Lessons learned from the
delivery of Technical Assistance
to microfinance entities
Research Report
2007 - 2012
The ideas and opinions expressed herein are those of the authors and do not
necessarily reflect the views of the IDB/MIF BIO, NORFUND and FMO.
This research study was conducted in coordination with the LOCFUND team
headquar-tered in Bolivia, and the collection of data was made possible thanks to the goodwill and
cooperation of the executives and staff of 24 microfinance entities in Argentina, Bolivia,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua,
Peru and the Dominican Republic.
The research process and its publication were made possible thanks to the financial
sup-port of the Multilateral Investment Fund, a member of the Inter-Development Bank
(IDB/MIF), the Norwegian Investment Fund for Developing Countries (NORFUND), the
Belgian Investment Company for Developing Countries (BIO), the Netherlands
Develop-ment Finance Company (FMO) and the Bolivian InvestDevelop-ment ManageDevelop-ment Limited (BIM
Ltd.).
parame-TSF – LOCFUND Donor
BIM
BIM is a fund management company with over fourteen years experience in investment funds. It has designed, created and managed various funds and investment instruments for almost 70 million dollars. BIM has a team that specializes in microfinance and capital markets and total assets under its administration today are worth 60 million dollars, principally targeting microfinancing in the Latin America and Caribbean region.
BIO
BIO is the Belgian Investment Company for Developing Countries ("Société belge d’Investissement pour les Pays en Développement"), whose mission is to support the development of a strong private sector in the emerging and developing countries, to enable them to grow and achieve a sustainable development, within the framework of the Millennium Development Goals. BIO invests directly in private sector projects and as such makes a structural contribution to the socio-economic growth of countries where it operates.
FMO
FMO is the Dutch development bank that supports sustainable private sector growth in developing and emerg-ing markets by investemerg-ing in companies that seek to grow. They believe that a strong private sector leads to eco-nomic and social development, empowering people to use their skills and improve their quality of life.
MIF
The Multilateral Investment Fund creates economic growth opportunities and reduces poverty in Latin Ameri-ca and the Caribbean through innovative business models that benefit entrepreneurs and poor and low-income households. It achieves this through the development, financing and execution of projects, while work-ing with a broad variety of partners from the private, public and non-profit sectors, whilst evaluatwork-ing results and sharing lessons learned.
CONTENTS
Page
FOREWORD
………...……… 7
EXECUTIVE SUMMARY ………..……… 9
1.
BACKGROUND ………. 11
2.
CORPORATE GOVERNANCE ……… 12
3.
APPROACH TO THE TECHNICAL ASSISTANCE OPERATIONS ……….……… 13
4.
DEVELOPMENT OF THE TECHNICAL ASSISTANCE OPERATIONS ……….…………. 14
5.
THE RESEARCH PROCESS ……… 16
5.1. Data collection ……… …… 16
5.2.
The Formulation of Indicators ……….. …… 16
6.
RESULTS ………..…… 18
6.1 Valuation of Indicators ……….. 18
6.2. Data obtained from the questionnaire ……….. 20
6.3. The experiences of the different entities ……….. 21
7.
LESSONS LEARNED ……….. 27
7.1. Concerning the methodology ………... 27
7.2. Concerning the training ………... 27
8.
FINAL ANALYSIS ………... 30
8.1. Conclusions ………. 30
8.2. Recommendations ……….. 31
9.
ACKNOWLEDGEMENTS ……… 34
Annex 1 - Technical assistances operations performed between may 2007 and march 2012
Annex 2 - Topics treated during the first rounds of the TA
Annex 3 - Lessons learned survey
Annex 4 - Microfinance institutions that responded to the survey
Annex 5 - Request for funding
FOREWORD
The investors of LOCFUND, the first local currency loan fund for microfinance entities of Latin America and the Caribbean, have very wisely included non-reimbursable funds for technical assistance to entities in the subject of asset and liability management. This tech-nical assistance was to be implemented through the usual practice of techtech-nical cooperation agencies for hiring consultants, occasionally recommended by the agencies themselves and/ or by following contracting procedures that involve evaluation of curricula vitae and other requirements, which would turn it into a slow process dependent on the availability of pro-fessionals at times that may be inconvenient for the institutions that were to receive such support from LOCFUND. Considering that LOCFUND would be the first lending experience in local currency to microfinance institutions of the region, the work of placing the loans as well as that of the technical assistance had to be properly coordinated to achieve the results expected, which include: excellent institution credit portfolio quality and optimal manage-ment of their assets and liabilities. Therefore, the credit operations generated with the funds received from LOCFUND should benefit from the knowledge produced by these re-sults in the financial area.
Having had previous experience in traditional methods of providing technical assistance sessions, these did not seem most appropriate for what we were starting through LOCFUND or for what its proponents wanted to accomplish. This is why I proposed and managed to convince LOCFUND investors to introduce a different format for the technical assistance component: the availability of the same professional offering technical assistance through coaching or on-site training with a one-on-one approach delivered to professionals of the microfinance institutions who are responsible for the management and follow up of the loans received, the microcredits granted and their recovery.
The Lessons Learned presented below clearly highlight the commitment and consequent coordination within LOCFUND between the executives, loan officers and the consultant/ coach, Pedro Fardella, to develop a personalized technical assistance methodology oriented towards the diversity of countries as well as that of microcredit practices of microfinance institutions supported by this fund.
Pilar Ramírez
LOCFUND General Manager June 2006 to June 2009
EXECUTIVE SUMMARY
LOCFUND has been conducting Technical Assistance rounds since 2007 thanks to IDB/MIF, NORFUND, BIO and FMO grants.
This TA aims at strengthening the capacity building of its recipients (microfinance institutions of Latin America and the Caribbean) through support in the following areas: (i) the development of products for diverse financing and hedging instruments; (ii) the training of staff of microfinance institutions (MFIs) in asset and liability management techniques; and (iii) the development of new financial instruments and products to stimulate financing in local cur-rency. The TA also allows complementing organization, management, financial and operational services, whenever necessary, and the provision of loans or other financing instruments.
Since its inception all the way through to March 2011, the TSF has granted resources for 73 technical assistance op-erations, which include training, workshops and other activities.
Considering the results achieved during that period, the preparation of this document was launched with the idea of capturing the experiences- both negative and positive- which would serve as target parameters for future technical assistance programs, thus generating greater added value as much for the beneficiary institutions as well as end cli-ents.
