Resilient Microfinance Industry Signals Path Toward Cautious, Gradual Recovery

To help fill the void of publicly available data on how COVID-19 is impacting the microfinance sector, CGAP and Symbiotics – a leading microfinance investment vehicle – have partnered to analyze data on the performance of the more than 300 microfinance institutions (MFIs) in Symbiotics global portfolio. This snapshot is the fourth in the series, Snapshots: MFIs During the COVID-19 Crisis.

The microfinance sector remains resilient and on its way to a cautious and gradual recovery, but the pace depends on type of institution, region, and capital buffers. Portfolio at risk and loans under moratorium continued to decline at the end of 2020. Portfolios grew, but borrower growth is stagnant or in decline. A survey in Latin America reveals MFIs there may face significant impacts if restructured loans underperform.

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