Microfinance Information Exchange

Sacrificing Microcredit for Unrealistic Goals

Sacrificing Microcredit for Unrealistic Goals

Date: 
January 2011
Author(s): 
Adrian Gonzalez

In a recent New York Times opinion piece, Muhammad Yunus proposed government regulation to enforce an interest rate cap of 10 - 15 percentage points over cost of funds for microfinance institutions.  The intention of this cap is to prevent profit-maximizing businesses from extracting megaprofits from poor borrowers. Unfortunately, the proposal misses its goal in two ways.  First, operating costs, not profits, drive microcredit interest rates for the vast majority of MFIs.  Second, the proposed caps would affect mostly MFIs working with poorer clientele and would impact the majority of MFIs in most countries of the world.

This methodology for categorizing microcredit interest rates is not new, as it was previously presented in Yunus’ 2007 book, Creating a World Without Poverty.  The methodology defines three zones:

  • Green Zone: (Interest Rate – Cost of Funds) ≤ 10 percentage points.  According to Professor Yunus, these are “poverty-focused” microcredit programs (p. 69).
  • Yellow Zone: (Interest Rate – Cost of Funds) ≤ 15 percentage points.
  • Red Zone: (Interest Rate – Cost of Funds) > 15 percentage points.  Yunus labels institutions operating in this zone as “profit-maximizing” MFIs, adding that these programs are “commercial enterprises whose main objective appears to be earning large profits for shareholders or other investors.” Yunus even refers to this as the zone of the “moneylenders” and “loan sharks”[1].

Figure 1 shows the percent of borrowers in the ‘red zone’ by country. We can easily see that in most of both Africa and Latin America, and much of Asia, the majority of borrowers are served by MFIs in the ‘red zone’. Only a few countries, often with large state-run institutions, slip through this metric.

Figure 1: Percentage of Borrowers in the Red Zone by Country

 

Last year, MIX published a review of this methodology using data for 2008.  Given the return to these metrics in the recent editorial, we’ve updated these figures using data for 2009 from 1027 microfinance institutions (MFIs), covering 88 million borrowers. The updated figures confirm the conclusions from last year’s paper:

  • Three out of four microfinance institutions worldwide fall into the ‘red zone’.
  • The categorization can almost entirely be explained by operating expenses, rather than profits, since operating expenses represent 62 percent of all the expenses that need to be covered by the average yield[2] and 80 percent of expenses covered by the premium, as defined in the methodology.
  • Looking across the broad universe of MFIs, there is no evidence that institutions in any ‘zone’ are taking supernormal profits. Removing all profits from all MFIs would not substantively change the distribution of MFIs into green, yellow and red zones.
  • Most MFIs that have low average loan sizes (suggesting they reach poorer clients) are being mislabeled as in the ‘red zone’.
  • Not-for-profit NGO MFIs are more likely to be in the red zone than for-profit MFIs (like banks) and credit unions.

The updated metrics reinforce the point that the main challenge to reduce microcredit interest rates is to improve efficiency. Overall, megaprofits are an exception and not widespread among MFIs around the world.  As shown in Figure 2, operating expenses contribute close to two-thirds of the costs that interest rates covered in 2009, while profits represented less than 10 percent of all costs covered.  In other words, from every $100 collected by MFIs from borrowers as interest rates and fees in 2009, $63 dollars covered operating expenses, $21 dollars financial expenses, $7 dollars portfolio losses, $3 taxes, and only $7 were left for profits.

Figure 2: Spread and Yield Components, Profitable MFIs (ROA>0), 2009

 

Potential Effects on Microcredit Outreach of the Proposed Interest Rate Caps.

In his op-ed, Yunus argues that “The maximum interest rate should not exceed the cost of the fund … plus 15 percent of the fund … The ideal ‘spread’ between the cost of the fund and the lending rate should be close to 10 percent.”  In addition, he proposes that to “enforce such a cap, every country where microloans are made needs a microcredit regulatory authority.”

