Tashkent, Uzbekistan (UzDaily.com) -- The USAID-funded CAMFA II Project (Central Asia Microfinance Alliance) conducted a close-out event in Bishkek, Kyrgyz Republic, on 29 October. Representatives of the following institutions participated in the event: microfinance associations (MFAs) and microfinance institutions (MFIs) served by CAMFA II, the National Bank of the Kyrgyz Republic, USAID, partner organizations, and professional associations that directly or indirectly promote the development of the microfinance sector in Kyrgyzstan and Central Asia.

The CAMFA II Project was a USAID-funded project implemented by ACDI/VOCA with its headquarters in Bishkek. The objective of this three-year project (2006 - 2009) was to increase access to a broad range of financial services and deepen the outreach to micro and small businesses, especially in rural and isolated regions throughout Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The main areas for improvement addressed under this project included the enabling environment and promotion of innovative lending methodologies suitable for rural customers.

Participants learnt about the achievements of CAMFA II three components:

• Supported development of the four Central Asian Microfinance Associations (MFAs). CAMFA provided MFAs with financial support in the amount of US$681,997. The number of MFA members during the partnership grew from 77 to 217. This year MFAs earned US $277,771 as their self generated income, exceeding the target by 50%. Three Regional Conferences organized as a part of CAMFA II brought together about 900 practitioners to discuss microfinance trends, innovations, and results of the work. All four associations have been actively engaged in advocacy activities promoting their member needs.
• Supported Frontiers and helped with management - Frontiers is a supplier of lending capital to MFIs. During the three years of CAMFA II Frontiers disbursed US$24 million of loans to MFIs and increased its loan portfolio from US$3.8 million to nearly US$10 million. This was made possible by the infusion of US$3.675 million of equity capital from USAID via the CAMFA II Project. Frontiers leveraged this equity capital to obtain additional US$8.7 million of borrowed capital from international lenders which Frontiers has lent to its MFI customers.
• Expanded Rural Financial Services in Kyrgyzstan - Assisted the microfinance sector to better serve rural areas by carrying out 33 trainings and providing small grants to 12 Kyrgyz MFIs totaling US$464,584. This enabled the 12 selected MFIs to increase their ag loan portfolios by 187% (to US$12.5 million) and the number of ag loans by 169% (to 24,670 rural borrowers) during 21 months. CAMFA II organized the Ag Finance Working Group, which advocated mobile banking, leasing and other innovative approaches of rural finance. This support resulted in improving related legislation.