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Contact:
Primus Hutchinson
Tuesday, May 04, 2004 - Representatives of donor agencies, the private
sector, including banking, and government are meeting at the Cara Suite Hotel
for the final day of a 2-day Round Table discussion on microfinance in the
Caribbean.
The discussion, which started on Monday, May 3 is sponsored by Caribbean
Microfinance Limited, Development Finance limited, Microfin St. Lucia and the
European Development Fund. It is the third annual Microfinance Roundtable, which
this year is being held under the theme, “Facing Challenges and Creating
Solutions.”
The principal objective of Caribbean Microfinance is to make profitable use of
financial and human capital to create and expand viable, private business
enterprises in Caribbean countries, by supporting entrepreneurship and sound
business practices at all levels.
Microfin Caribbean Holdings Limited is the holding company for microfinance
subsidiaries in Grenada, St. Lucia and Trinidad and Tobago. Each of the
subsidiaries operates independently with its own board and management, and is
supported by specialist services from Development Finance Limited (DFL)
Caribbean.
Head of the of Caribbean/Pacific Division of the European Investment Bank, David
Crush says the delivering mechanism differs considerably with microfinance
institutions in comparison to large banking institutions. He added however, that
there were some key indicators for success of micro finance institutions, as
well as some key dangers to look out for.
“Banks are looking at what is going on in the microfinance sector, seeing some
success stories and looking to see whether there isn’t a market there, a very
large market, which they could develop, new areas, broad markets and they are
starting to look at ways in which they can enter into this very interesting and
very useful sector”. Mr. Crush said.
According to Mr. Crush, a good management information system is among some of
the essential factors in realising success in micro financing. He indicated that
data collection, the use of the internet, public access for logging system and a
good portfolio management system were among some of the initiatives that are
absolutely essential to be able to monitor risk correctly.
It is hoped that the sharing and exchanging of knowledge and experience will
enhance the provision of microfinance in the Caribbean, thereby building and
strengthening critical linkages to better serve low-income and micro
entrepreneurs, and achieve governmental and regional developmental goals.
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