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Part IV: Case studies


Microcredit and women in fishing communities in the Philippines

1 INTRODUCTION

Microcredit programmes for women are widely regarded as an effective way of financing microenterprises and improving incomes. Studies of women-specific credit programmes have generally found positive economic and social benefits. The multiple roles of women, however, require special attention, particularly in the design of programmes that cater not only for their credit needs but also for other aspects of their development and welfare.

In 1990, local government units, funded by the United Nations Population Fund (UNFPA) and executed by FAO, implemented a project targeting women in fishing communities in two provinces in the Philippines. Entitled “Improving the Status of Disadvantaged Women in the Small-Scale Fishing Communities of Capiz and Pangasinan”, the project was considered a pilot initiative because of the integrated nature of project inputs, i.e. it introduced and provided both social and economic development inputs to and through organized women’s groups (WGs). It was also the first project in the sector that addressed both women’s family planning and economic needs. The project ran for five years.

This paper presents a case study of the project, particularly focusing on the credit component and its impact on women’s livelihoods and consequently the benefits to their personal development and that of their households. It summarizes the results of previous impact evaluations and presents an update on the credit and livelihood component in one province that continued the credit programme for seven years after the project had been officially completed. The objective is to provide lessons and insights that could provide guidelines for project sustainability and possible replication.

2 PROJECT CONTEXT

2.1 Project background

Women in fishing communities in the Philippines participate substantially in most of the basic household-managed fishery and fishery-related enterprises. Women are particularly involved in fish processing and marketing and fish culture as well as, in some cases, in fishing operations themselves. Their social role and participation in decision-making at the village and local administration level, however, are rather limited. It was thought that through social organizations, social awareness training, microenterprise development and access to institutional credit, women’s social and economic roles could be considerably enhanced, as could their awareness of the need to adopt family planning and family health care practices. One province each in the Visayas (Capiz) and one in the island of Luzon (Pangasinan) were chosen as the project sites. WGs were to be organized in seven and 13 coastal municipalities in Capiz and Pangasinan, respectively.

2.2 Project objectives and strategy

The long-term objective of the project was to contribute to the achievement of the goals and objectives of the Philippine National Population Plan by improving the living conditions of small-scale fishers, with particular emphasis on women. The immediate objectives were to: i) increase incomes and improve skills in managing the microenterprises of at least 50 percent of the participants; ii) manifest positive changes in family planning, population education, maternal and child health (MCH) and related matters of at least 50 percent of project participants; and iii) develop and test a community-based/managed integrated system.

Recognizing the crucial role of organizing efforts, the main project strategy was anchored to the principle of community organization for women in coastal communities. The integrated approach involved the introduction of economic and social development inputs to and through the organized WGs.

2.3 Project components

The major project components involved WG formation and development, capabilitybuilding activities for WGs and project staff, credit, savings and microenterprise development and social interventions related to family planning, MCH, nutrition and related matters involving the family welfare of project participants.

The project’s credit component was administered by two banks through a guarantee/ revolving fund scheme - the Land Bank of the Philippines (LBP) in Pangasinan, a government bank devoted to agriculture and rural development, and the Allied Banking Corporation (ABC), a private commercial bank in Capiz.

The mechanics of participation of the two banks were stipulated and regulated by a Memorandum of Agreement (MOA) between the banks, the provincial governments and FAO. The banks used their own funds for lending and delivered credit within the framework of their usual lending programmes. The project deposited funds with the bank to guarantee the loans granted to the women.

A guarantee fund of US$99 000 or p2 633 400 (Philippine pesos) was placed with LBP as a time deposit account. The interest rate charged was 12 percent per annum. In Capiz, a non-interest bearing account was opened with ABC to place a guarantee fund of US$81 000, valued at p2 154 600. The bank charged 14 percent on the loans.

A Provincial Project Coordinating Committee was formed to accept, screen and recommend livelihood proposals from the women. Project consultants, together with the field workers, initially assisted the WGs in preparing and packaging the proposals and loan applications that were then sent to the banks for approval.

2.4 Project organization/arrangements

FAO was the executing agency for the project. The local governments of Capiz and Pangasinan through the Provincial Planning and Development Office and the Provincial Project Office (PPO) implemented the project directly, providing management and field staff services, respectively. A National Project Coordinator was hired by FAO to oversee the project at the national level. UNFPA provided funding support.

3 PROJECT INPUTS/INTERVENTIONS AND ACCOMPLISHMENTS

The project became operational in 1990 and was implemented until 1994. Preparatory activities included a baseline survey, pre-service training of project staff, and agreements with the banks for the operation of the guarantee/revolving fund and finalization of project systems and procedures. Actual field operations commenced in October 1990 and WG formation followed subsequently.

WGs served as catchments and receiving mechanisms where social and economic development inputs were channelled. By the end of 1994, a total of 78 WGs had been organized (45 WGs covering 13 coastal municipalities in Pangasinan and 33 WGs covering seven coastal municipalities in Capiz), involving more than 2 000 women. Training assistance in the areas of team building, organizational skills, microenterprise development and family welfare were provided to these WGs. Technical assistance in the preparation of project proposals and information materials support were also provided.

In the area of social development inputs, the project introduced group formation and credit and microenterprise development as entry points for the promotion of family planning knowledge and awareness, including family welfare and other healthrelated concerns. Linkages and referral systems to resource service institutions in the areas of family planning, MCH and nutrition were established and strengthened at the local levels.

3.1 Economic component

Credit and microenterprise development at project termination. The project’s support to finance the women’s microenterprises is premised on UNFPA’s rationale for supporting this type of project, i.e. “... on the finding that gainful employment and work outside the home are known to be associated with lower fertility rates”. Specifically, a UNFPA (1990) report relates that “studies of income-earning programmes have demonstrated the positive relationship between improving the women’s livelihoods and bringing about more fundamental changes in their lives, in terms of their selfesteem, confidence, participation in political and community life and family decisionmaking power and status”.

By the end of 1994, a total loan amount of p13.3 million had been disbursed. Of this amount, p9.2 million and p4.1 million were loaned to Pangasinan and Capiz women, respectively. The repayment rate by the end of the project life was around 83 percent. Percentage utilization of the guarantee fund for both provinces was 190 percent. Repayment rates were affected by natural calamities such as the “red tide” disease that hit the mussel culture project and a major volcanic eruption that affected the operations of some women’s microenterprises. Organizational and management problems, as well as wilful default and misappropriation of loan proceeds also contributed to nonpayment of loans.

