Kosovo Grameen Missione Arcobaleno Microcredit Fund, Kosovo

With an intention of helping the war affected people of Kosovo, Missione Arcobaleno, a private citizen's fund in Italy approached Grameen Trust to set up a microcredit program in Kosovo following the Grameen credit delivery mechanism. GT conducted a feasibility study for setting up a BOO project in the proposed area. Following this, GT launched the Kosovo Grameen Missione Arcobaleno Microcredit Fund (KGMAMF) in June 2000 with a grant of US$ 4.83 million from Missione Arcobaleno.

KGMAMF is operating in four out of five regions of Kosovo. It has covered 185 villages and 2005 Mohallas of Peje, Prishtina, Prizren and Gjilan. KGMAMF achieved both operational and financial viability in 2005. The project has been enjoying 100% repayment rate.

Kosovo Grameen Missione Arcobaleno Microcredit Fund has completed the eight year of its project operation in 2008. So far, it disbursed a total of Euro 33.52 million (US$ 51,620,204) and recovered Euro 28.99 million (US$44,649,195). Total member outreach of the project is 12, 420. Maximum loan is given for carrying out business with miltch cow and it comprises about 50% of total loan. There are 61 categories of business for which the borrowers of KGMAMF have taken loans. Some members have taken nine cycles of loans, which is indicative of the fact that the program is having positive impact on its clientele. It is empowering the poor women of Kosovo socially and economically and they are playing important role in decision making in their families.

In 2008, the project could increase its number of members by 1210 and loan disbursement by USD 10,672,457. Total repayment in this year was USD 9,730,768 with an outstanding loan amount of USD 941,690. All the branches of this project are earning profit. Accounting software has been introduced in all the branches of KGMAMF in this year.

As of 2008, KGMAMF has reached a total of 12,420 members and disbursed USD 51,620,204 to its borrowers. However, the number of active members of this project is significantly low as compared to the total number of member outreach. It is because of the high drop rates, which has resulted from the factors such as deteriorating economic condition of Kosovo, dependence of the majority of population on agriculture, lack of marketing facilities, dependence of many families on foreign remittance, provision on higher amount of loan by other NGO and MFIs, and introduction of microcredit facilities by other commercial banks.