| Background | ||
| What is microfinance? | ||
| Microfinance & MDGs | ||
| IFAD and microfinance | ||
| Women and microfinance |
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| Useful links |
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IFAD and microfinance IFAD is a specialized agency of the United Nations dedicated to combating rural poverty in the most disadvantaged regions of the world. Microfinance is an important part of our work. Seventy-five per cent of IFAD-funded projects provide financial services to poor rural men and women. We work with poor people and their organizations to develop sustainable, innovative and diversified rural finance systems. These include a wide range of institutions in various countries, such as a cooperative bank in Armenia, financial service associations in Benin and Haiti, and rural banks in Ghana. Credit and savings associations provide financial services to rural poor people in Kenya and Tanzania. In India, self-help groups are being developed and linked to commercial banks with IFAD support. In Latin America, IFAD has worked with commercial banks, saving and credit associations and rural banks. Providing financial services in rural areas presents a number of challenges. For instance, loans cost more when they are extended to populations dispersed over large areas. Moreover, incomes in rural areas are often erratic due to their stronger dependence on agriculture-related activities. On 18 November 2004 , as part of the International Year of Microcredit's official launch, IFAD organized a one-day 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 and focused on the obstacles many poor women face when trying to access financial services.
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