Approximately 80 percent of total loans financed fishery-based projects, notably fish trading and marketing activities, operation of set tidal nets (fish corrals) and dried fish processing. Other production-related projects included mussel culture, crab fattening and salt production and trading. Shellcraft projects involved the production of ornamental lamps and accessories. Non-fishery-based projects such as commodity and rice trading as well as hog fattening were operated in areas where fishery resources were limited.

Loans were mostly for working capital and trading advances, with repayment schedules ranging from four to eight months.

Status of credit activities and guarantee fund: post-project (1995-2000). 1) Capiz. The disbursement of loans by ABC was discontinued when the project was officially terminated, as the MOA was coterminous with the project’s completion and the provincial government chose not to renew it with the bank. Several factors can be cited for the provincial government’s decision. According to previous interviews with the Capiz staff, changes in the management of the bank did not offer the same continuity and enthusiasm as previously experienced. Provincial bank managers changed three times during the project. Unfortunately, the last two managers did not share the same perspective and support for the project as the first, who had, to a large extent, contributed to the relative success of the credit component during its earlier stages. The apparent disinterest in the project by the bank managers, perhaps because of their poor understanding of it, as well as the very limited bank staff, contributed to delays in the disbursement of loans. ABC assigned only one member of staff to the project, who performed the functions of both loan officer and clerk. Because the women had individual accounts, recording transactions alone proved cumbersome, tedious and time-consuming. There was no time at all for field loan monitoring. The transaction costs for administering the guarantee fund were considered high, especially in view of the relatively small amount of the guarantee fund compared with the bank’s total portfolio.

In the post-evaluation conducted in 1997, involving 103 women, around 80 percent still continued with the microenterprises begun during the project. Fish trading constituted the majority of women’s microenterprises. Some women reinvested their profits to purchase a fishing banca (traditional wooden canoe-shaped boat), motorboats and fishing nets. The ownership of assets helped the family, since the husband did the fishing, enabling the women to have a steadier supply and a bigger quantity of fish to sell. Resource depletion has, however, affected the fish catch and threatened livelihoods.

Discontinued project assistance to WGs after 1994, together with the absence of the credit component, proved to be a disincentive for the groups to meet as frequently as they had previously done, consequently resulting in group inactivity and, for some, dissolution.

2) Pangasinan. The partnership of LBP with the Pangasinan provincial government has, for the most part, been more than satisfactory. The decision to renew the MOA in 1994 was not as problematic as with ABC in Capiz. By the last quarter of 1995, a new MOA, effective for another three years, was finalized. Unlike ABC, loan monitoring and collection continued even before this renewal, although a lull in the disbursements occurred in 1995 while the MOA was being renegotiated. In 1998, the MOA was again renewed and extended for another five years, from January 1998 to December 2002.

The volume of lending increased considerably even after the project’s termination. Except for a few new groups (mainly in the uplands), a majority of the original WGs remained faithful clients of the bank, attesting to their satisfactory repayment performance. As shown in the Table, by the end of 2000, over p12 million had been disbursed over a three-year period, bringing the total of loans released in Pangasinan from 1990 to 2000 to almost p29.5 million. This represents a leveraging ratio of over 1 120 percent. In effect, the original amount of the guarantee fund revolved about 11 times. Overall repayment by year-end 2000 was 84 percent, as a result of the successive strong typhoons that hit the province.

The guarantee fund grew by 73 percent from an original amount of p2.6 million in 1990 to about p4.6 million in 2000 through accumulated interest earnings that accrued to the fund. This amount is net of guarantee claims that represented around 30 percent of the original guarantee fund amount.

The continuous credit line administered by LBP has provided a steady source of capital for the women. Their good repayment record has enabled them to access this credit line continuously. Some women were into their fourth, fifth, sixth, seventh and eighth rounds of lending. A majority of the activities financed involved trading and marketing, notably fish and also rice, salt and other basic commodities. Hog fattening was a common project. Some women have progressed from fish trading to owning their own fishing gears, engines and boats. Others have diversified to other activities such as buying and selling ready-to-wear clothes, processed food and even running a photo/video shop. The impact of these changes on the women and their families ranges from modest to dramatic.

In a recent visit to Pangasinan, it was clear that the continuous credit line and assistance of the provincial government to WGs have contributed to the growth of and eventual federation of some groups to be registered formally as cooperatives.

Total loans granted and status of guarantee fund in Pangasinan, 1990-2000

Indicator

1994

1997

2000

Total

Amount of loans granted
(in million pesos)

9 258 038

8 223 086

12 015 398

29 496 522

Repayment rate

87%

94%

84%


Amount of guarantee fund
(in million pesos)

2 633 400

3 614 676

4 542 238


Notes: 1. Amount of loans in 1994 covers releases since the start of the project in 1990 until its official completion in 1994. 2. Amount of loans in 1997 covers releases from 1995 to 1997 as per post-project evaluation conducted in 1997. 3. Amount of loans in 2000 covers releases from 1998 to 2000 as per field visit in February 2001. 4. Guarantee fund in 1994 is the original amount placed with LBP in 1990 while funds for 1997 and 2000 are net of guarantee claims, plus recoveries and interest earnings.

Two of these cooperatives were visited and their stories are presented as illustrative examples of the effect and impact of the project on the women, collectively and individually. The stories are presented as Boxes 1 and 2.

4 SOME LESSONS LEARNED: A SYNTHESIS

The project’s long-term objective of improving the status of women required an integrated package of services. Emphasis was given to both the social and economic development components since they mutually reinforce each other.

Implementation of integrated projects is, however, complex, as underscored by the following important points and lessons.

4.1 Microenterprises and credit as entry points

Credit to finance microenterprises is a critical input in increasing women’s incomes. Women who received credit from the project reported improved incomes, which they used to buy household appliances and consumption goods, send children to school, build or repair houses and reinvest in their businesses. Independent earnings contributed to increased self-confidence, mobility, a higher value in the family and improved decision-making, all of which reinforce each other to improve women’s status generally. In varying degrees, the impact of women earning their own incomes exerts a “catalytic” effect in improving their control over reproductive decisions.

Access to credit appeared to be a key factor in group sustainability. Groups that had continuous access were more active since they had a reason to meet regularly as a group. Meetings serve as fora for discussing activities, problems and other issues. Active groups can also receive and access social services better. On the other hand, groups that were dissolved or considered to be in an inactive status were those that did not have continued access to credit.

The multiple roles of women, and consequently the multiple demands on their time, influence the type of economic activities in which they are involved. Women’s enterprises tend to be small and are usually run on a part-time basis to allow them to meet their other obligations. They select activities primarily in marketing and trading that generate continuous earnings to make up for the seasonal nature of their husbands’ incomes. Thus, except for a few cases, the microenterprises of women are still in the enterprise formation category where survival is the goal and the satisfaction of basic needs the priority. Fish trading offers a fast turnover of cash necessary to meet daily needs and short-term expenses. The traditional sexual division of labour in fishing communities is such that men usually go out to fish while women sell the catch (although there are instances where women are actual fishers). This role has not been challenged, even if profits from the loan are reinvested to purchase fishing assets that serve to increase the livelihood base of the family. The husbands have acknowledged the women’s contribution, which has in part contributed to improved relationships in the household.

The continuous credit line opened to women’s groups in Pangasinan has allowed some women to diversify and focus on some form of enterprise expansion. The need for higher levels of financing is being addressed through the formation of cooperatives since they qualify for higher amounts of loans, as has been demonstrated in the illustrative examples of WGs evolving to cooperatives. It is, however, necessary to obtain a careful analysis and reading of the environment and context where women operate their microenterprises before they graduate to the next level of enterprise growth. Apart from market and technical factors, considerations about women’s time constraints should be taken into account.

BOX 1

Pangascasan Women’s Multipurpose Cooperative (PWMC), Sual, Pangasinan, the Philippines

The PWMC started out as the Pangascasan Mothers’ Association (PMA). It was one of the first women’s groups organized in Pangasinan in late 1990. After undergoing the required training activities, women took out their first loan of p80 000 in 1991 and used it as capital for trading fish, rice and other commodities. After successfully repaying the first loan and with membership now increased to 34, the PMA became eligible for successive loans. From 1993 to 1996, five repeat loans were granted to the women, with loan amounts increasing to about double the first loan (p177 000 by December 1996). Meanwhile, capital buildup and savings were also increasing, enabling the group to implement a lending scheme for its own members.

The good standing of the PMA made it a candidate for development into a more formal structure such as a cooperative. With encouragement from the Provincial Project Office and attendance at several requisite training programmes, the PMA was formally registered with the Cooperative Development Authority as the PWMC in December 1997. Membership expanded to 94.

A significant development in the PWMC story was when the cooperative secured a contract with the nearby Sual coal-fired thermal power plant for the provision of janitorial and messenger services. In March 1999, the first contract with the Southern Energy Philippines was signed. The contract lasted for six months and is now on its fourth renewal. The PWMC provides the power plant with 22 cleaners who are chosen by rotation from among the eligible members.

The contract with the power plant has provided the cooperative with a steady source of revenue. It has allowed the cooperative to reinvest some of its earnings in the purchase of assets such as the cooperative building/office and a service vehicle. The cooperative built the building from its own funds while the land was still being amortized. Within the cooperative building, PWMC set up a grocery store and a minicanteen/ snack bar to service its own members as well as those of the nearby plant. In December 2000, the cooperative borrowed p200 000 from LBP to consolidate the grocery inventory. This was the first loan they had taken out since they became a cooperative.

PWMC had total assets worth about p1.4 million as of end December 2000, a far cry from its humble beginnings as PWA. It has accepted men as associate members (without voting rights). From an initial membership of 13, membership now stands at 205: 103 associate/men members and 102 regular/women members. PWMC has joined the Federation of Sual Multipurpose Cooperatives as one of seven primary cooperatives that deal with the power plant for various services. The cooperative is run entirely by women.


4.2 Linking women to financial institutions: a tale of two banks

The performance of the two banks that administered the credit component of the project offers some interesting insights, particularly in the context of linking women to formal financial institutions. It is worthwhile to note that the women were directly linked to the banks. The project, through its integrated nature, in effect served the role and function of “social intermediation”.[9]

BOX 2

Amalbalan Women’s Multipurpose Cooperative (AWMC), Dasol, Pangasinan, the Philippines

The Amalbalan Women’s Association (AWA) was organized in 1990 with only ten members. The women were basically involved with salt production/trading and fish vending. Their first loan of p80 000 was used as capital for these activities. This loan was followed by seven more rounds of lending, with the loan size increasing to p270 000 by 1997. Membership increased slightly to 22. Some women used the loan to buy inputs for milkfish pond production such as fingerlings, fertilizers and feeds.

In October 1997, the AWA was formally registered as AWMC, with an increased membership of 75 (including seven associate/men members). As a cooperative, the women were given a bigger credit line by LBP and they have taken advantage of this to increase the volume of commodities they are trading and purchase more fish pond inputs. In September 2000, AWMC took out the biggest loan since becoming a cooperative, amounting to p614 2000. Successful repayment rates allowed them to have continuous loans. From 1999 to 2000, AWMC was granted loans six times, totalling p2.2 million. This amount is almost double the amount of loans given to the women when they were still the AWA. Total loans extended to the group from 1991 to 2000 amounted to p3.3 million.

The bigger volume of loans has enabled the women to increase the volume of their trading activities and venture out of the province for their markets. This was helped in great measure by the “entrepreneurial” skills developed and enhanced by the project. Stories of women overcoming their shyness, gaining more self-confidence and self-esteem are common. The cooperative’s present bookkeeper, for example, used just to stay at home and look after the children and the house. When she joined the project, she was “transformed”, in her own words, from a shy and timid wife to an assertive and selfconfident woman. She is a self-taught bookkeeper. While she took an accounting subject in college, she learned hands-on bookkeeping under the tutelage of an LBP staff member who patiently took her under her wing. She is now serving the cooperative well, aside from implementing her own microenterprise of salt trading and hog fattening.

There are other stories of women whose livelihoods improved as a result of project assistance. The story of Raquel is illustrative. Before she joined the project in 1995, she accompanied and helped her husband to fish in the nearby waters. They went out to sea to fish twice a day and she would later sell the catch. They did this for two years. Fishing was not, however, earning them enough to support a growing family so they sold the boat and used the proceeds to lease a fish pond of one hectare. At about this time, Raquel heard about the project and was encouraged to join. She was able to borrow p8 000 as capital for the fish pond. She took out two more loans that she used to buy more inputs and some heads of hogs for fattening. She also went into salt production and is still selling fish while the husband takes care of the fish pond. They were able to buy a motorcycle to transport fish to the market. Raquel said this would never have happened without the credit assistance from the project.

