CNFA: A training of trainers was provided to micro-crediting specialists

CNFA: A training of trainers was provided to micro-crediting specialists

• 28.09.2010

A training of trainers was provided to micro-crediting specialists with the support of the Farmer-to-Farmer Program.

15 specialists of the Rural Finance Corporation from Moldova, direct beneficiaries of the International Fund for Agricultural Development (IFAD), have participated in a training focusing on delinquent loan management, between September 21 and September 22. The training was conducted by Robert Reel, an American expert in micro-crediting, selected on a contest basis in order to voluntarily provide assistance within the Farmer-to-Farmer Program (FtF), implemented in our country by the USAID-funded organization CNFA.

The training has addressed several aspects of identifying and managing delinquent loans, as well as loan monitoring. During the training case studies were also performed, focusing on the categorization of delinquent loans, credit risk evaluation, risk portfolio identification, and methods for establishing the loan collateral Fund. After the training, the participants are expected to disseminate the skills and knowledge they have acquired by conducting similar trainings for the specialists of the Savings and Credit Associations, provided with credit via the Rural Finance Corporation.

The main purpose of the training was to generate an increase of the approved micro-credits after performing and adequate assessment of the financing risk for the agribusinesses. Currently most of the financing institutions are not actively involved in providing financing to the agricultural sector, given this sector is considered a high credit risk. This situation can be viewed as a lost loan opportunity, given the existing loan demand, as well as the significant amount of available funds.

Robert Reel has stayed in Moldova between September 13 and September 25, and his working schedule has included studying the situation for agribusiness lending in Moldova, preparation of training materials, conducting the training, and developing conclusions and recommendations on matters of delinquent loans management.

In 2009, another expert from the United States, Mike Steele, has conducted a similar training for bank specialists on matters of agricultural lending risk management. Furthermore, he has developed a quick loan risk evaluation system for the agricultural businesses in the Republic of Moldova. This year, the same expert has also assisted IFAD in developing and managing the database on agricultural lending risk evaluation and in identifying the basic elements required for analyzing financial ratios and data gathering methodology.

The FtF program provides the farmers’ groups, cooperatives, and agribusinesses with the opportunity to benefit from free American consultancy in order to improve their performances, by ensuring them a professional approach of the technical and financial matters. The consultancy is provided during a period of up to three weeks for two strategic agricultural sub-sectors - production of fruit and vegetables and dairy products.
 

For details please contact Nadejda MOCANU, Farmer-to-Farmer Program Coordinator (tel.: 022 24 03 11, 069 260 005, nmocanu@moldova.cnfa.org, www.cnfa.md)