G20 Development Working Group Submissions
In-Depth Assessment: SME Finance Challenge
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The G20 has paid particularly close attention to the
needs of SMEs, first through the Financial Inclusion
Expert Group (FIEG) and more recently through the
GPFI. G20 leaders committed to the SME Finance
Challenge a call for proposals for innovative,
private sector-driven models of financing SMEs
on a sustainable and scalable basis. Maximizing
leverage of scarce resources was at the core of the
Challenge. GPFI members collectively committed to
mobilizing the funding needed to implement winning
proposals from development banks and interested
bilateral donors.
The G20 Seoul Summit in October 2010 announced
14 winners of the G20 SME Finance Challenge. The
SME Finance Innovation Trust Fund was created,
with a total funding of US$28 million, contributed
by Canada, Korea, the Netherlands, United
Kingdom and United States. In October 2011,
the winning proposals began to be implemented.
Concurrently, the G20 SME Finance Framework
channeled US$119.7 million in additional funding
from development financial institutions and bilateral
donors directly to individual challenge winners.
Alignment with Core G20 and DWG Mandate
Millions of SMEs face serious constraints on
accessing finance. The G20 work on SME finance
provides much-needed assistance for SMEs, which
are often the engines of economic growth and job
creation objectives that lie at the heart of the G20
agenda.
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COMMITMENT 34: SME
Finance Challenge
Saint Petersburg Accountability Report on G20 Development Commitments
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Chapter 2
Implementation of G20 Commitments
on Development
Implementation
13 out of 14 winners of the G20 SME Finance
Challenge have received performance-based
grants (the latter declining a grant), with a total grant
funding of US$23 million. Two sets of performance
targets key performance indicators (Part 1) and
additional reporting indicators (Part 2) - have been
defined for each project in order to determine the
disbursement of grants.
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So far the Challenge program has made significant
and steady progress, with all 13 winners receiving
their first disbursements. Some US$7.3 million had
been disbursed by 31st January 2013. Most grant
recipients are expected to meet their targets, either
fully or partially, and receive their 2nd tranche within
the second half of 2013.
By 31 December 2012, the grantees had assisted
1064 SMEs in receiving 4481 loans for just over
US$59 million. The SME Finance Challenge has
proven effective in raising the profile of this area of
financial inclusion and in mobilizing private sector
interests and ideas. Regular progress reports on
the grantees are made available through the SME
Finance Forum, which holds regular meetings of
winners to promote peer learning and support.
and
In-Depth Assessment: Development
promotion of a basic set of financial inclusion
indicators
G20 leaders committed to implementing a number
of actions under the Financial Inclusion Action
Plan. One of these was to strengthen and extend
the availability of data about measuring financial
inclusion and methodologies to countries that wish
to set financial inclusion targets. The GPFI has
been developing a Basic Set of Financial Inclusion
Indicators with a view to facilitating countries'
domestic policy-making by advancing financial
inclusion.View entire presentation