Year. The six winning microentrepreneurs were awarded prizes of US$350 based on the impact on their family and community; ability to overcome hardship; income generation and creativity, while their loan officers were awarded US$50.

Lize Nhaca and her loan officer, Ernesto Jose Rungo, will be flown to Zurich by responsAbility, a Swiss platform for social investments founded by four Swiss Banks and a social venture capital fund, to present her case at the SWX Swiss Exchange. The contest second-prize winner Antuia Maoche and the four runner-up winners of the UN Mozambique contest will open the Maputo Stock Exchange on November 18th to launch the International Year of Microcredit.

During the event, microentrepreneurs and their loan officers attended workshops, while the panel of judges interviewed the finalists. Judges included Joao Carrilho, Vice Minister of Agriculture; Adrian Haadorn, Swiss Ambassador in Mozambique; Peter Correia, Managing Director, Mcel; Mario Machungo, President of the Board, Banco Internacional de Mozambique; Salmao Moyana, Editor, Zambeze; Jose Dias Lorreiro, Project Coordinator of the UNDP/MADER Upstream Microfinance Project; Americo Magaia, President, Sogex & the Chamber of Commerce; Lela Guerreira, Director of Credit, Banco Austral and Lorraine Johnson, Regional Representative,Aid to Artisans.

Ms Selcia Lumbela, local co-coordinator of the Global Microentrepreneurship Awards, opened the Awards ceremony. Lumbela described the process leading up to contest day, and introduced the event's keynote speaker, Marylene Spezzati, Resident Representative and Resident Coordinator, UNDP.

Spezzati spoke on the constraints facing microfinance in Mozambique at the level of client, institution, government and the financial sector, as well as the opportunities and benefits she believes microfinance brings.

Spezzati's speech was followed the screening of a ten-minute film featuring two of the contest finalists, agriculturalist Bernardo Guambe and bakery and restaurant-owner Antuia Maoche. In the film, both were interviewed in their homes and place of business and talked passionately about the impact microfinance has had on their businesses and families.

The night came to a climax as the President of the Jury, Joao Carrilho, spoke of the great difficulties he and his fellow panelists encountered in choosing a winner. Carrilho also spoke of his desire to see the contest grow in coming years to embrace businesses built form savings as well as from credit. Carrilho called the winners individually to the stage, where they were warmly congratulated by the members of the jury. He then called Ms Nhaca back to the stage to present her with a 'Microentrepreneur of the Year' t-shirt and the promise of a trip to Switzerland.

Contacts:
Mozambique: Thomas Quirk, gmamocambique@yahoo.com.br
258 82 88 5430
Sélcia Lumbela, gmamocambique@yahoo.com.br
258 82 4 8335
United States: Moriah Meyskens, mm1457@stern.nyu.edu,
1 917 449 7654

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ING

ING Netherlands Forms Alliance with Oikocredit and Becomes Main Sponsor of the International Year of Microcredit 2005

ING Netherlands Introduces 'ING Microfinance Support' Programme for Employees

Today ING Netherlands announced that it will form an alliance with Oikocredit and become the main sponsor of the '2005 United Nations Year of Microcredit'. Furthermore, ING Netherlands will introduce the 'ING Microfinance Support' programme, an initiative that will give ING employees in the Netherlands the opportunity to participate in the battle against poverty in the world.

'ING Microfinance Support' will focus on increasing access to financial services for small entrepreneurs in developing countries. The programme will support partner organisations such as Oikocredit that offer financial products to potential entrepreneurs. Local company owners will be able to build up and develop their businesses, thus improving employment and future prospects.

To achieve this, ING Netherlands will work closely with Oikocredit. Oikocredit was established in 1975 and provides loans to entrepreneurs in more than thirty developing countries in Africa, Asia, Latin America and Central and Eastern Europe. Oikocredit finances commercially viable local businesses in farming, fishing, housing and small industry. ING employees will get the opportunity to invest in the 'Oikocredit Nederland Fonds', a recognised social-ethical investment fund that will invest up to 90% in Oikocredit shares. ING employees can also put their particular know-how and expertise to work in various Oikocredit projects, for example by acting as an 'ambassador' for Oikocredit to give greater publicity to the importance of microfinance for development. Employees who are technical experts (for example in the field of product development, business planning or risk management) can also be dispatched to work with a microfinance organisation for a number of weeks.

