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Recent Articles & Presentations

Third Party Articles and Publications about IAMFI and with IAMFI Contributions

The following links offer recent articles written by IAMFI, presentations given by IAMFI at industry events and articles by third parties written about or with contributions from IAMFI. For press releases referencing IAMFI, please visit Recent Media Coverage.

IAMFI Articles and Publications

Charting the Course: Best Practices and Tools for Voluntary Debt Restructuring in Microfinance

February 2011

This paper summarizes findings by the IAMFI Microfinance Lenders Working Group (IMFLWG), which IAMFI spearheaded with financial sponsorship from Morgan Stanley. IAMFI convened the IMFLWG from among its members to develop processes that facilitate orderly workouts of troubled microfinance institution (MFI) debt. The paper presents research results, makes recommendations and offers four industry tools, with the objective to lessen future risks, allow MFIs to pursue sustainable growth and enhance the microfinance industry’s position as an attractive investment for investors seeking double bottom line returns.

Click here to view the slides and event summary of the IAMFI – Morgan Stanley Webinar Summary: Charting the Course: Best Practices and Tools for Voluntary Debt Restructurings in Microfinance.

IAMFI Microfinance Voluntary Debt Workout Principles

February 2011

These principles seek to guide struggling debtor Microfinance Institutions (MFIs), their creditors and other stakeholders as these parties participate in voluntary debt workouts rather than turning to litigation or court-administered insolvency or bankruptcy proceedings for the enforcement of claims against debtor MFIs. The principles are meant to inform the entire workout process; accordingly, they are most effective when consulted as soon as a debtor MFI’s weaknesses appear to be threatening its overall creditworthiness or ongoing viability. This document offers annotations in the shaded areas to clarify the principles’ purpose and application.

IAMFI Microfinance Intercreditor Agreement Template

February 2011

This document represents an annotated term sheet for Intercreditor Agreements (ICA) in voluntary microfinance institution (MFI) debt workouts. The main purpose of an ICA is to give a debtor MFI the opportunity to work with its creditors, shareholders and other relevant stakeholders to determine the feasibility of developing a cohesive and viable plan for restructuring outstanding debt obligations and/or resolving other issues that threaten the viability of the debtor’s business or operations. Annotations in the shaded areas clarify the clauses’ purpose and application.

IAMFI Menu of Debt Restructuring Options

February 2011

This set of options serves to guide the initial design of a restructuring proposal by lenders, shareholders and microfinance institution (MFI) management. There is a trade-off between the level of complexity, or execution risk, and the ability of the restructuring to meet the various needs of participating creditors.

IAMFI Microfinance Loan Covenant Review

February 2011

This document summarizes the confidential review of loan agreements used by microfinance investment vehicles (MIV) that the University of Michigan Law School’s International Transactions Clinic (ITC) conducted for the IAMFI Microfinance Lenders Working Group. It groups covenants into four general categories: reporting, financial, negative and affirmative covenants. The review describes standard covenants in microfinance institution (MFI) loan documentation and offers additional covenants that might be useful for advancing a voluntary debt workout with a stressed MFI. The annotations in the shaded areas clarify the covenants’ purpose and application.

Letter by IAMFI Submitted to the New York Times Editor

Joan Trant

Published by: IAMFI

April 14, 2010

IAMFI Presentation at Microfinance Institutional Investors: Investing in Illiquid Emerging Market Alternative Assets: Sample Approaches to Microfinance

Joan Trant

Published by: IAMFI

September 21, 2009

IAMFI Presentation at Women Advancing Microfinance - Atlanta: Investing in Microfinance

Joan Trant

Published by: IAMFI

May 22, 2008