The Foundation publishes Letter #35

The Grameen Credit Agricole Foundation is publishing its Letter #35, marked by the coronavirus crisis, which continues to spread and intensify. The Foundation, in constant contact with its network of 75 partner microfinance institutions (MFIs) present in nearly 40 countries, has been gathering information, analyzing it, and sharing its observations since the beginning of March. This information is very important. It allows us, at our level, to make the most relevant decisions for the management of the Foundation, to support our partners, and to ensure the effectiveness of our action, as closely as possible to their difficulties and anticipations.

The economic crisis is shaping up to be very severe, undoubtedly beyond our initial forecasts from early March, but institutions are preparing to face its effects. No stress model had anticipated this. The response will therefore also have to be systemic if we are to avoid a major failure of this industry.

To this end, donors are organizing their actions by adapting financing plans but also by offering monitoring tools, technical assistance plans, and training to strengthen the capacities of MFI teams to cope with this sudden and exceptional situation. All of these elements underline the extent to which this crisis concerns all microfinance stakeholders. The involvement and rigor of local institutions, the coordination of international networks, the support of public and private donors, and the confidence of investors will be the key values of our collective ability to overcome the challenge posed by this health tsunami.

Download Letter #35 here.