4. ECONOMIC INDICATORS

The interest rates and the local inflation rate are used in the calculation of the Financial Self-

Sufficiency ratio. If these are not filled in, the PMT will not be able to calculate this ratio correctly! The GNI per capita is required to calculate the Average outstanding loan as a % of GNI ratio contained in the Key Performance Indicator Report in the Outreach section.

You can obtain this information from the Bank of Uganda’s web page on the internet (http://www.bou.or.ug) or you may enquire via email, phone or text message from one of the apex bodies or agencies your MFI is affiliated to.

MIR Market interest rate:

The regular interest rate you are charged on the local market, e.g. from banks or most wholesale lenders. This is used in cost of funds adjustments. Enter this on the input sheet as a full number, i.e. 7% would be entered as 7, not as 0.07.

SBFR Subsidized borrowed funds rate:

This is the interest rate at which you borrow funds at concessional or below market rate. Those funds are usually accessible from donors, government agencies or certain wholesale lenders. Should you have funds at several subsidized rates, calculate the weighted average as in the example given below:

((Loan 1 * Rate 1) + (Loan 2 * Rate 2))/(Loan 1 + Loan 2)

LAIR Local annual inflation rate:

The inflation rateat the local level. There are several inflationrates and if you are to choose between headline inflation and other inflation rates, choose headline inflation. Inflation rate is used for several of the key performance indicators. Enter this on the input sheet as a full number, i.e. 7% would be entered as 7, not as 0.07.

GNI GNI per capita:

The Gross National Indicator (previously known as Gross National Product (GNP)) per capita, equivalent to the average income per capita.