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\u00a0<\/strong><\/p>\n Spotlight on the joint interview of Sylvie Lemmet, Chair of the Finance, Risks and Impact Committee, J\u00e9r\u00f4me Brunel, Chair of the Compliance and Internal Control Committee, and Bernard Lepot, Chair of the Investment Committee, to be discovered in the Foundation's 2020 Integrated Report.<\/p>\n Bernard Lepot:<\/strong> As early as March, we all understood that we were in "terra incognita" for an indefinite period, with unclear systemic consequences. All continents were affected, including Africa and Asia, where we have most of our activities. The risk of serious difficulties for our partners was likely, with possible significant provisions for the Foundation. Despite this lack of visibility, the Board had to quickly define the Foundation's position, which we summarize as follows: support for our existing partners and consultation with other international lenders.<\/p>\n Sylvie Lemmet:<\/strong> Last March, we were in a state of total uncertainty. We felt that the crisis would hit developing countries hard and that we would face potential bankruptcies and losses for the Foundation. We were worried about our partners.<\/p>\n Jerome Brunel:<\/strong> I feared that the impact of the pandemic, which I thought would affect developing or less developed emerging countries more strongly \u2013 which has not been confirmed \u2013 would weaken the solidity of the Foundation's counterparties, resulting in a substantial amount of provisions, which has not been the case so far thanks to the resilience of the supported organizations as well as the coordination and joint actions of the various players in the inclusive finance sector.<\/p>\n JB:<\/strong> The Compliance and Internal Control Committee fully played its role by adapting the internal control system to the rise in Covid-19 risks, organizing training on debt restructuring methods, adapting the provisioning policy, and deepening the collection of information on our counterparties' end clients. But in truth, it was primarily the Finance, Risks, and Impacts Committee that played the primary role in mobilizing the Foundation's governance to address the consequences of the pandemic.<\/p>\n SL:<\/strong> The Finance, Risk, and Impact (FRI) Committee already includes the Chair of the Compliance and Internal Control Committee among its members. Last year, we immediately felt the need to liaise with the Investment Committee, and its Chair also sat on the FRI Committee. The evolution of governance with this ad hoc committee has been extremely positive. This has allowed us to build, together with the Foundation's Executive Committee, a good understanding of the overall situation (the impact on the portfolio, liquidity, and margin) and an intervention doctrine, which we have evolved as the crisis progressed. The objective: to provide the necessary oxygen to our partners while monitoring the risk of repayment default.<\/p>\n BL:<\/strong> Once the roadmap was established, the Investment Committee continued to meet monthly but by videoconference with a reduced activity of new files of course but with close monitoring of the deadline extensions granted to microfinance institutions that requested them and more generally, reinforced risk monitoring. The Board had also decided to create an ad hoc body bringing together the 3 Chairs of the specialized Committees to examine and deepen possible adaptations to the Foundation's strategy. This structure met several times allowing for exchanges with the teams and insights from the Board before decisions.<\/p>\n SL:<\/strong> One year later, I am above all reassured by the quality of the women and men who make up the Foundation's executive team, who were able to react with great flexibility, professionalism, and commitment in an unprecedented situation. We were able to manage financial risks without abandoning our partners in difficulty. We were able to test the resilience of the organizations we supported, which reassures us both about their quality and the microfinance sector's resistance to shocks. This is a point that will need to be explored further to better understand the mechanisms that were implemented locally and the real social impact behind the good financial performance. For 2021, we all hope for the return of a less chaotic situation and the resumption of activities. We will have to learn the lessons from remote instructions and juggle with an activity that seems to be resuming but travel that remains limited. The pandemic is not yet behind us, but I hope it will remain under control in our countries of intervention.<\/p>\nLooking back at the time the crisis occurred, can you tell us what your perception was at that time?<\/h4>\n
What was the role of the Committee you chair in this context?<\/h4>\n
One year later, what lessons have you learned from this experience and what prospects do you see for the Foundation in 2021?<\/h4>\n