Introduction to ROI Project Introduction to ROI Project by FAIR CREDIT HOUSE IFN S.A. Romaniaby FAIR CREDIT HOUSE IFN S.A. Romania

EMN ConferenceEMN Conference““New Product” WorkshopNew Product” Workshop

Milan,Milan,44thth June 2009 June 2009

OBJECTIVESOBJECTIVES

To briefly present current products / To briefly present current products / services;services;

To present new services in microfinance To present new services in microfinance programs; programs;

To discuss how such programs could grow To discuss how such programs could grow in the future;in the future;

IntroductionIntroduction

Why did the organization decided to start new services?Why did the organization decided to start new services? Why did we select these specific services? On which Why did we select these specific services? On which

ground?ground? How did we introduced such services?How did we introduced such services? How have our clients been involved in the start of such How have our clients been involved in the start of such

services?services? What are the main results so far?What are the main results so far? What has been the impact of such services on our What has been the impact of such services on our

microcredit activities?microcredit activities? What are the perspectives?What are the perspectives?

IntroductionIntroduction

Brief history of the presenting Brief history of the presenting organization; organization;

Our organisationOur organisation

FAIR CREDIT HOUSE IFN S.A. – FAIR CREDIT HOUSE IFN S.A. – microfinance organisation registered with microfinance organisation registered with the National Bank of Romania in June the National Bank of Romania in June 20082008

Private capitalPrivate capital Executive team – Executive team – experience with experience with

microfinance programmesmicrofinance programmes

ServicesServices

Microfinance for MSMEsMicrofinance for MSMEs

Consultancy and assistanceConsultancy and assistance

Training Training

Accounting servicesAccounting services

Microfinance activityMicrofinance activity

Target group: Loans were disbursed Target group: Loans were disbursed starting with August 2008, mainly for rural starting with August 2008, mainly for rural areas, to SMEs and private farmers areas, to SMEs and private farmers

Credit specifications: max.5-year loans for Credit specifications: max.5-year loans for investment, collateral requested for loans investment, collateral requested for loans bigger than 10,000 Euros, flexible bigger than 10,000 Euros, flexible reimbursement schedulereimbursement schedule

Microfinance activityMicrofinance activity

Average Loans amount: about 14,000 Average Loans amount: about 14,000 EurosEuros

Average loans term: about 26 monthsAverage loans term: about 26 months No defaults and profit registered end year No defaults and profit registered end year

2008 2008

The ROI ProjectThe ROI Project

Initiative of a social solidarity co-operative Initiative of a social solidarity co-operative in Bologna – La Piccola Carovana with the in Bologna – La Piccola Carovana with the Bologna MunicipalityBologna Municipality

Pilot Project for an Entrepreneurial Pilot Project for an Entrepreneurial Operative ReturnOperative Return

Target group: people of Rroma origin and Target group: people of Rroma origin and Romanian citizenship living in the Bologna Romanian citizenship living in the Bologna areaarea

FAIR’s roleFAIR’s role

Legal structure to grant and monitor micro-Legal structure to grant and monitor micro-loans in Romanialoans in Romania

Provider of servicesProvider of services

Type of servicesType of services

Microloans granted to families who want to Microloans granted to families who want to return to Romania and start small return to Romania and start small business of their own (3-year loans, up to business of their own (3-year loans, up to 6,000 Euros)6,000 Euros)

Consultancy and assistance for Consultancy and assistance for registration of small businessregistration of small business

TrainingTraining Monitoring both credit return and small Monitoring both credit return and small

business developmentbusiness development

Why? What’s new?Why? What’s new?

Project consistent with our overall Project consistent with our overall objectivesobjectives

Special interest in activities carried out by Special interest in activities carried out by co-operativesco-operatives

What’s new: the social dimension of the What’s new: the social dimension of the projectproject

Selection of servicesSelection of servicesIntroduction to clientsIntroduction to clients

Types of services - agreed with the Italian Types of services - agreed with the Italian partnerpartner

Selection of potential clients – made by Selection of potential clients – made by the Italian partnerthe Italian partner

Once in Romania – a FAIR officer in Once in Romania – a FAIR officer in charge with the client relationshipcharge with the client relationship

Results so farResults so far

Two micro-credit granted in MayTwo micro-credit granted in May - 4,440 Euros – small vegetable - 4,440 Euros – small vegetable

farm equipmentfarm equipment - 3,330 Euros – cattle, horse - 3,330 Euros – cattle, horse

and cartridgeand cartridge Perspectives for 2009: 5 families to be Perspectives for 2009: 5 families to be

assisted assisted

Impact on our current activitiesImpact on our current activities

Project requiring extra work as compared Project requiring extra work as compared to mere credit granting and monitoringto mere credit granting and monitoring

Rewarding in terms of social and Rewarding in terms of social and economic re-insertion of rroma families in economic re-insertion of rroma families in rural communitiesrural communities

PerspectivesPerspectives

Increase of the number of beneficiariesIncrease of the number of beneficiaries

Good practice model followed by Good practice model followed by disseminationdissemination