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MCABAI TUSHUM FINANCIAL

FUND

Sustainability inRural Finance May 2006

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BAI TUSHUM – An Overview

Chartered in October 2000 Founders – ACDI/VOCA and CARITAS TA Funding: USAID and SDC Legal Status: Non-commercial Public Fund,

reregistered as MCA on February 13,2003,certified by National Bank

Three branches and 10 sub-offices

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Loan Methodology

Loans to farmers, entrepreneurs and legal entities Loan size: 250 to 36,000 dollars Loan term is 12 - 18 months Grace period is 6-11 months for agricultural loans. Market based interest rates

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Loan Methodology

Individual lending under collateral Rural and agricultural group lending ( max

$500), solidarity responsibility Lending group of clients under one

immovable property

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Challenges in rural lending

Influence of climate conditions Failure of crops, plague of cattle Unstable prices on production Non-liquid collateral Traditions

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Reducing risks in rural lending

• Flexible repayment graphic• Fast service• Well documented polices and procedures • Cooperation with rural authorities• Availability of additional income of clients• Diversification portfolio by agricultural

products

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Performance indicatorsas of on April 1,2006

Loan outstanding- USD 7,717,000 Active clients-4,014 Operational self efficiency-131% Financial self efficiency -126% Repayment rate – 99.27% PaR>30 - 0.84% Leverage ratio- 217% Portfolio growth 2005- 95%

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Growth of loan portfolio and number of clients

-500

1 0001 5002 0002 5003 0003 5004 0004 500

-1 0002 0003 0004 0005 0006 0007 0008 0009 000

Активные клиенты Портфель

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Number of disbursed loans

0

500

1000

1500

2000

2500

31.12.2001 31.12.2002 31.12.2003 31.12.2004 31.12.2005

agrigulturalloans

trade andservirces

mortgage

consumerloans

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Financing

EBRD IFC Blue Orchard Hivos-Triodos Frontiers Local commercial Bank ( hedging scheme)

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Transformation& commercialization

December 2005- Microcredit Company was registered ,LLC

Assests&debts transfers Equity investors January 2008- MCC will be transform to MFC

( deposits taking), LLC will be transform to JSC

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Strategic Objectives

Microfinance Company, deposit taking MFI New products and services Equity investment Geographic outreach