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MFIs performing well despite adverse situation
KATHMANDU, JAN 03 - Despite adverse situation, micro finance institutions (MFIs) have been performing to the best satisfactory level, say experts.
Shankar Man Shrestha, Chief Executive Officer of Rural Micro-Finance Development Centre (RMDC), said that MFIs are performing at a very satisfactory level in the remote areas of the kingdom.
He was speaking at the fifth annual general meeting (AGM) of the centre here today. "More than 200 branches of Nepal Bank Limited and Rastriya Banijya Bank have been closed, but more than 98 percent MFIs are working in the remoter places," he said.
He also said that the violence unleashed by the Maoists has led to the closure of a few branches of the grameen (rural) banks run by the state.
MFIs have once again proved that they are instrumental in reaching out the hard-core poor even at a very adverse situation, he said, citing example of Swabalamban Bikas Bank.
Maoists had set ablaze a branch of the bank at Pato, Saptari district some three months ago destroying all the document ~ ~ completely, but with the sincere efforts of the bank’s employees and the cooperation from the borrowers, the branch is operational now, he explained.
He also said that the Asian Development Bank (ADB) has awarded the center with Best Performance Award twice. The ADB gave away the award to RMDC for two straight years, in 2001 and 2002.
He said that the centre provided training to 713 employees and officials of MFIs through 36 workshops and seminars during fiscal year 2002/03, which has benefited 41,841 members of various MFIs.
Similarly, RMDC disbursed Rs 244 million in loans to 25 MFIs including Paschimanchal Grameen Bikas Bank, Madyamanchal Grameen Bikas Bank, Nirdhan Uttathan Bank, Swabalamban Bikas Bank, Chhimek Bikas Bank and Deprosc Bikas Bank among others during last fiscal year.
He also said that the number of non-governmental organisations that have acquired licence from Nepal Rastra Bank for micro credit programme is 40 at present.
He also said that the micro credit programme launched in the Kathmandu valley, targeting the urban poor, would be expanded and the upper limit of lending to its partner MFIs would also be increased in the days ahead in keeping with the changing context.
Shrestha also said that the centre would identify other potential MFIs and provide loans to them and enhance their capacity simultaneously.Posted on: 2004-01-04 04:34
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