Microfinance Risk Participation and Guarantee Program (ADB-44934-015)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 26, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 18, 2019

Disclosed by Bank Sep 19, 2018


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Project Description

According to bank documents, access to finance is often cited as one of the primary obstacles for micro, small, and medium-sized enterprises (MSMEs). An International Finance Corporation report found that MSMEs in developing countries face a financing gap of about $2.1 trillion–$2.6 trillion, which is equivalent to 30%–36% of current outstanding MSME credit. The impact of the Andhra Pradesh crisis in the microfinance industry in 2010 created an acute liquidity scarcity for microfinance institutions (MFIs) throughout India. In response, ADB developed the Microfinance Risk Participation and Guarantee Program to encourage international and domestic financial institutions to increase their lending volumes to microfinance through risk participation and guarantee arrangements.

Investment Description
  • Asian Development Bank (ADB)
Contact Information

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main