44934-014: REG: MICROFINANCE RISK PARTICIPATION PROGRAM | Asian Development Bank

Regional: REG: MICROFINANCE RISK PARTICIPATION PROGRAM

Nonsovereign (Private) Project | 44934-014 Status: Active
 
Project Name REG: MICROFINANCE RISK PARTICIPATION PROGRAM
Project Number 44934-014
Borrower/Company MFI RISK PARTICIPATION PROGRAM
Country Regional
Location Regional
Type or Modality of Assistance
25 Guarantee Ordinary capital resources USD 240.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Spohn, Sabine T.E.
Project Sponsor(s)
Description REG: MICROFINANCE RISK PARTICIPATION PROGRAM
Objectives and Scope The program supports the expansion of local currency lending to MFIs in ADB's DMCs, in turn providing an increase in the provision of financial services to the underserved poor population segment. This will help address the significant unmet demand for financial services, and provide additional funding for micro-borrowers.
Status of Development Objectives On-going
Status of Operation/Construction On-going. The program works so far with 6 partner financial institutions and has been supporting so far 27 microfinance institutions. See also www.adb.org/mfp.
Linkage to Country/Regional Strategy Finance sector development is one of ADB's strategic priorities set forth in the Midterm Review of Strategy 2020. In its approach to inclusive economic growth, ADB will emphasize inclusive finance by improving and expanding access to finance for the low-income population and for micro, small, and medium-sized enterprises. The program is also in line with ADB's Private Sector Development Strategy, ADB Gender Equality and Women's Empowerment Operational Plan 2013-2020 as well as ADB's Financial Sector Operational Plan.
Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as financial intermediary and will be treated as category C for environment, involuntary resettlement, and indigenous people under ADB''s Safeguard Policy Statement (2009). Given the nature of microfinance operations, environmental impacts are expected to be negligible and no involuntary resettlement or impact on indigenous peoples are foreseen. ADB will determine the level of oversight required to verify compliance during the due diligence exercise conducted on each PFI and its MFI lending operations.
Involuntary Resettlement see above.
Indigenous Peoples see above.
Stakeholder Communication, Participation, and Consultation Partner financial institutions conduct market research and seek feedback from existing and potential clients and staff to understand MFI needs.
Timetable for assistance design, processing and implementation
Concept Clearance 13 Sep 2010
Credit Committee Meeting 08 Nov 2010
Approval 13 Dec 2010
PDS Creation Date 29 Oct 2010
Last PDS Update 30 Oct 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Microfinance Risk Participation and Guarantee Program: Major Change and Additional Financing Change in Scope, Amount, and Implementation Arrangements Oct 2015
Proposed Microfinance Risk Participation Program Reports and Recommendations of the President Nov 2010

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.