Governments Give Credit

August 8, 2008    

Recent headlines show an increasing trend of government funding for retail microfinance. Where, how and why are governments getting so involved? 

To investigate this trend, CGAP conducted a small study in early 2008. This study focused on government-sponsored initiatives destined for retail microfinance funded through national budget resources, rather than development aid from donor countries. The review combined desk research with interviews of 18 regional experts from donor agencies, networks and independent consultants. Self-reported data on government-funded programs around the globe was also collected. The results confirmed that governments are a substantial source of funding in microfinance, possibly at levels equal to or much higher than other sources such as developed country donors.

Read the full study.