Given these specific recommendations, what could happen to microcredit outreach if local regulatory authorities apply these interest rate caps? For now we look at the actual distribution of borrowers in the three zones using 2009 data from 1027 MFIs covering 88 million borrowers. Figure 3 shows that close to two-thirds of all borrowers in 2009 were served by MFIs in the red zone, those potentially affected by an interest rate cap of 15 percentage points over the cost of funds.  Less than one quarter of all borrowers were served by MFIs in the green zone, those that will not be affected by an interest rate cap of 10 percentage points over the cost of funds.  Consistent with last year’s analysis, the regions most affected by the proposed interest rate caps would be those with the highest operating expenses:  Sub-Saharan Africa, Latin America and the Caribbean, and Middle East and North Africa.

Figure 3: Percentage of Borrowers by Zone in 2009

 

 

 

 

 

 

 

 

 

Perhaps surprisingly, as shown in Figure 4, the proposed interest rate caps will also affect NGO providers the most. These institutions provide the smallest loans (as indicated by average loan balance values shown in the chart), and thus likely serve poorer borrowers than other types of institutions.

Figure 4: Percentage of Borrowers by Zone and Legal Status in 2009

 

A better way to look at the analysis is to focus on the total number of borrowers.  Of the 88 million borrowers served in 2009, only 19 million are served by MFIs that would not be affected by a (hypothetical) 10 percent cap on spreads, and only 14 million more (or 33 million total) are served by MFIs in the green and yellow zones. 

Figure 5: Simulated Impact of the Caps on Number of Borrowers by Region in 2009

 

The database used for this analysis is available here, and we invite readers to simulate the impact of the proposed interest rate caps under alternative scenarios.[3]

Conclusions

Finding ways to reduce costs for poor borrowers is among the most important goals for microcredit.  However, sometimes we focus too much attention on prices and forget the other factors that influence how and why the poor decide to borrow: quality of service, appropriate product terms and loan amounts, speed of delivery and access to future loans.

However, the main reason microcredit interest rates are higher than those of other financial institutions is the high operating cost necessary to deliver small loans - paying administrative and staff expenses.  Making 1,000 loans of $100 each requires far greater staff expenses than making a single loan of $100,000.  Because of this well-known relationship between loan size and cost, the MFIs most likely to be affected by the proposed interest rate caps are those making the smallest loans, and most likely, reaching the poorest microborrowers.

Some MFIs do obtain very high profits from their microcredit operations; however, this is not the main reason why interest rates are higher in microfinance in comparison with other credit markets.  The previous analysis shows that reducing all profits to zero for all MFIs still leaves 63 percent of borrowers worldwide in the ‘red zone.’  From the point of view of benchmarking, a global evaluation of interest rates needs to first take into account differences in operating expenses worldwide.

This article is also available in Spanish and French.


RELATED PUBLICATIONS:


[1] Yunus, Muhammad (2007), Creating a World Without Poverty, Public Affairs, New York, p69.

[2] Throughout the article, we use yields as a proxy for interest rates. Yields reflect all revenue from interest and fees actually received by the MFI over the course of the year for their loan products. While yields and interest rates will differ when borrowers don’t make payments or if fees or other charges are not fully disclosed, they should closely track each other.

[3] A future update of this analysis will include alternative scenarios like assuming a 3% target for ROA.

Comments

dahsyatt 2014

dahsyatt 2014

info Cap Kaki Tiga, Setia,

info Cap Kaki Tiga, Setia, Manfaat

Alfamart official partner

Alfamart official partner merchandise FIFA piala dunia Brazi

likr this

likr this

re:

I really enjoyed reading your article. I found this as an informative and interesting post, so i think it is very useful and knowledgeable. I would like to thank you for the effort you have made in writing this article. negra edupdf.org

RU486

RU486:http://www.zzleshirts.com/p59.html 淫インモラル:http://www.zzleshirts.com/p651.html インモラル:http://www.zzleshirts.com/p651.html 紅蜘蛛:http://www.zzleshirts.com/p35.html 威哥王:http://www.zzleshirts.com/p250.html 巨人倍増:http://www.zzleshirts.com/p2.html D10:http://www.zzleshirts.com/p74.html D10媚薬:http://www.zzleshirts.com/p74.html D10催情剤:http://www.zzleshirts.com/p74.html 花痴:http://www.zzleshirts.com/p28.html ハナチ:http://www.zzleshirts.com/p28.html 絶對高潮:http://www.zzleshirts.com/p1.html 絶對高潮カプセル:http://www.zzleshirts.com/p1.html FLY D5:http://www.zzleshirts.com/p293.html D5原液:http://www.zzleshirts.com/p292.html 蒼蝿水:http://www.zzleshirts.com/p293.html 花之欲:http://www.zzleshirts.com/p26.html 美人豹:http://www.zzleshirts.com/p338.html 妻之友:http://www.zzleshirts.com/p357.html 福源春:http://www.zzleshirts.com/p372.html 福源春カプセル:http://www.zzleshirts.com/p372.html 催情丹:http://www.zzleshirts.com/p411.html D8 催情剤:http://www.zzleshirts.com/p170.html 魔鬼天使性欲粉:http://www.zzleshirts.com/p348.html 蟻王:http://www.zzleshirts.com/p206.html アリ王:http://www.zzleshirts.com/p206.html 淫インモラル:http://www.zzleshirts.com/p651.html インモラル:http://www.zzleshirts.com/p651.html 妖姫:http://www.zzleshirts.com/p650.html VOV催情液:http://www.zzleshirts.com/p193.html 小情人:http://www.zzleshirts.com/p162.html VOV催情粉:http://www.zzleshirts.com/p194.html d9催情:http://www.zzleshirts.com/p167.html 中絶薬:http://www.zzleshirts.com/c3.html 中絶 薬:http://www.zzleshirts.com/c3.html 潤滑剤:http://www.zzleshirts.com/p149.html コンドーム:http://www.zzleshirts.com/c26.html 避妊薬:http://www.zzleshirts.com/c23.html SEX DROPS:http://www.zzleshirts.com/p162.html スペイン セックス ドロップ:http://www.zzleshirts.com/p170.html 情愛芳香劑:http://www.zzleshirts.com/c65.html 安宮牛黄丸:http://www.zzleshirts.com/p639.html 夜狼神:http://www.zzleshirts.com/p689.html 徳国黒金:http://www.zzleshirts.com/p696.html VigRx:http://www.zzleshirts.com/p198.html アフリカ超人:http://www.zzleshirts.com/p688.html 中華牛鞭:http://www.zzleshirts.com/p60.html 蔵秘雄精:http://www.zzleshirts.com/p690.html ヴァージン催淫水:http://www.zzleshirts.com/p706.html poniwa超強力催淫水:http://www.zzleshirts.com/p705.html Lose Chastity 失貞粉:http://www.zzleshirts.com/p704.html KKK超強力催情水:http://www.zzleshirts.com/p703.html 止血薬 カルバゾクロム錠:http://www.zzleshirts.com/p694.html 女性用バイアグラ:http://www.zzleshirts.com/p698.html セフラジン:http://www.zzleshirts.com/p695.html 威哥王:http://www.zzleshirts.com/p250.html 巨人倍増:http://www.zzleshirts.com/p2.html 三體牛鞭:http://www.zzleshirts.com/p402.html 三体牛鞭:http://www.zzleshirts.com/p402.html 新一粒神:http://www.zzleshirts.com/p429.html 五便宝:http://www.zzleshirts.com/p238.html 狼1号:http://www.zzleshirts.com/p100.html 狼一号:http://www.zzleshirts.com/p100.html 三便宝:http://www.zzleshirts.com/p288.html 蟻力神:http://www.zzleshirts.com/p128.html VigRx:http://www.zzleshirts.com/p198.html vigrxプラス:http://www.zzleshirts.com/p198.html ビグレックス:http://www.zzleshirts.com/p198.html VVK:http://www.zzleshirts.com/p192.html Wenickman:http://www.zzleshirts.com/p192.html 奇果:http://www.zzleshirts.com/p358.html 金博郎:http://www.zzleshirts.com/p469.html MaxMan:http://www.zzleshirts.com/p152.html 法国性奴:http://www.zzleshirts.com/p439.html 蔵秘男宝:http://www.zzleshirts.com/p294.html 勃動力三體牛鞭:http://www.zzleshirts.com/p456.html 中華牛鞭:http://www.zzleshirts.com/p60.html 