Agenda

Day Two | Thursday 7th October 2010

8.00 Registration and Coffee

9.05 Chairperson’s Welcome & Opening Remarks

Joan Trant
Executive Director
International Association of Microfinance Investors
(IAMFI)

9.15 Preparing for Bumps in the Road – Best Practices and Tools for Orderly MFI Debt Workouts

Keynote Presentation

Joan Trant
Executive Director
International Association of Microfinance Investors

Private sector funding is outpacing philanthropic and public sector sources in microfinance. This increase in commercial lending to MFIs creates higher expectations for orderly debt repayment. Within this context, the worldwide recession and growth constraints have placed pressure on several MFIs’ ability to repay their loans. In late 2009, the International Association of Microfinance Investors (IAMFI) convened a Working Group of industry leaders to research and address the rise in MFI defaults and inter-creditor issues. The Working Group has developed market-based, productive processes for the emerging challenge of MFI debt default. This session will present research findings, tools and best practices to help lenders and MFIs resolve troubled loans.

10.00 Investment Panel Discussion: How to Provide Adequate Funding in Today’s Challenging Market

Moderator:

Matthias Adler
Principal Sector Economist
KfW Entwicklungsbank

Erna Karrer-Rueedi
Vice President Microfinance
Credit-Suisse

Henry Gonzales
Vice President
Morgan Stanley Investment Management

Mark Young
Managing Director, Financial Institutions, Emerging
Markets, Fitch Ratings

Mark Allegretti
Managing Director
Nova Capital Partners, LLC

    • Challenges facing microfinance as a result of the global financial crisis
      - examining how best to live through this particular phase
      - which countries have been specifi cally hit?
      - how are investors riding out the current economic challenges?
    • Th e relevance of sourcing capital through commercial channels
    • Th e need for complementary funding
    • What do investors expect from their investments in the microfinance sector?
    • How can funding be enhanced?
    • Keeping on top of MFIs who are having difficulties with their loan portfolio
      - maintaining portfolio quality
    • Overcoming the adverse eff ects of multiple lending
      - what are the solutions to reckless and unsustainable borrowings?
      - how to limit burdensome indebtedness and increasing delinquency
    • Incorporating measures to preventing debt loading
    • What strategies are financial institutions adopting to certify that their borrowers survive and repay their loans at a later date?
    • Evaluating the state of current loans
      - determining the best time for investors to start loaning again

11.00 Morning Refreshments

11.30 MIV Roundtable Disucssion: An In-Depth Look at the Growth and Performance of MIVs

Moderator:

Matthias Adler
Principal Sector Economist
KfW Entwicklungsbank

Edvardas Bumsteinas
Investment Officer
The European Investment Bank

Vincent Oswald
Investor Relations
Blue Orchard Finance

Mrs Laëtitia Hamon
Business Development Officer
LuxFlag

    • Identifying today’s industry trends, social standards and governance issues in MIV investments
    • Increasing transparency for investors
      - uncovering which MIVs are feasible for small investors to consider
      - distinguishing return and social-oriented MIVs through labelling activity
    • Supporting smaller institutions in order to make them investment ready
      - increasing their capacity to efficiently channel capital to micro-entrepreneurs
    • A review on the performance of MIVs that are currently investing in tier 2 and 3 MFIs
    • Improving funding structure of MIVs through equity and mezzanine financing
      - valuations of equity and mezzanine financing in today’s market
      - allowing financial institutions more of a buffer by providing additional mezzanine and equity
      - to what extent are mezzanine financing and equity viable outcomes for the financial sector crisis?
    • Exploring today’s international investment activities of MIVs
      - what future initiatives can MIVs expect to take?

12.30 Networking Lunch

1.40 Multinational Panel Debate: SME Financing vs. Microfinance – Which Are Sustainable Approaches?

Moderator:

Edvardas Bumsteinas
Investment Officer
Th e European Investment Bank

Deji Fisho
Executive Director Strategy and Support
Fortis Microfi nance Bank Ltd.

David Pallela
Founder
Carbon Manna Unlimited

Ayten Baghirova
Finance Manager
TBC Kredit

    • Assessing the latest industry trends in SME financing
    • What are the comparative advantages for SME financing?
      - what are the risks involved?
    • How to promote the growth of SMEs
      - providing access to finance
      - off ering loans with medium-term maturities
      - helping SMEs become more energy efficient by financing ‘green investments’
    • Providing direct equity for SMEs in transitional and developing countries
    • Offering refinancing for financial institutions tailored for SMEs in the future
    • How can SME finance align with microfinance?
      - evaluating the compatibility of microfinance instruments in SME financing
      - how can one approach best complement the other from a funder’s perspective?
      - illustrations of sustainability of “mixed’’ initiatives
    • Developing multiple novel and sustainable forms of microfinance
      - breaking the debt-dependency of the microfinance industry

2.55 Afternoon Refreshments

3.15 Paving the Path for a More Effective Finance Infrastructure – Including Learnings from India

Royston Braganza
CEO
Grameen Capital India

    • Identifying scenarios related to financial infrastructure for microfinance institutions
    • Increasing transparency for all the players
    • Reviewing the changes in pricing infrastructure and its ongoing impact on the industry
    • Is the infrastructure inadequate to sustain good governance under the present context?
    • What do fi nancial institutions expect from the government / regulators?

3.50 International Panel Discussion: What is in Store for Tomorrow’s Microfinance?

Moderator:

Royston Braganza
CEO
Grameen Capital India

Alejandro Soriano
Deputy Director
CAF

Emmanuel de Lutzel
Head of Microfinance / Responsable Microfinance
BNP Paribas

Deji Fisho
Executive Director Strategy and Support
Fortis Microfi nance Bank Ltd.

David Pallela
Founder
Carbon Manna Unlimited

    • What is in the future for microfinance?
    • Where can funds come from to meet the full demands of microfinance?
    • What are the financial risks?
      - how can these risks be better managed?
    • How suitable are today’s interest rates, given the health of the industry?
    • With the current spread of liquidity, can the industry grow again?
    • What is the effect of increasing competition amongst MFIs?
      - lower interest rates
      - higher pressure on efficiency
      - higher degree of transparency
      - risk of overindebtedness of clients
    • What expectations can MFIs have?
      - where can they go from here?
    • How do the differences in microfinance markets affect the investment decision?
      - investing in “mature” markets vs. “new” markets (risks, return and implications)
      - what interest rates say about the development of a microfinance market
      - development of the regulatory framework
    • Striking a balance between the demands of both social and commercial investments
      - ensuring that both needs are met whilst still servicing the consumer
    • Can commercial microfinance be considered the solution for meeting the needs of the financially poor?
      - results for the ‘SKS IPO’ experience
    • Lessons learned from the crisis
      - getting back to where businesses were pre-recession
      - continuing sustainable growth
    • What is going to happen in the next ten years?

5.20 Chairperson’s Closing Remarks

5.30 Conference Ends