Regional: Supporting Microfinance and Lending Partner Financial Institutions in their COVID-19 and Post-pandemic Response (ADB-44934-026)

Regions
  • East Asia and Pacific
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 15, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This Technical Assistance (TA) proposes timely intervention as economic activity and income-generating opportunities resume in the post-lockdown period. It will help these MFIs/NBFIs a) build their capacity and resilience; b) secure continued financing by wholesale investors to ensure on lending to low-income borrowers; c) promote continuity of lending and collection activity for clients, assisting them through periods of economic and personal distress with awareness and sensitivity; and d) prepare for future crisis-related scenarios.

According to the ADB project website on COVID, this project will support COVID 19 relief efforts. The disclosed project documents also state: 

"In April 2020, the Asian Development Bank (ADB) approved an increase in the aggregate limit for the Microfinance Risk Participation and Guarantee Program (MFP) by $260 million to $600 million.1 MFP is a credit enhancement initiative designed to address market gaps by sharing risks to facilitate local currency lending to microfinance institutions (MFIs), which on-lend to lowincome people who face difficulties in gaining access to finance. Operating on a revolving basis, the MFP has supported $1.18 billion in new local currency loans since inception in 2010 to end2019, benefiting over 6 million end-borrowers, mostly women, across ADB’s developing member countries. As a result of the COVID-19 outbreak, MFP seeks to support MFIs that are partners of the program by building resilience during the post-pandemic period and help sustain continued financing of the most vulnerable low-income population in ADB’s developing member countries.."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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Project Officer

Hyde, Janet Veronica
Private Sector Operations Department (email contacts not provided at the time of disclosure)

 

ACCESS TO INFORMATION

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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.

How it works

How it works