Credit performance was affected by the nature, and therefore the mandate, of the banks involved in the project. LBP, a government development bank, is mandated to assist people in the countryside. Thus, despite changes in management at the field offices, the development perspective is maintained and carried out by the bank manager. As a result, attention and resources are given to the project. Successive renewals of the MOA indicate continuing support to the project. LBP was also aggressive in its efforts to collect from the women, even if loans were fully guaranteed. The guarantee fund grew because of accumulated interest earnings as well as recoveries that have likewise accrued to the fund.

In the case of ABC, a commercial bank, the experience of Capiz seemed to suggest that the extent of support and enthusiasm was dependent on the appreciation and “development-orientation” of the bank manager. The first bank manager possessed such qualities and thus extended the necessary support to the project; unfortunately, the succeeding two managers were not so keen on “small” transactions and were more attuned to commercial banking culture.

Pangasinan’s experience of linking with a development bank, although not entirely free from administrative and management problems, seems to offer better prospects for ensuring and sustaining women’s access to formal financial institutions. There is still scope, however, for improving systems and procedures to serve the financial needs of women better.

4.3 Role of field workers and credit in group growth and development

Organized groups function as vehicles for change. They also provide a support mechanism to help women mobilize resources. More important for this project, they serve as receiving and catchment mechanisms for social and economic development inputs. It is therefore critical that they be provided with support and guidance for growth. The presence and continuity of services provided by field workers and the banks have significantly affected the growth and development of WGs.

In Capiz, the almost total disengagement of field staff, as a result of the shift in focus to upland communities after the project, has adversely affected the coastal WGs. The absence of the field workers was made even more critical by the bank discontinuing the lending programme. These twin events reinforced each other in contributing to a period of inertia in group development. Regular monthly meetings, which also served as loan collection periods, were discontinued. While the WGs were in various stages of development after the project, a majority of women were still inadequately prepared for the task of ensuring the viability of their groups. They still required the presence and the facilitating role of the field workers.

5 CONCLUSIONS AND RECOMMENDATIONS

The case study generally found positive economic and social benefits for women, resulting from project assistance. Findings demonstrate that several years after the official termination of official funding support in 1994, the positive changes have, for the most part, been maintained.

Lessons from project experience underscored the importance of understanding and acknowledging the realities in which women live, i.e. their multiple roles, the range of work in which they are engaged, and the ways in which they balance each type of work against the other, when designing project inputs and interventions. Women’s need for income exists simultaneously with the need to ensure the family’s health, nutrition and education. The project has tried to address these needs through the introduction of a package of services.

The importance of providing “social intermediation” and social preparation activities should be seriously considered when designing programmes for women with a credit and microenterprise development component.

Gender is also of concern for community-based coastal resource management (CBCRM). The endangered state of fishery resources in coastal communities makes women even more vulnerable. Because they depend on fisheries as the resource base of their livelihoods, they must have a significant stake in the management of resources. The potential contribution of women in CBCRM activities remains unharnessed. Government programmes have generally been remiss, as there have been no conscious efforts to include women in these programmes. Since women as a group constitute one of the primary stakeholders in any CBCRM initiative, there must be a deeper understanding of their roles and contributions. They must be included deliberately in training programmes and other specialized activities in CBCRM programmes. Women can play a valuable role in providing and gathering information for resource assessment studies, since they are familiar with the environment. Conservation efforts have a better chance of success if women are involved because they can influence men/ husbands who are directly involved in the exploitation of coastal resources. Women have also been known to be more effective as fish wardens or fishery law enforcement volunteers.

The worsening state of depletion of fishery resources makes it also more imperative to give women access to credit for financing alternative livelihoods. This also serves as a conservation measure since it means less dependence on fisheries, thus reducing pressure on the resource and ensuring the survival of fishing households. Women are better placed because they can also be engaged in productive and alternative work that is not necessarily fishery-based. They have also proved to be good borrowers.

In conclusion, improving women’s status is a long-term process, requiring efforts that are characterized by commitment, sincerity, regularity, appropriateness, timeliness and efficiency. Improving women’s status is both a means and an end in itself. In both microcredit and CBCRM programmes, every effort must be made to rally support in bringing women in “from the margin to the mainstream”.

6 BIBLIOGRAPHY

Bureau of Fisheries and Aquatic Resources. 1999. Philippine fisheries profile. Manila.

Bureau of Fisheries and Aquatic Resources. 2000. FARMC Year-End Report 2000. Manila.

FAO. 1995. Terminal Report of PHI/89/P16. Rome.

Tagarino, R.N., Miralao, V.A. & Ortiona, C.J. 1994. Improving the status of disadvantaged women in small-scale fishing communities of Capiz and Pangasinan, Philippines. An evaluation of project PHI/89/P16. Quezon City, the Philippines.

UNFPA. 1990. Women and microenterprise development. Women, Population and Development Branch, Technical and Evaluation Division. New York.

UNFPA. 1994. Women and microenterprise: an assessment of UNFPA experience. Evaluation Report No. 6. New York.

Villareal, L.V. 1993. An initial assessment of project impact on selected PHI/89/P16 women focusing on specific economic and social gains. Quezon City, the Philippines.

Villareal, L.V. 1998. Improving the status of disadvantaged women in small-scale fishing communities of Capiz and Pangasinan: a post-evaluation report. Quezon City, the Philippines.

UWE TIETZE

Fish farmers and extension workers in northern Viet Nam

UWE TIETZE

Microcredit in support of women, poverty alleviation and upland aquaculture in Viet Nam

1 BACKGROUND AND OBJECTIVES

This case study summarizes the activities and results of the FAO/UNDP-supported project VIE/98/009 “Aquaculture Development in the Northern Uplands of Viet Nam”. The experiences and results of this project have then been generalized and presented in the form of a model of a microcredit programme that could be adopted by other countries and used for designing other microcredit programmes in support of aquaculture development and poverty alleviation. The model lending policies, procedures, regulations and organizational arrangements are given at the end of the paper.

The project aimed to reduce poverty and enhance local food security among poor upland ethnic communities through small-scale aquaculture development. This was done by strengthening the local capacity of poor and remotely located ethnic communities and organizations of the 50 pilot communes located in the three northern upland provinces of Hoa Binh, Son La and Lai Chau.

The productivity of small-scale aquaculture in upland areas was increased through:

The project also emphasized the empowerment of women through:

2 PROJECT EXECUTION

The project was executed by the Ministry of Fisheries (MOF) and implemented by the Department of Agriculture and Rural Development in the three project provinces. FAO was the co-implementing agency and provided project technical assistance through the services of international consultants under the Support for Technical Services component.

