Banks denying loans to MFIs, even for amounts sanctioned

While the denial of liquidity support from banks has already made life difficult for the MFIs, the refusal of even sanctioned loans is further crippling them. This could result in lower on-lending to end-borrowers leading to a surge in defaults by them, even after the moratorium is lifted. Many of the businesses dependent on MFIs can’t survive without the money flow.

from Banking/Finance-Industry-Economic Times https://ift.tt/2L8ZZHT