As part of ING Microfinance Support, ING Netherlands will also work closely with the United Nations. The United Nations has declared 2005 the Year of the Microcredit. By promoting co-operation between public and private partners, the UN wants to emphasize the importance of microfinance in the battle against poverty. The Year of the Microcredit will officially be launched on 18 November 2004.

Press office: ING Group, Dailah Nihot, 31 20 5416516, dailah.nihot@ing.com

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United Nations logo

Financial Industry Leaders Join Patrons Group to Advise on the UN’s International Year of Microcredit 2005

Affirm Commitment To Building Inclusive Financial Sectors To Serve Poor and Low-Income People
NEW YORK, 22 September 2004— Prominent leaders in the fields of economic development, banking and finance will serve on the Patrons group to advise on the United Nation’s International Year of Microcredit 2005.

The Advisors will address two key challenges – meeting the unmet demand for basic financial services and removing the constraints that exclude people from fully participating in the financial sector.

The 16 Advisors, a range of leaders representing local microfinance institutions to large international commercial banks and donor agencies, include: Hernando de Soto, President of the Institute for Liberty and Democracy (ILID) in Peru; Diederik Laman Trip, Chairman of ING Netherlands; Diana Medman, Director of AO Bioprocess and the founder of the Russian Women’s Microfinance Network; Raguram Rajan, Economic Counselor and Director of Research at the International Monetary Fund (IMF) and Stanley Fischer, Governor, Bank of Israel.

“In environments where businesses cannot flourish, countries cannot develop,” said Citigroup’s Fischer. “Whether it’s in the world’s largest economies or in smaller, less developed ones, people need access to sustainable financial services. I am honored to be part of the Year of Microcredit, which I believe is an excellent platform to build the bridges necessary to scale up access to these economic tools.”

The International Year of Microcredit – scheduled for launch 18 November – will promote the rapid growth of strong microcredit and microfinance sectors to serve the needs of a wide variety of poor clients. In addition, the Year will recognize the contribution of microcredit and microfinance toward the achievement of the Millennium Development Goals of poverty eradication and providing opportunities to tap the spirit of entrepreneurship existing in poor communities.

“It’s necessary to support micro and small business as they are the backbone of the economy and essential to the well-being of the society as a whole, especially the poor in rural areas,” said Mr. In Channy, Managing Director of ACLEDA Bank in Cambodia and member of the Advisors Group. “Microcredit does that and the Year will go a long way to ensure we continue on the right path.”

“Though poor and low income people may not have assets when they receive their first loan, access to basic financial services allows them to build assets,” Mr. Hernando De Soto said. “I am honored to be part of this exciting undertaking to mobilize the international community to achieve the Year’s goals.”

Billions continue to lack access to basic financial services; primarily savings, credit, insurance products, and money transfer services. The Advisors will focus the world’s attention on the potential of microfinance as a powerful tool to grow the businesses and assets of poor and low-income people.

Studies have shown that microfinance – often referred to as the fuel of private sector development – leverages the productivity and raises the income levels of poor and low-income people, supports the ability of poor households to manage critical financial transactions, stimulates local markets, and extends employment opportunities as businesses grow into small enterprises.

“The Year of Microcredit is privileged to have such a diverse group of Advisors who share a strong commitment to the ideals and principles of the UN and to enhancing the vital role microfinance can play in transforming the lives of millions of people and helping to meet the Millennium Development Goals,” said Mark Malloch Brown, Administrator of the United Nations Development Programme.

http://www.un.org/News/Press/docs/2004/dev2488.doc.htm

For more information contact:
Christina Barrineau, Programme Manager, Microfinance, United Nations
Phone: 212-906-6308

Click here to view profiles of our patrons.

