Lessons from a microfinance recapitalisation programme.
Following a major disaster, microfinance institutions (MFIs) often face high levels of bad debt, which may require the institutions to be recapitalised. This paper describes a recapitalisation programme implemented by the SANASA movement of Sri Lanka in 390 microfinance societies following the December 2004 tsunami, and highlights lessons for other similar programmes. MFI recapitalisation is a good use of funds in post-disaster situations. To create successful programmes, donors should expect to relax some of their usual project requirements and MFIs should focus on maintaining credit discipline.
Poston
Angus
A
United Kingdom. gus.poston@gmail.com
D004190:Disasters / Q000191:economics*; D005376:Financial Management / Q000379:methods*; D006801:Humans; D019982:Organizational Case Studies; D012066:Relief Work / Q000191:economics*; D013188:Sri Lanka; D055871:Tidal Waves / Q000191:economics*