Among this experience’s major findings is the evident satisfaction of institutions with the TA service, whose results have generally surpassed the expectations of MFIs and whose impact levels have substantially benefited the recipi-ents´ institutional development.
The coaching methodology and the practical experience of consultants allow for the achievement of effective results and their immediate implementation.
Also noteworthy is the realization that practically all of the institutions in all of the countries visited share similar problems and concerns, while proposed solutions and alternatives are implemented almost immediately, which rap-idly reveals positive changes in operability and indicators.
The employees trained have assumed the certainty that risk is the responsibility of all areas within the institution and they have been endowed with instruments for identifying risk ex ante.
The detection of certain aspects that exhibit levels of weakness in some of the TA processes lead to the conclusion that it is important to place greater emphasis on the earlier stages of diagnosis as well as on subsequent follow-up. In this way the effectiveness of coaching can be enhanced.
Also worth highlighting is the expertise of the consultants hired, whose profiles include a broad and practical back-ground in the microfinance sector. These factors proved to be critical when combined with onsite training.
From the viewpoint of the donors and TSF-LOCFUND co-financing of the TA is positive, since greater commitment, involvement, interest, drive and higher levels of efficiency in the microfinance institution are observed.
This research study has revealed that while there are still aspects that require strengthening, the type of technical assistance developed by TSF-LOCFUND is an achievement in the field of local currency funding for the
micro-1. BACKGROUND
Since 2007 LOCFUND has been performing Technical Assistance (TA) activities that are implemented within the framework of the Technical Support Agreement (TSF Agreement) entered into with the IDB/MIF, NORFUND, BIO and FMO.
This TA aims at strengthening the capacity building of its recipients through support in the following areas: (i) the development of products for diverse financing and hedging instruments; (ii) the training of staff at microfinance in-stitutions (MFIs) in asset and liability management techniques; and (iii) the development of new financial instru-ments and products to stimulate financing in local currency. The TA allows complementing organization, manage-ment, financial and operational services, whenever necessary, and the provision of loans or other financing instru-ments.
The funds allocated to the TA primarily focus on two major components:
Component I: The development and dissemination of a local-currency funding model, understood as the prepara-tion of legal and operaprepara-tional documents, and manuals for the funding, hedging and financial instruments services offered by LOCFUND. The purpose of this component is to develop hedging tools and instruments for improved ex-change risk management in debt operations, as well as to promote funding in local currencies through the develop-ment-on the part of LOCFUND- of new tools and financial products.
Component II: Capacity building at LOCFUND client microfinance institutions (MFIs) so as to strengthen their capacity to manage assets and liabilities.
The purpose of this component is to strengthen the capacities of MFIs through technical assistance to increase the skills of managers in the aforementioned management practices.
With reference to Component I, the following summary of activities is available:
In 2007, TSF – LOCFUND financed the development of a local currency model and a guide for local cur-rency loans.
During 2008, TSF – LOCFUND financed the creation of a model for improving exchange rate risk manage-ment in loan operations.
In 2009, TSF – LOCFUND financed a consulting operation for the review and analysis of the local currency loan model, the review of hedge instruments and the different hedging strategies available.
Finally, TSF – LOCFUND financed 20 legal services to obtain legal opinion on loan disbursements and the preparation of debt contracts and hedging operations contracts.
The present report is based on the development of activities carried forth in agreement with Component II of the TSF Agreement.
2. CORPORATE
GOVERNANCE
In relation to the corporate governance of TSF – LOCFUND, the Donor Committee is comprised of one representa-tive for each Donor organization.
The procedure for the allocation of TSF- LOCFUND resources is as follows:
The definition of the topic may be suggested by the recipient microfinance institution as well as by the TSF Donors, the LOCFUND investors (through the Credit Committee or the Advisory Committee), the investment officer, the portfolio monitoring officer during follow-up activities or by the TA coordinator during any visit.
Finally, the Donor Committee approves TA requests on a case-by-case basis and based on a request for funds (Annex 5).
TA requests are submitted for each project and, based on this requirement, the Donors may decide to approve, sug-gest changes to original proposal, or reject the TA. Nonetheless, it is important to mention that this last option has never taken place.
Approvals, doubts and/or comments are shared and answered by electronic mail and, if necessary, a telephone meet-ing or audiovisual conference is convened via the Internet.
An in-person meeting with Donors is carried out twice a year, where the following reports are presented: TSF general balance and income statement.
Activities carried out since the beginning of TSF. Detail of activities developed during the last six months.
Expenditures incurred for each activity since the beginning of TSF.
Comparison between the budget requested for each project and the actual expenditures made. Budget estimate of TSF activities for the next 6 months.
Definition of TA Topic 1. TSF Donors
2. Investors and Advisory Committee 3. Investment Officer
4. Portfolio Monitoring Officer 5. TA Coordinator
6. MFI
Topic Approval and TA Design TSF Donor Committee
TA Execution and Monitoring TA Consultant / Coordinator
3. APPROACH TO THE
TECHNICAL
ASSIS-TANCE OPERATIONS
This research study has identified the learning outcomes of 5 years of work between May 2007 and March 2012, peri-od in which a total of 50 TA operations were granted:
37 technical rounds on the management of assets/liabilities and risk control (see Annex Nº 1) 8 technical rounds on the mitigation of specific risks identified by each MFI (see Annex Nº 1) 2 corporate governance seminars
1 audit and risk control seminar
2 workshops conducted within the framework of the Inter-American Forum on Microenterprise (FOROMIC)
The vision outlined from an onset was to provide TA with a differential value, with the characteristics that give it more value and better results. They were to be provided by professionals with experience in microfinance, with a 100% practical approach, and in accordance with the real situation of each MFI. Consequently, it was defined that the technical assistance operations would be implemented:
In a simple, comprehensible way and applicable to everyday work.
With daily technical and operational assistance and working directly with the MFIs staff.
With tools created for better decision-making, based on the interpretation of results and analysis of infor-mation.
With simple tools that do not require technological support.
With final reports that do not require major theoretical support but are of a practical nature and easy ap-plication instead.
Under these premises, the activities of Component II of the TSF – LOCFUND entitled “Coaching on assets and liabil-ities management” were initiated and it was decided that they would be fully funded by the TSF.
It was decided that the coaching methodology would be utilized because it allows for the attainment of practical re-sults that can be immediately applied with its in-situ transfer of know-how, the use of practical experiences, and the development of methods suitable to the realities of each MFI and the person responsible for each task.
4. DEVELOPMENT OF THE
TECHNICAL ASSISTANCE
OPERATIONS
First Rounds
The TSF started with the Donors mandate to guide and strengthen management, as well as to minimize financial and market risks in areas such as:
Market risks
Risks and interest rate matching Exchange risk
Liquidity risk
Financing and lines of credit Cash management
Operational risks
That is why, upon receiving the first Locfund’s financing, the TA consultant visits the MFIs with the mission of work-ing with them on the management of assets and liabilities so that upon completion they may end up with a methodol-ogy and a full understanding of the financial risks and their control. The core areas of work are matching of term lim-its, liquidity, interest rates and exchange risk (Annex No. 2).
Through his/her direct participation, the consultant responsible over the TA gets involved in the everyday work pro-cesses of each entity and interacts with all its areas and hierarchical levels, including middle management and opera-tional personnel.
At the end of his/her visit a presentation is made in the format of a PowerPoint presentation, with recommendations and suggestions that were identified during the visit. Likewise, the persons that were trained deliver a presentation to upper management explaining the skills acquired and types of analysis that were applied. At some entities, this presentation was made before the MFI’s Board of Directors.
Initially these visits were financed 100% by TSF, but since 2012 the MFIs co-finance these TA operations.
Second rounds
Due to the success achieved during the first rounds, the entities have requested new visits, which have been called “second rounds”, in which more specific topics are developed and that are co-financed by the entities themselves. The topics developed in these second rounds include:
Strengthening of the institution’s credit technology and support in the decision making of corporate gov-ernance
Development of TA manuals for the management of assets and liabilities and risk control
Workshops and Seminars
There have also been other lines of work and training such as seminars and workshops that were offered to MFI rep-resentatives in different scenarios. The work topics in the training areas included:
Seminars
Corporate governance Risk control and audit
Workshops
Based on the developed TA experience, TSF-LOCFUND was invited by the IDB/MIF to conduct workshops at the FOROMIC, which were carried out on the following subjects:
International crisis: risks and opportunities for MFIs Portfolio profitability of credit products
During all of these occasions, the TA operations have had the purpose of strengthening institutional management and the professional growth of persons, thus contributing towards institutional maturity, the sharing of experiences and promoting the participation of attendees.
5. THE RESEARCH PROCESS
5.1 Data collection
This research study is, in principle, made up of the evaluation(1) performed by the consultant Aristoteles Esperanza
(February 2010).
In addition, a questionnaire has been designed (Annex 3) which was sent to 37 MFIs that are TA recipients, of which 23 responded (Annex 4). It should be noted that of the total number of questionnaires that were sent and returned, three were partially completed.
The questionnaire consists of three sections: the first concerns information on the institution and the TA received; the second refers to quantitative indicators; and the third collects information of a qualitative nature.
A series of interviews were also conducted within the framework of a seminar on over-indebtedness held in Lima, Peru in March 2012. Seminar participants provided direct information about their perceptions concerning the quali-ty, opportuniquali-ty, contents and development of the technical assistance operations, thus serving the objective of high-lighting positive and negative aspects, as well as opinions on the different issues concerning the TA. One of the MFIs that participated in the interview did not submit a completed questionnaire for considering them both redundant. Interviews were carried out by a person external to LOCFUND and the TSF with the purpose of guaranteeing the ve-racity of the information received.
All of the tools that have been mentioned were used at various stages of this research study with the intention of ob-taining common data, better information exchange and greater reliability of the valuation of the technical assistances received.
5.2 The Formulation of Indicators
The survey includes quantitative and qualitative indicators for greater complementarity of data, which also facilitates the study’s monitoring and analysis. Their interpretation is simple and may be translated into concrete measures.
5.2.1 Quantitative Indicators
opera-5.2.2 Qualitative Indicators
These indicators are based on the information gathered from section No. 2 of the questionnaire, as well as on the data attained from personal interviews and the review of previous information. They seek to reveal the results and lessons learned from the TA operations, in such a way that their dissemination allows capturing data that could be applied in the future.
5.2.3 Questionnaire
The questionnaire that was sent to the MFIs that received TA compiles specific information, through a table with or-dinal variable categories and a set of questions aimed at obtaining precise data, which allow relevant results and main conclusions to be found.
5.2.4 Personal Interviews
Eleven (11) interviews were conducted, in order to obtain oral information, through targeted questions and the free expression on issues pertaining to the LOCFUND Technical Assistance Program.
Interviewees included the MFI’s principal executive officers, who have been in permanent and direct contact with the TA visits, occasionally through their direct participation and at other times, receiving reports and information from the personnel assigned to the operations. In every case, the interview respondents were fully informed about the vis-its and the topics addressed.
6. RESULTS
The data and perceptions collected have been organized so as to display results, in the following sections:
A first section quantifies the greater or lesser agreement of entities with respect to specific issues, as per the overall score given to the 26 variables of the questionnaire. The answers provided for each variable are scaled in percentage values.
The second section reflects those criteria most repeated by interviewees (as of section 3 of the survey), which are used as common denominators for general perception on issues raised.
The third section shows a summary of experiences shared by each interviewed MFI.
6.1 Valuation of Indicators
The following table of integrated results shows a measurement scale of perceptions, whose results in percentages al-low pinpointing those factors that interviewees rated, according to the folal-lowing scale:
NR= unanswered
1= Bad (deficiency factors) 2= Average
3= Good
4= Very Good (success factors)
It should be noted that most answers were under options 3 and 4, that is, “Good” and “Very Good”.
The following table reflects results obtained in percentages, measuring the degree of satisfaction of MFI with respect to the technical assistance:
The table shows percentages of acceptance for every indicator proposed in the survey(2). Said percentages are
ex-plained in detail as follows, broken down into two groups:
a. Indicators with a score of over 85% are those that express the highest level of acceptance on the part of the interviewed group. They represent those aspects that were best achieved during the TA, that is, what was “well” and “very well” done, according to the rating scale.
