VisionFund is aware of recent media coverage of our work in Bosnia and Herzegovina.
Though named, World Vision BiH has had no continuing role in the EKI loan. World Vision International transferred the loan to VisionFund International in 2010. VisionFund International is a separate legal entity which manages all microfinance activities on behalf of World Vision.
We are pleased that EKI has become a successful microcredit institution with over USD$40 million of equity. As noted, donations were initially made from pooled funds and not specifically to EKI, which was then a fledgling microfinance institution. Funds were later provided to EKI in the form of debt at 0% interest.
It is important to state that this approach brought no financial benefit to VisionFund, and loan repayment does not reverse or negate the benefits to Bosnians and Herzegovinians. The stated funds and donations were used as intended by donors. VisionFund’s business plan ensured the growth of the initial funds, so that once EKI became established, the donated seed funds could be redistributed to help vulnerable people in fragile regions elsewhere, such as in Sub-Saharan Africa. This is our accepted practice to steward funds in a way that supports the greatest needs.
While donors provided funds to be used for the benefit of Bosnia and Herzegovina citizens, they also understood VisionFund pools seed funding from many sources and multiplies donations to maximum effect. The amounts donated and EKI’s current level of equity are not equivalent. The seed funding accomplished its purpose exceptionally well and then provides funding to areas where the need is greater, continuing the cycle of assistance.
VisionFund is accountable to those we serve and donors upon whom we depend. Our policies and procedures are designed to ensure standards of excellence in our work serving children and families. We act in accordance with requirements from donors, grant providers and microfinance lenders.
VisionFund International (VFI) is the largest child focused, owner-operated microfinance network providing economic empowerment to vulnerable women and communities. VFI takes donated funds from various sources and pools them together, working with specialist microfinance lenders to leverage these funds for much greater financial impact to clients worldwide than if these funds were simply donated.