Microfinance Focus, Oct 26, 2010: World Bank’s International Finance Corporation (IFC) is helping improve the legal and institutional framework for microfinance in Europe and Central Asia to increase access to finance for microentrepreneurs and general population.
 
To support this effort, IFC in cooperation with Mongolia Financial Regulatory Commission and Microfinance Development Fund organized a study tour in Mongolia on microfinance-related policy for 14 policymakers from Azerbaijan, Bosnia and Herzegovina, Kazakhstan, Kyrgyz Republic, and Tajikistan. A delegation from Kazakhstan included representatives from the President Administration, Finance and Budget Committee of Parliament of Kazakhstan, and Association of Microfinance Institutions.
 
The tour, from October 12 through October 14, acquainted policymakers with international best practices and enabled them to further improve the legal framework in their respective countries. It was supported by the IFC Azerbaijan & Central Asia Microfinance Transformation Support Project.
 
During the tour, participants studied a successful transformation of a microfinance institution into a bank, best practices and innovations in the microfinance sector, as well as met with senior government officials of Mongolia. They also were the first to get results of a report, Comparative Analysis of Microfinance Policy Frameworks and Legislation of Selected Countries, initiated by IFC.
 
The report analyzed regulatory frameworks of the selected countries and to what extent the regulatory framework in Azerbaijan and Central Asia is conducive to transformation of microfinance institutions into microfinance banks. The report complements the study tour and supports the ongoing dialogue and evolution of the legislative frameworks in Central Asia and Azerbaijan.
 
“Mongolia can serve as a successful show case to demonstrate to the government and central banks’ officials how their countries having similar backgrounds can benefit from a well-developed microfinance sector and how local microfinance institutions can diversify and expand financial services to their customers through innovations and successful transformation,” said Cholpon Kokumova, Project Manager of the IFC Azerbaijan & Central Asia Microfinance Transformation Support Project.