The training was organized by the joint Project of the United Nations Development Programme and the Central bank of the Republic of Uzbekistan “Support to microfinance sector development” and GTZ’s Regional Programme “Assisting the development of microfinance in Central Asia”.

Successful accomplishment of the mandate of the abovementioned Projects pertaining to the establishment of a sustainable network of MFIs as well as introduction of world’s best practice into microfinance activity in Uzbekistan, requires application of effective risk management and financial indicator analysis practices into the activity of MFIs, which are fundamental components of sound operations and growth. The development of microfinance, and MFIs in particular, demands that financial organizations work to develop quality and sustainable practices, which can guarantee permanent services. The analysis of financial results and sustainability indicators becomes a key component of management and operations.

In this regard, a two-day intensive training based on the methodology of international rating agency MicroFinanza Rating was organized for the specialists of the microcredit organizations (MCOs), credit unions, and Mikrokreditbank from Andijan, Ferghana, Samarkand, Bukhara, Surkhandarya, Kashkadarya and Tashkent regions. The training is aimed at facilitating participants’ theoretical and practical knowledge of risk management and performance indicators, in order to strengthen their analytical skills and capacity.

As a result of the training, the participants were familiarized with the analytical tools that will allow them to reach an adequate capacity to monitor and evaluate risk and performance, and enable them to generate and establish strategies of policies for better risk management and pursue institutional sustainability. Over the course of the training, the participants reviewed performance ratios analysis of an MFI, calculation issues, portfolio quality, efficiency and productivity issues, financial management, rating models, and were tested on risk management. The trainer, applied a combination of presentations and interactive exercises and problems to keep the participants actively engaged in the lecture. Apart from that, the participants had an opportunity to discuss most pressing issues in groups, share experience, and analyze case studies from MFIs around the world.

According to the organizers, the knowledge and skills received by the participants will allow them to reach transparency and sustainability of their organizations, as well as to apply the best practices and strategies in risk management. The obtained skills will also assist them in providing high quality financial reports to MIX Market, which will create networking and resource mobilization venues for them.

The given course is developed by MicroFinanza Rating, which is a private and independent rating agency specialized in microfinance and rural finance. MicroFinanza Rating’s headquarters are based in Milan (Italy), with regional offices located in Latin America, NIS, South-East Asia, and Africa. MicroFinanza rating founded in 2000, is one of the most active and experienced specialized agencies with more than 480 assessments carried out in 60 countries.

Mr. Massimo Vita was formerly Director for Latin America of MicroFinanza rating, and possesses extensive global experience working with MFIs worldwide in developing the MFI rating methodology. Mr. Vita has evaluated more than 80 MFIs and is experienced trainer and lecturer in microfinance risk management and evaluation, and teaches at the Boulder Microfinance training Program in Italy and Costa Rica.