Persistent credit risk : a threat to the solvency of microfinance institutions ? – ADA, Inpulse & Fondation Grameen Crédit Agricole

Persistent credit risk : a threat to the solvency of microfinance institutions ? – ADA, Inpulse & Fondation Grameen Crédit Agricole

Due to this context of pandemic, ADA, Inpulse et the Grameen Crédit Agricole Foundation joined forces in 2020 to monitor and analyse the effects of the Covid-19 crisis on their partner microfinance institutions around the world.

ADA & the Grameen Crédit Agricole Foundation present the results of their 6th joint round of survey.

This regular analysis aims to contribute to the construction of strategies and solutions adapted to the needs of their different partners, as well as to the dissemination and exchange of information between the different actors of the sector.

Responses were collected in the second half of April 2021 from 87 microfinance institutions (MFIs) located in 47 countries

The results show that MFIs’ operations have been reduced or slowed down, with a general decline in their capital levels. Indeed, one out of two MFIs, regardless of size, indicates that they will need capital in 2021. Two trends emerge: MFIs are counting on their current shareholders to cover the losses linked to the crisis. On the other hand, international investors are expected to support their development from this year.

The answers formulated by the partners therefore underline the challenge of recapitalisation needed this year, which will involve all the players in the sector.

To know more about this analyse and read the full report: 6th survey (April 2021)_Persistent credit risk-a threat to the solvency of MFIs.pdf (ada-microfinance.org)

Pour en savoir plus sur cette analyse et voir la rapport complet: Espace médias – Fondation Grameen Crédit-Agricole (gca-foundation.org)

La rediffusion du 52ème Midi de la Microfinance est également disponible sur le thème, Enquêtes Covid-19: Mieux comprendre l’impact sur les IMF et leurs clients pour mieux agir: Midi de la microfinance en ligne_FR | ADA Microfinance (ada-microfinance.org)