Appraisal Document for Microstart Mongolia

This institutional appraisal reviews the operations of MicroStart Mongolia approximately a year after its inception. It aims to establish an objective written record of performance as the organization transits from being an NGO to a formally licensed MFI. The appraisal uses the CGAP Appraisal format. It includes additional components on legal, regulatory, ownership, governance and program support issues.

• The Government of Mongolia signed the MicroStart Project Document on June 26, 1997. A local organization, X.A.C., served as the central credit office for NGO lending activities. The appraisal concludes that: MicroStart program is attempting to create a new structure and a new way to do business in Mongolia;
• There is a clear demand for microfinance services in the country;
• X.A.C is currently the only institutional approach serving this market;
• MicroStart program has developed a client responsive, transparent and relatively efficient operation while maintaining high portfolio quality and targeting profitability;
• X.A.C. faces challenges in the areas of governance and ownership;
• X.A.C. has developed a thorough set of systems, standard procedures and operational and administrative policies;
• Management uses the excellent systems, reporting and information generated to make decisions.