Frequently asked questions

Our FAQs offer answers to some most common questions on the coronavirus.

This information was last updated on 30 May 2022.

  • How have Oikocredit’s operations been affected by the coronavirus? How is Oikocredit managing the risks arising from the pandemic?

    Oikocredit is continuing its business activities. We continue delivering on our mission to support our partners, and the low-income people they serve, at a time when their need for support has been even greater. Our management of the risks arising in the first and second years of the pandemic and its effect on our 2020 financial results were described in our 2020 Annual Report and 2021 Annual Report. In 2021 we were successful in rebuilding and rebalancing our loans and investments portfolio and supporting new partners. Read more here > 

    With some economic uncertainty remaining in our focus countries, we have continued to assess risks that could affect the value of our development financing portfolio. Uncertainty has returned with the outbreak of war in Ukraine just when much of the global economy was recovering from the effects of the pandemic. We keep our members and investors informed about the value of their investment in our online news and quarterly updates. 

    We remain alert to developments related to Covid-19, such as the risk of new variants appearing. We continue to monitor: 

    • the status of our investments in and loans to our partners in Africa, Asia and Latin America & the Caribbean; 

    • questions and concerns from our members and investors, as well as investment and redemption flows; 

    • our term investment portfolio and other liquid funds; and 

    • general developments related to the pandemic, including its impact on the welfare and effectiveness of our staff working across the world.

    More questions
  • How has Oikocredit’s work with its partners been affected by Covid-19?

    We continue to be in close contact with our 508 partner organisations to ensure that we understand their evolving needs and to ascertain how Oikocredit can best help address them, particularly in situations where partners may face financial difficulty. Even in heavily pandemic-affected countries most partners are now coping well, but we are aware that this could change. 

    After we granted payment holidays (extended repayment periods) to 113 partners during 2020 to ease their financial situation, the number of partners in this category reduced to 69 by the end of 2020 and to just five by the end of 2021; no partners remained in this category by March 2022. The vast majority of partners are now making their repayments according to schedule. See also: What effect has the coronavirus had on Oikocredit’s performance? 

    Our online interactive partner portal, launched in 2021, has strengthened our partner monitoring, improved information sharing and sped up communications with partners. 

    During 2020-21 we offered webinars and online encounters for partners, sharing advice on business continuity and cash flow, health and safety of staff and clients, understanding impacts on clients, stress testing, risk and scenario planning, and learning from sector leaders. See also: What role has capacity building played in Oikocredit’s response to the pandemic? 

    Our partners responded positively to the support we provided, especially the smaller institutions. The external threats we have faced during the pandemic have brought our partners and ourselves closer together. 

    In addition to our own efforts, Oikocredit aligned with other impact investors in jointly coordinating our responses to Covid-19 challenges in support of our partners. In 2020 we committed to two joint initiatives to support the financial inclusion sector during the pandemic: 

    More questions
  • How have Oikocredit’s partners and their clients been affected by the coronavirus?

    Many of our partners’ clients and members were unable to operate as usual for much of 2020 and 2021 due to Covid-19 and restrictions on movement and social interaction reducing economic activity. This was especially the case in the microfinance sector, less so in agriculture and in renewable energy. At Oikocredit we adopted special processes to assess, monitor and support partners more closely, just as our partners did with their clients. See also: How has Oikocredit’s work with its partners been affected by Covid-19? 

    The situation improved during 2021, but the future remains uncertain. We have seen differences between sectors and countries in terms of the severity and effects of the pandemic, its timing and duration, and measures taken by governments. New waves of the pandemic may occur, so we will keep monitoring the situation. 

    We are concerned about global inequality in the distribution of anti-coronavirus vaccines. This is an issue that affects many partners and their clients. Humanity will remain at risk as long as some countries are largely excluded from the preventive benefits of vaccination.

    More questions
  • What role has capacity building played in Oikocredit’s response to the pandemic?

    As part of our proactive response to the coronavirus crisis in 2020-21, Oikocredit offered additional capacity building support to its partners. Initiatives included a webinar series on crisis management, virtual peer exchanges to allow partners to share crisis best practices with one another, and dedicated webpages of resources for partners. 

    We also created a coronavirus solidarity fund and used this to help our partners provide extra support to their clients. In total the fund distributed € 77,212 to 39 organisations in 19 countries in 2020-21. Building on the fund, Oikocredit’s Innovation in Response to Covid-19 programme supports partners in developing adaptive solutions with the people they serve. 

    In 2020-21 we re-engineered our capacity building programmes to run without in-person meetings. Since Q3 2021 we have returned to providing onsite and in-person capacity building for partners, partly replacing the online support we were restricted to during the peak of the pandemic. We have published the findings of our first client self-perception survey, which shows how partners’ clients have been impacted by, and dealt with, Covid-19 and other changes over a 12-month period.

    More questions
  • How have Oikocredit’s members and investors been affected by the pandemic?

    Our members and investors have shown great commitment to Oikocredit, and the vast majority have stayed loyal. A small number of redemptions and reduced inflow led to a minor decrease in member capital in 2020, but our investment base has remained stable. In 2021 and the first quarter of 2022 members and investors provided an encouraging inflow of new capital, bringing total member capital back to close to pre-pandemic levels. See also: What effect has the coronavirus had on Oikocredit’s performance? 