The project commenced in April 1999 with the appointment of the National Project Director and the National Project Manager. The MOF provided the services of personnel and office facilities for the project management unit in Son La town. The provincial governments of Lai Chau, Son La and Hoa Binh provided facilities for provincial implementation units of the project under the respective Department of Agriculture and Rural Development offices. All three provincial implementation units were headed by Vice-National Project Directors who were responsible for implementing and monitoring project activities in their province.

3 ORGANIZATIONAL ARRANGEMENTS OF THE MICROCREDIT SCHEME

Women’s Unions (WUs) at commune, district and provincial levels played a key role. The individuals, groups and organizations involved in the microcredit scheme as well as their roles, obligations and privileges were those described below.

Members of aquaculture credit groups (ACGs)

Management committees of aquaculture credit groups

District Women’s Unions

Provincial Women’s Unions

National Aquaculture Extension Centre/Provincial Agriculture and Rural Development Department

4 PROJECT RESULTS, ACHIEVEMENTS AND IMPACT

Overall, the microcredit component of project VIE/98/009 can boast an impressive performance with regard to poverty alleviation and livelihood enhancement for socially disadvantaged ethnic minorities in three mountainous provinces in northern Viet Nam - Lai Chau, Son La and Hoa Binh.

The achievements can be described in terms of well-functioning aquaculture microcredit groups and credit management committees; savings generated; amount and number of loans disbursed and recovered; turnover and efficient use of capital and savings; building of national capacity for the design and implementation of microcredit schemes in support of aquaculture development in upland areas; the active participation of women and the poor in the management of the scheme; and use of credit for aquaculture development.

By the end of the project, D1 million 47 132 had been disbursed (US$314 213). This is more than double the amount (209 percent) that had originally been allocated in the project budget for credit disbursements. It shows that the funds have actually revolved as farmers repaid their loans and the amounts repaid were then used for further loan disbursements.

Altogether, 3 630 households in all six districts of the project were reached by the microcredit component of the project, received loans and deposited savings.

Loan repayment was excellent and the ratio of amount due for repayment and amounts repaid was as high as 100 percent in Son La province and 98 percent in Hoa Binh and Lai Chau provinces. The excellent repayment figures were achieved despite short repayment periods which, in most cases, did not exceed 12 months.

As far as the impact of the project by income stratification is concerned, initially the majority of loan recipients belonged to the middle-income group while poor farmers benefited to a lesser extent from the credit support provided by the project. A better capacity for improving their aquaculture practices and the willingness to incur debt for this purpose were probably the major factors behind the leading role of the middleincome group in the use of credit for improvement of their aquaculture practices.

Later, however, this trend changed as poor households as well as the village authorities became more confident that fish farming was a technically and economically viable activity. At the end of the project, 68 percent of all loan recipients can be classified as poor households, 31 percent belonged to the middle-income group and only 1 percent belonged to the upper income level category.

The project reached its target group, i.e. the ethnic minorities in the three mountainous provinces of Son La, Hoa Binh and Lai Chau. The ethnic minorities that benefited from the project include the Thai, Muong, Khmu and H’mong ethnic groups.

The active participation of women in the management and use of credit for aquaculture development was also achieved. The majority of the members of the management committees and group members are women as are 85 percent of the credit recipients.

The achievements in the three provinces are shown in Figure 1.

In terms of continuation and expansion of the microcredit programme in Viet Nam and its sustainability, VBARD and the Viet Nam Social Policy Bank (VSPB), together with the Women’s Unions of Viet Nam, are at present expanding the programme to other parts of the country, using national financial resources once donor support has ended.

FIGURE 1

Results of microcredit component of the project, by province

The DANIDA-supported SUFA component of the Fisheries Sector Programme Support (FSPS) is currently implementing a similar microfinance model in one northern and two central provinces of Viet Nam.

5 MODEL OF MICROFINANCE PROGRAMME OF FINANCIAL INSTITUTIONS AND WOMEN’S UNIONS IN SUPPORT OF FRESHWATER AQUACULTURE

Drawing on the experiences and results of the FAO/UNDP-supported project VIE/98/009, a model of a microcredit programme has been developed, which could be adopted in other countries and used to design other microcredit programmes in support of aquaculture development and poverty alleviation. The model lending policies, procedures, regulations and organizational arrangements as well as the forms and records to be used in the programme are detailed in the following sections.

5.1 Memorandum of Understanding on the administration of a microcredit programme for freshwater aquaculture in ...

The financial institution ...
The Ministry of Fisheries of the Socialist Republic of Viet Nam
and the Provincial Women’s Union of ...

Article 1: Parties

The parties to the Memorandum of Understanding are the financial institution ..., the Ministry of Fisheries/National Aquaculture Extension Centre and the Provincial Women’s Union of ...

Article 2: Purpose and context

The purpose of this Memorandum of Understanding is to support farmers in ... communes of ... provinces to develop freshwater aquaculture, in order to diversify income-generating activities of households with the ultimate objectives of increasing incomes and improving livelihoods. The microcredit programme/revolving fund in support of aquaculture, agreed upon in this Memorandum of Understanding, is meant to assist farmers who lack the financial means that are needed to improve their aquaculture practices.

Article 3: Responsibilities of the financial institution, the Ministry of Fisheries/National Aquaculture Extension Centre and the Provincial Women’s Union

3.1 The financial institution shall provide funds to the District Women’s Unions (DWUs) of the ... districts of ... province for lending to fish farmers who are members of aquaculture credit groups (ACGs). The funds shall be used as a revolving fund. Loans that have been repaid shall be used again for lending to other members of the ACGs. In order to implement the microcredit programme, the financial institution shall provide the amount of D... to the above DWUs. The DWUs of ... shall each receive ... percent, ... percent and ... percent. The DWUs shall use the amount to establish an aquaculture microcredit programme/revolving fund in close cooperation with the aquaculture extension services and the districts and communes of the province.

The amount shall be transferred on signing of this Memorandum of Agreement subject to the receipt of approved lists of loan applications from the DWUs. The amount will be made available in two instalments. The first instalment of 60 percent of D... shall be transferred by the financial institution to the bank accounts of the above DWUs in accordance with the attached regulations and above-mentioned distribution key. The second instalment of 40 percent of D... shall be made available on ... to be used for loans in preparation for next year’s culture season.

