Search

Displaying 1 - 15 of 28

Lesson
Monitoring and analysis of the MSE (micro and small enterprise) sector would benefit from estimates of the credit gap to confirm additionality of ADB FILs (financial intermediation loans). This could also help ensure that private sector funds are not displaced given the features of sovereign loans. How FILs catalyze the entry of new funds into the market needs to be better documented, and FILs' ability to move participants to more market-based finance needs to be improved.

Project Number: 42007-013
Project Name: Second Small and Microfinance Development Project
Report Date:
Lesson
Promoting the success of MSE (micro and small enterprise) operations and helping PCBs (participating commercial banks) fulfill their greater developmental functions would address existing constraints. Access to finance is just one constraint hindering the development of MSEs. In a 2003 survey of SMEs (in Uzbekistan, the International Finance Corporation identified some of the negative factors hindering the operation of enterprises. These include administrative procedures, currency conversion, access to finance, taxation, and import and export restrictions.

Project Number: 42007-013
Project Name: Second Small and Microfinance Development Project
Report Date:
Lesson
Finally, the DMF (design and monitoring framework) indicators were not appropriate to assess the overall effectiveness of ADB's intervention. The performance indicators should have been more accurate, better defined, and aligned with the stated impact and outcome. The indicators also did not measure improvements in the loan maturity for SME (small and medium-sized enterprise) loans in the PFIs' (participating financial institutions) portfolio, which was considered relevant for development impact.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
The overall objective of supporting SME (small and medium-sized enterprise) medium-term lending was only partially achieved. A key success factor lies in the selection of PFIs (participating financial institutions), which should be sustainable finance providers. The development of SME portfolios requires not only exceptional liquidity support at a time of liquidity squeezes, but also a strategic commitment and adequate capacity and technical expertise of PFI staff and their SME clients.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Up-front disbursement to the PFIs (participating financial institutions) of the entire loan amount was required by the funding mechanism used for the tranche. While this helped avoid problems in the financing of subprojects, it also limited the option to reward better-performing PFIs. In this case, the only available incentive mechanism was participation in future tranches under the MFF (multitranche financing facility).

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Damu charged a uniform margin to all PFIs (participating financial institutions). In line with the government's intention that Damu function effectively on a self-sufficient basis, Damu should have priced its loans to PFIs according to risk. This intention was limited both by the project's design and by Damu's capacity. A minor change in the MFF (multitranche financing facility) has given Damu the flexibility to charge market-based margins to improve its sustainability and reward better-performing PFIs.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
The project experienced disbursement delays to SME (small and medium-sized enterprise) sub-borrowers, partly due to safeguard requirements. Significant support from the project team was required and signaled the need for PFIs to adopt a minimal ESMS (environment and social management system) to be able to meet categorization requirements. It also showed the importance of continuous dialogue, awareness raising, and capacity building, crucial to making safeguards an important consideration in the credit decision-making process and to the sustainability of the results.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
The provisions of funds under a program loan will generally only have an immediate impact on the overall level of economic activity if a pipeline of projects is in place when the funding becomes available. This was not the case when the ERSP (economic recovery support program) subprogram 1 loan was disbursed, but the delay in capital project construction to ensure more sustainable and beneficial projects were implemented was desirable.

Project Number: 42503-013
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
An important aspect of CMDP II (Second Capital Market Development Program) was using a crisis as an opportunity to push reforms. This was reflected in CMDP II design that resulted in mutually reinforcing actions that simultaneously addressed the causes behind the crisis and expanded the financial sector to meet the needs of the real sector. In this regard, fundamental reasons for the crisis were the falsification of financial statements and the consequent exploitation of small investors. The accreditation system for auditors will help promote market information credibility.

Project Number: 43477-013
Project Name: Second Capital Market Development Program
Report Date:
Lesson
Several sustainability lessons from CMDP II (Second Capital Market Development Program) may be relevant to future interventions. A key aspect was following an integrated approach fostered through consultations. Policy coordination under CMDP II resulted in ensuring identification of responsibility and minimal replication of effort. In addition, CMDP II correctly understood the shortcomings in the government's response to the crisis, related to poor surveillance and failure to address the underlying causes in weak governance and incompatible incentives.

Project Number: 43477-013
Project Name: Second Capital Market Development Program
Report Date:
Lesson
Subloan database. The reimbursement applications made by the PFIs (participating financial institutions) to the implementing agency were not standardized; the PFIs used different spellings in fields and the fields were different as well. This made analyzing the subloans for all 13,465 SMEs (small and medium-sized enteprises) (on the basis of location, industry, etc.) virtually impossible. The database would have been more effective if a standard reporting template with all required fields and their probable values had been prefixed.

Project Number: 36200-013
Project Name: Small and Medium-Sized Enterprise Development Project
Report Date:
Lesson
Women entrepreneurs. The SMEDP (Small and Medium-Sized Enterprise Development Project) disbursed 6.4% of the total facility to women-led SMEs, falling short of the target of 15.0%. Initial disbursements under this component were slow due to a lack of market awareness among women entrepreneurs. The target was also overly optimistic to comply with the provisions set out in the Refinance Scheme for Women Entrepreneurs of SME, given that the percentage of SME loans disbursed to women entrepreneurs was 3.4% - 3.9% during 2010 - 2013.

Project Number: 36200-013
Project Name: Small and Medium-Sized Enterprise Development Project
Report Date:
Lesson
NBFIs (nonbank financial institutions) find the refinancing scheme more valuable. The funds disbursed through NBFIs increased to 48% of total facility for the SMEDP (Small and Medium-Sized Enterprise Development Project) compared to 20% for the previous SMESDP (Small and Medium Enterprise Sector Development Program). At the national level, banks and NBFIs disbursed SME loans at a rate of 87.8% and 2.2% in 2013.

Project Number: 36200-013
Project Name: Small and Medium-Sized Enterprise Development Project
Report Date:
Lesson
Data availability. There is no comprehensive, standardized, and updated database on the SME (small and medium-sized enterprise) sector that also includes cottage and micro enterprises. It is challenging to acquire reliable basic statistics, such as the number of SMEs and SME employment. The Sixth Five- Year Plan, 2011 - 2015 recognized the lack of data as a barrier to understanding the role of SMEs.

Project Number: 36200-013
Project Name: Small and Medium-Sized Enterprise Development Project
Report Date:
Lesson
Definition of SME (small and medium-sized enterprise). The Ministry of Industries defines enterprises as cottage, micro, small, medium, and large enterprises, on the basis of'employment' and'fixed investment'. As SMEs, by definition, refers to small and medium-sized enterprises, the nomenclature is frequently misunderstood and used inappropriately to address cottage and micro enterprises as well. Surveys show that cottage and micro enterprises constitute 97% of all industries by number and employ 41% of the nonagricultural workforce.

Project Number: 36200-013
Project Name: Small and Medium-Sized Enterprise Development Project
Report Date: