Re: No subject given

Angus Barnes (mailto:Angus_Barnes@AUSAID.GOV.AU)
Thu, 7 Dec 1995 16:31:04 EST

Message-ID:  <9511078183.AA818382664@mail2.ausaid.gov.au>
Date:         Thu, 7 Dec 1995 16:31:04 EST
From: Angus Barnes <mailto:Angus_Barnes@AUSAID.GOV.AU>
Subject:      Re: No subject given
To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>

     This is an brief (unofficial) response on AusAID's (the
     Australian Agency for International Development) activities

__________________________________________________________________

1. How long has your organization been lending to the poor? Revolving loan funds / credit schemes / micro-enterprise development have been components of rural development projects for many years. Specific micro-finance activities have been funded since the late 1980s.

2. In what locations does your organization currently make these loans? If possible, please indicate country, province, and town. Focussing mainly in Southeast Asia (Philippines in particular), but with some projects in Southern Africa (eg Zimbabwe/South Africa), South Asia (Bangladesh) and the Pacific.

3. In what locations do you anticipate expanding these programs in the next five years? Looking to do more work in Vietnam/Cambodia and Laos

4. What legal status is required in order for you to lend money to the poor? What other regulations must you follow? What government agencies enforce these regulations? AusAID provides 100% grant funding - usually through an Australian NGO which is building/strengthening a local organisation. Proposals must be consistent with AusAID corporate policy, fit in with relevant country strategy, be consistent with (and endorsed by) recipient government, and have positive assessment from the Post.

5. What are the sources of the capital for these loans? Please indicate the nature of the organization: government, private, development agency, individuals. AusAID is a government agency

6. In what form is this capital provided: grant or subsidies, equity investment, debt? 100% grants

9. What conditions are imposed by the sources of funds or governmental agencies? (E.g., a source or the Central Bank might require that certain cash reserves be maintained, etc.) Depends on each particular proposal and the program from which funding is available. Eg a Philippines NGO program requires that no more than 10% of funds are spent on administration.

10. How many loans were granted? 11. What was the total amount loaned? For financial years 1994/95 and 1995/96 over AUD$16 million has been expended on micro-enterprise development activities. Approximately AUD$6 million of this is on specific micro-finance activities. There were well over 70 separate activities in total.

12. What was the largest loan amount issued? The largest specific micro-finance project is the Zambuko Trust project in Zimbabwe (AUD$2 million over five years)

The specific questions on projects details obviously vary from project to project. A range of models are used, but many projects do adopt group-lending techniques (like Grameen).

Cheers

Angus Barnes Policy Development Section

mailto:angus_barnes@ausaid.gov.au