By Andrea Vujosevic

Some 37,000 children and their families have benefited from VisionFund AzerCredit's micro-finance program during the past decade. Azerbaijan's banking and micro-finance association acknowledged this work recently, bestowing an award for 'the financial institution with the best community impact'.

The award program was an opportunity to recognise micro-finance providers in Azerbaijan who have greatly contributed over a 10 year period.

Since 1995, VisionFund AzerCredit has worked with the most vulnerable people in the community, providing access to small loans, savings and insurance.

Vision fund AzerCredit prioritises poor communities, as they usually have limited access to a conventional banking system. Children and women living in rural areas are most vulnerable. Some 43% of VisionFund AzerCredit clients are female, exceeding the organisation's target level of 40%. VFAC projects female clients will increase to 60% in coming years.

During the current vulnerable economic period, IDPs, refugees and villagers also find it difficult to access traditional banks.

As well as generating income for families, more than 28,000 jobs have been created in the past decade.

By June 2008 the number of active IDP clients was 15.4%, accounting for 2,397 of 15,531 clients.

For 40-year-old Azimova Shamsiyya, an IDP widow, a $300 loan in 1997 turned her life around. Azimova had never visited a market yet she is now a trader, selling shoes and clothes. She has two market stalls, owns her apartment and is providing an education for her four sons.

'I am deeply grateful to World Vision because it takes hold of the hands of poor people. Because of this, poor people can believe in the future, in a better life," said Azimova.*

Overall impact of VisionFund AzerCredit was measured by gender balance in the portfolio, positive impact on children, Impact on Internally Displaced Persons and local communities, as well as number of jobs created and sustained.

'Those indicators best present impact in the community. For that reason this award has a great importance for us since our work is recognised as a great contribution to poverty reduction in Azerbaijan. This award is also very important for us as it is the excellent result of an integrated approach of VisionFund AzerCredit and World Vision Azerbaijan,' said Gerlof De Korte, VisionFund Regional Director.

VisionFund AzerCredit is part of VisionFund International, a global micro-finance capital fund. With a loan portfolio of US$10 million, VF AzerCredit is currently the leading MFI in the Caucasus region.

VisionFund International was established in 2003 to allow World Vision to considerably expand micro-lending. VF was created to provide small loans to the world's enterprising poor so they can improve their lives and children's futures by building small businesses.


*Credit to WV communicator and photographer: Roberto Bartolome