Reforming Cameroon's Government Credit Program: Effects on Liquidity Management by Small Farm Borrowers

Francois Kamajou and C. B. Baker

American Journal of Agricultural Economics, 1980, vol. 62, issue 4, 709-718

Abstract: Higher interest rates and credit limits as well as modified lending practices have been proposed to improve the performance of credit programs for small farmers in developing countries. Models based on Cameroon field data are used to generate results from such reform proposals. The results suggest that small farmer benefits could be increased by increasing credit limits and flexibility in the use of loan proceeds, while reducing default rates and expanding program outreach.

Date: 1980
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