Indicators Results en %
1. Corresponds to the goals and targets of the proposal 84.09
2. Contributes to the strengthening of capacities 86.96
3. Promotes initiatives in the area of organizational management 85.57
4. Facilitates improvements in organizational procedures 81.52
5. Identifies and strengthens efficiency factors 85.87
6. Identifies and strengthens effectiveness factors 83.70
7. Identifies deficiencies within the MFI 81.52
8. Proposes a solution to processes 80.68
9. Proposes best operational practices 88.04
10. Suggests concrete actions fostering change 84.09
11. Benefits are identified that are directly perceived by clients 73.68
12. Staff members were involved 84.78
13. Concrete indications of success 79.55
14. Improves decision-making 86.96
15. Implementation difficulties 71.59
16. Training methodology and materials 71.59
17. Subsequent follow up 63.75
18. Fulfills the implementation of agreed activities 79.76
19. Promotes learning and self-improvement 86.36
20. Promotes positive changes in policies and standards 80.43
21. Results are systematized and documented 75.00
22. Promotes new ways of inclusion among work teams 71.43
23. Proposes innovative solutions 72.73
24. Proposes improved procedures 87.50
25. Introduces the use of other resources 85.23
b. For their part, the following indicators rank between 66% and 85% of the scale, that is, they express every-thing that was performed as “Good” or “Average”.
c. The following indicator is below a 66% score of the scale, which reflects a deficiency factor in the technical assistance process:
6.2 Data obtained from the questionnaire
Proposes operational best practices 88.04
Proposes improved procedures 87.50
Improves decision-making 86.96
Contributes to the strengthening of capacities 86.96
Promotes learning and self-improvement 86.36
Promotes initiatives in the area of organizational management 85.87
Identifies and strengthens efficiency factors 85.87
Shares common experiences of the microfinance sector 85.23
Staff members were involved 84.78
Corresponds to the goals and targets of the proposal 84.09
Suggests concrete actions fostering change 84.09
Identifies and strengthens effectiveness factors 83.70
Facilitates improvements in organizational procedures 81.52
Identifies deficiencies within the MFI 81.52
Proposes a solution to processes 80.68
Promotes new ways of inclusion among work teams 80.43
Fulfills the implementation of agreed activities 79.76
Concrete indications of success 79.55
Introduces the use of other resources 76.14
Results are systematized and documented 75.00
Benefits are identified that are directly perceived by clients 73.68
Proposes innovative solutions 72.73
Implementation difficulties 71.59
Training methodology and materials 71.59
Promotes new ways of inclusion among work teams 71.43
2. Which main lessons did the team learn? Technical capacity was strengthened.
We learned techniques for the direct promotion of products. We improved our sales team.
Improvement in operational processes. More risk assessment and control. Use of control tools.
Utilization of better operating practices.
3. Describe those situations in the project that had successful outcomes. A functional sales team was built.
We improved rules and regulations.
The consultants’ ease of communication favored team learning . 4. Describe those situations in the project that had negative outcomes.
There were none.
Manuals prepared with managers were not reviewed by senior executives. Trained executives hired by the competition.
Follow-up.
5. Another piece of information that you consider important and enriches your experience. Training was extended to other areas of the institution.
We commend the favorable disposition and knowledge transferred by the consultant. I would like this to take place on a continual basis.
6.3 The experiences of the different entities
The following paragraphs provide a compilation of experiences obtained from 11 personal interviews. The structure of these conversations allowed interviewees to express themselves freely, which included an introduction about their institution followed by the discussion of topics regarding the technical assistance. The statements literally provide a detailed account of the impressions recorded.
Finally, an interview was conducted with TSF Coordinator Pedro Fardella.
6.3.1. NUEVA VISIÓN– Peru
TA received: Asset and Liability Management – Risk Control. 1st round
We had a professional with extensive experience who went straight to the point, emphasized clarity and provided practical examples.
We learned to manage the assets and liabilities worksheet very well, and currently we are witnessing the day-to-day maturity of assets and liabilities and how this is advantageous to us.
Nothing went wrong, all tasks were fully accomplished, and there was an exceptional course on operational risks management.
This technical assistance is very useful, if recipients have the willingness to pay attention to it and to apply the changes subsequently.
6.3.2 CONTACTAR – Colombia
TA received: Asset and Liability Management – Risk Control. 1st round
As a result of the discussions and training received from TSF-LOCFUND we think more about what we do, while controlling risks. With auditing and performing risk control, improved coordination has been gener-ated. We are considering systemizing risk, as we had risks that were handled separately.
The greatest improvements made following the technical assistance have been for the area to unite and gain awareness, if we do not control risk we shall encounter problems in the future.
The technical assistance that was designed was very good, but as a client we consider that we needed more time. One always expects more, greater scope and more time.
Following the visit, we created a document as an initial guide of next steps and this was very useful.
The vision and expertise of the people, of the consultants, was fundamental. What we learned from the con-sultancy was practices and applicability.
We worked together with LOCFUND and we have committed to apply what we have learned.
6.3.3 FACES– Ecuador
TA received: Asset and Liability Management – Risk Control. 1st round
We have received several consultancies and in comparison the instructor here was extremely helpful. We have applied what we learned in two weeks, management and everyone took the time to participate; we have arduously worked audits, finance and risks.
We expressed our doubts to the consultant and we explained what we expected to implement.
Ideas on market liquidity limit. Helped us become educated and be able to grow; our current performance is very good.
The key: the professionalism of consultant and practical implementation; we prepared the work joint with our instructors, and during the two weeks we received a lot of help.
We are demanding and the consultant met our expectations, the method was on the right track.
In the future we are considering working together and addressing those issues in which we have clear weak-nesses.
We have reviewed the credit limits, which were not within our agenda, and with the support of the consult-ant that was of great help.
emphasis placed on portfolio management, agency organization. We still need risk control and auditing, however, we are on stand-by since we do not want to overlap consultancies.
6.3.5 ADEMI – Dominican Republic
TA received: Asset and Liability Management – Risk Control. 1st round
TA received: Strengthening and Improvement of Deposit Capture Area. 2nd round
We had two technical assistances with TSF-LOCFUND, one was in finance and the other in capturing de-posits. The latter was very successful, very important. All objectives and goals were met.
What happened is that those of us in management who lead the day-to-day operations were opposed to creating a different sales team for capturing deposits, and, however, what was implemented has worked so well that the staff in our institution is going to replicate and expand that force to all branch offices.
A document was left that has served as a guide, on the entire business strategy, which we have steered and adjusted.
Everything came out well. There is still a cost/benefits study pending, however, in the area of image we are certain and evidence indicates that this has helped tremendously.
We recommend the technical assistance because its consultants make up a great team and transfer their knowledge in a practical and simple manner.
We have to continue working with the support of institutions like LOCFUND, continuing our education.
