Publication Date: 2006
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The surge in new investment funds - nearly 60 funds at last count - is an exciting sign that microfinance is attracting mainstream financial markets. Foreign investors bridge a crucial gap for MFIs and greenfield banks not yet able to attract deposits, debt or equity from local sources. Recognizing the ultimate goal of building those local financial markets that serve the poor, some foreign investors and funds are facilitating local intermediation with incentives like guarantees for local banks to lend to MFIs in local currency. Such contributions to local market building, combined with strengthening governance, increasing transparency and rigor make the new funds potentially very positive forces in microfinance.
Subject: Business and Economics, Development Finance, Economic Growth, Finance, Financial Sector Development, Financing, Funds, Investment, Micro and Small Enterprise Finance, Microfinance Investment Funds, capital markets, development, growth, microfinance, sustainability