1. EBRD – Supporting Women Entrepreneurs for Forum for South East European Women Entrepreneurs Istanbul September 2010 Michaela S Bergman Senior Social and Gender Policy Adviser

2. What is the EBRD? International financial institution, promotes transition to market economies in 30 countries from central Europe to central Asia Owned by 61 countries and two inter-governmental institutions Capital base of 20 billion Cumulative 44.4 billion Unaudited as at 30 June 2009

3. What are the EBRDs objectives? To promote transition to market economies by investing mainly in the private sectorTo promote transition to market economies by investing mainly in the private sector To mobilise significant foreign direct investmentTo mobilise significant foreign direct investment To support privatisation, restructuring and better municipal services to improve peoples livesTo support privatisation, restructuring and better municipal services to improve peoples lives To encourage environmentally sound and sustainable developmentTo encourage environmentally sound and sustainable development

4. A network of 36 offices in 30 countries More than half our bankers based in the region

5. Net cumulative volume by sector Financial Institutions 32% General Industry 12% Agribusiness 9% Natural Resources 7% Property & Tourism 4% Telecoms 6% MEI 7% Power & Energy 9% Transport 14% Unaudited as at 30 June 2009

6. Impact of transition: labour market separation Womens labour participation declined at the start of the transition, but has since recovered Women now have lower unemployment rates than men, except in CIS+M Women are more in favour of state involvement, particularly in the social arena Women tend to be less satisfied with their lives CEB SEECIS+M Source: World Development Indicators 2006

7. Impact of transition: Labour market separation Source: World Development Indicators 2006

8. Impact of transition on women Wage equality has diminished More wage inequality in less advanced transition countries Wage differentials between men and women have increased Differences cannot be easily explained by job type or productivity Gender discrimination is evident from quantitative and qualitative studies Sweden UK France USA Italy Slovenia Kyrgyz Rep Moldova Mongolia Hungary Uzbekistan FYRM Romania Slovak R. Albania Kazakhstan Bulgaria Czech Republic Latvia Poland Croatia Russia Estonia Georgia Ukraine Lithuania 0.45 0.55 0.65 0.75 0.85 0.95 0.450.550.650.750.850.95 Wage Equality Labour Force Participation

9. Impact of transition on women Access to finance More female managers have difficulty securing a bank loan Female managed firms charged higher interest rates in some countries Financial development may lead to lower levels of gender bias in bank lending More needs to be done to understand constraints and opportunities for female entrepreneurship Share of businesses without a bank loan Source: BEEPS, 2005

10. Gender and EBRD Gender equality - important component of the development and transition process Part of Millennium Development Goals EBRDs commitment to expanding opportunities for women and promoting gender equality Impact of transition on women has varied by country and by issue =>Developemnt of Gender Action Plan

11. PR 9: Financial Intermediaries To assist FIs in implementing the Banks requirement to promote sustainable development To enable the FIs to manage environmental and social risks To promote good environmental and human resource management within FIs

12. EBRDs Lending to Women 30% Lending to Financial Insitutions for loans to SMEs goes to women entrepreneurs Lending to Micro-finance institutions >> Women (no need for collateral) E.g. MI-BOSPO

13. PR 9 – Financial Intermediaries Generic Gender Issues FI as employer:FI as employer: Womens employment in this sector is strong and there are good career opportunities. FI services:FI services: – –Where local laws restrict womens ability to own land or fixed assets, requiring land/fixed assets as collateral may make it difficult or impossible for women to borrow. – –Women, particularly poorer women, may lack the skills and/or confidence to be commercially active, including using the services of an FI. This may also make them more vulnerable to exploitation from doorstep loan sharks. – –Women are less likely to have received training of how to develop business plans, demonstrate credit-worthiness, and complete loan applications.

14. In addition to money Money is not the sole need – Institutions need to be able to upgrade IT and auditing systems.Money is not the sole need – Institutions need to be able to upgrade IT and auditing systems. Upgrading of HR policies to ensure no discrimination and good practicesUpgrading of HR policies to ensure no discrimination and good practices Integrating gender issues in clients policies : increasing access to training for women entrepreneurs and borrowers, avoidance of –ve stereotyping in marketingIntegrating gender issues in clients policies : increasing access to training for women entrepreneurs and borrowers, avoidance of –ve stereotyping in marketing

15. Actions to ensure Compliance FI as employer : –Collect gender disaggregated data at both staff and management level. The gender balance on the Board of Directors and Management Committees will be important to look at. –All Performance requirements relating to labour and working conditions

16. Actions that Promote Best Practice (1) FI as employer:FI as employer: –Significant gender imbalances in workforce/management, and possible proactive measures to improve gender balance, should be discussed with FI. FI services:FI services: –Mechanisms to ensure that a gender equality focus is applied in the granting of loans to both female and male-headed enterprises as well as to male-headed enterprises will be important. –The participation of female staff where female staff may not occupy senior management positions, such as in loan decisions, will be important. –FIs keeping statistics of percentage (number and value) of loans broken down by gender

17. Actions that Promote Best Practice (2) –Consider gender appropriate modes of loan arrangements – for example women favour small loans, might find it difficult and expensive to acquire the documentation required by banks to verify their businesses, or are unable to provide land as collateral. –FIs should consider identifying opportunities for developing financial products that target women entrepreneurs and/or the poorer/rural communities (among which women may dominate). –FIs should consider providing training in the community on business development, so as to assist women in developing the appropriate skills and know-how to carry out successful business activities.

18. New Development November 2009, 50m Euros lent to Garanti Bank with NDFC and Taiwan ICDF Part of loan agreement was to identify and promote extension of loans to women entrepreneurs, beyond what currently being done

19. TAM and BAS To support economic transition through promotion of the sustainability of the micro, small and medium enterprise sector. Women in Business Programme of TAM and BAS – promotes and supports women entrepreneurs in the MSME sector. Provides capacity building and business training targeted at womenProvides capacity building and business training targeted at women Targets niche industries with female tradition/female dominated sectorsTargets niche industries with female tradition/female dominated sectors Provides links with EBRD funded FIsProvides links with EBRD funded FIs Assists in creating a support structure to enable work-life balanceAssists in creating a support structure to enable work-life balance

20. What Else? EBRD identified issues and some constraints.. But what do you think FIs need to do What else can help women entrepreneurs in the region What can EBRD do to support? Let me know …. bergmanm@ebrd.com