The default rate for Pakistan’s microfinance institutions (MFIs) stands at two percent, while non-performing loans of commercial banks is at 12.2 percent, according to an article in Pakistan’s daily The News International. Mr Nadeem Hussain, Chief Executive Officer of Tameer Microfinance Bank, said that even during the economic downturn, microcredit borrowers have managed to “keep themselves afloat.”
Nevertheless, MFIs in Pakistan are facing liquidity issues due to their inability to generate seed money, according to the article. Microfinance practitioners attribute this in part to a double-digit rise in inflation, which has made it difficult to gather micro-deposits.
By Stefanie Rubin, Research Associate
About Tameer Microfinance Bank Limited:
Tameer Microfinance Bank Limited is a licensed commercial bank in Pakistan that provides microfinance services such as small business loans, group loans, emergency loans, micro mortgages, microinsurance, savings, deposits, and money transfer. The majority of Tameer is owned by Telenor Pakistan, a subsidiary of the Norwegian mobile communications company, Telenor. It was founded in 2005 and is based in Shahrah-e-Faisal.
Additional Resources:
Source Article: The News International: “Microfinance Banks Aggressive Lenders Even in Hard Times,” http://thenews.jang.com.pk/daily_detail.asp?id=232406
MicroCapital Universe: Tameer Microfinance Bank Limited: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tameer+Microfinance+Bank
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