How Should MFIs Best Fund Themselves?
By Felipe Portocarrero Maisch, Alvaro Tarazona Soria, Glenn Westley (09/05, MSM-130, En, Es) See also Microenterprise
Microfinance institutions face a choice of several alternatives when deciding how best to fund themselves: issue stock, issue bonds, obtain commercial or concessionary loans, and mobilize savings. This paper explores the trends in usage, costs, and relative merits of each alternative method of finance, how best to combine them, and what are the best practices associated with using each.
Permission is granted to reproduce this paper in whole or in part for noncommercial purposes only and with proper attribution to the author(s), the Sustainable Development Department, and the Inter-American Development Bank.
The opinions expressed herein are those of the author(s) and do not necessarily represent the official position of the Inter-American Development Bank.
Last updated: 05/08/07
