Post: How about an update to the entire Ivoire Credit + Miscoci situation

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avatar image MYC4 STAFF
Investor
Level 6
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 05.05.2009 16:24 CET

Dear Investors,

We have now reached an agreement with our Provider in Côte d’Ivoire, Notre Nation, that they will continue collections efforts as long as it is worthwhile and collections can potentially go on for more than one year.  Ivoire Credit is still continuing their efforts as stated previously.  This is done for MYC4 to be able to pay back investors without MISCOCI insurance as much as possible and to recover the payments of outstanding principal. MYC4 will do this on behalf of MISCOCI.

We have been dealing with different kinds of insurances and collateral in Côte d’Ivoire:

MISCOCI:
MYC4 has decided to cover the outstanding principal for investors, who have invested in loans with MISCOCI insurance scheme. MISCOCI was regarded as a much formalized insurance scheme with a legal structure. To repay loss on principal on MISCOCI loans that default, we will group the loans and make repayments to investors once per month during the coming months. The first transactions will happen during June and afterwards on a monthly basis.

Audace, Ivoire Credit and various cooperatives:
Besides MISCOCI, there are various cooperatives stated as guarantors for loans in Côte d’Ivoire. As part of the collections process we will pursue these, yet the financial situation in Côte d’Ivoire is in general very bad, and therefore, many of these cooperatives are likely to fail to live up to these guarantees.

Investors carry the full risk for these loans, since these guarantors are not formed on a legal structure; they are social cooperatives who were supposed to function as guarantors for each other on the basis of statements of intent.

Audace is an example of such an association of women trading clothes, food, crafts and art. Audace has been conveying the contact between the women, who was asking for a loan, and MYC4’s provider Notre Nation. The guarantee given by Audace is not a formal insurance scheme. The fact is that due to a general poor performance among the borrowers in Audace, the association is not able to guarantee defaulted loans.

Ivoire Credit, another MYC4 partner in Côte d’Ivoire functioning as both Provider and Lender has also guaranteed some loans. Again, this should be considered as a statement of intent, which it will be difficult to comply with due to the bad financial situation. 

Common for these various guarantees are that even though a loan is technically defaulted on the platform, there is still a chance for the investors to get some of the outstanding money back.

All the best,

Alette Pramming
Head of Corporate Communication


avatar image Joerg Schwieder
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 28.04.2009 11:36 CET

Jes,

so you say the people who ran IC were indeed BANKERS???
Wow! What does this mean in terms of how Banks in CI are being run?

Joerg



avatar image MYC4 STAFF
Investor
Level 6
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 28.04.2009 11:26 CET

Dear Joerg,

Thank you for your question and no wonder that you wonder ! This was in fact the scenario which MYC4 bought into in the Autumn of 2007 when we started activities in Côte d'Ivoire. And Ivoire Credit is in fact, as stated founde and run by a group of retired bankers, who wanted to give opportunities to entrepreneurs who had a hard time accessing capital in a country which has been in an economic crisis since the beginning of 2000.

The Board of Ivoire Credit is made up of the founders who also brought the initial capital when then company applied for a licence back in 2005. The MFI was run by one of the founders, M. Yao, until he fell ill in the late summer of 2008 where another of the founders, M. Appia, took over daily management supported by the Chairman of the Board, Mme Irié.

As MYC4 has had to learn Microfinance is not at the same level of development in every market in the World and whereas African may generally be 10 years behind e.g. South America, West Africa is maybe another 10 year after East Africa in operating according to best practice, and even experienced bankers here do not seem to be up to running an operation of a size which MYC4 needs.

This is why MYC4 has introduced a very demanding and thorough vetting and due dilligence process for all new partners we screen and why we are today primarily teaming up with experienced institutions with a proven track record. A luxury of choice we did not have in 2007 when noone in Africa had heard about MYC4 and none of the established institutions were interested in cooperating.

Yours sincerely,

Jes Colding

MYC4



avatar image Joerg Schwieder
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 28.04.2009 10:20 CET

"In 2004, forty (20) middle managers from the most important bank in Côte d’Ivoire decided to take early retirement and use their know-how to help eradicate poverty. They formed a micro finance bank authorized by the Ministry of Finance of Côte d’Ivoire in 2005. The first branch of IVOIRE CREDIT has been operating since 2006 in ABOBO the most populous township of ABIDJAN, just opposite the market. IVOIRE CREDIT relies on the vast experience of founders who oversee the bank’s operation for thorough but fast due diligence. IVOIRE CREDIT is well placed to act both as a provider and a lender."

It's only now I come to realize this.
Jes or somebody else from MyC4, could you comment on this, especially the banking background part, in the light of what actually happened in CI?

Thanks,

Joerg



avatar image .........................I am a LOANER...
Investor
Level 9
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 27.04.2009 21:36 CET | Edited 03.09.2015 17:48 CET

I have the distinct impression that the information on page:

https://www.myc4.com/Portal/WebForms/Users/DisplayUser.aspx?UserId=11215

is not correct (anymore).

Could this page be updated or taken 'out' ?

Regards,
Loaner.



avatar image Hans Henrik Hammerum
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 27.04.2009 09:19 CET | Edited 14.05.2015 03:03 CET

I do also find it difficult to understand the difference between the guarantee provided by MISCOCI and the guarantee provided by cooperatives.

Regards
Hans Henrik



avatar image Joost
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 25.04.2009 20:00 CET

Part of my portfolio with ivoire credit did default. No miscosi coverages.

What is the difference exactly? In my humble opinion the whole concept of myc4 is not entirely understood in ivory coast (although you could look at it more cynical).

Pesonaly i am not looking for coverage. I'd rather have seen you didnt do either with miscosi loans. It must put a strain on myc4....



avatar image Merete Crone
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 18.04.2009 07:33 CET

If you use 
http://www.myc4watch.com/index.php


you can easily find your Côte d'Ivoire-loans



avatar image Ib Marthin
Investor
Level 10
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 18.04.2009 01:10 CET | Edited 01.12.2014 16:14 CET



You can check whether or not a loan is covered by MISCOCI under each loan under background/resources.


I have 105 funded loans - and it wil take days to check each loan to see if it is an Ivory Coast lender, and if it is covered by MISCOCI.
Any better way to check this is wanted.
Or I could wait for 7 month and see which loans gets defaulted..

Regards
Ib Marthin



avatar image Standard News
Investor
Level 6
  How about an update to the entire Ivoire Credit + Miscoci situation
Posted 16.04.2009 18:33 CET

Thanks Mads,

turns out I simply got it wrong. :)

All the best
Holger


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