3.2 The Ministry of Fisheries, through its aquaculture extension services, is responsible for assisting members of ACGs in the preparation of production plans, assisting WUs and Loan Application Examination Boards in the appraisal of loan applications, in loan disbursement and in the monitoring of loan use. The Ministry of Fisheries is also responsible for providing extension services to members of ACGs who have obtained loans from the project, and for supporting them in their production efforts.

3.3 The Provincial Women’s Union (PWU) is responsible overall for the administration and implementation of the microcredit programme through the concerned DWUs and in accordance with the regulations of the programme, which are attached. More specifically, the concerned DWUs shall:

Members of ACGs established by the project shall be able to borrow capital with the monthly interest of 0.7 percent. The interest shall be utilized to cover the operational expenses of Provincial Women’s Unions, District Women’s Unions, the Commune Aquaculture Credit Management Committees and for the capital development fund of the CACMCs as specified in the attached regulation.

Article 4: Audit

The accounts of the District Women’s Union and Commune Aquaculture Credit Management Committees related to the use of the credit funds to be provided under this Memorandum of Agreement shall be audited by the financial institution before the end of each calendar year, i.e. 31 December. All necessary records and documents for the audit shall be made available to the financial institution by the Provincial Women’s Union.

Article 5: Renewal and termination of Memorandum of Agreement

5.1 The Memorandum of Agreement is subject to renewal on 15 January each year, based on mutual consent between the financial institution and the Provincial Women’s Union and on the results of the annual audit.

Whereupon, on this day, .............................., the three parties do set their hands and sign in agreement of the above as a contract binding in Vietnamese law.

For and on behalf of the financial institution

For and on behalf of the Ministry of Fisheries of the Socialist Republic of Viet Nam

For and on behalf of the Women’s Union of .................. province

5.2 Regulations on the operation and administration of the aquaculture microcredit programme

CHAPTER I. OBJECTIVES

Article 1: Objectives of the aquaculture microcredit programme

1. The aquaculture microcredit programme aims to provide credit to households in ... communes of ... districts of ... province, who are assisted by the Ministry of Fisheries/National Aquaculture Extension Centre to develop their aquaculture practices. Credit shall be available for pond culture of fish, fish-cum-rice culture, fish seed production and other related purposes.

2. Credit for the development of aquaculture practices is to be provided under appropriate conditions and in a timely manner to encourage rural households to diversify their income-generating activities, to increase household incomes and to meet the nutritional needs of rural populations.

3. The aquaculture microcredit programme further aims to introduce a sustainable mechanism for providing credit to and mobilizing savings from rural households, who aim to improve their livelihoods through the development of aquaculture. It thus also aims to enhance the savings habits, financial management skills and entrepreneurial skills of rural households.

CHAPTER II. ORGANIZATIONAL ARRANGEMENTS AND RESPONSIBILITIES[10]

Article 2: Level of operation

The microcredit programme shall operate at five different levels:

The agencies that will be operating at the various levels and their authorities and responsibilities are described below.

Article 3: Authority and responsibilities of the financial institution

The financial institution shall have the authority and responsibility to:

Article 4: Authority and responsibilities of Provincial and District Women’s Unions

1. The Provincial Women’s Union (PWU), under the supervision of the financial institution, is responsible overall for the administration and implementation of the aquaculture microcredit programme through the concerned District Women’s Unions (DWUs).

2. The DWU, in cooperation with the concerned aquaculture extension agencies/ workers, shall directly implement the credit programme and receive and administer the credit funds received from the financial institution for lending to aquaculture households.

3. The concerned DWUs shall organize and conduct local training for members of Commune Aquaculture Credit Management Committees (CACMCs) as well as for loan recipients on enterprise development/preparation of aquaculture production plans and on credit administration and management. The cost of such training will be borne by the financial institution and the Ministry of Fisheries, subject to prior agreed training plans and availability of funds.

4. The concerned DWUs, with help from the concerned aquaculture extension services, shall assist the aquaculture groups and their CACMCs in the preparation of aquaculture production plans and loan applications.

5. The concerned DWUs, with help from the concerned aquaculture extension services, shall receive and appraise loan applications and organize loan disbursements based on lists of approved loan applications prepared by the Loan Application Examination Boards (LAEBs).

6. The concerned DWUs shall monitor and supervise the credit operations of the CACMCs as well as the use of loans by borrowers. This includes field visits and on-the-spot auditing of accounts and financial records. In case of problems and/or delayed or non-repayment of loans, the PWU and DWUs shall take and advise on corrective action.

7. The concerned DWUs shall ensure that loans are repaid fully and on time. In the case of late repayment, genuine and wilful default, DWUs will help the concerned CACMCs to take appropriate action.

8. The concerned DWUs shall maintain records of the use of the funds received from the financial institution, of loan disbursement and of recoveries.

9. The concerned DWUs shall prepare quarterly and annual reports on the credit operations and financial transactions of the commune-level credit management committees and submit these reports to the PWU for synthesis and comments and for forwarding to SUFA.

10. The PWU and its concerned DWUs shall each receive a part of the loan interest according to the provisions of these regulations.

Article 5: Commune aquaculture credit groups and management committees

1. Aquaculture credit groups (ACGs) at the commune-level: of the various aquaculture groups formed by the Ministry of Fisheries/National Aquaculture Extension Centre, two will be selected as eligible for credit support. These two groups shall be referred to as ACGs. The criteria of selection of the two ACGs from the already existing aquaculture groups shall be threefold:

2. Annual meeting of the commune-level ACGs: this meeting of the communelevel ACGs is the highest commune-level aquaculture credit authority. The annual meeting shall be attended by the members of the ACGs of the commune, the members of the CACMC, representatives of the WU and the commune aquaculture coordination group. Ad hoc meetings shall be held at the request of two-thirds of the members of the ACGs. At the annual meeting, the following activities shall be carried out:

3. Composition, authority and responsibilities of CACMC, head and members. CACMC is composed of the following five members:

The chairperson shall be a representative of the WU.

4. Authority and responsibilities of CACMCs. The management committee has the following authorities and responsibilities:

5. Authority and responsibilities of the head of CACCMC include:

6. Authority and responsibilities of secretary-cum-accountant of CACMC include:

7. Authority and responsibilities of treasurer of CACMC include:

8. Authority and responsibilities of heads of ACGs include:

9. Criteria for membership in ACGs, termination of membership and admission of new members:

10. Responsibilities of members of ACGs include:

11. Privileges of members of ACGs include:

12. Income and expenditure of ACGs. Commune ACGs shall have two sources of income:

CHAPTER III. LENDING PROCEDURES, SAVINGS MOBILIZATION AND DOCUMENTATION

Article 6: Loan application, appraisal and sanctioning

1. Members of ACGs shall submit a loan application form, which has an aquaculture production plan attached, clearly stating the purpose of the credit and other information relevant to the production activities of the household.

