Provision of loans to micro-entrepreneurs, and small businesses, who don't have access to typical lending opportunities
Microfinance is a way to promote the growth of developing countries around the world and provide access to loans for local entrepreneurs, small local business, shops, etc.
For years, ADA (Appui au développement autonome), a not-for-profit organisation, has been a leading player in this field in Luxembourg and abroad. Services include:
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initiation and development of new, inclusive financial products (savings, credits, insurance) and support of microfinance institutions in their developing process
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assisting microfinance research
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building partnerships to increase the microfinance sector
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dissemination of information and raising awareness to promote microfinance
Plus, Luxembourg Law has been adapted to promote financial services in the microfinance domain. Indeed, several investment vehicles are available to promoters such as:
Tax Law has also been adapted to cancel any registration taxes for a SIF investing in microfinance projects.
Quality Label for Investments in Micro-finance
The purpose of the LuxFLAG Microfinance Label is to promote the raising of capital in microfinance by reassuring investors that the microfinance investment vehicle invests directly or indirectly in microfinance. The label is not a guarantee of performance nor does it constitute a recommendation to invest.
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