The 10th International Microfinance Conference (IMC) took place in Sofia between May 31 and June 2.

The conference was organised by the Warsaw-based International Microfinance Centre (MFC), a non-government organisation bringing together more than 100 microfinance institutions from 26 countries. The local IMC partner is the Bulgarian Microfinance Alliance (BMA).

More than 500 non-banking companies, representing 50 countries, took part in the IMC. Its aim was to focus on the microfinance and microcredit sector and support discussions with the relevant institutions.

For at least the past 10 years, many companies in Bulgaria have worked to build a system of financial and business support for small enterprises, and to help create self-employment opportunities for people with little or no income, those with disabilities and those who do not have access to bank loans. Since joining the EU, Bulgaria has a greater need for institutional development and support.

The conference focused on the legislative framework of the credit companies and the microfinance firms access to financial resource to develop their activities. The microfinance institutions provide financial services to unemployed people and those with low incomes who have difficulties getting these services from traditional finance sources. BMA is the main participant in this process and also works to create an adequate legislative framework for the co-operation between its member institutions. The laws need to able to allow finance companies within the BMA to attract money from other members while meeting clearly defined standards of financial stability. Without this funding, financial institution are dependent on subsidies, donations or expensive loans to finance their credit portfolios which is not sustainable, or competitive, in the long term. Currently, Bulgaria lags behind other EU member states on this legislation.

Over the next six years, the BMA will be focussing on the initiative JEREMIE (Joint European Resources for Micro to Medium Enterprises). Bulgaria will be given 200 million euro between 2007-2013 to provide loans to new or innovative small and medium enterprises (SME). The loans will have fewer restrictions and conditions placed on the SMEs than those traditionally provided by banks.

The conference also focused on the possibility of the micro finance institutions’s access to these resources.

Some of the organisations that are members of BMA are United Nations Development Programme (UNDP), United States Agency for International Development (USAID), German Co-operative Reifeisen Union (DGRV) and the Swiss Agency for Development and Co-operation.