Another focal point of the Group's job creation strategy is to encourage the creation of new and sustainable MFIs. In fact, in Europe, these institutions, often set up as associations, can depend on the subsidies they receive for their operation. That structural and financial vulnerability limits their capacity for long-term action. To compensate for this weakness, BNP Paribas has acquired a capital stake in some of these institutions.

In 2010, BNP Paribas Fortis played a major role in creating MicroStart, by providing more than 58% of its capital. The MFI is now the leader in Belgium with 2,700 customers. The impact study recently conducted with Vlerick Business School revealed that 75% of people who received support between 2013 and 2015 were still employed in 2017, while their revenue had increased by an average of 7.6%. Furthermore, 44% of customers rose above the poverty line since they received aid from MicroStart, while just 18% were above the poverty line before obtaining the loan.

In 2016, the Group, through its subsidiary BGL BNP Paribas, took part in launching Microlux, the first MFI in Luxembourg dedicated to financing microenterprises and social enterprises that do not have access to bank loans. BGL, which owns an 83% stake in the institution, also provides entrepreneurs with support through a skill-based volunteering program. Microlux has notably funded Syriously!, a Syrian restaurant created by a refugee to foster cultural exchange between his home and host countries, while favoring social and workforce integration for other refugees.

BNP Paribas SA published this content on 20 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 October 2017 09:26:05 UTC.

Original documenthttps://group.bnpparibas/en/news/microfinance-europe-bnp-paribas-invests-create-jobs

Public permalinkhttp://www.publicnow.com/view/EE1D1F6D16B771166E7AA8775E27542B93776145