Views from the Field on Microfinance and the Financial Crisis

CGAP held a virtual conference on the impact of the financial crisis on microfinance on November 18-20. Participation was exceptional - over 600 managers of MFIs and other experts contributed to the discussion. You can now read a summary of the results (Hat tip: Paulina Ibarra). And make sure to check out much more on CGAP's recently revamped Microfinance Blog! Here's a short excerpt from the summary:

The most immediate concern is how the global liquidity contraction will affect the cost and availability of funding to non-deposit taking MFIs. Money from both domestic and international banks is tighter, slower, more conservative and more expensive. Anecodotal evidence cites rate increases from 1% to 4% in Latin America and South and Central Asia, with some banks pulling out altogether. MFIs are anxious about meeting refinancing needs when loans from foreign banks and MIVs come due in 2009.