Why performance indicators for MFIs matters

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Whyperformance indicators for MFIs matters?
2nd EMN Conference Barcelona, October 2005
Jean-François AGUINAGA Enterprise
Directorate-General SME finance policy Unit
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Raising funds for a MFI

• Private investors with different policies
  commercial, quasi-commercial, capacity-builders
• 2. Public support at European level
• From MAP to CIP
• European Social Fund
• ERDF the forthcoming JEREMIE

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More on Jeremie

• Under discussion between the Commission and the
  EIB Group
• Objective improve access to finance for SMEs
  and microcredit
• Possibility provided to Regions to give a mandate
  to the EIB Group, including EIF
• Technical assistance
• Setting up the right funding agreement based on
  best practices how to use the ERDF money
• Additional funding from EIB each from ERDF
  could give rise to between 2 and 10 from EIB G.
• Evaluation, due diligence and accreditation by
  EIB Group
• The MFI should be able to show its performance

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Basic set of indicators

• Monitoring the evolution of the microlending
  activity
• Assessing the quality of the portfolio
• Improving the profitability over time

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Activity indicators
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Quality of portfolio
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Assessing the profitability
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Adopting common definitions

• Common standards and definitions a task for EMN
• Publication (yearly?) of performance indicators
  of EMN members
• Objective facilitating the dialogue with public
  institutions
• and access to financial support