How can MFIs reduce interest rates whilst ensuring their sustainability?
The interest rates in microfinance (portfolios) are usually higher than those in the traditional banks. This can sometimes seem surprising and can raise questions or mistrust towards the sector. How are these rates calculated and how can we explain these figures?
MFIs financial sustainability is essential to ensure long-term services to a large scale of clients. Interest rates are also behind this sustainability. What are the solutions to reduce these rates and yet still ensure real support to the final beneficiary, which is the core added value of microfinance?
Although the interest rates strongly depends on economic variables at national level, this highly controversial question encourages to reflect on how MFIs could minimize their costs while improving their productivity, control expenditure and better respond to customer demand.
During this Midi, the audience will have the chance to hear and interact with experts coming both from the regulatory and the MFI sectors, from Africa and Latin America.
The speakers will as well provide several best practices to protect clients.
- 11.50: Admission to the event
- 12.00: Welcome remarks – Banque de Luxembourg (TBC)
- 12.05: Discussion on interest rates, customer protection and sustainable development of MFIs:
- Rosa Pasos, Executive Member of the National Microfinance Commission (Conami) – Nicaragua
- Isso-Takou Soulémane Djobo – Senior Project Officer, ADA – Luxembourg
Moderator: Dr. Veronica Trujillo Tejada, Financial Sector Development Consultant, World Bank – CGAP, Washington, USA
- 12.35: Questions and answers with the audience
- 12.55: Closing remarks – Prof. Dirk Zetsche, Holder of the ADA Chair, Faculty of Law, Economics and Finance at the University of Luxembourg
- 13.00: Cocktail lunch
Please register on the dedicated Website.
The conference will take place in English.
Participation in this 42nd Midi is free, but registration is compulsory.