MORIS RASIK

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MORIS RASIK
RURAL MICROFINANCE
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Objectives

• Give poor rural women access to credit and
  savings services, to increase the income, assets
  and welfare of their households
• Build a sustainable Timorese institution to
  deliver these services honestly and efficiently

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Moris Rasik Staff with Client in Maliana
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Promete in Center meeting Becora
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Weekly Center Meeting
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Disbursement
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Collection in Maliana(Raifoun)
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OUTREACH
Eleven DISTRICTS 16 branches. 11,572 Savers
10,189 loan clients Portfolio Outstanding 2.25
million Savings Deposits
780,800 Bad loans 1.2 (December, 2007 data)
-0-
6,289
3,843
4,957
736
1,316
1,012
4,091
1,286
8,730
5,700
-0-
1,012
-0-
-0-
9,883
4,135
8,730
1,687
749
-0-
5,216
7,180
11,193
-0-
801
Oecusse
1,000
6,118
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Microfinance in Timor Leste

• Five survivors
• 24,000 borrowers 30 of poverty households
• 4 million outstanding
• After 2006 crisis, high arrears

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Microfinance Misconceptions

• kios kios 100 loans what impact can that
  have on poverty?
• Microcredit is a magic bullet that cures
  poverty
• If you want to help the poor, why charge
  interest?

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Fixed stalls Aileu
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Casilda in Fatubosa
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Impact Takes Time

• Smoothens food supply
• Builds assets animals, pots, house repair
• Builds savings, cash for school, health care,
  emergencies
• Investment in productive assets

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Women invest in household
Maria buys a billiard table Husband runs it

• Maria has a kiosk
• she adds stock
• enlarges it
• adds beer

Maria buys a bike son runs an ojek business
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Microcredit is not enough

• Agricultural productivity/ cash crops
• Markets/ border access
• Roads, ports, transport
• Health education, access
• Business and skills training

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Becoming Sustainable

• Interest rates
• Banks 11-15
• MFIs 18-30
• Costs are high Tiny loans, delivered to the
  village, collected weekly
• Women care about access, more than interest rates
  
• Moneylenders - 120 to 300

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Becoming Sustainable

• Long-term access to microfinance for poverty
  reduction
• Depends on
• Viable MFIs, covering operating costs, so that
  they can provide long term services
• Two MFIs in Timor Leste are sustainable

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What is Needed

• Critical numbers of clients
• Substantial Portfolio
• Access to banks for on-lending funds
• A few effective viable MFIs are better for the
  poor than many small donor-dependent MFIs