Many people have been asking me what the impact of the global financial crisis is, or will be, on microfinance. So, when two papers passed my desk this morning, I thought Kiva lenders might be interested in reading them too:
Click here to download the Foundation for Development Cooperation's briefing note titled "Impact of the Global Finanical Crisis on Microfinance".
Click here to download "Micro's Moment", an article by Sam Mendelson ( smmendelson A.T. googlemail.com ), published in Financial World magazine ( www.financialworld.co.uk ).
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2 comments:
Thanks Fiona. Your second link is missing. I tried to search 'Financial World Sam Mendelson' and all I got was your blog :) jan
From Cambodia, here's a quick take from a Kiva Fellow on how the global financial crisis has affected at least one Kiva partner MFI, Maxima.
Maxima was close to a deal with a Korean Bank for a six-figure (USD) equity investment, but at the last moment, the Korean bank withdrew from the deal. It wasn't a complete surprise for Maxima, but it was disappointing.
Fortunately, Maxima has alternatives. While the a single, larger investment from something such as the Korean bank would have been preferable, there are a number local (Cambodian) investors who are interested. Maxima is now re-evaluating its position, and vetting the umpteen-odd local investors who have expressed interest in investing.
Short take: things have become more challenging for Maxima, but capital to grow is still available.
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