立挺90度:http://www.zzleshirts.com/p104.html 男根増長素:http://www.zzleshirts.com/p410.html 消渇丸:http://www.zzleshirts.com/p179.html 消渇丸 輸入:http://www.zzleshirts.com/p179.html 三鞭粒:http://www.zzleshirts.com/p433.html 男宝:http://www.zzleshirts.com/p329.html 壮三天:http://www.zzleshirts.com/p443.html 魔根:http://www.zzleshirts.com/p403.html 壮天根:http://www.zzleshirts.com/p55.html 黒倍王:http://www.zzleshirts.com/p401.html 九鞭粒:http://www.zzleshirts.com/p463.html 黒色風暴:http://www.zzleshirts.com/p42.html 男露888:http://www.zzleshirts.com/p349.html 蔵八宝:http://www.zzleshirts.com/p430.html 性霸2000:http://www.zzleshirts.com/p209.html Xing霸:http://www.zzleshirts.com/p209.html 藏秘男宝:http://www.zzleshirts.com/p294.html 鹿茸腎宝:http://www.zzleshirts.com/p332.html 力多精:http://www.zzleshirts.com/p103.html 西班牙蒼蝿水:http://www.zzleshirts.com/p228.html モチベーター:http://www.zzleshirts.com/p213.html リドスプレー:http://www.zzleshirts.com/p212.html LIDO SPRAY:http://www.zzleshirts.com/p212.html 天天素:http://www.zzleshirts.com/p387.html V26:http://www.zzleshirts.com/p183.html 強効痩:http://www.zzleshirts.com/p363.html 御秀堂:http://www.zzleshirts.com/p120.html 痩身一号:http://www.zzleshirts.com/p46.html 痩身1号:http://www.zzleshirts.com/p46.html 唯美OB:http://www.zzleshirts.com/p246.html 終極痩身:http://www.zzleshirts.com/p52.html 韓国痩身一号:http://www.zzleshirts.com/p46.html 韓国痩身1号:http://www.zzleshirts.com/p46.html 日本秀身堂:http://www.zzleshirts.com/p368.html 超級脂肪燃焼弾:http://www.zzleshirts.com/p283.html スーパーファット:http://www.zzleshirts.com/p283.html 大印象ダイエット茶:http://www.zzleshirts.com/p290.html 曲美:http://www.zzleshirts.com/p366.html 碧生源減肥:http://www.zzleshirts.com/p693.html 精力剤:http://www.zzleshirts.com 中国精力剤:http://www.zzleshirts.com ed治療薬:http://www.zzleshirts.com/c12.html 勃起不全:http://www.zzleshirts.com/c16.html 勃起障害:http://www.zzleshirts.com/c16.html ペニス増大:http://www.zzleshirts.com/c13.html 早漏防止薬:http://www.zzleshirts.com/c14.html ED治療:http://www.zzleshirts.com/c12.html ED改善:http://www.zzleshirts.com/c12.html 勃起促進:http://www.zzleshirts.com/c16.html 媚薬:http://www.zzleshirts.com/c60.html 媚薬 通販:http://www.zzleshirts.com/c60.html 媚薬 販売:http://www.zzleshirts.com/c60.html 媚薬 効果:http://www.zzleshirts.com/c60.html 媚薬 激安:http://www.zzleshirts.com/c60.html 女性用媚薬:http://www.zzleshirts.com/c60.html リキッド媚薬:http://www.zzleshirts.com/c60.html 粉劑媚薬:http://www.zzleshirts.com/c60.html 催情剤:http://www.zzleshirts.com/p74.html 催情:http://www.zzleshirts.com/p74.html 催情粉:http://www.zzleshirts.com/p38.html 催淫:http://www.zzleshirts.com/p28.html 催淫剤:http://www.zzleshirts.com/p28.html ペニス増大:http://www.zzleshirts.com/p192.html アフリカ超人:http://www.zzleshirts.com/p688.html 房事神油:http://www.zzleshirts.com/p409.html 愛妻楽:http://www.zzleshirts.com/p262.html 紅蜘蛛 通販:http://www.zzleshirts.com/p35.html 威哥王販売:http://www.zzleshirts.com/p250.html 巨人倍増カプセル:http://www.zzleshirts.com/p2.html 五便宝カプセル:http://www.zzleshirts.com/p238.html 金色起点:http://www.zzleshirts.com/p9.html 威猛酷哥:http://www.zzleshirts.com/p249.html 毎粒堅:http://www.zzleshirts.com/p334.html 香港宝和堂海狗丸:http://www.zzleshirts.com/p180.html 金威龍:http://www.zzleshirts.com/p7.html イリュウ:http://www.zzleshirts.com/p7.html 威龍:http://www.zzleshirts.com/p435.html D5 催情剤:http://www.zzleshirts.com/p164.html マカ:http://www.zzleshirts.com/p215.html