6.3.6 ADOPEM – Dominican Republic
TA received: Asset and Liability Management – Risk Control. 1st round
TA received: Strengthening and improvement of deposit mobilization. 2nd round
This experience been most valuable, the technical assistance we have received form TSF-LOCFUND has been of the highest quality. Firstly, we would like to highlight the high professional standards of their con-sultants; secondly, the topics covered were worthwhile. We are a client with little interest in funding in it-self, because if we see the LOCFUND funds portfolio, it is expensive, but the service component of the TA allowed us to learn and that is a value added.
They have left documents that still need to be shared, and as a large institution we need to reach out to grassroots levels, otherwise communication is subsequently lost.
We can find ways to work with other entities; we must look into strategies and thus build on the future. The over indebtedness workshop gave us many ideas that we must implement in the next months.
Among the product tools that we received the most important one is the strategic plan, which we are fully carrying out and serves as a guide for institutional development.
We like both formal and laid back consultants.
6.3.7 FUNDACIÓN GÉNESIS – Guatemala
TA received: Asset and Liability Management – Risk Control. 1st round
All managers and some directors participated in training.
The issue of structuring our products, since we had over 100 products. Most importantly, installed capacity was included, satisfied all executives, and a presentation was made to the Council (3).
The consultant participated in our assessment workshops, which we called harvest and sow.
I would recommend the assistance provided by TSF – LOCFUND and it is the only one I would recom-mend, and despite the fact that we had to co-finance the support during the second round, it has been use-ful to reposition ourselves, reflect upon and confirm that we are going in the right direction.
All of the workshops are a good learning opportunity to build on and strengthen our weaknesses.
6.3.8 ARARIWA – Peru
TA received: Asset and Liability Management – Risk Control. 1st round
The technical assistance in the area of finance helped us build tools as a team, which we continue to use, and which allowed us to grow professionally and institutionally. Precisely, the person who occupies the po-sition received this training and field training.
It was delivered within the context of the events of the financial crisis in the United States and the consult-ant delivered a conference to clarify those doubts, responding to an invitation from the Catholic University. The consultant shares his experience and makes the people he works with participate actively so as to inter-nalize the knowledge.
6.3.9 RAIZ – Peru
TA received: Asset and Liability Management – Risk Control. 1st round
They helped us a lot in the area of finance, since we are in the process of becoming a financial institution. We are currently a Small Business and Microenterprise Development Institution (Edpyme, acronym in Spanish). This is going to allow us to raise funds from the public and provide integrated services to clients. We received advice on how to approach this new market, for which handling liquidity is fundamental and on how we must structure the treasury, so as to clearly manage liquidity ratios and the topic of matching. We analyzed the subject of the capturing of deposits; we discovered which institutional attributes are sought out by depositors, namely, trust, security, transparency, and confidentiality.
The best part was that the technical assistance coincided with this transformation process at a point where we have completed the feasibility study and are in full conversion mode.
Imbued with this knowledge we are now better prepared to take on the challenge and carry out the process. We treated the subject of core change, which is always difficult.
We discussed what is best, either acquiring new software or adapting the existing one. We are taking into account the recommendations that were made.
As part of training, we received a course on operational risk, at a conceptual level, in which middle and sen-ior level managers participated, so as to create awareness of the need for controls to mitigate operational
More time was required and we could have covered more topics.
I would recommend the TSF –LOCFUND technical assistance for the quality of the microfinance consultant they sent us. The human element is everything.
In a near future we would like to have more training on the subject of deposits capture.
6.3.10 FIE GRAN PODER – Argentina
TA received: Asset and Liability Management – Risk Control. 1st round
This institution was created in 2001, in the midst of the financial crisis in Argentina, with the purpose of transferring the experience of Bolivia to the local market.
We have learned and today we focus our operations on clients that are 70% Bolivian immigrants and 30% Argentine.
We work in a market that has not been developed, since the microfinance area is new in Argentina.
We received assistance from TSF - LOCFUND that was tied to the loan we received from the FMO to pro-duce the financial reports and to implement liquidity risk management.
We also received an additional element, which was an introduction to the topic of risk and in this way we were able to assess the risks that the institution is subject to.
An Excel document was left that we have improved and modified and which we currently use. Most importantly, we were left with an interest in the subject of risk management.
In the future we plan to strengthen risk management, especially for operational risks. The next step is to become a regulated entity.
6.3.11 TSF - LOCFUND
(Interview with the Technical Assistance Coordinator, Pedro Fardella)
In the past five (5) years we have performed technical assistances in several Latin American countries, covering topics under what we call first rounds such as assets and liabilities management, liquidity risks, term matching, interest rate and exchange rate risk or foreign currency position, which we generally cover in two weeks.
In the second rounds the consultancies are co-financed and touch upon topics such as the capturing of deposits, products costing, balance sheet presentation and credit technology.
In summary, the technical assistances are:
Simple and easy to understand, we have been interacting with the institutions and their people in their own language and environment, at their level of understanding, and we eliminate any preconceived ideas. We do not judge the entities, we try to become involved in their daily work and help in every way possible, guiding them towards improved decision-making.
We avoid characterizing anybody as good, small or large, but guide all of them to be the best. We work within a relationship based on trust which allows us to get closer to people.
At times we were quite austere, but we continuously adapted and tried to optimize resources and identify a methodol-ogy so that our counterparts may reap the benefits.
The objectives have been accomplished; in general, today we know that it is possible to conduct a technical assistance in a practical manner, doing things in an easy, understandable, and applicable manner. Following the technical assis-tance, the entity and its people are trained to immediately put this knowledge into practice in the institution.
Today we are in that process of “gradually doing it together”.
Most important is the involvement of as the greatest number of people in the institutions.
I would like to specially thank those institutions and persons who received us, and thank so much warmth and the trust that was placed in us.
7. LESSONS LEARNED
7.1 Concerning the methodology
a. The coaching methodology allows achieving practical results that can be quickly applied, thanks to the on-site transfer of knowledge, the use of case studies and the creation of methods suitable for the person re-sponsible for each task, for the reality of each MFI, its size and the current stage it is in.
b. Through the use of language that is simple and easy to understand, without technicalities, we have achieved a fluid communication with the people at the institutions. The consultant, as a first step, listens to the people who will receive the training, avoids making value judgments and becomes imbued with the details of their daily work. In this sense we build relationships founded on mutual trust.
c. The fact of participating in the daily tasks, at the place of work of the people being trained, allows removing barriers and sharing concerns and problems that would otherwise remain unknown.
d. During the visits we have the participation of upper management, which creates a greater level of commit-ment on the part of the different areas and their respective members, reaching remarkable results.
e. The staff assigned as our counterparts become involved and take ownership of the goals achieved during the Technical Assistance visits.
f. The solutions and alternatives proposed are almost immediately implemented by the institution.
g. The institutions maintain continual communication with the consultant, who continues to provide advice and clarifies doubts on a permanent basis and free of cost.
