2008 Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report

In 2007, the countries of the Eastern Europe and Central Asia (ECA) region enjoyed high investment flows and experienced sustained economic growth and wage increases. Some countries were able to stabilize their economic and political systems to a level needed to become members of the European Union. In the face of this rapidly changing environment, microfinance institutions (MFIs), too, have been adjusting their activities. As opportunities for entrepreneurial activities expand in many countries with high economic growth, MFIs have been developing at a fast pace.

While this report illustrates the unique characteristics of the region as a whole, it is important to bear in mind that significant differences exist among the sub-regions and countries of Eastern Europe and Central Asia. A central theme of the report is to address this variety in the levels of microfinance development and provide an overview of the key trends in the general level of development, policy environment, funding sources, external investments and the performance of microfinance institutions. This report also includes an explanation of the data sources used, a list of acronyms, and additional tables.

The ECA region, as presented in this report, is made up of 22 countries with a total population of about 366 million people. The region can be divided into five sub-regions, each with distinct features that are exerting their marked influence on the local microfinance sector development. They are: the Balkans, Caucasus, Central and Eastern Europe (CEE), Central Asia (CA), Russia.

The ECA sub-regions are characterized by various wealth levels; overall, about 20 percent of the population, more than 71 million people, still live below the established national poverty lines.