淫インモラル

インモラル:http://immoral.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com 黒倍王:http://www.hellokanpo.com/view/heibeiwang.html 三鞭粒:http://www.hellokanpo.com/view/wei.html セフラジン:http://www.hellokanpo.com/view/kangshengwuzhi.html 情愛芳香劑:http://www.hellokanpo.com/rush/ 蔵秘雄精:http://www.hellokanpo.com/view/zangmitiongjing.html 夜狼神:http://www.hellokanpo.com/view/yelangshen.html 中華牛鞭:http://www.hellokanpo.com/view/zhonghua.html ビグレックス:http://www.hellokanpo.com/view/oil.html アフリカ超人:http://www.hellokanpo.com/view/chaoren.html インモラル:http://immoral.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com 悦可亭:http://www.hellokanpo.com/view/yueke.html 止血薬 カルバゾクロム錠:http://www.hellokanpo.com/view/zhixueyao.html 女性用バイアグラ:http://www.hellokanpo.com/view/nvweige.html 安宮牛黄丸:http://www.hellokanpo.com/view/tongrenangong.html 碧生源減肥:http://www.hellokanpo.com/view/bishengyuan.html D10催情剤:http://www.hellokanpo.com/view/D10-meiyao.html 徳国黒金:http://www.hellokanpo.com/view/deguoheijin.html Xing霸:http://www.hellokanpo.com/view/xingba2000.html 性霸2000:http://www.hellokanpo.com/view/xingba2000.html 壮天根:http://www.hellokanpo.com/view/ZTG.html 九鞭粒:http://www.hellokanpo.com/view/jiubianli.html 蔵秘男宝:http://www.hellokanpo.com/view/zangmi.html 藏秘男宝:http://www.hellokanpo.com/view/zangmi.html 奇果:http://www.hellokanpo.com/view/qiguo.html LIDO SPRAY:http://www.hellokanpo.com/view/Lidosprayer.html リドスプレー:http://www.hellokanpo.com/view/Lidosprayer.html 妖姫:http://youhi.hellokanpo.com インモラル:http://immoral.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com 夜夜堅:http://www.hellokanpo.com/view/yeyejian1200.html 好漢哥:http://www.hellokanpo.com/view/haohange.html VVK:http://www.hellokanpo.com/view/VVK-Wenickman.html Wenickman:http://www.hellokanpo.com/view/VVK-Wenickman.html 金博郎:http://www.hellokanpo.com/view/JinBoLang.html 力多精:http://www.hellokanpo.com/view/lid-jing.html ヴァージン催淫水:http://www.hellokanpo.com/view/uejin.html poniwa超強力催淫水:http://www.hellokanpo.com/view/poniwa.html Lose Chastity 失貞粉:http://www.hellokanpo.com/view/Chastity.html KKK超強力催情水:http://www.hellokanpo.com/view/kkk.html 立挺90度:http://www.hellokanpo.com/view/liting90.html 男根増長素:http://www.hellokanpo.com/view/nangen.html 消渇丸:http://www.hellokanpo.com/view/xiaokewan.html 消渇丸 輸入:http://www.hellokanpo.com/view/xiaokewan.html 新一粒神:http://www.hellokanpo.com/view/xinyilishen.html 壮三天:http://www.hellokanpo.com/view/zhuangsantian.html 魔根:http://www.hellokanpo.com/view/muogen.html 金動力:http://www.hellokanpo.com/view/jindongli.html 黒色風暴:http://www.hellokanpo.com/view/heise-fengbao.html 男露888:http://www.hellokanpo.com/view/nanlu888.html 蔵八宝:http://www.hellokanpo.com/view/zhangbabao.html 西班牙蒼蝿水:http://www.hellokanpo.com/view/xibanyamoli.html 鹿茸腎宝:http://www.hellokanpo.com/view/lurong.html MaxMan:http://www.hellokanpo.com/view/MaxMan.html 勃動力三體牛鞭:http://www.hellokanpo.com/view/santiniubian.html 