OREANDA-NEWS. December 04, 2012. International Finance Corporation (IFC), a member of the World Bank Group, is launching a program to train microfinance practitioners in the Kyrgyz Republic and Tajikistan how best to mobilize savings and maintain risk management, thereby supporting economic growth in both countries.

IFC trains microfinance practitioners in strategies to mobilize savings, which can be as basic as persuading consumers to take their savings from under the bed and put the money into a microfinance institution or bank. The training also covers savings operations management, and risk management in microfinance institutions. In cooperation with local associations of microfinance institutions, IFC will also help the microfinance providers expand their product outreach to consumers.

“Microfinance institutions in Central Asia have become mature lending providers for the last five years,” said Nargiza Joldoshova, Executive Director of the Association of Microfinance Institutions of the Kyrgyz Republic. “To maintain their leading positions in the market they are looking for new ways to expand product offering and outreach, especially bringing new deposit and retail products.”

This initiative is part of the IFC Central Asia Microfinance Transformation Support Project, and is supported by the IFC Global Risk Management Program. With support from the government of Japan, the IFC Global Risk Management Program helps microfinance organizations globally assess and mitigate risks by implementing pragmatic tools and applications to improve risk management in microfinance institutions.

“IFC is committed to strengthening microfinance institutions in Central Asia, as they are the engine of economic growth and job creation,” said Makanda Kioko, IFC Program Manager. “This program will work with microfinance institutions to improve risk management, expand their products and service offerings, and reach more entrepreneurs.”

In cooperation with the Ministry of Foreign Affairs of the Netherlands and the Development Bank of Austria, IFC’s Central Asia Microfinance Transformation Support Project is assisting microfinance institutions in Central Asia to transform into banks or deposit-taking organizations, enabling them to become more sustainable and increase access to finance for vulnerable and poor populations.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly USD19 billion. For more information, visit www.ifc.org