2. www.baitushum.kg MCA BAI TUSHUM FINANCIAL FUND Sustainability in Rural Finance May 2006

3. www.baitushum.kg BAI TUSHUM – An Overview Chartered in October 2000 Founders – ACDI/VOCA and CARITAS TA Funding: USAID and SDC Legal Status: Non-commercial Public Fund, reregistered as MCA on February 13,2003,certified by National Bank Three branches and 10 sub-offices

4. www.baitushum.kg Loan Methodology Loans to farmers, entrepreneurs and legal entities Loan size: 250 to 36,000 dollars Loan term is 12 - 18 months Grace period is 6-11 months for agricultural loans. Market based interest rates

5. www.baitushum.kg Loan Methodology Individual lending under collateral Rural and agricultural group lending ( max $500), solidarity responsibility Lending group of clients under one immovable property

6. www.baitushum.kg Challenges in rural lending Influence of climate conditions Failure of crops, plague of cattle Unstable prices on production Non-liquid collateral Traditions

7. www.baitushum.kg Reducing risks in rural lending Flexible repayment graphic Fast service Well documented polices and procedures Cooperation with rural authorities Availability of additional income of clients Diversification portfolio by agricultural products

8. www.baitushum.kg Performance indicators as of on April 1,2006 Loan outstanding- USD 7,717,000 Active clients-4,014 Operational self efficiency-131% Financial self efficiency -126% Repayment rate – 99.27% PaR>30 - 0.84% Leverage ratio- 217% Portfolio growth 2005- 95%

9. www.baitushum.kg Growth of loan portfolio and number of clients

10. www.baitushum.kg Number of disbursed loans

11. www.baitushum.kg Financing EBRD IFC Blue Orchard Hivos-Triodos Frontiers Local commercial Bank ( hedging scheme)

12. www.baitushum.kg Transformation& commercialization December 2005- Microcredit Company was registered,LLC Assests&debts transfers Equity investors January 2008- MCC will be transform to MFC ( deposits taking), LLC will be transform to JSC

13. www.baitushum.kg Strategic Objectives Microfinance Company, deposit taking MFI New products and services Equity investment Geographic outreach