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Launch of the Egyptian
Microfinance Best Practice Award
The European Commission and the Social Fund for
Development (SFD) jointly launched for the first time in
Egypt the Microfinance Best Practice Award. Launched in
January 2007, the Award aims at encouraging microfinance
activities and rewarding international best practice in
micro-credit operations. After six months of research by
an advisory committee, the Award was agreed and will be
announced during a ceremony held on Thursday, 28th June
2007 at the Marriot Hotel, Eugene Salon, starting 9:00
a.m. The ceremony will be attended by the major
stakeholders involved in this sector, as well as the
NGOs involved in micro-credit operations in Egypt.
During the ceremony, a cash award of EGP 25,000 will be
given to each NGO that achieves 100% of the
international best practice criteria. A merit award will
be given to NGOs that will achieve more than 80% of the
criteria.
This Award is held through the FISC-Social Project,
which is funded by the European Commission and
implemented by the Social Fund for Development. The
Projects aims at contributing to job creation and income
generation through the provision of financial (credit)
and non-financial services (technical assistance,
training and business development services) to the
economic activities of micro and small entrepreneurs who
normally have little, or no, access to the formal
financial system. The EU embraces microfinance because
it fits into its philosophy of helping people to help
themselves. Furthermore, microfinance is of proven value
in the global fight against poverty. Empirical evidence
suggests that borrowers of micro-credit are able to
increase their incomes, acquire assets and reduce their
vulnerability to crises. Micro-credit has enabled the
unbankable poor to use their ingenuity to climb out of
the poverty trap with dignity.
The main bulk of EU funds are used to finance two Credit
Facility Funds. The first Credit Facility Fund (€11
million) is managed by the SFD's Small Enterprise
Development Organisation SEDO and is used to offer loans
through commercial banks to small entrepreneurs. The
second Credit Facility Fund (€3.3 million) is managed by
the SFD's Micro Finance Sector, which provides loans
through NGOs to microentrepreneurs. The Project also
includes a grant facility to NGOs (€379,000) to improve
their delivery capacity of financial and non-financial
services to end-beneficiaries.
For further information please contact:
Miss Sara Beshr, FISC Social Project Assistant
Tel: 02 3322318 – 012 6588250 – 010 4994575.
ENDS
Contact: Germaine Demian
Press and Information Officer
Delegation of the European Commission in Egypt
Tel: 3749 46 80
germaine.demian@ec.europa.eu
http://www.eu-delegation.org.eg
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