Borrowers of KGMAMF with Professor Latifee at a Center Meeting
Grameen Trust initiated Kosovo Grameen Missione Arcobaleno Microcredit Fund (KGMAMF) in June 2000, to provide microcredit to the war affected women for income generation and their economic revitalization.
The Second Phase of KGMAMF began in 2003 with the implementation of Grameen Generalized System (GGS), popularly known as "GB II". During the Second Phase Grameen Trust took the initiative to convert KGMAMF into a microfinance bank.
Implementation of the Second Phase began with a comprehensive training program. Nine major center workshops in four branches were arranged to provide the members with clear ideas about the steps they should take in the future loan program. To increase the efficiency of the staff the following training programs were conducted :
1. Training for the efficiency improvement of the loan officers.
2. Training for the second signatories on accounts and record keeping.
3. Management training on internal control and monitoring.
4. Special training for problem solving measures.
5. Training on human resources development for the Managers.
6. Special training on new loan program.
KGMAMF also undertook efficient fund management measures to better utilize funds.
Grameen Generalized System has been proven to be client friendly, flexible and efficient. KGMAMF was the first Grameen Bank Replication Program (GBRP) to implement GGS. The new loan products offered by GGS proved beneficial for the members.
The implementation of GGS provided the following advantages for the members and the project:
- Members have received it with great interest and their dropout rate has come down.
- Options are there for members who are in difficulties to remain regular members and to become Golden Members where they could receive higher loans.
- Options were created to ensure higher repayment rates.
- More confidence building among members who started recognising KGMAMF as a permanent and reliable institution that they could trust.
- Increase in staff morale and commitment.
The project has already drawn the attention of all quarters as one of the largest microcredit programs operating in Kosovo. The project is contributing to help the post-war economic rehabilitation and self-employment for the women. As a result of the successful implementation of the Second Phase of Kosovo Grameen, the project has been able to achieve operational and financial sustainability.
Up to December 2008, KGMAMF had cumulatively disbursed more than 33.52 million Euro to 12,420 members. In December 2008 KGMAMF had 4.53 million Euro in outstanding micro-loans from 6,081 borrowers.
Report by Abdul Hai Khan
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