Presentation FAIR Credit House Milano June 2009

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


           EMN Conference
        “New Product” Workshop

                Milan,
            4th June 2009
           OBJECTIVES

 To briefly present current products /
  services;
 To present new services in microfinance
  programs;
 To discuss how such programs could grow
  in the future;
                    Introduction

 Why did the organization decided to start new services?
 Why did we select these specific services? On which
    ground?
   How did we introduced such services?
   How have our clients been involved in the start of such
    services?
   What are the main results so far?
   What has been the impact of such services on our
    microcredit activities?
   What are the perspectives?
              Introduction



   Brief history of the presenting
    organization;
          Our organisation

 FAIR CREDIT HOUSE IFN S.A. –
  microfinance organisation registered with
  the National Bank of Romania in June
  2008
 Private capital
 Executive team – experience with
  microfinance programmes
               Services
 Microfinance for MSMEs

 Consultancy and assistance

 Training

 Accounting services
         Microfinance activity
 Target group: Loans were disbursed
  starting with August 2008, mainly for rural
  areas, to SMEs and private farmers
 Credit specifications: max.5-year loans for
  investment, collateral requested for loans
  bigger than 10,000 Euros, flexible
  reimbursement schedule
        Microfinance activity
 Average Loans amount: about 14,000
  Euros
 Average loans term: about 26 months
 No defaults and profit registered end year
  2008
             The ROI Project
 Initiative of a social solidarity co-operative
  in Bologna – La Piccola Carovana with the
  Bologna Municipality
 Pilot Project for an Entrepreneurial
  Operative Return
 Target group: people of Rroma origin and
  Romanian citizenship living in the Bologna
  area
               FAIR’s role
 Legal structure to grant and monitor micro-
 loans in Romania

 Provider of services
            Type of services
 Microloans granted to families who want to
  return to Romania and start small
  business of their own (3-year loans, up to
  6,000 Euros)
 Consultancy and assistance for
  registration of small business
 Training
 Monitoring both credit return and small
  business development
            Why? What’s new?
 Project consistent with our overall
  objectives

 Special interest in activities carried out by
  co-operatives

 What’s new: the social dimension of the
  project
          Selection of services
         Introduction to clients
 Types of services - agreed with the Italian
  partner
 Selection of potential clients – made by
  the Italian partner
 Once in Romania – a FAIR officer in
  charge with the client relationship
             Results so far
 Two micro-credit granted in May
        - 4,440 Euros – small vegetable
  farm equipment
          - 3,330 Euros – cattle, horse and
  cartridge
 Perspectives for 2009: 5 families to be
  assisted
 Impact on our current activities
 Project requiring extra work as compared
 to mere credit granting and monitoring

 Rewarding in terms of social and
 economic re-insertion of rroma families in
 rural communities
             Perspectives
 Increase of the number of beneficiaries

 Good practice model followed by
 dissemination