Upgrading: Institutional Transformation of two Rural Microcredit Organizations, 2007-2008 and 2009-2010
In September 2007, LFS Financial Systems was contracted by the European Fund for Southeast Europe (EFSE) in order to provide technical support to two rural Romanian Microcredit Organizations (MCOs) operating in various provinces of rural Transylvania. The purpose of the consulting assignment was to provide technical support and business planning training, and input in light of the institutions’ intention to assess the possibility to join operations. Since a potential merger did not seem to address the primary need of both institutions (access to funds and capital), a preference for individual solutions became evident. In a second assignment, LFS was therefore contracted by the EFSE to assist both institutions in their institutional transformation and search for a strategic investor.