Bienvenue

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Rural and Agricultural Lending REEF Finance
Palestine Rula Nesnas PARC
Tunis May 2008
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Title of the slide
Over view Basics Reef Finance Lending via
Cooperatives What makes REEF Finance
unique? Value Chain Approach Challenges Achieve
ments
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Market for Rural and Agricultural Lending in
Palestine
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• Basics Reef Finance
• Reasons for establishing Reef Finance
• Filling the gap in rural and agricultural
  finance
• 90 have no access to formal financial
  services (credit Saving)
• Improve the living conditions of Palestinian
  rural families
• Separation of financial services from PARC into a
  separate entity
• Lessons learned from previous projects
  implemented by PARC
• Agribusiness Saving Credit Collective
  Purchase
• Our Vision
• We seek to bring microfinance services to the
  Palestinian rural areas, with a view to foster
  their development.
• In the medium term we wish to become the first
  Palestinian rural bank.
• Governance Set up
• Initial capital of USD 100,000

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CustomersLending via Cooperative
Large loan to Cooperative
Guarantee
REEF
Cooperative
Marketing or sale
PARC
Insurance
Loan for collective purchase
Cooperative evaluated GREEN -Democratic
levels -Financial management
Client
Client
Client
Client
Lending via cooperative, the cooperative is able
to manage loans correctly Cooperative decide
which clients to lend to
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• What makes REEF finance services unique?
• Ownership
• Participation
• Variation of products
• Wholesale lending to cooperatives (more
  clients, minimize risk)
• In-kind lending (to respond to the real needs
  of the target group)
• Lending for agricultural inputs,
  infrastructure, animal feed, etc.
• Agricultural Machinery Leasing
• Green Lending
• Guarantees and Collaterals
• Cooperative membership
• Savings
• Three party agreements
• Repayments
• Seasonal
• Scheduled

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• Comprehensive Approach (Not Only Funding)
• Value Added Chain of Services
• Marketing
• marketing channels
• promotion
• contracting marketing companies
• Certifications
• Global gap
• Organic Certification
• Savings
• Within the cooperatives
• With the partner bank of Reef Finance
• Insurance (under development)
• Natural risks, political risks,
• health insurance,.

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• Challenges
• Limited movement
• (team distributed on village level)
• Religious and Social challenges
• (variation of products, in-kind lending)
• Availability of collaterals
• (savings, three party agreement)

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Thank you for your attention