|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    20th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Investment News feed Investment News

All Financial News feed All Financial News

Nobel laureate warns against microfinance loan sharks

Bookmark and Share

by David Masters
Nobel laureate warns against microfinance loan sharks

Investors looking to profit from microfinance are no better than loan sharks, a pioneer of the industry has claimed.

Nobel laureate Muhammad Yunus said he is concerned that investment funds are viewing microfinance as a way to make a profit.

“Poor people should not be presented as an opportunity to make money,” said the Bangladeshi economist.

“We started out with the idea of getting loan sharks out of people’s lives.

“Now microfinance institutions are getting into the loan-sharking business.

“If you’re making money out of poor people, then you’re loan-sharking.”

Yunus, who was awarded the Nobel Peace Prize in 2006 for his lifetime’s work in making financial services available to poor people, made the remarks in response to a rising trend for microfinance providers to raise funds by selling shares to investors.

Yunus is particularly critical of India-based provider SKS Microfinance, which recently announced plans to raise $250 million through an initial public offering (IPO).

Earlier this week, Yunus told Sky News that social enterprise is about “addressing problems rather than making money.”

“Conventional business is all about making money,” he said.

“[Social enterprise] is a cause-driven business where you don’t want to make any money at all.”

Discuss this in the Finance Markets forums

Story link: Nobel laureate warns against microfinance loan sharks

News posted: June 4, 2010

Financial Services:

Related financial stories to: Nobel laureate warns against microfinance loan sharks:
Previous: «
Next: »

Visited 3869 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , ,