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. But as information trickles out about how bad the repayment situation in AP is, a plausible global contagion scenario is emerging. A large exposure to AP with its abysmal repayment rates is an existential crisis for MFIs in India.