Demand for Credits Is Growing

In the two years of its work in Ukraine, the Micro-Financing Bank (MFB) has given over 10,000 credits and micro-credits totaling $57,000,000. According to the Head of the bank’s Board of directors, Volker Renner, half of the credits given in 2002 were small, under $2,000 each. This was expected as the bank chose crediting small and average businesses its priority direction. The Director of the Small Business Department of the EBRD (one of the MFB co-founders) and head of the MFB Supervisory Council Elisabeth Wollace said that the bank performs two important functions in Ukraine: giving a helping hand to small enterprises and serving as an example for other banks. Ms. Wallace added that MFB is planning to double its credit portfolio in 2003. The Director of the regional mission of the US Government Agency for International Development in Ukraine, Belarus, and Moldova Chris Crowley believes that the experience of Ukraine and other countries that practice micro-credits disproves the myth that entrepreneurs do not pay back their loans. The rapid growth of small enterprises in Ukraine is accompanied by a growing demand for credits. “We feel that small business is developing along with the financial institutions,” Mr. Renner said, stressing that the entrepreneurs’ expectations of banking service have also grown. MFB intends to continue developing its network in Ukraine and creating new banking products and services.