As the result of constructive and pragmatic cooperation, a group of nine MIVs issued the Memorandum of Understanding (MoU), Coordination among MIVs in response to COVID-19. The MoU is not a handbook for restructuring, nor does it provide the answer to all situations, it is a practical guidance for the Financial Inclusion sector and its investees and micro and SME clients.
Together with the MOU, the parties have also adopted the standardized Crisis Assessment Tool (CAT),which MFIs can use to provide their investors up-to-date information on the impact COVID has had on their operations and financial position. Such standardised reporting not only reduces the time and effort required for the MFIs, it also lays the foundation for building a common platform for analysing the situation globally, providing crucial input for donors and funders to allocate resources where they are needed most.
As during these COVID-19 times, collecting additional information in a standard way are needed, in particular with regards to key indicators such as liquidity, capitalisation and portfolio quality, the MIV group has also developed a Crisis Assessment Tool as reporting format.
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The participating MIV’s: