2012 Eastern Europe and Central Asia Regional Snapshot

This presentation provides a snapshot of microfinance in Eastern Europe and Central Asia (ECA) during 2012. It sets ECA microfinance in a global context, and discusses growth and profitability trends among ECA MFIs.The presentation focuses on the social performance management of ECA MFIs. It presents individual snapshots of MFIs in Bosnia & Herzegovina, Kyrgyz Republic, and Azerbaijan. Findings include:

• Positive trends in portfolio quality and profitability along with growth in borrowers and loan portfolio in ECA signal a regional recovery from the microfinance crisis;
• ECA improved in social performance reporting by representing 21% of global reporting to MIX;
• MFIs in the ECA region increased outreach in rural areas, with group lending remaining a priority methodology in Central Asia;
• ECA cross-border funding has decreased by an average 5% each year since 2009, but equity is growing for both non-bank financial institutions and NGOs;
• Azerbaijani microfinance sector continues to grow and the Bosnian market seems to be recovering from the crisis;
• Ongoing regulatory changes in Kyrgyzstan are expected to bring changes to the sectors performance.