五便宝:http://www.hellokanpo.com/view/wodibo-capsules.html 男宝:http://www.hellokanpo.com/view/nanbao.html VigRx:http://www.hellokanpo.com/view/vigrx.html vigrxプラス:http://www.hellokanpo.com/view/vigrx.html 巨人倍増:http://www.hellokanpo.com/view/jurenbeiceng.html 巨人倍増 通販:http://www.hellokanpo.com/view/jurenbeiceng.html 三體牛鞭:http://www.hellokanpo.com/view/santiniubian.html 三体牛鞭:http://www.hellokanpo.com/view/santiniubian.html 威哥王:http://www.hellokanpo.com/view/weigewang.html 威哥王 正規品:http://www.hellokanpo.com/view/weigewang.html 狼1号:http://www.hellokanpo.com/view/langyihao.html 狼一号:http://www.hellokanpo.com/view/langyihao.html 三便宝:http://www.hellokanpo.com/view/satibo-capsules.html 蟻力神:http://www.hellokanpo.com/view/yilishen.html 淫インモラル:http://immoral.hellokanpo.com インモラル:http://immoral.hellokanpo.com 金威龍:http://www.hellokanpo.com/view/jinweilong.html 房事神油:http://www.hellokanpo.com/view/fangshi.html 性福三宝:http://www.hellokanpo.com/view/xingfusanbao.html 五夜神:http://www.hellokanpo.com/view/tbwy.html 野生虫草王:http://www.hellokanpo.com/view/yesheng.html 東方神龍生精:http://www.hellokanpo.com/view/dongfuangshenlong.html 壮陽一号:http://www.hellokanpo.com/view/zhuangyangyihao.html 達克寧:http://www.hellokanpo.com/view/dakening.html RUSH BLUE:http://www.hellokanpo.com/view/rush550.html ULTRA RUSH:http://www.hellokanpo.com/view/rush549.html ラッシュ芳香劑:http://www.hellokanpo.com/view/rush559.html 妖姫:http://youhi.hellokanpo.com インモラル:http://immoral.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com 情愛芳香劑:http://www.hellokanpo.com/rush/ 妻之友:http://www.hellokanpo.com/view/qizhi.html D10:http://www.hellokanpo.com/view/D10-meiyao.html D10媚薬:http://www.hellokanpo.com/view/D10-meiyao.html D10催情剤:http://www.hellokanpo.com/view/D10-meiyao.html 絶對高潮:http://www.hellokanpo.com/view/juedui.html 絶對高潮カプセル:http://www.hellokanpo.com/view/juedui.html d9催情:http://www.hellokanpo.com/view/D9-INVERMA.html D8 催情剤:http://www.hellokanpo.com/view/SpanishFliegeD8.html FLY D5:http://www.hellokanpo.com/view/fly-d5.html D5原液:http://www.hellokanpo.com/view/FLYD5yuan.html 蒼蝿水:http://www.hellokanpo.com/view/FLY-D5.html 花之欲:http://www.hellokanpo.com/view/huazhiyu.html 美人豹:http://www.hellokanpo.com/view/meirenbao.html 福源春:http://www.hellokanpo.com/view/fuyuanchun.html 催情丹:http://www.hellokanpo.com/view/cuiqingdan.html 魔鬼天使性欲粉:http://www.hellokanpo.com/view/mogui-tianshi.html 蟻王:http://www.hellokanpo.com/view/antking.html アリ王:http://www.hellokanpo.com/view/antking.html SEX DROPS:http://www.hellokanpo.com/view/sex-drops.html VOV催情粉:http://www.hellokanpo.com/view/vovcuiqing.html VOV催情液:http://www.hellokanpo.com/view/VOVcuiqingye.html 小情人:http://www.hellokanpo.com/view/sex-drops5.html スペイン セックス ドロップ:http://www.hellokanpo.com/view/SpanishFliegeD8.html 片仔廣:http://www.hellokanpo.com/view/pientze-huang.html へんしこう:http://www.hellokanpo.com/view/pientze-huang.html 