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. A large exposure to AP with its abysmal repayment rates is an existential crisis for MFIs in India. Losses in AP will overwhelm many institutions' equity cushion.
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