Insights into the European Code of Good Conduct for Microfinance

At the request of the European Commission (DG EMPL), the Microfinance Centre (MFC), in collaboration with EMN, conducted a survey to gather feedback from microfinance institutions (MFIs) on the European Code of Good Conduct (ECoGC). A total of 24 responses were collected and presented to DG EMPL in March, providing insights into the current situation and areas for potential amendments.

Why Is This Important?

Endorsing or signing up for the Code is a prerequisite for microcredit providers seeking EU funding under the EaSI financial instruments and the InvestEU Social Investment and Skills window.

Key Recommendations from MFIs:

📌 Code Content – revisiting the Code to reflect market realities, reducing excessive clauses, and improving alignment with existing regulations and support programs.

📌 Certification Process – simplifying the process, possibility of conducting certification in stages, clearer timeframe, introducing levels of available certification based on institution’s type and resources, separate processes for banks, NBFI, social finance providers)

📌 Renewal Process – standardizing the format to focus on changes and follow-ups on previous recommendations

📌 Certifying Institution – increased number of certifying institutions (e.g. introducing regional certifying institutions) – although the recommendations regarding the adequate number of certifying institutions were not unanimous, less rigid interpretation of Code’s clauses, more flexibility)

📌 Other Recommendations – creating a centralized database with mandatory annual data provision from certified institutions and allowing non-EU organizations to apply under specific conditions.

We sincerely thank all the organizations that provided feedback: Adie, AFI, Agro & Social Fund, Artigiancredito, Asociatia C.A.R.Retezatul, Aurora, Bizkaia, BT Mic, Cresaçor, Confeserfidi, FED Invest, FINBEE, FLEXIDEA, FONDI BESA, Lithuanian Central Credit Union (LCCU), Microlux, Mikrofunden, Nantik Lum, OMRO, SIS Credit, Slovene Enterprise Fund, Qredits, TISE, USTOI.

MFC’s Role & Next Steps

MFC has been actively engaged in the Code’s development from the very beginning, advocating at the EU level to ensure that MFI perspectives and evolving market conditions are considered.

Looking ahead, the European Commission aims to expand adherence to the Code, ensuring that at least one MFI per country complies and promoting greater transparency by requiring MFIs to disclose annual reports, financial statements, impact evaluations, and other key data.

Stay tuned for updates as we continue working to enhance the European microfinance ecosystem.

ESG Fundamentals Training at Finora Bank

From March 24–27, 2025, the team at Finora Bank participated in a specialized ESG Fundamentals for Financial Institutions training as part of the SIFTA program.

Hosted at the headquarters in Vilnius, Lithuania and at the branch in Tallinn, Estonia, the training focused on effectively integrating Environmental, Social, and Governance (ESG) principles into financial operations.

Key Highlights:

• In-depth workshops on ESG strategy, management, impacts, risks, and opportunities
• Practical exercises, discussions, and hands-on use of the CERISE-SPTF ESG assessment tool

Objectives:

• Gaininig a clear understanding of essential ESG concepts and their strategic impact on financial institutions
• Identifing the key ESG factors and stakeholders
• Exploring the risks and opportunities tied to long-term business success
• Familiarizing with available ESG tools and best practices
• Aligning with EU regulations and social investor expectations
• Discussing pathways for implementing ESG frameworks and strategies
• Enhancing customer outcomes through ESG considerations
• Reviewing key regulations and investor expectations

Participants:
• Management
• Operations & Risk Management Teams
• Credit Department (Sales, Credit Underwriting, and Portfolio Management)

Trainer:
Rakhat Gravesteijn, a seasoned management consultant with over 20 years of experience in inclusive finance and impact investing. With leadership roles across Europe and Central Asia, Rakhat has spent the last seven years advising financial institutions and impact investors in Europe, Asia, and Africa on sustainable finance, ESG, consumer protection, and customer outcomes management.

MFC remains committed to empowering microfinance and social finance institutions through targeted trainings and development initiatives.

Thank you to everyone involved in organizing the trainings in Lithuania and Estonia!

Dedicated Debt Collection Training for Novalend under SIFTA Program

MFC is excited to share the successful completion of our dedicated Debt Collection training for Novalend, held from March 25 to March 27, 2025. This specialized workshop, facilitated by expert Piotr Kubiak, focused on equipping participants with the foundational and advanced skills required for effective debt collection practices.

Training Agenda Highlights:

Our participants learned:

More about our expert:

With over 20 years of experience in finance, Piotr Kubiak is a seasoned customer service expert and debt collection practitioner. As a trainer, mentor, and consultant, he champions the “Human 2 Human” philosophy in business, specializing in Nonviolent Communication and behavioral linguistics.

This training was part of the SIFTA – Social Inclusive Finance Technical Assistance Program, under the InvestEU Advisory Hub’s Social Investment and Skills Window.

We thank all participants for their engagement and look forward to seeing the positive impact of these new skills in their professional practices.

#Novalend #DebtCollection #ProfessionalTraining #InvestEU #FinanceSkills #PiotrKubiak #MFC #SIFTA

The European Commission simplifies EU Rules to boost competitiveness and growth

The 2025 Commission work programme emphasizes simplification, aiming to make EU policies and laws more effective and efficient to enhance competitiveness. This includes a series of Omnibus packages designed to streamline regulatory frameworks.

