Fiji vets role of microfinance

MF Focus, July 15, 2009:  Fiji is on path to see the benefits of microfinance, thanks to a financial literacy program undertaken by the United Nations Development Program.  Recognising the importance of MFIs, Reserve Bank of Fiji Governor Sada Reddy has said RBF would work on reviewing the regulatory framework to help facilitate further growth of microfinance institutions in the country.
Addressing participants at the beginning of the week-long Pacific Microfinance Week at the Raddisson Resort in Nadi, Reddy said the state is determined to see microfinance and rural banking develop in the country. “We will champion promotion and development of microfinance Fiji-wide… We have taken a more pro-active role in formulating financial strategies and policies,” he said.
Since financial literacy plays an important role in creating sustainable microfinance, he noted that “providing microfinance services only is not sufficient. It needs to be backed up with education and training programs.”
The Pacific Financial Inclusion Program (PFIP), one of the sponsors of the week, is a Pacific-wide program to provide sustainable financial services to low income households. It is funded by the United Nations Capital Development Fund (UNCDF), European Union and UNDP, and operates from the UNDP Pacific Centre.
Other issues discussed at the week included the role of commercial banks in microfinance, the impact and opportunities new technologies can provide for microfinance, networking opportunities for financial inclusion, current and planned support from bilateral and multilateral donors, building financial literacy in the Pacific, micro-insurance, role of credit bureaux and the role of central banks.

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