Rating of Microfinance Organisations

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Rating ofMicrofinanceOrganisations

• Shalkar Zhussupov
• Kazakhstan Loan Fund
• MFC, 8th Annual Conference of Microfinance
  Institutions
• May 26-28, 2005
• Bucharest, Romania.

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REPUBLIC OF ?AZAKHSTAN
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• The Kazakhstan Loan Fund Corporate Fund is
  a non-profit institute that provides lending
  operations under a license from the Agency of
  Finance Revision of the Republic of Kazakhstan
  (AFR). KLF was founded in 1997.
• The main activity providing financial services
  to low-income households, who has no access to
  classical bank loans.
• Today HQ of Kazakhstan Loan Fund is in
  Almaty. The Fund has 5 branches and net of
  sub-offices throughout of Kazakhstan South

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Donors, Founder, Parthners

• The main donor USAID
• KLF Founder ACDI/VOCA corporation
• Financial supporters
• - Hivos-Triodos Fund (Netherlands)
• - Dexia Microcredit Fund (Luxemburg)
• - Microcrofinance Fund (Luxemburg)
• - Frontiers (Kyrgyzstan)
• - BankCentreCredit (Kazakhstan).

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KEY PERFORMANCE INDICATORS
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LOAN PRODUCTS

• - PEER BUSINESS LOANS (PBL)
• - INDIVIDUAL LOANS (IL)
• - PEER AGRICULTURAL LOANS (PAL)
• - PEER CONSUMER LOANS (PCL)

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Increasing possibilty to conduct an international
rating

• Rating conducting promotes to increase quality
  and efficiency of MFI activity
• Assurance of donors and private investors in
  getting confidencial and safety information
• Competetive environment pushes MFIs to
  commercialization, that allows investors to
  estimate and distinguish middle from leading
  MFIs
• Donors interest in establishing standard
  performance to submit transperent indicators
  and directives to define further investments to
  MFI
• Standard performance is useful for further
  progress of independent and trasparent MFIs,
  aiming to develope and effective activity.

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Kazakhstan Loan Fund rating conducting by
rating agency M-CRIL (India)

• 2002 ?. The first MFI in the Central Asia,
• passed the process of international
  
• rating
• 2003 ?. Rating updating

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Methodology of M-CRIL rating conducting

• Governance and strategy the assessment depends
  on quality and accordance of all components, its
  role and general organisational strategy
• Management system is estimated by human resources
  quality, accoutning system and management
  information criterias. Personal productivity
  performance, and also personal professional
  skills .
• Financial statements are esmimated to develop
  financial reports, based on accepted
  international normatives. The indicators as
  payment ability, assets quality, liquidity,
  assets, liabilities and profitability management
  are estimated.

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Results of 2 ratings
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KLF rating results, conducted by M-cril
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Key Program Strengths
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Program weaknesses, noted by MCril
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Key risk factors