Kindly find below the proposed narrative of the steps & activities Emkan embarked on during the year 2020:

“The distressed socio-economic & financial challenges that have prevailed in the country since mid 2019 to-date, exacerbated by the COVID-19 pandemic, necessitated EMKAN management over the past year to focus primarily on extending all feasible support to Emkan clients all over the country. This has been accomplished through unprecedentedly allowing loan rescheduling, through modifying the monthly installments and/or shifting the loan schedule to suite the clients’ changed repayment capacities; offering interest rate discounts for early loan settlements or partial prepayments; and accepting the USD loan repayments at the LBP1520 official rate as supported by Bankmed. Additional support with regard to portfolio management during this hardship was obtained from BDL through circular 552, and the USAID supported LIFE project through covering some of the clients’ financial costs, and in a more limited scale and scope from the DIFD supported LEEP project through enterprise direct grants.

As a result of the noted mechanisms pertaining to client portfolio management, Emkan Finance has been able to assist about one third of its active clients as of end of 2019 reach full loan repayment while maintaining good credit standing and history. The remaining active clients are in the process of meeting their monthly dues, albeit sometimes with difficulties which requires continued support and solutions. Emkan management believes that the client-portfolio management is instrumental in preserving the client base and allowing them to maintain the credit history and credibility that has been built over the years. This will continue to be the foundation in serving the Microfinance clientele over the years to come and allow the industry to sustain and meet its objectives and mission, particularly in light of the expanded low-income segment of the population.