European Microfinance Platform urges for rational response to Indian crisis
At the European Microfinance Week 2010, held in Luxembourg this week, the future of the microfinance sector was discussed taking into account the backlash of the Indian Andhra Pradesh crisis. 382 participants, representing 285 organisations (NGOs, banks, investors, researchers and development institutions) voiced their confidence in the future of microfinance, highlighting that the majority of microfinance institutions continue to practice responsible lending, contributing to financial inclusion and achieving the Millenium Development Goals.
The emergence of an over-indebtedness bubble that caused the crisis in Andhra Pradesh rightfully caused a stir of alarm within the microfinance sector. Yet microfinance actors emphasise the multi-dimensional nature of the situation which led to the tragic events and proposed alternative solutions to the inadequate regulation currently being enforced.