Australian Development Gateway

The Australian Development Gateway (ADG) strives to support members of the development community in their efforts to reduce poverty and enhance sustainable development in the Asia Pacific region. The site has been created with participation from members of government, private, academia and non-government organisations. User feedback mechanisms have been incorporated to guide future directions of the site. The site is optimised for low bandwidth access to enable the widest participation throughout the Asia Pacific region.

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Interest Rates

Interest rate ceilings and microfinance - the story so far (pdf 312kb)

This paper outlines the rationale for high microfinance interest rates, the historical performance of subsidised lending, and the impact of interest rate ceilings on microfinance clients.

It includes recommendations for fostering lower microfinance interest rates through competition and consumer protection without imposing interest rate ceilings.

 

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