FMO enhances access to Housing Microfinance
Monday 29 September 2008 11:53
FMO organizes a Housing Microfinance Conference on September 29, 30 and October 1st, to further support MFIs in exploring the housing microfinance market and developing housing products. This event includes a two day course for MFIs run by the Development Innovations Group.
The Hague, September 29, 2008
FMO (the Dutch development bank) organizes a Housing Microfinance Conference on September 29, 30 and October 1st in The Hague, to further support MFIs in exploring the housing microfinance market and developing housing products. This event includes a two day course for MFIs run by the Development Innovations Group. The course provides the required knowledge and practical tools to enter the housing microfinance market.
FMO aims to enhance access to microloans for housing. In developing countries, only the middle and upper income households have access to regular mortgage finance. Low-income households. a large majority of the population, are often being excluded from housing finance by the formal financial institutions. Housing microfinance is perceived as the way forward to improve access to housing finance for these groups. Despite the fact that the microfinance industry has already made great strides in the area of housing, reality shows that access to housing finance for lower income segments is still limited.
To change this situation, FMO provides long term local currency finance and capacity development funding to local banks and microfinance institutions (MFIs).
Housing Microfinance Conference will end with a signing ceremony of two capacity development contracts. The first is a EUR 43.000 facility for Stromme MF EA, a not-for profit wholesale financier, providing finance and technical assistance to its 37 partners across 5 countries in East Africa. This facility enables Stromme to undertake a market study on affordable housing solutions for the poor. The outcome of the study, performed by ShoreBank International, will lead to a business plan for the development of a wholesale microfinance housing product.
FMO also will also sign a contract with International Home Finance & Development LLC (‘IHFD’). IHFD is a US-based management company for global housing project development and global housing finance. FMO, through its program for Capacity Development, will provide IHFD with funds to support the feasibility study for IFHD’s first housing project, in the outskirts of Kabul, Afghanistan.
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is EUR 3.4 billion, FMO is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
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