General Risk Policy
Risks are shared between the investor and microfinance institutions as follows:
- If a strategy implies a buyback guarantee, the risk of default is assumed by the microfinance organization at the expense of the reserve fund
- If a strategy does not imply a buyback guarantee, default risks are shared between the investor and the microfinance institution in the form of a variable interest rate
- The microfinance organization bears risks of currency exchange rate changes under the current strategies