Loan Guarantee Scheme and Credit Risk Management Specialist (National Consultant)


Location : Dili, Timor Leste
Application Deadline :02-Apr-21 (Midnight New York, USA)
Type of Contract :Individual Contract
Post Level :National Consultant
Languages Required :
English  
Starting Date :
(date when the selected candidate is expected to start)
16-Apr-2021
Duration of Initial Contract :9 months

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.

UNDP does not tolerate sexual exploitation and abuse, any kind of harassment, including sexual harassment, and discrimination. All selected candidates will, therefore, undergo rigorous reference and background checks.


Background

The COVID-19 pandemic has taken a heavy toll on the Timor-Leste economy where poverty is 30%, multidimensional poverty is 46%, 20.3% of youth are not in employment, education nor training, and the economy is projected to be contracting by 6.8% because of the pandemic. COVID-19-related factors have negatively impacted small farmers, people living in remote areas, urban settlements with limited infrastructure, and Micro, Small, and Medium Enterprises (MSMEs), and amplified the challenges caused by climate change, inadequate social safety net, and poor governance.

In such a context, UNDP Supporting Entrepreneurship and Employment for Women and Youth Project (SEEWAY) is a response to this current situation and support for recovery in terms of access to finance to MSMEs and enhancement of employability and readiness for the labour market of young men and women in Timor-Leste. This project will focus on the following: (i) better preparedness and recovery of MSMEs from COVID-19 impacts; (ii) provide additional income and employment opportunities to vulnerable groups, including women, people with disability, poor, and unemployed youth; (iii) follow up COVID-19 Socio-economic Impact Assessment conducted, and findings shared. 

  1. OBJECTIVE OF THE ASSIGNMENT

Micro, small and medium enterprises (MSMEs) in Timor-Leste are in need of financial assistance in the form of loans, grants, or direct inputs (e.g. agricultural inputs) for recovery from the COVID crisis. Through this initiative, UNDP Consultant will support both the demand and supply side of ensuring access to finance.

UNDP has already been supporting the Ministry of Tourism, Commerce, and Industry (MTCI) and National Commercial Bank of Timor-Leste (BNCTL) to establish a loan guarantee facility (LGF) based on a comprehensive assessment of the demand and supply aspects of access to finance. This facility was launched in September 2020 with the aim of de-risking loans (guarantees for collaterals) and lowering the interest rate down to 3% (from the weighted average lending rate of 12%) for start-up and social enterprises that otherwise would not qualify for bank loans. However, it needs to be improved before becoming fully established as its procedures, SOPs, committees, application forms, and other mechanisms are not yet fully operational. UNDP Consultant will continue to provide technical support and policy advice, in collaboration with UNCDF whenever possible, to MTCI and BNCTL to develop options for various loan products, eligibility criteria for applicants, application procedures, evaluation criteria and mechanisms, and SOPs to turn this first-ever scheme in the country as a viable solution to solve the problem of access to finance for MSMEs. UNDP will also build data analysis capacity (of risks, loans, results) and quality reporting.

On the demand side of this problem, UNDP Consultant will work with the MSMEs to build their capacity to access the loans. It will provide technical support to the MSMEs to enhance their readiness to recover their business and expand, meet the eligibility criteria to access the loan from BNCTL, and support them in putting together their application. This would entail providing support to develop viable business plans for recovery and scale-up, developing organizational aspects that are needed to meet the criteria for eligibility, and ensuring that the MSMEs develop the capacity to conduct sound cost-benefit analysis and projections. The consultant will work closely with the Institute to Assist Entrepreneurship Development (IADE) to coordinate trainings, counselling, and business support services for MSME.


Duties and Responsibilities

The national consultant is expected to share national and international best practices and provide inputs to the measurement, underwriting, collection, and collateral resolution processes, including proposed financial terms, of the proposed Facility. The consultant will work closely with the MTCI team, BNCTL, and relevant stakeholders (government, Loan Guarantee Committee, MSMEs, etc.) and provide guidance to MTCI and BNCTL teams as well as loan applicants.

The scope of work for this assignment will be largely around the following key functions:

Task 1: Development of underwriting procedures for Loan Guarantee Committee

The consultant will assist the MTCI team on LGF procedures and ensure those procedures are harmonized with BNCTL underwriting procedures. Together with MTCI teams, the consultant will develop a list of all key stakeholders for consultations and prepare, organize and conduct a workshop/ roundtable to discuss the measurement, underwriting, collection, and collateral resolution processes. Upon which the LGF procedure will be set forth.  

Task 2: Technical assistance to Loan Guarantee Committee and involved personnel of MTCI and BNCTL to manage Loan Guarantee Account

The consultant will be engaged together with the Social business coordinator of MTCI in developing, managing, and controlling the guarantee bank account created for the LGF as well as coordinate and conduct project Steering Committee meetings, to review the LGF activities and results, and take key decisions:

  • Organize and coordinate a quarterly meeting with the Loan Guarantee Committee, to revise LGF operation and achievements and to approve key decisions (including reports on the guarantee account);
  • Establish an effective relation with BNCTL and Social Business Coordinator of MTCI to manage the guarantee account;
  • Plan and report the guarantee account balance and transactions, specifying amount committed and loans payment schedules;
  • Monitor, control, and report the LGF operation;
  • Conciliate the bank account balance and report financial transactions and commitments from the account;
  • Collaborate with the stakeholders, including IADE municipalities, loan applicants, and beneficiaries, on the process related to loan approval and payment.

