over-indebtedness

Restoring Microfinance as a Pro-Poor Development Tool

[singlepic id=9 w= h= float=center] Microfinance is a collection of financial services targeted towards poor and low-income clients to help stimulate income-producing activities, build assets, stabilise consumption, and protect against risks. In Cambodia, the microfinance sector has grown at a rapid pace over the last two decades leading to a significant increase in the delivery of financial services to the rural poor. While microfinance is designed to alleviate poverty and enhance economic development, increased competition between microfinance institutions (MFIs), many of which have a growing focus on profits, has led many to claim that the industry is suffering from ‘mission drift’. In particular, as the sector has struggled to expand the outreach of high-quality financial services, mic...