同仁堂牛黄清心丸:http://www.hellokanpo.com/view/trtnh.html 牛黄清心丸:http://www.hellokanpo.com/view/trtnh.html 精力剤:http://www.hellokanpo.com/JingLiJi 媚薬:http://www.hellokanpo.com/meiyao 催情剤:http://www.hellokanpo.com/view/D10-meiyao.html 催情:http://www.hellokanpo.com/view/D10-meiyao.html 催情粉:http://www.hellokanpo.com/view/hongzhizhu1.html 催淫剤:http://www.hellokanpo.com/view/jueduigaochao.html ペニス増大:http://www.hellokanpo.com/view/VVK-Wenickman.html 終極痩身:http://www.hellokanpo.com/view/zhongjishoushen.html 超級脂肪燃焼弾:http://www.hellokanpo.com/view/FATBURNING.html スーパーファット:http://www.hellokanpo.com/view/FATBURNING.html 大印象ダイエット茶:http://www.hellokanpo.com/view/dayinxiang.html 御秀堂:http://www.hellokanpo.com/view/yuxiutang.html 強効痩:http://www.hellokanpo.com/view/qiangxiao.html 韓国痩身一号:http://www.hellokanpo.com/view/hanguoshou-575.html 韓国痩身1号:http://www.hellokanpo.com/view/hanguoshou-575.html 痩身一号:http://www.hellokanpo.com/view/hgshou.html 痩身1号:http://www.hellokanpo.com/view/hgshou.html 日本秀身堂:http://www.hellokanpo.com/view/xouzhentang.html 天天素:http://www.hellokanpo.com/view/tiantiansu.html V26:http://www.hellokanpo.com/view/V26.html 唯美OB:http://www.hellokanpo.com/view/wmob.html 花痴:http://www.hellokanpo.com/view/huachi.html 紅蜘蛛:http://www.hellokanpo.com/view/hong-zhi-zhu.html 中絶薬:http://www.hellokanpo.com/zhongjue/ 中絶 薬:http://www.hellokanpo.com/zhongjue/ RU486:http://www.hellokanpo.com/view/beijing-ru486.html ru486 個人輸入:http://www.hellokanpo.com/view/beijing-ru486.html 潤滑剤:http://www.hellokanpo.com/view/K-YJelly-runhua.html コンドーム:http://www.hellokanpo.com/view/dlsh.html 避妊薬:http://www.hellokanpo.com/zhongjue/birenyao.html 淫インモラル:http://immoral.hellokanpo.com インモラル:http://immoral.hellokanpo.com 媚薬 淫インモラル:http://immoral.hellokanpo.com 媚薬 インモラル:http://immoral.hellokanpo.com 淫インモラル 販売:http://immoral.hellokanpo.com インモラル 販売:http://immoral.hellokanpo.com 媚薬 妖姫:http://youhi.hellokanpo.com 妖姫 効果:http://youhi.hellokanpo.com 妖姫 販売:http://youhi.hellokanpo.com 妖姫 通販:http://youhi.hellokanpo.com 妖姫:http://youhi.hellokanpo.com 淫インモラル:http://immoral.hellokanpo.com インモラル:http://immoral.hellokanpo.com 999皮炎平軟膏:http://www.hellokanpo.com/view/999piyan.html 同仁烏鶏白鳳丸:http://www.hellokanpo.com/view/tongrenwuji.html 婦科千金片:http://www.hellokanpo.com/view/fukeqian.html 維尼好:http://www.hellokanpo.com/view/wnh.html 司米安:http://www.hellokanpo.com/view/simian.html 毓亭緊急避妊薬:http://www.hellokanpo.com/view/mtji.html 縮陰膏:http://www.hellokanpo.com/view/suoyingao.html 新顕臣粉刺浄:http://www.hellokanpo.com/view/fencijing.html 火辣女強力媚薬:http://www.hellokanpo.com/view/HotSex-Girl.html 超級猛男健力カプセル:http://www.hellokanpo.com/view/caoji.html 早漏克星:http://www.hellokanpo.com/view/zaoxiekexing.html 亀鹿睾丸生精片:http://www.hellokanpo.com/view/guilu.html 徳国 増大宝:http://www.hellokanpo.com/view/deguozengdabao.html マカ:http://www.hellokanpo.com/view/MACA.html ビビッドビリリティ:http://www.hellokanpo.com/view/vivid-60.html

