The report shows how the microfinance industry in Latin America and the Caribbean in 2008 continued to grow though at a diminished rate. The credit portfolio expanded by about 13.937 billion USD but growth slowed to an annual rate of 13.6 percent after experiencing growth of 37.1 percent in 2007. In terms of reach, the industry comprised 12.9 million loans, which grew 14.1 percent in 2008, less than the 22 percent growth reported in 2007. The economic slowdown (clients demanded less credit), overindebtedness (clients could not continue to pay creditors) and the financial crisis (restrictions and cancelations on lines of credit throughout the region) were the primary reasons for the diminished growth as average outstanding balances remained static in 2008. In certain markets, state interventions into the financial sector are already creating negative blowback against the microfinance industry.