Microfinance was sold as a way to reduce poverty. See how much money was given as a grant, low interest loan from IADB, WB, USAID, and Europeans and how much capital was invested by original shareholders. And, when user is charged in addition to high interest rates, commission for all sort of training that never took place and you added up, rates go throughout the roof and the poor clients get creamed. That is no innovation or wealth creation for the consumer. Yes. It is for the owners who probably never put up a dime and made lots of money when they sold their investments a return on capital almost infinite.
My point is not that making a profit by MF to be a bad, if they are competitive, and there are regulations and price transparency fine. But Microfinance is not what it was intended to be another Money lender.
Chale Espinosa A
E-Mail: chalespinosa@yahoo.com
E-Mail: chalespinosa@yahoo.com
chalespinosa@gmail.com
BienesRaicesNicaragua@facebook.com
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From: "clementwan@yahoo.com [MicrofinancePractice]" <MicrofinancePractice@yahoogroups.com>
To: MicrofinancePractice@yahoogroups.com
Sent: Wednesday, September 17, 2014 10:31 PM
Subject: Re: SV: [MFP] Microfinance's position - Greed is good!
When financial products aren't being created to avoid regulatory constraints, financial services are development tools. Being profit seeking is not incompatible with poverty reduction. Financial services are catalysts for wealth creation.
Clement
---In MicrofinancePractice@yahoogroups.com, <chalespinosa@...> wrote :
---In MicrofinancePractice@yahoogroups.com, <chalespinosa@...> wrote :
Microfinance is not a development tool, it was originally sold as a way to reduce poverty and is not. The MF sector is another financial intermediary, profit driven, that competes with moneylenders in providing liquidity to its clients at interest rates that are higher than the regulated financial intermediaries and lower that moneylenders and are commensurate with risk taken.
Its a financial business.
Chale Espinosa A
E-Mail: chalespinosa@...
E-Mail: chalespinosa@...
chalespinosa@...
BienesRaicesNicaragua@...
USA : 251-219-4808
Nic : 505-8-851-3355
Skype: chalespinosa
twitter: @chalespinosa
http://www.facebook.com/BienesRaicesNicaragua
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Posted by: Chale Espinosa A <chalespinosa@yahoo.com>
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