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August 2004
Contacts: Deirdre Cooper: 617-335-9247
Bhakti Mirchandani: 917-549-4758

Harvard Students Launch Global Microentrepreneurship Awards to Promote Small Business for International Year of Microcredit 2005

Winners to Ring Opening Bells at Stock Exchanges Around the World
In conjunction with the November 18, 2004 launch of the International Year of Microcredit 2005, a team of graduate students from Harvard and other prominent universities announced today its launch of the Global Microentrepreneurship Awards competitions for microentrepreneurs working in some of the world’s poorest countries. Winners of these contests will literally ring in the Year of Microcredit, by ringing the opening bells at stock exchanges around the world, as an illustration of their contributions to the world economy.

Bhakti Mirchandani, team coordinator, said, “The Awards will magnify the impact of the work of microentrepreneurs by sharing their talents and contributions with the world.”

The Global Microentrepreneurship Awards seek to celebrate the entrepreneurial spirit among these micro-business owners by highlighting their innovativeness, business acumen, and perseverance, as well as the profound effect of their enterprises on their families and communities. The initiative also seeks to attract further investment and recognition for the sector from donors, governments and private sector businesses.

The initiative will be launched this fall in Afghanistan, Rwanda, Mexico, Indonesia, Afghanistan, Cambodia, the Dominican Republic, Mozambique and Pakistan. The long-term goal is to replicate the Global Microentrepreneurship Awards in poor countries throughout the world.

The awards themselves will reflect the diversity of the political and economic climate in target countries. In Rwanda, the Orphan Child Parents Award will focus on the contributions of that country’s genocide orphans who have started businesses as a last resort to support themselves and their siblings.

Distinguished panels of prominent leaders from each of the eight participating countries will judge the micro businesses to select winners with the greatest economic and social impact on their families and communities. Prizes will range from cash to calculators to livestock.

The United Nations Capital Development Fund and the United Nations Department of Economic and Social Affairs are working closely with the Harvard students to facilitate this launch event. Sponsors of the Global Microentrepreneurship Awards include Converse, Inc., Farm Capital Services, the Harvard Business School Entrepreneurship Club, the UN Capital Development Fund, and several individual donors.

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United Nations logo
GENERAL ASSEMBLY GREENLIGHTS PROGRAMME FOR THE INTERNATIONAL YEAR OF MICROCREDIT 2005

OBSERVANCE WILL PROMOTE ACCESS TO FINANCIAL SERVICES AND EMPOWERMENT OF THE POOR, ESPECIALLY WOMEN

UNITED NATIONS, NEW YORK, 29 December, 2003 – The UN General Assembly passed a resolution last week supporting the Programme of Action for the International Year of Microcredit 2005. The Year will provide an occasion to raise awareness of the importance of microcredit and microfinance in the eradication of poverty, to share good practices and to further enhance financial sector development that supports sustainable pro-poor services in all countries.

On the resolution’s significance, UN Secretary-General Kofi Annan said, “The International Year of Microcredit 2005 underscores the importance of microfinance as an integral part of our collective effort to meet the Millennium Development Goals. Sustainable access to microfinance helps alleviate poverty by generating income, creating jobs, allowing children to go to school, enabling families to obtain health care, and empowering people to make the choices that best serve their needs. The stark reality is that most poor people in the world still lack access to sustainable financial services, whether it is savings, credit or insurance. The great challenge before us is to address the constraints that exclude people from full participation in the financial sector. The International Year of Microcredit offers a pivotal opportunity for the international community to engage in a shared commitment to meet this challenge. Together, we can and must build inclusive financial sectors that help people improve their lives.”

The resolution designates the United Nations Capital Development Fund (UNCDF) and the UN Department of Economic and Social Affairs (DESA) as focal points to coordinate the activities of the United Nations system during preparations for and observance of the International Year of Microcredit, 2005.

Recent studies show that the number of poor people worldwide who benefited from microcredit more than quadrupled between 1997 and 2001. With demand for financial services growing rapidly, the Year of Microcredit will highlight ways to expand the reach of financial services on a sustainable basis.

