Overindebtedness in MicrofinanceGRIN Verlag, 14.09.2011 - 120 Seiten Master's Thesis from the year 2011 in the subject Politics - International Politics - Region: Middle- and South America, grade: 5.75/6.00, University of Geneva (GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES ), course: Overindebtedness in microfinance, language: English, abstract: Originally celebrated as a poverty alleviation tool which is financially sustainable, microfinance is experiencing worrying developments, such as deterioration of loan portfolios, growing commercialization and increasing public criticism due to exaggerated profits. Overindebtedness is one of the most worrying trends, as it has negative effects on the loan beneficiaries and in the same time it threatens the very existence of the sector. This field research analyses from an empirical perspective the causes and effects of overindebtedness in the specific case of the clientele of Financiera CREAR Arequipa S.A. in Lima Norte, Peru. It was found that overindebtedness is generated by a mix of causes related to the increased competition between microfinance institutions and to the specific behaviours of clients confronted with an abundant credit offer. This produces a series of effects at institutional and client levels, which can be described as institutional cannibalization, client forced‐feeding, desperate borrowing and loan bicycling. |
Häufige Begriffe und Wortgruppen
23 December 29 December analysis Arequipa Asli DEMIRGUC-KUNT Banco behaviour borrowers Brigit HELMS Brussels Building Healthy Financial Caja Centre Emile Bernheim CGAP Focus Note commercialization COPEME crédito crisis cross indebtedness debt Development Economic EDPYME Elisabeth RHYNE Financial Access Initiative financial institutions financial sustainability financial systems approach Financiera CREAR Global Grameen Bank group lending household impact individual lending institutional andfinancial perspective International Labour Organization interviewed Investment Jean-Michel SERVET Joanna LEDGERWOOD Jonathan MORDUCH Journal Kumarian Press Latin America Lima Lima Norte Los Olivos Marguerite ROBINSON MFIs Mibanco Microbanks microcredit Microenterprise Finance Microfinance microfinance clients Microfinance handbook Microfinance in Latin microfinance industry microfinance institutions microfinance revolution Microfinanzas mission drift NGOs Olivos Open Society Institute overindebtedness Peru poor portfolio programmes repayment Research Working Paper retrieved 10 December retrieved 23 retrieved 4 January Robert CULL social Solvay Brussels School target group Washington Consensus Washington D.C. WOLLER World Bank