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Tag Archive 'Microfinance Crisis'

By Elisabeth Rhyne Managing Director, Center for Financial Inclusion 17 December 2010 [CFIBlog] Microfinance in India is undergoing a crisis caused by a toxic mix of mushrooming growth and political volatility. As they ponder their next steps, participants in the Indian microfinance sector would do well to examine another crisis that touched microfinance, in Bolivia [...]

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By Peg Ross, Director of Grameen Foundation’s Human Capital Center 16 December 2010 [CGAP] This post is the next in a special blog series on the microfinance crisis in Andhra Pradesh, India. Over the coming weeks we’ll be featuring a variety of voices on the issues raised by this crisis and what it means for the [...]

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4 December 2010 [Syminvest] Private equity companies may struggle to recoup almost $565 million in investments in India’s microfinance industry since 2006 after a regulatory backlash led at least two firms to delay initial public offerings. Temasek Holdings Pte, billionaire George Soros and Sequoia Capital are among investors who’ve put money into the world’s largest [...]

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1 December 2010 [VCCircle] There could be private capital inflow of at least Rs 1,500 cr (subject to deal closures) in the short term. The short-lived euphoria of India’s first blockbuster microfinance IPO, SKS Microfinance, and the business environment uncertainty in Andhra Pradesh (following regulatory changes), which is the hub of MFI activity in the [...]

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By Lindsay Clinton Editor of Beyond Profit & AVP at Intellecap 30 November 2010 [Good.Is] Rumors of the death of microfinance in India have been greatly exaggerated. Here’s what’s really happening. Until recently, microfinance was the darling of poverty alleviation. A foolproof way to pull people out of $2-a-day poverty. But, now, the microfinance sector in India [...]

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By Arvind Ashta Finance Professor & Microfinance Chair at the Burgundy School of Business 28 November 2010 [TheAfricaReport] Amidst a crisis in the Indian microfinance industry, legislators and bankers are asking if an interest rate ceiling in necessary to protect consumers and strengthen the performance of nonviable institutions. There is no global consensus on how [...]

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By Parmesh Shah 26 November 2010 [CGAP] This post is the next in a special blog series on the microfinance crisis in Andhra Pradesh, India. Over the coming weeks we’ll be featuring a variety of voices on the issues raised by this crisis and what it means for the future direction of microfinance. We welcome [...]

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Sunny Days for Microfinance

By Tim Ogden Executive Partner at Sona Partners 24 November 2010 [SSIReview] Many, including SSIR editor Tamara Straus, have characterized recent news from the microfinance industry as “largely depressing.” Straus used those words to describe the findings of microfinance impact studies. Others are depressed by the debacle underway in Andhra Pradesh, India—one of the epicenters [...]

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23 November 2010 [WSJ] Microfinance in India is in crisis because of the backlash against lenders in the southern state of Andhra Pradesh, the heart of the industry, where politicians have ordered borrowers not to repay their debts. The industry also faces an uncertain regulatory future with the state introducing new restrictions on lenders and [...]

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Crisis by Invitation

By Narasimhan Srinivasan Author of Microfinance: State of the Sector Report 2008, 2009 & 2010 20 November 2010 [CGAP] The microfinance sector had been given enough warning signals Governments legislate on conduct of business—from both positive/ enabling and negative/restrictive standpoints. While most regulations on business, commerce and industry are positive, some are highly restrictive on [...]

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By K V Ramana 6 November 2010 [Daily News & Analysis] The Andhra Pradesh government has decided to go ahead with the introduction of a Bill to regulate microfinance institutions (MFIs) in the state despite all resistance. The legislation will focus on curbing extortion from the borrowers under the guise of interest and the coercive [...]

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