Private Enterprise and Financial Markets > Micro, Small and Medium Enterprise
Micro Enterprise, Development Review Vol.8 No.1
By SDS/MSM (06/05, En, Es)
A decade ago the specialized rating of microfinance institutions (MFIs) was hardly more than an idea. Theoretically, the goal of specialized rating was to create an enabling market mechanism that would reduce information asymmetries, help bring perceived risks in line with actual risks, and increase capital flows to the emerging microfinance sector. The concept grew. Today, in Latin America only there have already been over a hundred ratings, whereas regulators and investors are increasingly paying attention to this product. Todd Farrington, General Manager for Latin America at MicroRate explains in this article, why has specialized rating for microfinance come to be; how it has developed to where it is today, and finally, he gives some insights on how it might evolve in the future.
In the second article, Nidia Hidalgo Celerié and Pedro Valdéz, independent consultants for PlaNet Finance Mexico, provide an overview of microinsurance schemes in Latin America. They start by explaining the role of microinsurance as an alternative for reducing the vulnerability of low income people, and they present evidence on demand for different types of microinsurance products in the region. Finally, they describe some schemes that are currently being implemented in Latin America and make recommendations on the opportunities and challenges to achieve success in implementing microinsurance schemes through the participation of MFIs.
Last updated: 06/13/07
