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Repayment of Old Loans through New Loans. Is "Cross-Financing" a Problem for the Grameen Bank?

Ask, Karin; Wiig, Arne; Sigvaldsen, Erland
Research report
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R 1997. 5. Karin A, Arne W...-07092007_1.pdf (3.222Mb)
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http://hdl.handle.net/11250/2435861
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1997
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  • Bora-import [434]
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The study analyses the problem and extent of cross-financing in the Grameen Bank system. The main finding is that cross-financing is rarely a problem. However, survey data indicate that long term borrowers, who generally have the highest loan portfolios, turn into irregular borrowers. The study was funded by NORAD.

Karin Ask is a social anthropologist and research fellow with the Chr. Michelsen Institute

Dr. Arne Wiig is an economist and research fellow with the Chr. Michelsen Institute.

Erland Sigvaldsen is a banking consultant with the Nordic Consulting Group.
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Chr. Michelsen Institute
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Research report
R 1997: 5

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