http://www.nextbillion.net/blogs/2006/09/21/microfinance-regulation-two-countries-show-what-works-and-what-doesnt Comments for "Microfinance Regulation: Two Countries Show What Works and What Doesn't" en http://www.nextbillion.net/blogs/2006/09/21/microfinance-regulation-two-countries-show-what-works-and-what-doesnt <img src="http://www.uncdf.org/english/news_and_events/newsfiles/images/2005malawi.jpg" border="0" alt="Microfinance Lender" title="Microfinance Lender" width="130" height="195" align="left" />Uganda and India have further institutionalized the growing political popularity of microfinance by attempting to regulate it.  A closer look shows how government intervention can facilitate or hinder the growth of these programs.  <br /> <br /> Uganda’s government has chosen to simply <a href="/newsroom/2006/09/21/uganda-to-cap-microfinance-interest-rates">limit the interest rate</a> creditors can charge to keep up with inflation.  This effectively kills any profit motive that might have existed in a financial sector where it is already difficult to convince lenders to give out loans with high fixed costs and low yields.  <br /><br class="clear" /><p><a href="http://www.nextbillion.net/blogs/2006/09/21/microfinance-regulation-two-countries-show-what-works-and-what-doesnt">read more</a></p> http://www.nextbillion.net/blogs/2006/09/21/microfinance-regulation-two-countries-show-what-works-and-what-doesnt#comment Microfinance The Policy Agenda Thu, 21 Sep 2006 13:01:34 -0400 Derek Newberry 3373 at http://www.nextbillion.net