The Microfinance Contagion Scenario
Harvard Business Review
JUNE 10, 2011
So far, the Andhra Pradesh (AP) microfinance crisis has largely been viewed as a local issue, with relatively little impact beyond AP or India's borders. That's not to say it's likely, but it is certainly possible and a threat that social investors of all stripes should be thinking about how to defuse. Although the situation in AP remains fluid, one thing hasn't changed over the last few months: repayment rates have fallen to about 10%.