The foundation set up a rigorous selection process of the MFIs that she supports throughout the world. These criteria are appreciated upon the MFIs maturity, social implication and who are essentially intended to women in rural zones :
Eligibility criteria
- minimum 2 years of existence
- certified accounts
- operational viability reached or to be reached
- good portfolio quality
- portfolio outstanding superior to 650 K€
- social implication of the structure
The Foundation proposes its support through guarantee, loans, technical assistance :
Adapted financial instruments
The Foundation offers a full range of financial instruments to meet the needs of microfinance institutions throughout the world, including :
- medium and long term credit lines, in euros, dollars and local currency
- full or partial loan guarantees to facilitate MFI access to bank financing in local currency
- quasi-equity, in the form of non-voting subordinated notes
- acquisitions of equity interests to reinforce prudential capital required by the local central bank.
The terms and conditions of remuneration of such financing will systematically take into account:
- each institution's repayment capacity
- the specific context in each country
- the cost of funds
- loan application review and administration costs
- non-recovery risks.
The Foundation does not provide out of the market financing costs
Services
The Foundation may also provide technical assistance with a view to contributing
to the growth of microfinance institutions and to helping them achieve
professional status by:
- sharing and disseminating best practices
- enhancing product ranges to include savings products, funds transfers, microinsurance, etc.
- providing management advice and support in the areas of governance, legal affairs; by submitting projects to local authorities or international development agencies; through management control, risk management, collections, reporting, IT systems, HR, etc.
- serving as a training platform for networking of managers, management training, study trips, etc.
- offering new technologies.
These services will be offered to partner microfinance institutions
at a price that is compatible with their means. They may be billed below
cost, with the Grameen Crédit Agricole Foundation making up the difference.