re:

I like your post a lot! You should write some more on this!Great job coming with such terrific post! alchemist www.inspgift.com

re:

Very good post. I figure out that one learns something new everyday. Informative website by the way. Keep up the good work. diana www.avemariagp.org

Thanks Gonzalez for this

Thanks Gonzalez for this excellent analysis. Following Compartamos IPO in 2007, Richard Rosenberg of CGAP issued an important paper on interest MFI interest rate. Indeed, the cost of funds for microfinance operation in Bangladesh has historically been low due to huge pumping of grants as well as ability to mobilize savings. Apart from that, there is a government sponsored, and donor supported, discounted facility in Bangladesh, PKSF, that wholesales funds to MFIs at 4-7 percent. All these contributed a lot to keep the cost of fund for MF operation very low, and the weighted average is far below the 10 percent level. This is not the case elsewhere. Regarding operational cost, Bangladeshi MFIs, including Grameen, again, are fortunate enough to keep the cost low due to high density of clients in a given geographical area, and low salary of the loan officers. Though the loan size in Bangladesh is smaller than other countries, and the amount of money traded per staff is lower than many other countries, this does not hinder the profitability of the Bangladeshi MFIs, and the cost of operation is also lower than 10 or 15 percent suggested. This also may not be the case elsewhere. I have earlier posted an article on this same issue on the microfinancegateway.org, titled: SUSTAINABLE RURAL FINANCE: PROSPECTS, CHALLENGES AND IMPLICATIONS, which can be viewed from the following link: http://www.microfinancegateway.org/p/site/m//template.rc/1.9.30284 Looking forward to hear more. Best wishes, Getaneh Gobezie Independen Gender and Rural Microfinance Consultant E-Mail: getanehg2002@yahoo.com

Explain LAPO

Perhaps Yunus could also explain why Grameen Foundation USA, of which he is a board director, seemed so relaxed when LAPO was caught lending at intrest rates of over 120%, as explained in detail in a Planet Rating report and on the front page of the New York Times in April 2010? Grameen Foundation provided technical assistance to LAPO, direct funding, and guarantees to Citibank and Standard Chartered Bank to lend to LAPO. After this story was widely publicized, Schwab Foundation awarded LAPO with the "Africa Social Entrepreneur of the Year" award, while these interest rates persisted. Funnily enough, as a Board Director of Schwab Foundation, this seemed to evade Yunus's attention a second time. Kiva, Calvert and others withdrew from LAPO, but not Grameen. The evidence is not hard to find, look at the data on the Mix alone: www.mixmarket.org/mfi/lapo/data www.mixmarket.org/mfi/lapo/files www.nytimes.com/2010/04/14/world/14microfinance.html?_r=1&pagewanted=1 www.schwabfound.org/sf/SocialEntrepreneurs/Profiles/index.htm?sname=236569 Perhaps before Yunus starts lecturing the sector on interest rates, he should clean up his own operations first?

Sacrificing Microcredit for Unrealistic Goals

Great work! Furthermore, what Muhammad Yunnus fails to realize is that this MF "industry" is in its infancy in most poor countries and chooses to forget how it was able to grow into adulthood where it did (Bangladesh among others): Via subsidies and sunken costs that were financed by donnors and governments,,,So what is his recipe for for financing this budding industry elsewhere?

wonderful work

wonderful work

great

Great analysis and quite informative

Interest rate cap

with my respect to M. Yunus, I totally disagree. Such approach cannot be used for all MFI's worldwide as conditions are very different. If all MFI like Grameen will have chance to borrow and get a grant from Ford Foundation, from Soros, from Geits Foundation, we would be happy keep interest as lower as we can.not all MFI on the same situations.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • No HTML tags allowed

More information about formatting options

Type the characters you see in this picture. (verify using audio)
Type the characters you see in the picture above; if you can't read them, submit the form and a new image will be generated. Not case sensitive.