MIKROFOND EAD

1
MIKROFOND EAD

• THE FIRST MICROFINANCE NGO IN BULGARIA
  TRANSFORMED INTO COMMERCIAL LENDING COMPANY WITH
  CAPACITY TO REACH 5000 CLIENTS

2
ACCESS
Mikrofond provides access to finance for 2
000 microentrepreneurs.
3
EMPOWERMENT
Microfinance encourages people to improve their
well being through income generating activities
4
SUCCESS
Improvement of local economy builds on the
success of the micro businesses.
5
History

• Microfond EAD originates from the Microcredit
  Program of the Resource Center Foundation, which
  has started in 1999 with the support of the Soros
  Economic Development Fund and OSI. The Sole Owner
  of Mikrofond EAD is Mikrofond Sofia Foundation.
• Mikrofond EAD provides financing and support to
  micro- and small-sized enterprises in regions
  with high level of unemployment and low economic
  growth.
• Three year experience of consulting large
  Bulgarian bank in microfinance.
• Over 1500 loans for one year.

6
MISSION

• To support the initiative people in Bulgaria,
  providing alternative financial and other
  services. We believe that the small business is
  the engine of the economic development and has
  the greatest growth potential.
• Our clients are micro- and small-sized companies
  that meet difficulties in financing their
  business projects by the existing banks and other
  financial

7
Outreach

• Seventeen offices covering
• 215 municipalities
• more than 75 of the territory
• more than 90 of the population

8
FUNDING

• 3 mln USD credit line from Raiffeisenbank
  (Bulgaria) EAD
• 0.3 mln USD loan subsidized loan from Soros
  Economic Development Fund
• 0.77 mln USD in registered Equity

9
Results

• Outstanding portfolio 5,5 mln BGN (2.75 mln
  EUR) 1 100 clients
• Portfolio at risk gt 30 days 2.7
• Repayment rate 98.8
• Business structure
• Wholesale 9
• Retail 26
• Production 15
• Field Farming 9
• Stock-breeding 8
• Services 22
• Others 11
• Over 350 start-up businesses funded
• 40 of clients are women

10
Transparency

• Implemented Quality Management System of
  Mikrofond EAD, certified in compliance with ISO
  90012000
• Appointed financial external auditor ErnstYoung
• Member of Microfinance Center Poland

11
FORECASTS

• Outstanding portfolio end 2005 10 000 000 BGN
• Number of microloans outstanding aprox. 2 432
• Expected market share (200 000 total market)
  1,5
• 2005 operational costs 850 000 BGN
• 2005 financial costs 450 000 BGN
• 2005 total income 1 400 000 BGN
• Needed funding
• Equity up to - 1 000 000 EUR
• Loan up to 3 000 000 EUR