Use of donor funds in the financing of MFIs

Marek Hudon

No 07-020.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: This paper focuses on the use of donor funds to finance MFIs. The role of donors in microfinance is rapidly evolving, particularly since the emergence of socially responsible and commercial investors. We argue that public policy should be designed to facilitate the entry of new private actors without abandoning the markets that could not work without some public support. Through a separation of socially-responsible investors from fully commercial ones, we come up to an original classification of the different funding sources and the actors and their potential market in the sector.

Keywords: microfinance; public policy; subsidies; donors (search for similar items in EconPapers)
JEL-codes: L31 M54 O16 Q14 (search for similar items in EconPapers)
Pages: 25 p.
Date: 2007-07
New Economics Papers: this item is included in nep-mfd
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Citations: View citations in EconPapers (3)

Published by: Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB)

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