Major milestone achieved: DEF board of directors approves business plan for 2016-2020
As part of its efforts to comply with the National Strategy for Microfinance, the Development and Employment Fund (DEF), with the assistance of the MFMR Programme, achieved a major milestone in its journey towards excellence: The development of its 2016-2020 Business Plan. The plan was fully endorsed by its Board of Directors on 13 September 2015.
This plan establishes a road map towards better performance and effective positioning through enhancing financial outreach to poverty pockets and rural areas, strategic withdrawal from direct lending while increasing indirect lending activities, revision of internal policies and procedures in light of best practices, and employees’ capacity building.
Furthermore, the plan includes a thorough strategy for managing non-performing loans and improving the overall portfolio quality. This strategy aims at reducing the portfolio at risk to internationally accepted levels in a 3-year timeframe through various practical approaches.
Finally, DEF has adopted a non-precedent risk management approach while developing the business plan. This approach allows the Fund to prudently manage its daily operations in a way that allows needed flexibility while avoiding potential risks.
“For the first time in DEF’s history we have a comprehensive study that diagnoses the situation in a professional way in light of the sector needs, and at the same time addresses issues in a realistic and clear roadmap” comments Salah Qudah, the DEF general manager’s deputy.
DEF, in cooperation with MFMR Project, will be working on the implementation of the high priority activities identified by the business plan throughout the project timeframe.
By Sahar Al-Yousef