2. All loan applications shall be examined by a Loan Application Examination Board (LAEB) consisting of the following members:

3. While there is no requirement for collateral or mortgage, members who apply for credit must fulfil the following criteria:

4. After loans have been sanctioned by the LAEB, CACMC shall sign a credit contract with the DWU. Following this, a loan agreement will be signed between CACMC and each individual borrower.

5. Based on the list of loans approved by the LAEB, the DWU shall prepare a loan disbursement schedule, which mentions the details of the borrowers, loan amounts, and envisaged time and place of loan disbursements, and submit the same to the financial institution. The project shall then transfer the required funds to the account of the concerned DWU within ten days from the date of receiving the loan disbursement schedule. The loans shall then be disbursed directly to the member of the ACG without delay.

Article 7: Loan ceilings, lending periods, loan repayment

1. Loan ceilings, i.e. loan amounts to be sanctioned, shall depend on the aquaculture production plan, which households prepare with the assistance of the extension worker and CACMCs. The general maximum ceiling, however, is ... million D/ household. The ceiling can only be exceeded in exceptional cases with approval of the financial institution.

2. Repayment of principal - regarding lending and loan repayment periods, two principal cases can be distinguished, i.e. a one-year loan repayment period or an 18-month loan repayment period depending on the production plan. In the case of a 12-month loan repayment period, the entire loan principal will be repaid in one instalment after 12 months. In the case of an 18-month loan repayment period, 50 percent of the principal will be repaid after 12 months and 50 percent after 18 months.

3. Repayment of interest - in both cases, the repayment of interest is monthly and starts from the first month after loan disbursement and continues until the end of the loan repayment period.

4. Overdue loans and late repayment - to ensure financial discipline, the PWUs have the responsibility to ensure the timely repayment of loans by the ACGs. A loan is considered overdue when its repayment is more than three months behind schedule. In this case, the capital development and reserve funds of the CACMCs shall be used for liquidation of such loans.

In the case of late repayment (1-15 days after the due date), a reminder will be sent by CACMC to the borrower. After 15 days, interest will be charged at the rate of 1 percent per month instead of 0.7 percent.

5. Non-repayment of loans due to floods and death of borrower - if a loan cannot be repaid because ponds have been damaged or fish have been lost because of flooding, a joint assessment of the damage will be made by CACMC and the concerned DWU. The purpose of the assessment will be to see whether a rescheduling of the loan repayment is necessary or whether an additional loan needs to be given. If a part of the loan or the entire loan cannot be repaid, the loan will be liquidated against the capital development and reserve fund of the concerned CACMC. In the case of death of a borrower, members of the borrower’s household shall repay the loan. Should these, however, not be in a position to repay a part of or the entire loan, the loan will be liquidated against the capital development and reserve fund of the concerned CACMC.

Article 8: Savings mobilization

1. The following savings mechanism will be introduced:

2. Interest on savings deposits (minimum savings period: six months) - interest shall not be less than the interest paid by the Viet Nam Bank of Agriculture.

FIGURE 2

Organizational arrangements of aquaculture microcredit programme

FIGURE 3

Flow of credit funds

3. Withdrawal of savings deposits - savings deposits can only be withdrawn when a member of the ACG ends her/his membership and leaves the group.

Article 9: Documentation

CACMCs shall maintain the following records of their lending and savings operations:

5.3 Forms and records to be used in the aquaculture microcredit programme

The following forms and records will be used in the programme:

For loan application

For loan appraisal and transfer of funds

For loan agreement

For financial records, accounts and reports

Records to be maintained by DWU:

Records to be maintained by CACMC:

Records of ACG:

Records of borrower:

Form 1

LOAN APPLICATION FORM

1. Residence of borrower

1.1 Village .................

1.2 Commune ........................

1.3 District .......................

1.4 Province ......................

2. Particulars of borrower

2.1 Full name ....................

2.2 Age ..............

2.3 Gender: Female Male

2.4 Ethnic group ..............

2.5 Number of identity card ...............

2.6 Living standard of household (as assessed by commune People’s Committee)

(mark .)

Good

Average

Poor

2.7 Female-headed household: yes no

2.8 Outstanding loans

Has the household any loan outstanding at present? yes no

2.9 Full name and postal address of legal inheritor of borrower’s household

3. Loan amount requested (for details see aquaculture production plan)

3.1 Loan amount

In figures D................ (in words ...............................................dong)

3.2 Purpose of loan

Pond culture

Fish-cum-rice culture

Fish nursery

4. Source of income for repayment

4.1 From fish culture

Two-thirds or more of repayment about half less than half

4.2 From sources of income other than fish culture

Two-thirds or more of repayment about half less than half

I hereby assure to use the loan for the purpose indicated above, to repay the loan fully and on time and to comply with the regulations of the aquaculture microcredit programme.

Date

Loan applicant’s signature

Commune People’s Committee signature

Commune Aquaculture Credit Management Committee’s signature

Form 2

AQUACULTURE PRODUCTION
(to be attached to loan application form)

1. Size of pond, production cycle and expected income

1.1 Size of fish pond/rice field ................................. m2

1.2 Date of stocking of pond ........................

1.3 Date of harvesting of pond and expected income ...............

Estimated date of harvesting

Species to be harvested

Estimated quantity (in kg)

Expected income (in dong)













Total expected income




2. Expenditure and credit requirements

2.1 Cost of purchase of fish seed

Species of fish

Quantity of fish seed needed

Unit cost (in dong)

Total cost (in dong)





















Total cost of fish seed




2.2 Cost of transportation of fish seed ..................................... dong

2.2.1 Total cost of fish seed and transportation .............................. dong

2.3 Cost of labour for pond preparation/renovation ..................... dong

2.4 Cost of equipment/materials (fishing nets, etc.) ..................... dong

Type of equipment

Quantity

Unit cost (in dong)

Total cost (in dong)













Total cost




2.5 Cost of feed, fertilizers and chemicals/materials for pond preparation

Type of feed, fertilizer, chemicals, etc.

