Apr 16, 2020

International microfinance institutions anticipate the first effects of a recession

By the Grameen Crédit Agricole Foundation, April 2020

The Grameen Crédit Agricole Foundation, in permanent contact with its network of nearly 80 partner microfinance institutions (MFIs) present in 40 countries, continues its work of collecting information, analysing and sharing its observations. Over the past few days, we have focused our follow-up on the consequences of the crisis and the work of the MFIs to deal with it. These informations are very important. They allow us, at our level, to take the most relevant decisions for the management of the Foundation, for the support of our partners and the effectiveness of our action as close as possible to their difficulties and anticipations. They also contribute to the sharing of information between the actors of this sector who organise themselves collectively, in these moments of crisis.

The results we have obtained confirm the trends predicted in the information reported during the first weeks: the crisis is very hard, undoubtedly beyond our first forecasts in early March, but resistance is organising. The effect of the health crisis is systemic. No stress model had anticipated it. The answer must therefore be systemic, too, if we want to avoid a major failure in this sector.

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