This note summarizes the results of a recently completed IDB survey of microfinance in the region. The survey includes information on microfinance activities in 25 countries as well as an initial review of effective interest rates charged to microfinance clients.

This note summarizes the results of a recently completed IDB survey of microfinance in the region. The survey includes information on microfinance activities in 25 countries as well as an initial review of effective interest rates charged to microfinance clients.

Esta nota resume los resultados de una reciente investigación sobre microfinanzas realizada por el BID. Incluye información acerca de las actividades de microfinanzas en 25 países1, así como una revisión inicial de las tasas de interés efectivas cobradas a los clientes de este sector.

Esta nota resume los resultados de una reciente investigación sobre microfinanzas realizada por el BID. Incluye información acerca de las actividades de microfinanzas en 25 países1, así como una revisión inicial de las tasas de interés efectivas cobradas a los clientes de este sector.

In this paper, we examine the contract design problem of banks that extend loans to poor borrowers and seek to maximize outreach while remaining financially sustainable. A dynamic model is developed that shows how interest rates can be determined based on information about productivity and...