Integrating Microfinance into the Global Financial System 3rd Annual Global Microfinance Investment Congress New York – May 25th, 2010 Integrating Microfinance.

Présentation au sujet: "Integrating Microfinance into the Global Financial System 3rd Annual Global Microfinance Investment Congress New York – May 25th, 2010 Integrating Microfinance."— Transcription de la présentation:

1 Integrating Microfinance into the Global Financial System 3rd Annual Global Microfinance Investment Congress New York – May 25th, 2010 Integrating Microfinance into the Global Financial System

2 Slide 2 MIVs | Volumes Year MIV (Nb) TA (USD bln) 2004451.10 2005631.50 2006753.05 2007915.43 20081036.6 2009E1197.9 Source: CGAP MIV Survey 2009, Estimates: Symbiotics USD constant

3 Slide 3 MIVs | Lower Performance Year2004200520062007200820092010/03 SMX USD2,61%4,30%5,09%6,33%5,95%3,08%0.95% SMX EUR4,06%3,10%2,63%4,15%5,55%2,06%0.98% SMX CHF1,48%1,68%1,89%3,61%4,63%1,06%0.34% SMX USDSMX USD Underlying Funds

4 Slide 4 MIVs | Lending Rates Average lending rates, in USD, investment grade MFIs

5 Slide 5 MIVs | Growing Critics toward Microfinance Main critics Consumer lending Over-indebtedness High interest rates High profits The Ugly Side of Microlending How big Mexican banks profit as many poor borrowers get trapped in a maze of debt. Easy Money Microcredit is booming in India, but the loans don't often pull people out of poverty. Banquier des pauvres « Les IMF sont-elles vraiment fidèles à leur vocation sociale, ou ont-elles trouvé parmi les démunis, de plus en plus nombreux, un marché à conquérir ?" Yunus Blasts Compartamos The Nobel Prize-winning microfinance pioneer refuses to mention the words "Compartamos" and "microfinance" in the same breath. Développement : quand la « bulle » de la microfinance éclatera La microfinance n'est ni « bonne » ni « mauvaise » : tout dépend de la manière dont elle est mise en oeuvre.

6 Slide 6 MIVs | Summary Over liquidity Differentiation in fund strategies First defaults and loan rescheduling, provisions were booked Impact of FX fluctuations Higher competition amongst lenders, lower portfolio yields Lower absolute and risk adjusted returns to investors Growing critics and questions toward microfinance Lower demand for funding Address critics (social performance measurement) Local currency

7 Slide 7 MFIs | Deterioration of Fundamentals

8 Slide 8 MFIs | Deterioration of Fundamentals

9 Slide 9 MFIs | Summary Overheating markets (Nicaragua, Bosnia, Cambodia, Morocco,..) Deteriorating fundamentals First defaults and loan rescheduling Slower growths Lower cost of funding FX exposure, needs for local currency funding

10 Slide 10 Q & A Thank you !