“We are extremely pleased to have the opportunity to coordinate the Year of Microcredit with DESA. The demand for microfinance services is still largely unmet however, the Year provides an unprecedented platform to focus on improving the capacity of financial institutions and to implement effective national strategies that address this unmet demand,” said Normand Lauzon, Executive Secretary of the UNCDF.

According to the Programme of Action, the United Nations will join together with Member States, non-governmental organizations, the private sector and civil society to raise public awareness, build sustainability in the microcredit and microfinance sectors, and promote innovative partnerships. Although microcredit and microfinance have already had a positive impact on the household budgets and quality of life of millions of poor people, many are still denied access to financial services that could raise their standards of living and protect them against economic setbacks. The Programme of Action recognizes that a range of financial products and services can enhance the poor’s ability to increase their incomes, build assets and mitigate their vulnerability in times of economic stress. The International Year of Microcredit, 2005 will encourage and support the growth of microcredit and microfinance sectors to best serve the needs of a wide variety of poor clients.

The impact of a more inclusive financial service sector is not limited merely to the receipt of loans, credit, savings, insurance, and other economic tools, but evidence shows that it contributes to the health, nutrition, food supply and educational level of recipients’ families making them less susceptible to unanticipated income fluctuations. Microcredit and microfinance programs not only elevate personal assets, but go beyond the individual household level to help strengthen the fabric of local economies by investing in the productive capacity of communities, stimulating consumer activity and creating new jobs.

“Microfinance is much more than simply an income generation tool," said Mark Malloch Brown, Administrator of the United Nations Development Programme (UNDP). "By directly empowering poor people, particularly women, it has become one of the key driving mechanisms towards meeting the Millennium Development Goals, specifically the overarching target of halving extreme poverty and hunger by 2015.”

The Programme of Action was prepared based on input from Member States as well as from UN technical agencies and encompasses a wide array of vantage points. It also takes into account the conclusions and recommendations from recent major UN conferences and summits related to the financial sector and development. Activities for the Year will be undertaken at the national, regional and international levels.

For additional information on the Year of Microcredit 2005, please contact Christina Barrineau at UNCDF, tel: (212) 906-6308, e-mail: christina.barrineau@undp.org; Sarangerel Erdembileg at DESA, tel: (212) 963-4720, e-mail: erdembileg@un.org.

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Citigroup logo
For immediate release
Citigroup Inc. (NYSE symbol: C)
December 29, 2003

Citigroup Awards $250,000 to International Year of Microcredit 2005
NEW YORK, December 29, 2003 – Citigroup today announced that it has awarded $250,000 to the United Nations Foundation in support of the International Year of Microcredit 2005 coordinated by the United Nations Capital Development Fund (“UNCDF”) and the United Nations Department of Economic and Social Affairs (“UNDESA”).

“Citigroup is committed to the alleviation of poverty through microfinance, and we are proud to be a lead supporter of the United Nations’ International Year of Microcredit 2005,” said Charles V. Raymond, president of the Citigroup Foundation. “Research has shown that microfinance is an effective strategy to fuel local economies and is a powerful way to increase household earnings and give families greater control over financial resources. We believe that microfinance engages large portions of the emerging market populations who typically have been disenfranchised from financial systems. As these economies strengthen through domestic economic stability, the local private sector grows,” Mr. Raymond added.

The grant gives Citigroup representation on the United Nations’ International Year of Microcredit 2005 Working and Advisory Groups, participation on country level microfinance committees, and will support specific Year of Microcredit approved projects.

Citigroup has donated over $15 million to fund microfinance programs over the last 5 years, and Citigroup shares its expertise in microfinance through its employee volunteer programs. In addition, Citigroup has supported and worked with 145 microfinance partners in more than 50 countries and is working with leaders in the field of microfinance to support the emergence of uniform standards and to increase efficiency and transparency.

Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.

Media Contacts:
Shannon Bell (212) 793-6206

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Dominic Sasia Malusi

Dominic Sasia Malusi, supermarket owner - Kenya
“Since I was 11 years old, I have wanted to be an entrepreneur. With the loans provided by K-Rep Bank I have been able to realize my business plans. Now I run this supermarket.”
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