7.2 Concerning the training
a. The staff positively received recommendations for processes such as issuing checks, accounting for invest-ments, opening savings accounts, preparing daily balance sheets and calculating indicators with the same methodology used for calculating interest rates.
b. With the term matching tools much more was achieved than a simple numerical indicator. It was possible to define maturity dates, portfolio turnover speed, credit officer’s productivity and also detect the dates where financing deadlines are concentrated.
c. The matching tools for terms, liquidity and interest rates have allowed the identification of a very clear profile of the institution.
d. In the case of incorrect projections for budgets and income statements, the institution had set difficult tar-gets to reach. Following the clarifications and modifications introduced by the consultant, this was correct-ed.
f. In financial management, the MFI have been trained in situation and financial risk analysis and study, by reviewing financial reports developed by the finance department and build upon their use for future man-agement actions.
g. The TA added value in the review of the qualities and financial risks of the new financing proposals. The consultant shared his knowledge on the banking environment, the markets and investment management. h. After the Technical Assistance the MFI become more proficient in their capabilities to manage exchange
risk. Since they submit reports that measure the institution’s exchange risk and access loans from interna-tional investors in local currency; their ability to maintain solidity has improved although they still depend on their ability to cover or minimize their exposure to exchange rates (4).
i. Specifically, in the case of the first round of TA (assets and liabilities management and risk control), the following noteworthy aspects should be noted (5):
1) Great emphasis was placed on risk training. Microfinance activities involve risk; therefore institutions must be prepared to deal with it. An explanation of general risks and those specific to MFIs was done, with special attention given to financial risk.
2) The reports that were improved on the basis of training include: Debt Summary Table in Local and For-eign Currency, Summary of Investments, New Debt or Financing Proposals, Summarized Report of Li-quidity Coefficients, Interest Rate Gaps and Assets-Liabilities Management Report. Financial Managers are more committed to the review of tools for continuous improvement of financial risk management. 3) With regards to exchange risk, it was observed that the technical assistance operation has provided
them with tools to hedge against currency exposure:
The MFIs match assets in one currency to the same amount of liabilities in said currency.
The MFIs that possess funding in foreign currency monitor the movements of the exchange market more frequently.
The MFIs permanently evaluate the Banks on which they deposit their surplus liquidity in foreign currency, taking into account the publications of credit rating agencies.
4) The training sessions for risk control have reached agency personnel, as they are subject to exposure and assume responsibilities in this respect. Some of the remarks stated by assistants, for example, are “for the first time we understand why and for what” or “it’s the first time that we see general manage-ment attend workshops on a Saturday”.
j. With regards to the seminar on risk control and audit, some of the more positive aspects highlighted by participants include:
1) The importance that the internal audit unit fulfills has been conveyed, especially when that unit is in the process of growth.
2) Information was provided on how an internal audit should work, its verification or control, inde-pendently of the correct fulfillment of the entity´s regulatory framework.
k. In terms of the second round technical assistance operations:
It was found that all of the entities and countries visited had very similar concerns and problems: place-ments, cost matrix, over-blown cash flows at branch offices, generation of reports and insufficient risk control, among others. This information has been used to the benefit of the entities so as to expose alterna-tive solutions for each case, considering the special characteristics of each one of them.
Finally, it is important to mention that the tools provided by TSF - LOCFUND have been disseminated internally to MFI staff and externally to other MFI’s through formal mechanisms such as classes offered by MFI personnel that received the TSF - LOCFUND training.
8. FINAL ANALYSIS
8.1 Conclusions
a. Based on the information gathered throughout the present investigation, it can be stated that the provision of technical assistance by TSF - LOCFUND has a considerable and positive degree of incidence on the insti-tutional development of the entities that were trained.
b. The coaching methodology created and developed by LOCFUND was successfully implemented, through the direct training of executive, middle and operational levels of personnel in management models and practices.
c. The awareness that risk is the responsibility of all areas of the institution has been transmitted to the per-sonnel that were trained and the tools to detect it ex ante have been delivered to them.
d. The institutions are satisfied with the TA received. A clear illustration of this is that they continue to de-mand it, even though they must now co-finance it. Additionally, they now measure the matching of terms, have improved the financial planning, have an improved allocation of resources, and have defined person-nel roles and responsibilities more clearly. Moreover, contributions have been made to improve the man-agement of their financial risk through criteria of institutional prudence and rigor.
e. It is evident that MFIs have diverse areas that require strengthening and, even though some are left un-touched during the training processes, the knowledge acquired by their human resources allows for the introduction of changes and best practices that indirectly influence various areas.
f. Based on the responses obtained from the surveys and interviews, there is common ground on the follow-ing criteria:
Work is carried out through simple processes that are immediately applicable. Adequate relationship levels are built with equal conditions.
A smooth interpersonal communication process is achieved. There is space for dialogue and joint questioning and answering.
There is sufficient and necessary experience, as well as the essential knowledge on the functioning of MFIs.
Risk controls are conducted in a systematic and constant manner. Risk is permanently measured.
8.2 Recommendations
The recommendations were made from the point of view of the personnel managing the TSF resources at LOCFUND and their purpose is to serve as points of reference and orientation for those institutions that may want to take up the challenge of carrying out technical assistance programs. In this way, the replication of good practices is expected and, the subsequent strengthening of the microfinance market.
Financing
a. From the perspective of the Donors and TSF-LOCFUND, co-financing the TA is positive since there is greater commitment, involvement, interest, demand and a high degree of utilization on the part of the MFI when a part of its own financial resources are used to co-finance the TA (6).
b. In some cases it is recommended that the possibility be analyzed of applying the modality of 100% TSF-LOCFUND financing of the TA should, or that co-financing be granted by a third party, that is, that the client arrange for additional support (7).
c. It is important that a written agreement be executed in all cases of TA co-financing as a pre-requisite before the TA. The objective is to define the terms of the TA before its implementation and to ensure that each party clearly understands its obligations.
d. In order to maintain the continuity of the technical assistance component, the option of incorporating new Donors exists or through their participation in specific projects, such as providing support in the organiza-tion of seminars.
e. The TA process is not finished at the end of the coaching because the MFI still needs to receive subsequent monitoring and follow up. For this reason, the TA budget may include a provision related to its follow up
(8).
