Moldova Microfinance Alliance (MMA), a non-governmental organization, was founded in 1997 with the mission to create and develop new institutions - credit and savings associations, cooperatives, micro and small scale enterprises. MMA has provided these institutions with on-site advice, training and assistance at obtaining financial resources in order to stimulate private initiative, social and economic development.

Up to present, MMA has launched 235 SCAs and 15 Cooperatives of entrepreneurs. Creation of SCAs represented just one stage in microfinance and access to finance development and an episode of a successful relationship between MMA - SCAs. The future collaboration of MMA with the newly created organizations materializes provision of training and consultancy assistance, and monitoring in order to increase Return on Assets and Return on Equity of SCAs and SCAs` members.

The training offered to SCA embraces, practically, the whole scale of aspects that they faced during their activity: Financial planning, Accounting principles Credit process, Risk management Internal control, Performance evaluation, Solving legal and regulatory issues.

The main principle that rules MMA-SCA interaction is ensuring the SCA viability and independence, so that the impact over the members` welfare would be the strongest and most beneficial. MMA compiles its knowledge and experience in manuals drafted on SCA management. Five manuals were published and delivered to the associations-partners in the last two years:

* Accounting Principles of SCAs
* Internal Control of SCAs
* Financial risk management
* Financial planning
* Internal SCAs regulaments

Strategic and tactical decisions of MMA are in compliance with the results of systematic studies carried out by Marketing Department. The main studied topics include: Assessment of the potential for savings products promotion into the microfinance system of Moldova Main activities of private farmers Savings mobilisation in SCAs Crediting of non-agricultural micro-enterprises: necessities and perspectives Insolvency of SCAs Abroad work, remittances and their utilisation patterns.

Apart from all these studies, MMA systematically collects the participants` feedback from training seminars. The topics are adjusted to the SCAs` needs and continually updated by including the newly learned lessons from microfinance system. IFAD has provided financial assistance to create the MMA Marketing Department, which elaborated and carried out these economic researches.

In almost 8 years of its activity, over 500 persons have succeeded in getting a paid job in the microfinance field, they became managers, accountants and internal auditors within the SCAs. Over 22000 citizens had a chance to start or develop their own business, basically in the agricultural sector, by becoming members of SCAs, and receiving credits. To benefit a valuable loan, all potential borrowers have to prepare a sample business plan (cash flow project), which are checked (with further analysis and monitoring) by the SCAs` staff, MMA Regional Development Officer and the representative of financial institution.

Loans were granted in partnership with MoldovaAgroindbank. Owing to the services provided by MMA, the members of partner - SCAs have been granted loans, the overall value of which surpassed 10 mln. USD, boosting development of small business and agricultural sector in rural areas of Moldova. MMA prepared, selected and submitted loan applications (235 annually) with complete dossiers to Moldova Agroindbank. Loans were mainly directed for cattle breeding, seeds procurement, seedling growing, greenhouses, vineyards, trading, constructions, etc.

Another impact of MMA and SCA network, which is less measurable, is the economic education of citizens, obtained as a result of acquiring the skill of productively loan management, investment and financial management, business planning.

Over its entire period of activity, MMA has expanded geographically, inaugurating 8 regional centres: Balti, Cahul, Calarasi, Causeni, Cimislia, Criuleni, Orhei and Ungheni with 20 employees, which provide a permanent and direct contact with both SCAs and its members. At present, MMA is the only one NGO with such a developed geographical coverage. It is this particular connection that allows receiving of the immediate feedback from the field and flexible tailoring of services rendered by MMA to the real needs of SCA network development. MMA regional centres are connected to Internet, e-mail and have phones and faxes.

MMA staff benefited from training courses, exchange of experience in the country and aboard: MFT, Boulder, University of Colorado, USA Microfinance Center, Warsaw, Poland, Canada, France, Lithuania, and Albania. MMA received consultations from: Bankakademie (Germany), MFC (Poland), GTZ (Germany), FIDES (France). The main trainings are related to the investment decision, business planning, loan application screening and analysis.

The important achievements of MMA in those 8 years of activity would have not been possible without the donors` contribution: SOROS Foundation Moldova, OSI, IFAD, GTZ, Women World Banking, USAID, CGAP, Eurasia Fund.

In 2003, in recognition of innovation in financial services for very poor clients, MMA won The Rural Pro-Poor Innovation Award provided by The Consultative Group to Assist the Poorest (CGAP). In the same year MMA has launched a new brand name MicroInvest, new approach and new innovative financial products (group loans, direct loans, community venture capital, guarantees etc.) on the microfinance market of Moldova. These and other financial products might open up a whole new world of possibilities and perspective to the borrowers, who prove the outstanding entrepreneurial initiative, economic performance and business potential.