Microfinance Summit
Last week a group of microfinance practitioners and investors gathered in New York City at the 2nd Microfinance Summit to discuss recent developments within the microfinance industry, as well as opportunities in providing healthcare, clean water, and renewable energy to low-income populations.
Ratings upgrade highlights microfinance as a promising new asset class for investors
In March 2009, IFMR Capital (presently known as Northern Arc Capital) and Equitas Micro Finance concluded the first securitisation of micro-loans in India. Following that landmark transaction, on October 27th 2009 the associated PTCs (pass-through-certificates or securities) received a ratings upgrade from CRISIL. The senior tranche of PTCs was upgraded from AA (so) to AAA (so) — CRISIL’s highest long term safety rating. The junior tranche was upgraded from BBB (so) to A (so).
Indian Initiatives In Microcredit
The Asian Institute on Transport Development initiated a dialogue on strengthening trade and communication ties between India and Bangladesh on October 12th, 2009 at the India International Centre in Delhi.
The Miracle of Microfinance – An Evaluation
The miracle that microfinance is thought to be was subjected to a randomized evaluation in a study which was a result of a research partnership between MIT and the Centre for Microfinance at IFMR.
The miracle of microfinance? Evidence from a randomized evaluation
Microcredit has spread extremely rapidly since its beginnings in the late 1970s, but whether and how much it helps the poor is the subject of intense debate. This paper reports on the first randomized evaluation of the impact of introducing microcredit in a new market. Half of 104 slums in Hyderabad, India were randomly selected for opening of an MFI branch while the remainder were not.
