The United Nations General Assembly selected 2005 as the International Year of Microcredit in 1998, stating that the Year would serve as an opportunity to highlight and support microfinance programmes throughout the world.

In 2002, the Secretary General requested that member governments contribute suggestions and views on the Year's goals and activities that could be taken at the regional, national and local levels. Based on this input, a programme of action for the Year was adopted by the General Assembly in December 2003.

The Year was officially launched at UN headquarters in New York on 18 November 2004.

As part of the launch, IFAD organized a one-day microfinance seminar at the Milan stock exchange. "Investing in microfinance: the role of banks" was co-hosted with three Italian partners – Microfinanza (an Italian rating agency with strong experience with microfinance institutions and commercial banks), ABI (the Italian banking association), and BCC (a federation of Italian cooperative banks). The seminar allowed representatives from commercial banks, multilateral and non-governmental organizations, social investors and microfinance practitioners to exchange viewpoints and discuss the growing role of banks in the microfinance field.

IFAD also co-hosted a roundtable discussion with the Office of the Under-Secretary General and High Representative for Least Developed Countries, Landlocked Countries and Small Island States on "Empowering women through microfinance". The discussion was held at UN headquarters in New York and focused on the obstacles many poor women face when trying to access financial services.

Countries around the world are preparing to observe the International Year of Microcredit with a range of regional and international activities.

Since 1959, the UN has designated International Years in order to draw attention to major issues and encourage international action to address concerns that have global importance and ramifications.

The UN also designates International decades and days.