The objective of this document is to share impressions on the evolution of the situation of MFIs by August 2021. It also presents the expectations regarding the development of the sector.
February 14, 2007
Role Reversal
The rapid growth of foreign private lending to microfinance institutions (MFIs) in the last several years has led to a surprising reversal of roles between government-owned development institutions and private lenders. Development institutions (International Financial Institutions -“IFIs”1 ) are concentrating their loans in the strongest MFIs, leaving private lenders to look for opportunities among smaller, riskier borrowers. Development institutions are “crowding” private lenders out of the best MFIs.