The New York Times and Wall Street Journal are reporting on the impending implosion of microfinance in India, particularly in the state of Andhra Pradesh where subprime microlending has caused, or so it is alleged, a measure of microloan debt bondage, debt-induced suicides and rich profits for international investors, mostly Americans. Legislative-policy-by-press-release is in the works.
As reported in The Economist, the facts belie the hysteria. Contrary to the charge of microfinance over-indebtedness, only 11 percent of Andhra Pradesh residents have a microloan while a whopping 82 percent borrow from family, friends and loan sharks.
See full Article.
Posts
