FAO through the Agricultural Support Systems Division has been assisting the Members Nations to build viable financial systems in rural areas, by providing advice on designing and implementing systems and operational procedures which improve the efficiency and effectiveness of financial institutions. Ms Jennifer Heney, an Officer in the Division speaks of how microcredit fits in the mandate of the Organization.

Microfinance are basic financial services like credit, savings and insurance, which offer to people an opportunity to borrow, save, invest and protect their families against risks. Microfinance institutions, such as financial cooperatives, financial non-governmental organizations and rural banks among others, can provide poor people with small amounts of credit at reasonable interest rates. Although credit is an important part of microfinance, it is just one of the diverse financial services that poor people need to improve their lives. Ms Maria Eileen Pagura of FAO Rural Finance Group highlights the difference between Microfinance and Microcredit...

As part of the activities to mark the Year, the Rural Finance Group launched the Rural Finance Learning Centre (RFLC), a flagship to promote good rural finance practices and policies. This is an internet portal that provides access to a large variety of resources and online training materials covering a wide range of subjects related to rural finance, created for use by field practitioners, trainers, policy-makers, universities and donors. There will also be workshops on best practices in rural finance for those working directly with rural communities. Ms Jennifer Heney and Maria Eileen Pagura explain: