The largest ever bilateral Micro Finance Credit Guarantee Facility (MCGF) provided by Standard Chartered Bank (Pakistan) Limited Standard Chartered Bank (Pakistan) Limited has successfully closed a PKR 600 million, two year finance facility to Tameer Micro Finance Bank Limited (TMFB) under the State Bank of Pakistan's (SBP) Micro Finance Credit Guarantee Facility (MCGF) launched under the DFID Funded Financial Inclusion Programme.
This is the largest ever bilateral facility to any Micro Finance Institution/Bank under the MCGF scheme. The signing ceremony held at Standard Chartered Pakistan Head Office in Karachi was graced by Governor, State Bank of Pakistan, Shahid H Kardar.
Also present at the ceremony were: Mohsin A Nathani, Chief Executive Standard Chartered Bank (Pakistan) Limited and Nadeem Hussain, Chief Executive Officer Tameer Micro Finance Bank Limited along with other senior representatives of SBP, Standard Chartered Pakistan and TMFB.
This facility is partially covered by MCGF designed by the SBP keeping in view the important role of Micro Finance Institutions/Banks in Pakistan. According to Access to Finance Survey, more than 68 million adults do not have access to formal financial services in Pakistan. Majority of these excluded households are poor and are therefore, financially served by microfinance providers. The purpose of the MCGF is to facilitate banks/Development Finance Institutions to play a leading role in easing credit constraints of Micro Finance Institutions/Banks, in their efforts to maximise outreach by extending credit facilities to them.
Commenting on the facility, SBP Governor, Shahid H Kardar said: "I am delighted to be here at the signing ceremony. To me this is perhaps the best partnership: on the one hand we have Tameer Micro Finance Bank Limited, which is the pioneer in the branchless banking, and on the other we have Standard Chartered Bank (Pakistan) Limited with their creditability, standing in the market and their commitment to Pakistan. I genuinely believe a partnership like this sets precedence for outreach to the un-banked population and enhance one of SBP's main objectives, which is financial inclusion. The facility has successfully mobilised Rs 2.375 billion for three large Microfinance Providers."
"SBP will soon launch the Financial Innovation Challenge Fund (FICF), a GBP 10 million grant facility, as part of the larger DFID funded Financial Inclusion Programme. FICF will target innovations to test new markets, lower cost of delivery, making systems and procedures more efficient and provide new ways of meeting the unmet demand for financial services," Kardar added.
Speaking at the ceremony Mohsin Nathani, Chief Executive, Standard Chartered Bank (Pakistan) Limited said, "This transaction demonstrates Standard Chartered's commitment to Pakistan and to support SBP's initiative and agenda of providing credit to the small business.' I would like to thank SBP for extending the guarantee and the SBP team for working with us on the successful close of the deal. Our relationship with TMFB will facilitate in easing credit constraints for the Micro Finance sector in Pakistan."-PR
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