OMRO

  • Opportunity Microcredit Romania (OMRO) is a small non-banking Microfinance Institution (MFI) in Romania with 3,312 active loans, which together represent an outstanding portfolio of EUR 16.3 million (RON 60 million; 1EUR= RON3.7 aprox.).
  • OMRO reached 1000 active clients in 2002, after 7 years of existence, growing rapidly afterwards. The key external risks faced by OMRO and other non-banking MFIs in Romania are increasing competition from banks combined with tightening regulations for Non-banking Financial Institutions (NBFIs) from the National Bank of Romania (NBR). As a result, in order to survive, MFIs will need to find market niches, while rapidly increasing scale and capacity utilization in order to reduce costs.
  • In 2008, OMRO is starting a transformation process into a bank that would require further organizational improvements in order to secure investors (institutional and local Romanians) confidence. Lending efficiency is one of these areas.

Project Details

Country: Romania

Project: Product Costing and Technical Assistance to strengthen the efficiency of the lending process in OMRO Romania.

Period of the Project: seven weeks between March and April of 2008.

Product/Services supplied: Detailed portfolio analysis, Gross profitability analysis, Definition of direct and indirect costs, Operating costs and net profit, Developed Product Costing Model and its user manuals, Products Contribution to Target Profit, Findings on capacity utilization, Technical Assistance to strengthen the efficiency of the lending process, and Decentralization Strategy analysis.

Financial Sponsor: European Fund for Southeast Europe(EFSE)

Team: Two international expert consultants and one institutional counterparts

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