First Omnibus Package – February 26, 2025

On February 26, 2025, the European Commission adopted the first Omnibus package, which will now be reviewed by the European Parliament and the Council for approval. Key areas of focus include:

Second Omnibus Package – March 11, 2025

On March 11, 2025, the European Parliament adopted the Omnibus II Directive, which focuses on investment simplification. The European Commission has set a target to reduce administrative burdens by 25% overall and by 35% for SMEs by the end of its mandate in 2029.

For InvestEU, the Commission expects:

ERDF renewable energy loans in Pomorskie, Poland

This fi-compass case study describes the Renewable Energy Sources (RES) Loan Fund, launched in 2019 under the European Regional Development Fund (ERDF) Regional Operational Programme 2014-2020 in Pomorskie, Poland. Managed by the European Investment Bank (EIB) and implemented by Pomorski Fundusz Pożyczkowy (PFP, Pomorskie Loan Fund), this fund has financed 137 diverse RES projects, ranging from photovoltaics to biogas installations.

Learn how this pioneering fund supports regional low-carbon initiatives, enhancing renewable energy capacity and fostering sustainable development in Pomorskie.

Discover the developments in the 2021-2027 programming period with increased amounts of EUR 706 million allocated to financial instruments and EUR 174 million of grants in combination with financial instruments and a stronger emphasis on the areas of circular economy in both regional and national programmes.

READ THE REPORT

Symbiotics Celebrates B Corp Recertification

Symbiotics has successfully renewed of its B Corp Certification, achieving an impressive B Impact Assessment score of 131.9. This milestone emphasizes Symbiotics’s dedication to impact, sustainability and responsible finance.

Over the past three years, Symbiotics has made significant strides in strengthening governance, enhancing environmental responsibility, and channeling capital towards positive social and economic change.

As a proud member of the global community of over 7,000 B Corps, Symbiotics continues to use business as a force for good.

Learn more: https://symbioticsgroup.com/symbiotics-b-corp-certification/

MFC Member −  KMF Receives Permission to Become a Second-Tier Bank!

A major milestone has been achieved in KMF’s journey. The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDFM) has granted KMF permission to transform into a second-tier bank.

This significant step emphasizes KMF’s commitment to development and providing better financial solutions to its customers. The transformation into a bank involves adhering to all banking regulations, modernizing business processes, and introducing new operational activity standards. This will ensure KMF can deliver even more affordable and efficient services to its customers.

Shalkar Zhusupov, Chairman of the Management Board, remarked:

 “Obtaining this permit is the result of many years of work by our team. We are confident that this step will allow us to offer customers even better and more affordable financial solutions.”

Congratulations to KMF on this remarkable achievement!

Successful Tailored Trainings within the SIFTA Program

MFC continues to provide tailored training and support to SIFTA beneficiaries. Recently, we delivered a customized training series for the Bielskie Entrepreneurship Centre Association, designed to meet their specific needs. As always, our approach began with a needs analysis to ensure the training aligned with the organization’s current priorities and capacity.

The training covered a wide range of topics, including:
✅ Accessibility & Equal Opportunities
✅ Marketing & Promotion
✅ Communication & Team Building
✅ Excel Proficiency
✅ Public Procurement & Social Clauses

We’re proud to support our partners with targeted learning experiences that drive impact and we would like to extend our sincere gratitude to all participants, experts, and organizers who contributed to the success of the SIFTA Program.

#SIFTA #Trainings #Capacitybuildings

The European Commission has adopted new proposals that will cut red tape and simplify EU rules for citizens and business

On 26th February, the European Commission has adopted new proposals that will cut red tape and simplify EU rules for citizens and business. 

This package focuses on:  

The proposals will be submitted to the European Parliament and the Council for approval. 

The aim of the Commission is to reduce administrative burdens by 25%, and by 35% for small and medium-sized businesses, by the end of its mandate in 2029.   

Photo: Gabrielle Henderson/Unsplash

Microfinance Centre Joins Consortium for Social Innovation in Bulgaria

The Microfinance Centre (MFC) has joined the consortium for the “Empowering Partnerships for Social Innovation in Bulgaria” (EPSI) project, funded by the European Commission.

EPSI aims to develop a thriving social finance market by designing and testing innovative funding models for social enterprises. The project combines financial and non-financial support to help social entrepreneurship grow and create lasting impact in Bulgaria.

The consortium is led by SIS Credit (an MFC member) and the BCause Foundation, with key partners from across Europe, including:

✅ Fund of Funds in Bulgaria – A state-owned entity that channels public funds from European programs and national co-financing.
✅ Banca Etica – A leading ethical finance provider in Europe.
✅ Pulse Group – A top association specializing in investment readiness programs that support impact-driven entrepreneurship.
✅ Impact Business Angels – The first French business angel network exclusively dedicated to social entrepreneurship.

Banca Etica (an MFC member), along with Pulse Group and Impact Business Angel, will act as mentors and knowledge transfer partners. Through study visits (to France and Italy), they will contribute to capacity-building activities, the Investment Readiness Academy.

The Fund Manager of Financial Instruments in Bulgaria will contribute with its extensive expertise in designing financial instruments to the development of investment strategy and to the investment readiness program, as well as in attracting the broader attention of Government structures, investors and other important stakeholders to the need for development of social finance market. 

#Bulgaria #SocialEntrepreneurship #Partnerships #Microfinance #Impact #EuropeanCommission