In this update, you can read about UMF, KEEF, Gatsby, BELITA, Micro Africa and SISDO. For previous updates, follow this link.
UMF became a partner of MYC4 in June 2013 and after a successful pilot evaluation conducted in October, the institution has been allowed to grow its portfolio on MYC4. UMF is having a steady and controlled growth on MYC4 and currently has an OLB of Euros 185,076 in 196 loans. The portfolio performance continues to be good and we are looking forward to funding more clients in Uganda through UMF.
KEEF is currently the largest provider on MYC4 with an outstanding loan balance of Euros 544,357 in 1,086 clients. Due to the institution’s market niche and technology, it has the ability to serve large number of clients in a cost effective manner and boosts of a large agricultural portfolio at 53%. However, due to MYC4’s risk management policies, we are now working with the institution to limit their growth. The portfolio continues to perform well and repayments are received on a timely basis.
Previously we reported that GMFL risk guarantee was increased to 20% due to performance issues. In the month of November 2013, the institution was paused from uploading loans due to the rising PAR. At the same time, the managing director left the organization with the board appointing the Operations Manager in an acting capacity. The board is searching for a suitable candidate and the position has already been advertised. The PAR has remained high but somewhat contained. The management has intensified collection efforts and we are seeing positive movement. However the institution remains paused until PAR and management issues are resolved. We however continue to receive timely repayments.
BELITA was paused from uploading loans early 2013 and therefore for the most of the year, they have been working to repay the outstanding balance. Only 6 loans of Euro 1,375 are active and Euro 4,249 has been defaulted. The Risk guarantee fund is sufficient to pay for defaults and we are working with them to pay the defaulted amount and clear the outstanding portfolio. Once the OLB has been run down to zero, we shall conduct an assessment and decide on future collaboration with BELITA.
Micro Africa continues to pay down their outstanding loan balance currently standing at Euro 82,125 held by 490 clients. We expect that the whole amount will have been completely paid off by quarter one 2014. The repayments continue to be received on time.
In November, SISDO was paused from uploading due to late transfer of money to investors. The situation is being sorted out and we are noting significant improvements. MYC4 has therefore allowed SISDO to resume uploads.