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Milan, June 4th 2009

Microfinance

in

The Netherlands

Central facilities and Local implementation

D. Laman Trip

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The setting in 2007

The Netherlands has a population of 16,5 million The working population is 7,5 million

Generalfigures

Business figures

Microfinance

figures

2007 20% of the working population is considering to start a business: 3 million people 100.000 people actually starts a business (3.3%)

Targetgroup for microfinance 600.000 persons of which only 100.000 live on social welfare Limited # of microfinance initiatives and only 200 microloans a year

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The approach

Study the market (2005 – 2007)Establish National Council of Microfinance (2007 –

present)General policy advice (2007)Political commitment (ongoing)Allocate funds and establish project bureau (2008)Stimulate local pilot programmes (2008)Create central credit institute (2009)

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The dutch government stimulates microfinance

To stimulate entrepreneurship

To encourage social cohesion

To decrease unemployment

An amount of 5 million euros a year is disposed for the implementation of microfinance in the Netherlands

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Advisory council on microfinance

A high ranking advisory council was founded on february 2nd 2007 to advice the government on implementing microfinance in the Netherlands.

Members of the advisory council:• Mr. D. Laman Trip (chairman), former chairman of the board of ING Group in the Netherlands• HRH Princess Máxima• Mr. L.M.M. Bolsius, alderman of Rotterdam – Finance, Harbour and Sports• Mr. N. Molenaar, professor of microfinance at UAC INHolland and chairman of the European Network of Microfinance• Mr. B. Staal, chairman of the Dutch Association of Banks• Mrs. J. Sylvester, member of senate, mayoress of Anna Palowna- 4 -

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Conclusions microfinance in the Netherlands1. Market is there

There is potential for microfinance. Banks should be involved (payments, savings)

2. Lessons learned from europe- Distribution (local presence)- Communication (national and local awareness) - Coaching (voluntary and paid) - Combination with financing (central availability).

3. SolutionA microfinance system with local professional advisors and organizations. Central availability of granting loans.

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Responsibilties of the council

1. To make recommendations to the government on how to encourage,implement and govern microfinance in the Netherlands• Awareness• Distribution• Coaching• Financing

2. To stimulate, start and support growth of microfinance organisations

3. To act as an ambassador

4. Support the coordination between different government organisations

The council reports directly to the secretary of the Ministry of Economic Affairs

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The dutch approach

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Qredits

Dutch Foundation for micro loans

(15 million euros, public and private)

• Central back office• Independent foundation• Efficient processes• Local branches

• Coaching before starting • Local funding• 22 existing initiatives• 18 “under construction”

Local initiatives

LoansV

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Coaching networks

• Coaching after starting• Local funding• 130 coaching organizations signed in

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1. website => search engine for entrepreneurs to find local initiative and consultants (postal code based)

2. website => financing for entrepreneurs

3. website => information for microfinance initiatives

Project organization

The projectteam Microfinance is part of the Ministry of Economics Affairs in cooperation with the Ministry of Social Affairs and

Employment

Responsible for:• Stimulating local microfinance initiatives• Communication and information to and on behalf of the

initiatives and entrepreneurs

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Results so far: financing

Number of loans (since January’09):

Qredits/BanksNumber of requests 1.220*Number of granted loans 185Total amount € 3.8 millionAverage amount € 20.500

* The mayority of the requests is taken in consideration. 35% of the requests are granted

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Next steps

The project organization will continue in:

Stimulating local initiatives

Supporting initiatives

Communicating to entrepreneurs and initiatives by:• E-mail newsletters• Attractive and informational websites• Organizing two national seminars for microfinance initiatives a year

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In brief…..

The foundation for microfinance in the Netherlands has been laid

A unique system of microfinance in the Netherlands works!• Qredits: central and efficiently organization for granting loans• MF initiatives & coaching: locally organized

Our ambition: to become one of the better practices on microfinance in Europe!

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