The Financial Crisis and Microfinance

Microfinance Industry

The success of microcredit throughout the world is undeniable and the high repayment rates of poor entrepreneurs who benefit are well known. A number of corollaries have developed: microsavings, microinsurance and micropayments. Today there are more than 10,000 microfinance institutions (MFIs), which carry out transactions totaling over 40 billion euros from 150 million poor, mostly women. Of these 10,000 facilities, about 2% have the necessary scale to be profitable. These 2% provide the bulk of funding for the sector.

The financial crisis that we have known for two years she affects this table and she slows the prospects of microfinance? Today, there are two main effects of the financial crisis on microfinance. On one hand, the rate of non-repayment of microemprunteurs increased, as shown by the Moroccan example (although country star microfinance still two years ago ...). On the other hand, growth in the number of loans for microfinance is still largely informal and feeds mainly on activities that are not related to the global economy, excluding agriculture and commercial activities related to tourism.

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  1. nice work

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