Prime Minister of Italy Giuliano Amato, personally congratulated project director Ms Jannat Quanine on the success of the Kosovo Grameen Missione Arcobaleno Microcredit Fund (KGMAMF) at a seminar in Milan, held on April 2001, organized by Missione Arcobaleno and the University of Milan. The Prime Minister was the chief guest at the seminar at which Ms Quanine presented a report on the experience with the special microcredit program that is being implemented by Grameen Trust in Kosovo.

At the end of the first year of operation, the KGMAMF has demonstrated that microcredit can be an important tool to rebuild the economy in a war-affected region. The project which began in June 2000 has disbursed approximately US$ 656,000 to 1224 women in 46 villages of Kosovo. Not a single default has been reported. It has helped significantly in the rehabilitation of the families severely affected by the recent war in Kosovo.

	Rearing Milch cow is a popular activity of Kosovo microcredit borrowers

Project Director Jannat further writes: 'When we began, we were told that we would not be able to do microcredit in Kosovo, that women here don't do business, that robberies are a common occurrence, that population density is low…. After one year however, we have successfully reached 1224 borrowers from families in distress and more and more families are coming to us to take loans". Purchase of a milch cow --- like in Bangladesh and microcredit programmes in many other countries --- is the most popular activity for members, as milk is considered an essential food item in Kosovo. Many members purchase sewing machines, others set up grocery shops. Whatever the activity, members are very keen to take follow up loans, as these help to raise their family income.

KGMAMF is operating through two branches in Pristina, in central Kosovo, and Peje, in the western region. Project Director and three other staff who were seconded from Grameen, began working in June 2000 and recruited all other staff locally. After one year, the local staff have demonstrated their capacity to work independently. Quite fortunately, continuing political uncertainty in the region has not affected the steady progress of the project and the economic activities of the members in a major way.

In June 2001, two more branch managers from Bangladesh arrived in Kosovo to set up new branch offices in Gjilan and Prizren regions. Premises for the two branches have already been rented and activities are expected to begin shortly. The project plans to expand quickly in the summer as all activities inevitably slow down in the harsh Balkan winter. With the new branches, the project will cover four of the five regions of Kosovo.