Gubert, Flore; Fafchamps, Marcel - Université Paris-Dauphine (Paris IX) - 2007
institutional features. First, most informal debt carries no interest. Second, for all debts, repayment is postponed in case of a … borrower’s difficulty; this is the only insurance feature of debt repayment. Third, while debt principal is seldom forgiven or … reduced, interest‐bearing debt does not carry additional interest if debt repayment is delayed. This prevents interest charges …