Task 3: Support to MSMEs to ensure eligibility and preparedness for the soft loans from BNCTL

The Consultant will work with the loan applicants/MSMEs to build their capacity to access the loans:

  • Provide technical support and consultations to the MSMEs to enhance their readiness to recover their business and expand, to meet the eligibility criteria to access the loan from BNCTL;
  • Assist in the development of viable business plans for recovery and scale-up, developing organizational aspects that are needed to meet the criteria for eligibility;
  • Provide support in performing financial analysis on prospects/ loan applicants;
  • Support applicant to put together their application and help them through credit underwriting and approval process;
  • Perform an investigation to verify the identity of loan applicants before recommending for a soft loan;
  • Work closely with the Institute to Assist Entrepreneurship Development (IADE) to coordinate trainings, counselling, and business support services for MSME.
  • Identify and map out of prospects youth entrepreneurs and social businesses across the territory and encourage them to apply LGF.
  • Propose to the Loan Guarantee Committee of other key productive sectors that are essential, sustainable, and thus prioritized to access Loan Guarantee Facility.  
  • Gather latest trends and updates of various types of loan products from BNCTL, including other commercial Banks existing in Timor-Leste, and conduct comparative analysis for Soft-Loan expansions.
  • Conduct research of similar soft-loans in the least developed countries and/or SIDS countries to support MSMEs growth; Present and recommend the findings to the relevant stakeholders for further improvement of the Loan Guarantee Facility project.  

Task  4: Trainings for MTCI and BNCTL personnel

Trainings should be delivered to MTCI and BNCTL staff engaged in a loan guarantee scheme. The consultant will develop effective workshop and training materials incorporating case studies, related latest best and innovative trends, and practical examples in the materials, including the following:

  • Key functions/tasks of risk personnel
  • Early warnings in the risks identification process
  • A risk management framework for SME banking
  • Risk responses (Transfer, mitigation, Accept, Evade)
  • Enterprise risk management in constituents of credits
  • Considerations in scrutinizing and analysing credit proposals
  • Credit risk analysis, credit reference, and approval techniques
  • Understanding/Ensuring Compliance Policies/Guidelines
  • Customer service and ethical conduct by credit staff (Delinquency management)
  • Operating within risk appetite
  • (The credit risk expert is expected to use sample business plans, financial statements, financial projections, case studies to demonstrate)
  • Loan structuring
  • Loan appraisal process
  • Elements of a good loan proposal from bank customers
  • Financial statements and ratio analysis to uncover key credit issues
  • Cashflow analysis
  • The role of non-financial analysis in credit assessment
  • Documentation and security analysis in lending
  • Calculation of sustainable growth
  • Preparation of financial projection based on borrower’s information
  • Factors that may impact the ability to repay debt
  • Grading loan after analysis
  • Credit memorandum


Competencies

 

  • Strong consumer and small business credit knowledge and basic advisory credit knowledge;
  • Strong knowledge of traditional bank products and services, including deposits, credit cards, mortgages, etc.;
  • Knowledge and experience in financial analysis on banks’ prospects/clients, credit underwriting, and approval process
  • Good analytical, writing, and interpersonal skills demonstrated from referee feedback.
  • Ability to communicate effectively orally and in writing, prepare reports, make impactful presentations, design and deliver audience-focused trainings.

Language requirements:

  • English language – excellent written and oral communication skills. In addition to excellent command of English, the ability to communicate in Bahasa Indonesia, Portuguese, or Tetum will be an advantage but not mandatory.


Required Skills and Experience

Education:

  • Advanced University degree in business development, economics, accounting, finance, or other relevant social and business major. Areas of specialized expertise could include banking, credit and risk management, SME support, and private sector policy.  

Experience:

  • At least 2 years of lending experience with solid commercial or private lending credit knowledge in the context of Timor-Leste;
  • Knowledge and experience in financial analysis on banks’ prospects/clients, credit underwriting, and approval process
  • Experience in credit approval packages, reviewing client credit proposals, and coordination of document preparation and closings;
  • Experience in coordination of credit and loan portfolio through the monitoring of past dues, document exceptions, collateral value monitoring, and covenant compliance;
  • Experience in processing loan applications.

Interested applicants are mandatory to apply online through https://jobs.undp.org/cj_view_job.cfm?job_id=97750. Supporting documents/filled templates to be submitted along with the applications are following, and those templates can be download from https://procurement-notices.undp.org/view_notice.cfm?notice_id=76518.

  • UN P11 Form
  • Individual Contract Offerors Letter to UNDP Confirming Interest and Availability
  • Individual Contract Reference Check (at least from two referees)
  • CV

Any request for clarification must be sent in writing to procurement.staff.tp@undp.org 

 



If you are experiencing difficulties with online job applications, please contact erecruit.helpdesk@undp.org.

© 2016 United Nations Development Programme