11/15/2014
The Kompanion Financial Group, a microfinance institution (MFI) in Kyrgyzstan, was selected today from three finalists to receive the Fifth European Microfinance Award, which includes a cash prize of EUR 100,000 (USD 125,000). Pictured at the right are Her Royal Highness the Grand Duchess of Luxembourg and Olesya Paukova the development director of Kompanion upon her receipt of the award on behalf of the MFI.
The award, which for 2015 was themed “Microfinance and the Environment,” recognizes Kompanion’s Pasture Land Management Training Initiative, which involves the disbursement of “Credit for Conservation” loans to livestock herders. The herders also receive training on land management, which is important because of recent over-grazing that has damaged the ability of nearby land to sustain grasses.
According to the European Microfinance Platform (e-MFP), a 130-member NGO in Luxembourg, “Since the launch of the program in 2011, more than 24,000 farmers have participated in the trainings, increasing their incomes by 30 percent and decreasing their costs by around 15 percent.”
The award was organized by Inclusive Finance Network Luxembourg, a platform of 19 government and private actors, and e-MFP. It was funded by the government of Luxembourg and the EU’s European Investment Bank.
This article is one of a series covering the proceedings of European Microfinance Week, which is taking place in Luxembourg from November 12 to November 14. MicroCapital is reporting on the sessions onsite throughout this time under a sponsorship from e-MFP.
About Kompanion
Kompanion Financial Group Microfinance Closed Joint Stock Company was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, a nonprofit economic development and aid organization based in the US. Kompanion describes itself as a “community development financial institution that seeks to combine conservation and development goals.” As of June 30, 2014, Kompanion reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 102 million, a gross loan portfolio of USD 81 million, return on assets of 1.35 percent, return on equity of 9.14 percent and 113,000 active borrowers. The institution does not accept deposits.
Additional Resources
European Microfinance Platform (e-MFP) to Host European Microfinance Week, November 12-14, 2014, With On-site Reporting by MicroCapital
More coverage of European Microfinance Week and the Action Groups of the European Microfinance Platform (e-MFP)
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month?
