Microfinance Faces Debt Test in Brazil

by , NextBillion.net - Development Through Enterprise - Microfinance on Jul 30, 2007

In the shantytowns that surround Brazil's cities, plenty of peddlers and vendors say they could use a small loan.

The trouble for microfinance lenders -- who believe loans as small as $50 can help poor entrepreneurs grow business and climb out of poverty -- is that many would-be borrowers in South America's largest economy are already loaded with debt.