FINANCIAL INDUSTRY LEADERS JOIN PATRON GROUP TO ADVISE

 

ON INTERNATIONAL YEAR OF MICROCREDIT

 

Affirm Commitment to Building Inclusive

Financial Sectors to Serve Poor, Low-Income People

(Reissued as received.)

NEW YORK, 22 September (UN Development Programme) -- Prominent leaders in the fields of economic development, banking and finance will serve on the Patrons Group to advise on the United Nations International Year of Microcredit 2005.

The advisors will address two key challenges –- meeting the unmet demand for basic financial services and removing the constraints that exclude people from fully participating in the financial sector.

The 16 advisors, a range of leaders representing local microfinance institutions to large international commercial banks and donor agencies, include Hernando de Soto, President of the Institute for Liberty and Democracy (ILID) in Peru; Diederik Laman Trip, Chairman of ING Netherlands; Diana Medman, Director of AO Bioprocess and the founder of the Russian Women’s Microfinance Network; Raguram Rajan, Economic Counselor and Director of Research at the International Monetary Fund (IMF) and Stanley Fischer, Vice Chair of Citigroup.

“In environments where businesses cannot flourish, countries cannot develop”, said Citigroup’s Fischer.  “Whether it’s in the world’s largest economies or in smaller, less developed ones, people need access to sustainable financial services.  I am honoured to be part of the Year of Microcredit, which I believe is an excellent platform to build the bridges necessary to scale up access to these economic tools.”

The International Year of Microcredit -- scheduled for launch on 18 November -- will promote the rapid growth of strong microcredit and microfinance sectors to serve the needs of a wide variety of poor clients.  In addition, the Year will recognize the contribution of microcredit and microfinance toward the achievement of the Millennium Development Goals of poverty eradication and providing opportunities to tap the spirit of entrepreneurship existing in poor communities.

“It is necessary to support micro- and small business, as they are the backbone of the economy and essential to the wellbeing of the society as a whole, especially the poor in rural areas”, said In Channy, Managing Director of ACLEDA Bank in Cambodia and member of the Advisors Group.  “Microcredit does that, and the Year will go a long way to ensure we continue on the right path.”

“Though poor and low-income people may not have assets when they receive their first loan, access to basic financial services allows them to build assets”, Hernando De Soto said.  “I am honoured to be part of this exciting undertaking to mobilize the international community to achieve the Year’s goals.”

Billions of people continue to lack access to basic financial services; primarily savings, credit, insurance products, and money transfer services.  The Advisors will focus the world’s attention on the potential of microfinance as a powerful tool to grow the businesses and assets of poor and low-income people.

Studies have shown that microfinance -- often referred to as the fuel of private sector development -- leverages the productivity and raises the income levels of poor and low-income people, supports the ability of poor households to manage financial transactions, stimulates local markets, and extends employment opportunities as businesses grow into small enterprises.

“The Year of Microcredit is privileged to have such a diverse group of advisors who share a strong commitment to the ideals and principles of the United Nations and to enhancing the vital role microfinance can play in transforming the lives of millions of people and helping to meet the Millennium Development Goals”, said Mark Malloch Brown, Administrator of the United Nations Development Programme.

Advisors on the Year of Microcredit 2005 Patrons Group:

 -- Fouad Abelmoumni, Executive Director, Association Al Amana, Rabat, Morocco

 -- Rene Azokli, CEO, PADME, Cotonou, Benin

 -- Charles Konan Banny, Governor, Central Bank of West African States, Dakar, Senegal

 -- Matthew Bishop, Business Editor, The Economist, London, United Kingdom

 -- Gregory Casagrande, President, South Pacific Business Development Foundation, Apia, Samoa

 -- In Channy, General Manager, ACELDA Bank, Cambodia

 -- Stanley Fischer, Vice Chair, Citigroup, New York, United States

 -- Marilou van Golstein Brouwers, Senior Fund Manager, Triodos Bank, Netherlands

 -- Fazle Hasan Abed, Chairperson, BRAC, Bangladesh Rural Advancement Committee, Dhaka, Bangladesh

 -- Enrique Iglesias, President, Inter-American Development Bank, Washington, D.C., United States

 -- Diederik Laman Trip, Chairman, ING Netherlands, Amsterdam, Netherlands

 -- Diana Medman, Director, AO Bioprocess, Moscow, Russian Federation

 -- Leonor Melo de Velasco, President, Fundacion Mundo Mujer-Popayan, Popayan, Colombia

 -- Hernando de Soto, Director, Institute for Liberty and Democracy, Lima, Peru

 -- Raghuram G. Rajan, Economic Counselor and Director, Research Department International Monetary Fund, Washington, D.C., United States

 -- WashingtonSycip, Founder, The SGV Group, Makati City, Philippines

For information, please contact Emily Krasnor, Programme Manager, Microfinance, United Nations, tel.:  (212) 906-6308.

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