CGAP has just released a new report on The Global Financial Crisis and Its Impact on Microfinance, and the picture is looking mixed for microfinance over the next few years. Microfinance institutions (MFIs) that rely on commercial funding are facing a refinancing threat, exacerbated by possible currency mismatches.
However, international donors look likely to fill a large part of the gap if the issue is one of liquidity. I think the more difficult question is what to do about MFIs that face an insolvency problem, a possibility in the light of trends in remittance flows.
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