microcredit

MScoleman at aol.com MScoleman at aol.com
Tue Aug 11 16:12:11 PDT 1998


In a message dated 98-08-11 16:33:35 EDT, doug reprints the following information on microcredit in Haiti:

<< Lending to women entrepreneurs, prime recipients of

>microcredit, will indirectly help improve the education, health, and

>nutrition of families. Feminists in Economics, especially development economics, and anthropology have been saying for years that increases in women's incomes increases the well being of families at a greater rate than increases in men's incomes because women's incomes go to family welfare at a greater rate. I don't have references off the top of my head, but I believe some of this can be found in the works of Amartya Sen and Lourdes Beneria. Unionizing and increasing wages to women has exactly this effect....................

> months to one year. MCN interest rates will be above prime, reflecting

>the higher risks and administrative cost of microlending, but much lower

>than the rates charged by other financial institutions. By the end of its

>third year of operation, MCN expects to have a loan portfolio of $3.6

>million with 11,000 loans.

>

>MCN plans to open additional offices in Cap Haitien, Jacmel, and other

>cities, eventually expanding to rural areas. In five years, MCN

>anticipates employing 60 loan officers in six locations.

Basically, MCN will be taking business away from the local poverty banking structure (more commonly known in the usa as loan sharks) and getting a higher than market average return for its investment. The "risks" which justify higher than market rate loans have proven to be very very small, with microcredit borrowers paying back loans at a higher than average rate. Nice way to rake in the cash under the guise of helping people

maggie coleman mscoleman at aol.com



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