Microfinance News Digest

Malegam Committee to cap Interest Rates – Spandana Microfinance facing Bankruptcy ?

The Malegam committee, set up by the Reserve Bank of India (RBI) to chalk out a framework within which microfinance institutions (MFIs) in India should operate, is set to recommend an upper ceiling for interest rates chargeable to poor borrowers, two persons familiar with the development said. Read more on Mint

Microfinance Crisis: MFIs with sizeable presence in Andhra Pradesh on the brink of closure

This is it. We have cash till the end of February or early March. If collections do not pick up by then, we will have to shut down.” This doomsday scenario is prophesied by Shiv Narain, chief financial officer of Spandana Sphoorty Financial, India’s second largest microfinance institution. Read more on Times of India

Update : 17/01/2011 – Spandana Microfinance Clarifies that is not facing liquidity crisis

Bangladesh Government to Probe Grameen Bank

Bangladesh’s government said it would probe Grameen Bank for possible misappropriation of aid funds, more than a month after a documentary film alleged that the microfinance provider illegally diverted funds in the 1990s. Read more on Wall Street Journal

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