1. HOUSING 31.03.2007.

2. AGENDA Who are we? The most vulnerable Curent situation Models of action Loans Other Trainings Why us ?

3. WHO ARE WE ? * Founded – December,12 2000 * Donors – UNHCR, Sida, JDC, LRC, CWS, ICRC, EP, Embassy of the Kingdom of Netherlands * Projects - micro loans, housing, trainings, access to market and consulting

4. COVERAGE Teritorial Coverage 1. Beograd 4. Kragujevac 5. Topola 6. Novi Pazar 2. Vrbas 3. Šabac 2001 2002 - 2003 2004 6. Novi Sad (Head Office) 7. Subotica 8. Sombor 9. Kikinda 10. Pančevo 11. Zrenjanin

5. The most vulnerable * Refugees * Single mothers * IDPs * Local population Their families

6. Number of Dependants 0 20000 40000 60000 80000 2001 – March 2007 23001 Number of disbursed loans 66132 Number of dependants

7. CURRENT SITUATION - no legal framework for microfinance - current social and economics reforms - banking system - lack of funds + total number of disbursed loans 23001 + successfully finished our courses > 75 0 CONSTRAINTS SUCCESSES

8. Lack of funds 0 1 2 3 4 5 6 7 8 9 10 2001 2002 2003 2004 2005 (Mil. EUR ) Needs Funds

10. Micro Loans Details * Loan amount ranging between EUR 250- 4 , 5 00. * Monthly interest rate is 1,2% - 1,5% * A ll types of businesses (services, trade, agriculture, animal husbandry, production) * Repayment period i s from 6 to 24 months * All loan s require collaterals

11. Gender structure 5000 10000 15000 20000 25000 2001 – March 2007 0 61% Male 39% Female

12. Area structure 0 2000 4000 6000 8000 10000 12000 2001 – March 2007 51% Large City 22% Town 27% Rural

13. Business structure (in %) Services Animal Husbandry Trade Production Agriculture No of loans 0 2500 5000 7500 10000 12500 58 14 12 10 6

14. Employees structure Every disbursed loan results in 0,59 new job created. 0 6000 12000 18000 24000 30000 2001- March 2007 13542 No of new employees 28761 No of emp. before Loan

15. Monthly Portfolio Outstanding 200 6 200 7 Month OSP # Active Clients January 4,082,265€ 3950 February 4,101,304€ 3901 M ar ch 4,213,337€ 3900 April 4,338,816€ 3943 May 4,510,117€ 3976 June 4,613,592€ 3987 July 4,697,740€ 3994 August 4,719,648€ 3959 September 4,783,154€ 3946 October 4,896,190€ 3980 November 5,007,288€ 4085 December 5,114,883€ 4163 Month OSP # Active Clients January 5.063.885€ 4141 February 5.279.058€ 4208 M ar ch 5.431.132€ 4215

16. Monthly Client Retention Rate 200 6 200 7 Repeat 49,8% 50,7% 51,8% 51,9% 52,7% 53,8% 55,1% 55,5% 56,1% 57,0% 56,9% 56,8% Month # Active Clients Loan Cycle First Second Third >=Fourth January 3950 1984 777 716 473 February 3901 1922 778 716 485 March 3900 1879 800 721 500 April 3943 1896 817 717 513 May 3976 1882 835 706 553 June 3987 1841 844 716 586 July 3994 1794 852 733 615 August 3959 1761 858 714 626 September 3946 1732 862 695 657 October 3980 1713 875 711 681 November 4085 1761 898 723 703 December 4163 1797 910 740 716 Month # Active Clients Loan Cycle First Second Third >=Fourth January 4141 1770 916 724 731 February 4208 1816 905 728 759 March 4215 1804 885 741 785

17. Monthly Portfolio at Risk 200 6 200 7 Month PAR > 30 PAR > 30 Value January 0.74% 30,120€ February 0.96% 39,446€ March 0.83% 34,903€ April 0.86% 37,464€ May 0.78% 34,984€ June 0.67% 30,725€ July 0.59% 27,740€ August 0.58% 27,140€ September 0.73% 34,820€ October 0.66% 32,078€ November 0.52% 25,957€ December 0.56% 28,814€ Average 0.71% 32,016€ Month PAR > 30 PAR > 30 Value January 0.59% 29,792€ February 0.51% 26,691€ March 0.78% 42,482€ Average 0.63% 32,016€

18. Monthly Interest Income 200 6 200 7 Month Interest Penalties Total Repayment Rate January 86,356€ 5,344€ 91,700€ 82.68% February 89,245€ 5,458€ 94,704€ 80.74% March 97,099€ 5,540€ 102,639€ 84.91% April 87,625€ 4,782€ 92,407€ 81.58% May 96,959€ 5,777€ 102,736€ 85.05% June 95,763€ 5,024€ 100,787€ 83.23% July 99,008€ 5,593€ 104,601€ 84.41% August 98,368€ 5,590€ 103,958€ 84.29% September 97,587€ 5,420€ 103,006€ 83.42% October 100,621€ 5,746€ 106,367€ 84.35% November 103,424€ 5,833€ 109,256€ 84.70% December 104,979€ 4,757€ 109,736€ 85.63% AVERAGE 96,419€ 5,405€ 101,825€ 83.75% TOTAL 1,157,033€ 64,863€ 1,221,898€ NA Month Interest Penalties Total Repayment Rate January 103.594€ 5.916€ 109.510€ 85,06% February 102.627€ 5.368€ 107.995€ 83,44% March 108.660€ 5.314€ 113.974€ 84,90% AVERAGE 104.960€ 5.533€ 110.493€ 84,47% TOTAL 314.880€ 16.598€ 331.478€ NA

19. Monthly Write-offs 200 6 200 7 Month Writen Off Amount Recovered Ammount January 2,639€ 155€ February 74€ 906€ March 1,609€ 939€ April 24€ 334€ May 1,184€ 544€ June 1,805€ 112€ July 4,402€ 307€ August 2,340€ 463€ September 627€ 447€ October 177€ 423€ November 975€ 387€ December 1,335€ 431€ AVERAGE 1,432€ 454€ TOTAL 17,190€ 5,448€ Month Writen Off Amount Recovered Ammount January 1.249€ 25€ February 380€ 555€ March 107€ 843€ AVERAGE 578€ 474€ TOTAL 1.735€ 1.423€

21. Other * Course for entrepreneurship * Access to market and consulting * Microfinance school for other NGOs

22. WHY US ? * We are good at what we are doing * Achieved results : * Successful clients Total Number of loans disbursed 23 . 001 Total Amount disbursed ( EUR ) 29 . 715 . 552 Impact - Number of new jobs created 13 . 542 Impact - Number of dependants 66 . 132 Deli n quency - P.A.R. 0.6 %

23. AGENDA About History Loans Conditions Loans Size and Term Beneficiaries Applicants Collaterals Follow Up Results

24. ABOUT * Housing Project is designed to provide a permanent solution for refugees and IDP's, still accommodated in collective centers or in very poor private accommodation. * The specific objective of this project is to offer alternate solutions to people in need of normal living conditions and support them in realization of durable solutions for their future life.

25. HISTORY * First housing loans MicroFinS disbursed in November 2004 in cooperation with Church World Service (CWS). Criteria required that beneficiaries are residents of Serbia's collective centers but have began building houses and left them unfinished in their initial phase due to the lack of funds. * In 2006 MicroFinS has launched new Housing in cooperation with UNHCR and CWS.

26. LOANS CONDITIONS - late payment penalty fee is 0,2% per day, calculated on monthly installment basis; - all loans are offered at flat interest rate of 0.8% per month; - loan amount is ranging between 2.000 € and 4.000 € with the repayment period from two up to four years; - individual lending methodology is utilized;

27. LOANS CONDITIONS - initial loan disbursements are in national currency; monthly repayments are required in national currency as well; - all payments have to be made through correspondent bank or post offices; credit officers are not permitted to accept cash payments; - clients are required to provide one or combination of several types of guarantees or collaterals.

28. LOANS * Loan size for this new Housing is ranging according to the following policy: Amount Period 2,000.00 € 24 months 3,000.00 € 36 months 4 ,000.00 € 48 months

29. T he beneficiaries must meet the following criteria: * refugees ought to have citizenship of Serbia; * permanent source of income at the moment of application (at least one member of the family should be employed); * property status in the country of origin and in Serbia.

30. Collaterals * promissory note signed by the borrower and 2 guarantors; * administrative ban on salary; * bank account authorization.

31. Selected applicants received a loan linked to: * building materials purchase; * costs of hiring highly qualified labor for adaptations or plumbing and electrical installations within the existing object; * buying of already existing rural property (house) that needed reparation.

32. Beneficiaries follow-up by MicroFinS * MicroFinS team will do a follow up and provide photos of all beneficiaries, in order to monitor the progress of their individual situation, to evaluate the initial use of credits, as well as to assure smooth loan repayment process until the end of the repayment period.

33. RESULTS * MicroFinS achived folowing results in housing : CWS CEB Over All Nr. of Active Accounts 50 136 186 Outs Balance 118,796.1 6 € 455,535.99 € 574,332.1 5 € Total Aproved Amou n t 158,447.00 € 535,000.00 € 693 , 447 . 00 € Average Loan Amount 3,168.94 € 3,933.82 € 3,551.38 € Average Nr. of Terms 47 47.1 47.05 Total Nr. o f Dependents 181 453 634 Average Nr. o f Dep endents 4 3 3.50

34. Mile Lalović before after

35. Nikola Jakovović before after

36. Zdravko Berić before after

37. Rajko Jaković before after

38. Momir Borak before after

39. Neca Vukojević before after

40. Mile Lalović before after