We are happy to share with you the results of the sixth survey carried out in partnership with Fondation Grameen Credit Agricole and ADA to monitor and analyse the effects of the COVID-19 crisis on our partner MFIs worldwide.
The responses were collected in the second half of April 2021 from 87 MFIs located in 47 countries in Europe, Africa, Asia and Latin America and the Caribbean.
Our results show that MFIs had a lot of difficulties in reaching their development goals in the first quarter of 2021. The reasons cited have mainly to do with the difficulties encountered by the customers of the MFIs. Such customers are reluctant to commit to new loans, and if they do, it is for smaller amounts than in the past.
Two trends emerge: the MFIs are counting on their current shareholders to cover the losses linked to the crisis. Conversely, international investors are expected to support their development as of this year. The answers provided by our partners therefore underscore the need for recapitalization this year, which will involve all the players in the sector.
You can find the complete analysis here:
English version: Persistent credit risk: a threat to the solvency of microfinance institutions
Version française : Le risque de crédit persistant : une menace pour la solvabilité des institutions de microfinance
Version espanola : El riesgo de crédito persistente: una amenaza para la solvencia de las instituciones microfinanzieras