Quantity

Unit cost (in dong)

Total cost (in dong)





















Total cost




2.6 Other costs/expenditures

Specify cost item

Amount ............................... (dong)

2.7 Total expenditures (2.2.1 + 2.3 + 2.4 + 2.5 + 2.6) ............................... (dong)

2.8 Equity contribution of borrowing household ...................... (dong)

2.9 Credit requirement of borrowing household (2.7 minus 2.8) ............. (dong)

3. Other sources of household income

Type of income-generating activity

Months during which the activity is carried out

Annual income (in dong)













Total income




Date

Loan applicant’s signature

Form 3

LOAN AGREEMENT BETWEEN CACMC AND MEMBERS OF ACG

This loan agreement is made between the Commune Aquaculture Credit Management Committee (CACMC) of ................ (commune), .................. district), ............ (province) and ...................... (name of borrower/member of aquaculture credit group [ACG]), resident of ................................ (address) on ................... (date).

1. The Commune Aquaculture Credit Management Committee hereby agrees to provide a loan to ...................... (name of borrower) according to the following terms:

Due date for repayment of principal

Loan terms

Amount to be repaid


12 months

18 months



100 %

50 %




50 %


2. The borrower hereby:

Agreed to and signed on behalf of
Head of Commune Aquaculture Credit Management Committee
Secretary-cum-Accountant of Commune Aquaculture Credit Management
Committee
Borrower/member of ACG

Form 4

LOAN APPRAISAL

Submission of loan appraisal report from Commune Aquaculture Credit Management Committee to District Women’s Union (to be attached to request for transfer of funds from financial institution to DWU)

Commune ............................ District ........................... Province ...............

Date ...................

The Commune Aquaculture Credit Management Committee (CACMC) of ................. (commune) hereby informs that, in accordance with the regulations of the aquaculture microcredit programme, the Loan Application Examination Board of .......... (commune) has duly appraised the loan applications submitted by the members of the two ACGs under its jurisdiction.

The Loan Application Examination Board consisted of the following members:

1. Representative of the People’s Committee .......................................
2. Head of CACMC ...................................................
3. Secretary-cum-Accountant of CACMC ................................................
4. Treasurer of CACMC ..............................
5. Head of Aquaculture Credit Group .........................
6. Head of Aquaculture Credit Group ..........................

The Loan Application Examination Board has sanctioned the following loan applications:

Name of borrower

Purpose of loan

Requested amount

Sanctioned amount

Loan term

1





2





3





4





5





6





7





8





9





10





For the Loan Application Examination Board

Representative
of People’s Committee

Head of
CACMC

Secretary-cum-Accountant
CACMC

Form 5

REQUEST FOR TRANSFER OF FUNDS FROM FINANCIAL INSTITUTION TO DISTRICT WOMEN’S UNION

District ........................... Province ...................

Date ...................

Dear Madam/Sir,

With reference to the attached submissions of loan appraisal reports from the Commune Aquaculture Credit Management Committees of ..................... (names of communes), you are hereby kindly requested to transfer the funds indicated in the table below to our account ......... (number and details of account).

No.

CACMC

Requested loan (D1 000)

Total
(D1 000)



Loan period 12 months

Amount of loan

Loan period 18 months

Amount of loan


1







2







3







4







5







6







Total







Information copy sent to Provincial Women’s Union of ....................................

Date

President of District Women’s Union

Form 6

ACCOUNTS OF DISTRICT WOMEN’S UNION

District Women’s Union of ....................................... district

Date

Description

Receipt (in dong)

Disbursement (in dong)

Balance (in dong)

Note







Balance brought forward



























































Page sum











Month sum





Form 7

CREDIT AND SAVINGS REGISTER

Name of commune ..............................

Date

Description

Income (in dong)

Expenditure (dong)

Balance

Loan repayment

Savings

Lending

Other[11]

Principal

Interest

1

2

3

4

5

6

7

8









Balance brought forward































































Page sum















Month sum







Form 8

BORROWER’S FILE

Name of district .........................................
Name of province ........................................
Full name of borrower ...................................
Date of receipt of loan ...................................

Loan amount D...................... (in words ............................................. dong)

Loan term ........... months .......... Interest rate ........... percent/month

Date

Payment of principal

Payment of interest

Deposit of savings

Signature of accountant

Signature of treasurer











































Form 9

QUARTERLY PROGRESS REPORT

End of the quarter, ....... month ....... year ........

Commune ......................... District ......................

Present status at end of quarter

Receipts (in dong)

Expenditure (in dong)

Description

Amount

Description

Amount

1

Loan amount received


1

Lending


2

Repayment of principal


2

Operational expenditure of Provincial and District Women’s Unions


3

Repayment of interest


3

Operational expenditure of Commune Aquaculture Credit Management Committee


4

Interest on bank savings


4

Deposit of funds in bank savings


5

Savings deposits by members of aquaculture credit groups


5

Payment of interest on savings deposits


Total


Total


Change

Description

Previous quarter

Present quarter

Change

Repayment of principal




Repayment of interest




Number of loans disbursed




Savings deposits




Late and overdue repayment

Description

Number of loans

Amount

Percentage of total lending

Late repayment




Overdue repayment




Form 10

BOOK OF RECEIPTS

Aquaculture credit group ...............village ................ commune ................. district ............................... province ......................................

Date

Description

Receipts (in dong)

Signature of borrowers

Signature of treasurer

Savings

Interest

Principal
























































































































Form 11

LOAN AND SAVINGS PASSBOOK/VOUCHERS

(to be kept with borrower and each transaction to be documented on vouchers)

Full name of borrower ...................................................
Address ...................................................................

Savings (in dong)

Loan (in dong)
Date of receipt of loan ..........
Interest rate ....... percent/month
Loan amount .............. Loan term ....... months

Date

Savings deposit

With-drawal of savings

Balance

Signature[12]

Date

Repayment of principal

Payment of interest

Balance

Signature






































































































[9] In microfinance, “social intermediation” as an intervention strategy helps marginalized clients connect to more formal financial institutions through village banking, solidarity groups and other organizational forms.
[10] The organizational arrangements of the aquaculture microcredit scheme are shown in Figure 2. The flow of funds is shown in Figure 3.
[11] In this column, deposit of funds in a bank account should be entered, payment of interest on savings deposits as well as payment of interest, at the rate of 0.12 percent per month, to the District and Provincial Women’s Unions as well as withdrawal of interest, at the rate of 0.28 percent per month, towards the operational expenses of the Commune Aquaculture Credit Management Committee.
[12] Signature of group head, accountant or treasurer.

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