1. 1 Financial Education, Entrepreneurial training, Microfinance, networking and advice By Unni Beate Sekkes æ ter, Managing Director Mikrofinans Norge (Network Credit Norway - NCN)

2. Mikrofinans Norge2  Started in Lofoten Islands in Northern Norway in 1992 – the first group still exists ◦ Bodil Maal was working in Bangladesh and got to know the Grameen Bank and their group lending model ◦ Pilot project in Lofoten from 1992  2006: Expanded to 1250 members in 250 network groups ◦ The first group has lent NOK 1,8 mill (up to 2002) (€210 000) ◦ based on an initial capital of NOK 200.000 (€25 000) ◦ Money circulates and allows for new loans  Nationwide from 1998 through SND – Now named Innovation Norway. ◦ Ended in 2009 – now unclear situation with district groups: Merge with MFN?  MFN’s origin from 1996 ”The Self Help Project - Nettverkskreditt  For refugees and immigrants – Norsk Folkehjelp Founded by Unni Beate Sekkesæter – Still Managing Director

3. Mikrofinans Norge3  Funding from Government since start (up to 2006): ◦ NOK 65 mill ( € 7,8 mill) for loan Fund and operational/training costs  Countrywide Outcome (through several local initiatives) ◦ 800+ businesses supported ◦ NOK 236 = € 28 mill turnover in those businesses ◦ 820 new jobs created ◦ Every new job that was created cost NOK 66.000 ( € 8.500) ◦ Women continue to live in rural communities ◦ See film about microfinance in Norwayfilm

4. Mikrofinans Norge4  Two entities with close cooperation ◦ Mikrofinans Norge (Network Credit Norway – NCN) ◦ Cultura Garantifond (Guarantee Fund)  Mikrofinans Norge (MFN): Developing competence and opportunities and gives access to guarantees for loans ◦ An advocacy, development and training non-profit association ◦ Some of our customers are members of the association ◦ Offer an opportunity to become self employed for those who can not get loans for enterprise purpose otherwise ◦ Offers training and advice for start up businesses ◦ Offers training in Financial Education 4

5. Mikrofinans Norge5  218 000 Norwegians are ”bad payers”  Even young persons without much income use credit cards for consumption – 20 000 young have trouble of indebtedness  Immigrants and low income persons - nO access to credit, and trouble paying bills  Need for education – plan your Future course 5

6. Mikrofinans Norge6 ◦ Offers guarantees (old Loan Fund from NCN used)  Mikrofinans Norge is in charge of application procedure and evaluation of loans – with the peer groups and loan committee  Cultura Guaranteefund offers the needed guarantees combined with 75% EIF guarantees (European Investment Fund) so people without collateral can get access to loans  Net based application process from December 2010  Cultura bank offer loans and is in charge of the back office related to the loans  Interst:6% per year 6

7. Mikrofinans Norge7  SME GUARANTEE FACILITY GUARANTEE POLICY FOR MICRO-CREDIT  The “SME Guarantee Facility” is funded by the European Community and is operated by the European Investment Fund (EIF) on behalf of the European Commission.  Norway has this: Cultura Bank has this guarantee which was negotiated based on ideas from MFN in 2003 – The first agreement from December 2005  Renewal: 2009-2012.  New possibilities under Microfinance Facility to also borrow money and get some operational capital under Progress from 2014 7

8. Mikrofinans Norge8  The group is where thing happen  Groups consist of 4-7 members  Learning together and motivating each other is the main purpose  Groups define their own by- laws  The group’s needs and interests are important  Makes business plans and evaluates loan proposals together  Personal saving of at least 10% of loan amount  The group decides who will get loans for what  Individual loans given in group context – no guarantee from group 8

9. Mikrofinans Norge9  Group Loans: from 25 000-200 000 stepped loans (several). ◦ 1. loan: 25 000 – ”test loan” – building trust and checking ability and willing ness to repay  For existing businesses: 100 000 1. loan.  100 000 for very promising and realistic start up businesses in some cases: Those who are ”almost bankable”  Betales på min. 3 mnd eller max. 18 mnd. og åpner for nye lån ◦ Loan 2: 25 000- 100 000 – repaid in 2-5 years ◦ Loan 3: Up to 200 000 – repaid in 3-5 years  Interest rate: 6% + kr 500 as service fee for application. 9

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12. Mikrofinans Norge12 12 http://nettradio.nrk.no/default.php?kanal=p2

13. Mikrofinans Norge13  Offers integrated financial education training as part of other courses – also with partners  Starts new pilot project ”understand your money” among gypsy (ROM) minority in Oslo in partnership with Helle Bennest Humanitarian Fund and Oslo Municipality – Rom Project  New Pilot project among X-cons in partnership with Red Cross and Way Back starts soon 13

14. Mikrofinans Norge14  “Plan Your Future” financial education curriculum – with role play and fun!  The “Plan Your Future” educational package addresses the basic financial education needs of low-income people.  It is intended for financial education providers and contains materials to run financial education workshops 14

15. Mikrofinans Norge15  Intended to familiarize low-income people with practical aspects of financial education  persuade the workshop participants of the necessity of household financial planning and regular saving.  The final output of the workshops are financial plans developed by the participants for their families that incorporate all of the components shown on the graph below. 15

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17. Mikrofinans Norge17  More info:  Web-based application and business plans and profile for each customer and association in Norway: www.credinfo.nowww.credinfo.no  Portal includes own web page for each member  See film about MFN http://www.youtube.com/watch?v=9eZcW_jTxIg film http://www.youtube.com/watch?v=9eZcW_jTxIg 17