In this video Richard Rosenberg, consultant to CGAP, discusses the interest rate debate in the microfinance sector and what role it played in Compartamos Bank Mexico controversy – one of the leading MFI in Latin America. He also explained the institutional arrangement of Compartamos that governed the money flow. Explaining further, Richard says the political and general view on interest rate makes microfinance institutions vulnerable to fixing higher interest rates. Sharing the events in India where microfinance managers were publically criticised over interest rates, Richard says interest rates is a sensitive subject when it comes to microcredit.

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