FMFC celebrated its transformation

FMFC celebrated its transformation

On the 24th of October, First MicroFinance Company (FMFC) celebrated its transformation from a micro credit company into a licensed micro finance company, as well as 11 years of service providing financial services to remote areas of the Kyrgyz Republic. Transformation is an important milestone forFMFC’s development, which will allow the company to expand its financial services and launch new products for its clients. The event, held in Bishkek, gathered representatives of agencies within the Aga Khan Development Network, international organizations, diplomatic missions, and company partners within the microfinance and banking sectors. 

 

Diplomatic Representative of the AKDN in the Kyrgyz Republic and Chairman of UCA’s Board of Trustees Mr. Kassim-LakhaDiplomatic Representative of the AKDN in the Kyrgyz Republic and Chairman of UCA’s Board of Trustees Mr. Kassim-Lakha stated during his speech that FMFC is an integral part of the AKDN’s holistic approach to development and is closely linked with its sisteragencies. For example, following the Aga Khan Foundation Kyrgyzstan’s introduction of solar greenhouses in mountain communities, FMFC was able to provide farmers adopting this ingreen technology access to credit to expand their structures, diversify their crops, and access new markets.Nestled within AKDN, FMFC is more than a place for financial services. It is part of a chain of support services where entrepreneurs can receive counseling, technical assistance, and flexible financing for their activities.

 

CEO of FMFC, Stefan Martiniak, shared with the audience that despite the difficulties of operating in the mountainous region and amid economic hardship, FMFC has now grown its network to 13 branches (tenbranches in the Osh oblast and three branches in the Naryn oblast), and currently serves nearly 15,000 clients - of whom 44% are women. Since FMFC was founded it hasserved over 64,000 clientsin total. FMFC is now the second largest microfinance provider in the Kyrgyz Republic with a loan portfolio of around USD 13 million. FMFC is quite proud that even as the company grows, its portfolio-at-risk stands at just 0.4%. This means, that 99.6% of FMFC clients are paying back their loans on time with no delays. The majority of these clients are those who are usually not serviced by the traditional commercial banks. FMFC’s contribution to bring and integrate people into the regulated financial sector – what has been coinedas Financial Inclusion – is important and reflects well upon the company’s various and intensive efforts to strive hard for its mission.

 

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