Technical assistance topics, approach and methodologies
a. The entities consulted require greater support, solutions and strategic training in the areas of business, finance and credit technology.
b. It is important to consider the continuous planning and organization of training and institutional develop-ment projects, whereby practices and experiences are shared. This can be achieved through seminars to be delivered systematically or while taking advantage of events where a large number of LOCFUND clients attend, which substantially reduces organization costs.
(6) The current policy established by the Donors Committee defines that the technical assistance operations will be financed for up to 70% by TSF-LOCFUND and for a minimum of 30% by the MFI.
(7) Throughout the years that co-financed TA operations have been carried out, the willingness of MFIs to contribute to the cost of the TA has become evident. However, it should be clarified that there are cases in which co-financing becomes difficult due to the reduced size of an institution or to the stage in which it is in. These stages may vary, all the way from a transition due to contingencies to other issues that must be faced such as training of human resources, purchase of new technology system, transformation processes or the start of the regulatory supervision by the authorities, among others.
c. While MFIs have improved their capability of maintaining their strength after receiving the TA, they still depend on their ability of hedging off or minimizing the exposure to currency exchange rates. TSF-LOCFUND must offer permanent training in this topic.
d. The interviews reflect that the following topics must be included and developed by the technical assistance operations:
Financial planning Corporate governance Commercial strategies Financial management
Measuring the impact of health plans Implementation of Literacy plans
Information technology: reports generation Credit technology strengthening
Operational perspective of credit risk for reducing risk factors Improvement in the collections activities
Human resources: non monetary incentives, policies and productivity Internships at institutions in other countries
Strategic planning
e. It is important to consider the future alternative of working on the planning and development of the TA on the basis of two approaches:
Through topics common to all of the entities;
Through a design and focus that are suitable to the specific needs of each individual MFI.
f. All of the entities consider that the duration of technical assistances is too short. The average length is two weeks, and they request that this period be extended so that they may take greater advantage of the knowledge transmitted.
g. With the purpose of more accurately defining the characteristics of the TA, a diagnosis phase shall have to be incorporated. It has frequently been seen that while the personnel of MFIs have a clear idea about their needs, the external and expert view of a consultant can help identify tasks that are more urgent.
h. Likewise, the incorporation of a follow up phase, which may be conducted 6 to 8 months after the imple-mentation of the TA, shall allow the deployment of the tools developed by the consultant and the correction of possible deviations.
i. In those cases where the TA allow for it, indicators must be included, which will serve to assess the impact of the performed assistance operation.
j. Depending on the nature of the TA, and having defined it previously with the MFI, the consultant must pro-vide the institution with adequate training materials, which will enable its replication.
l. The bi-annual planning of activities will benefit the monitoring of progress of both the consultant and the entities. In such a way, for example, that two different activities could be joined in one country and thus reduce costs.
Other aspects
a. During the first round of the TA, in order for the MFI to make the best use of tools delivered by the consult-ant, the institution must update and/or maintain current its information systems, so that they may gener-ate the required reports recommended by the consultant.
b. With reference to the dates for carrying out the TA, it is critical to coordinate the agendas of the consultant and the MFIs so as to avoid institutions unwanted situations or to ensure the presence of executive man-agement, for example.
c. Following every training session, the MFI shall have to fill out a satisfaction survey, which it must send directly to LOCFUND. In this way the consultant may be evaluated and suggestions can be made to im-prove his work and take advantage of the TA by the MFI.
d. In order to improve the assessment of results and their corresponding impact, it is recommendable to pre-pare a services contract with consultants that define in detail his/her objectives, timeframes, schedule of activities, etc.
9. ACKNOWLEDGEMENTS
LOCFUND wishes to thank executives and staff who received the technical assistances for the relationships that were built in the context of transparency and respect, which included the exchange of views and enriching debates on mi-crofinance and its future.
Our sincere recognition goes out to the funders of the Technical Support Facility, financed by the IDB/MIF, FMO, NORFUND and BIO. This Technical Assistance program was made possible thanks to them.
To LOCFUND collaborators, for all of the logistical support they provide which allows the organization and timelines to be met.
To the consultants who have directly and indirectly made their contribution to this process. Their achievement lies in their contribution, all the way from the work performed to the improvement of microfinance and what they give to the thousands of clients that receive their services.
ANNEX 1
Technical Assistances operations performed
between May 2007 and March 2012
Country MFI 1st round Date 2nd round Date
Argentina FIE GP Asset and Liability Management – Risk Control Apr-08
Bolivia
Ecofuturo Asset and Liability Management – Risk Control Oct-08 Cidre Asset and Liability Management – Risk Control May-08 Diaconia Asset and Liability Management – Risk Control Apr-09 Emprender Asset and Liability Management – Risk Control Aug-10 Idepro Asset and Liability Management – Risk Control Apr-11 Fubode Asset and Liability Management – Risk Control Dec-11
Colombia
FMM Popayan Asset and Liability Management – Risk Control Feb-08 Development of De-posit Products Nov-09 Contactar Asset and Liability Management – Risk Control Feb-09 Crezcamos Asset and Liability Management – Risk Control Jul-10
Costa Rica Acorde Asset and Liability Management – Risk Control Oct and Nov 09
Dominican Republic
Banco Ademi Asset and Liability Management – Risk Control Apr-09
Strengthen and Im-prove Deposits
Mobi-lization
March and May
11 Adopem Asset and Liability Management – Risk Control May-10 prove Deposits Mobi-Strengthen and
Im-lization
Nov-10 Banco D-Miro Asset and Liability Management – Risk Control Sep-08
Ecuador
Fundacion Espoir Asset and Liability Management – Risk Control Jul-08 Strengthen Individual Credit Technology Jul-09 Insotec Asset and Liability Management – Risk Control Jul-08
Faces Asset and Liability Management – Risk Control Jul-11 Fund. Alternativa Asset and Liability Management – Risk Control Aug-11
El Salvador AMC Asset and Liability Management – Risk Control Mar-09
Improve portfolio quality and
Technical Assistances operations performed
between May 2007 and March 2012
Country MFI 1st round Date 2nd round Date
Guatemala Genesis Em-presarial Asset and Liability Management Risk Control – Aug-09
Honduras
ODEF Asset and Liability Management Risk Control – Jan-08
Fundamicro Asset and Liability Management Risk Control – Feb-08
Mexico
MasKapital Asset and Liability Management Risk Control – Oct-10 Forjadores de
Negocios Asset and Liability Management Risk Control – Aug-08 enConfianza Asset and Liability Management Risk Control – Feb-10 Assessment to identi-fy the institution’s TA
needs Nov-10
Nicaragua
Prodesa Asset and Liability Management Risk Control – Nov-08
Strengthening of the institution’s credit technology and
sup-port in corporate governance
decision-making
Dec-10
Pro Mujer Asset and Liability Management Risk Control – Nov-07 Fundeser Asset and Liability Management Risk Control – Jun-07
Paraguay Paraguaya Fundación Asset and Liability Management Risk Control – Sep-07
Peru
Alternativa Asset and Liability Management Risk Control – May-07
Preparation of TA manuals for asset and liability manage-ment and risk control
Oct-07
Financiera
Confianza Asset and Liability Management Risk Control – Oct-07
Prisma Asset and Liability Management Risk Control – Mar-08
Arariwa Asset and Liability Management Risk Control – Dec and
Jan 09
ANNEX 2
Topics treated during the first rounds of the Technical Assistance:
Assets and Liabilities Management
INFORMATION ANALYZED BY THE CONSULTANT
Reports Review
Types of reports and Management Information for decision-making and monitoring of the
institution.
Issuance periods
Daily
Weekly
Monthly
Information requested from the MFI
Credit portfolio
Arrears
Arrears ranges
Ratings
Forecasts
Financing and deposits
Funders
Terms
Fixed and variable interest rates
Currencies
Depreciations
Payment plans
SUBJECTS TAUGHT BY THE CONSULTANT DURING THE VISIT
Market Risks
Risks and Matching of Interest Rates
Policies on active and passive interest rates
Establishment of rates
Monitoring and evolution (trends)
Exchange Risk
Currency positions
Match or mismatch
Measuring impact connected to variations of the value of the dollar
Possible hedging operations
Values at risk
Liquidity Risk
Asset/liability matching tables
Establishment of time ranges
Calculation of simple and cumulative liquidity gaps
Liquidity indexes
Cash and Cash Equivalents
Financing and Credit Lines
Terms
Currencies
Depreciations
Interest rates
Cash Management
Cash quantities and risks
Surplus cash placement yields
Dual-control cash management
Transfer of cash remittances
Security
Operational Risks
Definition of risks
Identification
Most frequent and common risks in MFI―s
Risks analysis and classification
ANNEX 3
Lessons Learned
Survey
This survey intends to contribute a description of lessons learned in technical assistance operations
deliv-ered by LOCFUND to microfinance institutions (MFI).
It is important for us to find out what has and what hasn―t worked, what should have been done
differ-ently, and what we should improve to be more effective in the future.
1. General Information about the entity:
Describe the technical assistance operations received from LOCFUND:
—————————————————————————————————————————
—————————————————————————————————————————
—————————————————————————————————————————
2. In the following table rate how well the following indicators have performed, as a result of the
tech-nical assistance operations provided by LOCFUND.
NR= Unanswered
1= Bad (deficiency factors)
2= Average
3= Good
Name of the entity
Years operating as an MFI years Type of entity NGO Foundation LLC Ltd Other Is the entity regulated by a competent authority in your country? Yes No Does it perform financial intermediation? Yes No
3. Answer the following questions:
1.
Did the technical assistance achieve the time, cost and goal targets?
2.
Which main lessons did the team learn?
3.
Describe those situations in the project that had successful outcomes.
4.
Describe those situations in the project that had negative outcomes.
5.
If you wish to include additional information that you consider important and that enriched
your experience, please write in the following space.
Indicators NR 1 2 3 4 Corresponds to the goals and targets of the proposal 1.
Contributes to the strengthening of capacities 2.
Promotes initiatives in the area of organizational management 3.
Facilitates improvements in organizational procedures 4.
Identifies and strengthens efficiency factors 5.
Identifies and strengthens effectiveness factors 6.
Identifies deficiencies within the MFI 7.
Proposes a solution to processes 8.
Proposes best operational practices 9.
Suggests concrete actions fostering change 10.
Benefits are identified that are directly perceived by clients 11.
Staff members were involved 12.
Concrete indications of success 13.
Improves decision-making 14.
Implementation difficulties 15.
Training methodology and materials 16.
Subsequent follow-up 17.
Fulfills the implementation of agreed activities 18.
Promotes learning and self-improvement 19.
Promotes positive changes in policies and standards 20.
Results are systematized and documented 21.
Promotes new ways of inclusion among work teams 22.
Proposes innovative solutions 23.
Proposes improved procedures 24.
Introduces the use of other resources 25.
Shares common experiences of the microfinance sector 26.
ANNEX 4
Microfinance Institutions that responded to the survey
1.
ACORDE
2.
BANCO DE AHORRO Y CRÉDITO ADEMI
3.
BANCO DE AHORRO Y CRÉDITO ADOPEM
4.
SOCIEDAD COOPERATIVA DE AHORRO Y CREDITO AMC DE R.L. DE C.V.
5.
ASOCIACIÓN ARARIWA
6.
CONTACTAR
7.
BANCO D-MIRÓ
8.
ECOFUTURO S.A. FFP
9.
EMPRENDER
10. FUBODE
11. FUNDACIÓN FACES
12. FIE GRAN PODER S.A.
13. FONDO DE DESARROLLO LOCAL
14. FUNDACIÓN MUNDO MUJER POPAYÁN
15. FUNDACIÓN ALTERNATIVAS PARA EL DESARROLLO
16. FUNDACIÓN GÉNESIS EMPRESARIAL
17. FUNDAMIC
18. IDEPRO DESARROLLO EMPRESARIAL
19. INSOTEC
20. KAPITAL MUJER SOFOM E.N.R. S.A. DE C.V. (MASKAPITAL)
21. ODEF FINANCIERA
ANNEX 5
Request for funding
1.
Background of the Institution
2.
Description of other technical assistances (if any) provided previously by TSF –
LOCFUND to this MFI.
3.
The institutional deficiencies that will be corrected through the proposed technical
assis-tance.
4.
Objectives of the Technical Assistance
5.
Action Plan
6.
Budget
7.
Proposed Consultant
8.
Estimated Date of Implementation