    Regular dialogue about inflow markets with the Oikocredit support associations has helped maintain our links to investors and has kept them informed about what Oikocredit has been doing to weather this storm. Since 2020 we’ve reported to investors on our financial performance (unaudited) on a quarterly basis, including on net asset value per share, and more broadly on the effects of the pandemic on our organisation and our partners. Since Q1 2021 we have also provided commentary on key quarterly ratios.

    More questions
  • How have Oikocredit’s staff been affected by the coronavirus?

    The health and safety of our employees have remained a top priority for us. As a global organisation, we have adhered to the public health guidelines issued by the authorities in all the countries where we work. We have good infrastructure in place for remote working, using digital tools for monitoring our partners and portfolio and for due diligence for new financing, and outside of lock-down periods have introduced hybrid home and office working arrangements at the Amersfoort office in the Netherlands. Managing competing home and work responsibilities has been demanding for many, however, and we remain committed to supporting the personal well-being of our staff.

    More questions
  • What effect has the coronavirus had on Oikocredit’s performance?

    Despite our best efforts, Oikocredit’s financial performance could not escape the consequences of the coronavirus and ensuing economic downturn in 2020, but our performance showed resilience and recovered well in 2021. Oikocredit made a net loss of € 22.2 million in 2020 but then, through resumed growth, achieved a positive net result of € 15.3 million in 2021. In the first quarter of 2022, with the Russian invasion war broke out in Ukraine just when much of the global economy was recovering from the effects of the pandemic. Although we soundly managed our portfolio development, liquidity, cost controls and other areas, we incurred a net loss in the quarter of € 6.3 million, which was due mainly to a major fall in the value of our term investments caused by global markets’ reaction to the Ukraine conflict and rising interest rates. 

    Portfolio rebuilding has been successful. We closed 2021 with 17.8% net growth in our development financing portfolio to € 995.9 million (close to the portfolio size at the start of 2020: € 1,064.6 million). By March 2022 we had achieved further portfolio growth of 1.9% to reach € 1,015.2, once again exceeding € 1 billion and consolidating our post-Covid-19 recovery. Net asset value (NAV) per share rose to € 213.58 in 2021 but then in Q1 2022 declined to € 212.24 as a result of the net loss . Portfolio at risk, represented by the PAR 90 percentage of loans with repayments at least 90 days overdue, closed 2021 at 5.5% but, with global market uncertainty again on the rise,  rose to 6.3%, above our  target threshold of 6%. Member capital has recovered and returned to stability after falls in 2020. With a return to growth in disbursements, net liquidity reduced in 2021 from 33.1% to 21.5% and in Q1 2022 to 20.3%, still sufficient to support further lending and share redemptions. 

    More details on 2021 and Q1 2022 are available in the Oikocredit 2021 Annual Report and our latest Facts & Figures.

    More questions
  • How has Covid-19 affected Oikocredit’s term investments and other liquid assets?

    Oikocredit’s treasury specialists monitor the assets we keep aside for liquidity management purposes. During 2020 we allowed our liquidity buffer, held in cash or term investments (bonds), to grow as a prudent response to the crisis and in case more investors requested redemptions. In 2021 and the first quarter of 2022 we funded growth of the development financing portfolio by reducing the liquidity buffer to pre-pandemic levels, closing Q1 2022 with net liquidity reduced to 20.3%, still sufficient to support portfolio growth and share redemptions. 

    The term investments portfolio comprises investment-grade liquid bonds traded on public markets, which, due to being of relatively high quality, are less vulnerable than some other types of bonds to fluctuations in the financial markets. A significant part of the term investments portfolio is invested in ‘green bonds’, selected to support climate-related or environmental projects. In 2021 the value of Oikocredit’s term investments increased from € 182.8 million to € 214.4 million. However, with the start of the Russian war in Ukraine in Q1 2022, amid fast rising interest rates and commodity prices, falling international share prices and a massive sell-off in bond markets, we saw a € 9.3 million fall in the value of our term investments. Next to that we have sold part of our bond portfolio which resulted in a total amount of € 180.5 million at the end of Q1 2022.

    More questions
  • Do you expect the coronavirus to continue to affect Oikocredit going forward?

    Oikocredit returned to profitability in 2021 following the loss in 2020 that was a consequence of the pandemic. While pandemic conditions have eased in many countries, forecasting the future remains challenging. We will intensify our monitoring of partners’ performance and wellbeing. We will also keep under close review how the challenging businesses environment affects our partners and their clients. As global food prices rise, there is a strong possibility of more households and communities falling into poverty. A potential positive outcome could be that Oikocredit’s farmer cooperative partners may benefit from price rises for their produce. 

    We nevertheless aim to continue rebuilding the portfolio, based on our healthy pipeline of further credit and equity investments with current and prospective partners. Maintaining portfolio quality will be, as always, a priority. 

    We have taken further steps towards implementing our new 2022-2026 strategy and new capital-raising model. The new strategy is being finalised and will be presented at the 9 June AGM.  

    More questions

You might also be interested in: 

Our latest Facts & Figures